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A Look at Facebook’s Diem Wallet- Token Sale Accepts 3 Cryptos, Strict KYC, Hefty Data Collection

A Look at Facebook's Diem Wallet- Token Sale Accepts 3 Cryptos, Strict KYC, Hefty Data Collection

During the last two years, there’s been a lot of interest in Facebook’s cryptocurrency diem (formally libra) and rumors of a nearing launch date went viral last November. Now the social media giant is advertising the crypto asset’s pre-sale heavily on the platform, as people can now purchase diem with U.S. dollars and three different cryptocurrencies.

Facebook Is Selling Diem Coins for Bitcoin, Ethereum, and Bitcoin Cash

Facebook is in the midst of the company’s token sale where individuals can invest funds in order to purchase the social media firm’s upcoming cryptocurrency. Last November, news.Bitcoin.com reported on the launch date rumors, and following the discussions, Facebook rebranded “Libra” and called the project “Diem.”

Now the crypto asset was expected to launch in January, but it seems the company is now planning to sell tokens for the next 18 days into February. Facebook has also been advertising the token sale on the social media platform regularly, in order to entice users to get in on the sale.

“We are offering a pre-sale discount for early investors,” the Diem project web portal details. “You can participate in the birth of diem and be one of the first buyers. Buy diem coins now with cryptocurrencies like bitcoin, ethereum, and bitcoin cash.”

In order to give our readers some inside perspective on the token sale, news.Bitcoin.com fired up a wallet from the Diem Association or projectdiem.io web portal. At the time of publication, 18 days until the sale ends a single DIEM is selling on the platform for 0.62 USD. It seems they are using this pre-sale period in order to gradually build the network. One very interesting fact about the Diem pre-sale is the three cryptocurrencies Facebook is willing to accept for the new coin.

Identity Verification and Data Collection

In order to purchase the token, a user needs to leverage either bitcoin (BTC), bitcoin cash (BCH), ethereum (ETH), and they can also pay with U.S. dollars. So an order of 1,000 DIEM today will cost a touch over $600 or roughly 0.019 BTC. The front page of the projectdiem.io also reveals that the company is planning to accept litecoin (LTC) too, although the option doesn’t seem to be available at the time of writing.

The deal sounds ok but people who want to purchase Diem must not only accept the fact that KYC is required, but also Facebook or the projectdiem.io tells the buyer that they “may collect information” on various things the user does.

“We may collect certain information automatically when you use our website, such as your Internet protocol (IP) address, mobile device identifier, browser type, operating system, Internet service provider, pages that you visit before and after using the website, the date and time of your visit, information about the links you click and pages you view within the Website, and other standard server log information,” the Diem terms of service (ToS) agreement states.

After a payment is successful, tokens appear in the wallet and the Diem project administrators stress that people shouldn’t abuse the system. “If we suspect you are abusing this system your account will be suspended,” the projectdiem.io wallet ToS notes. Currently, there is a 5% bonus that will end on February 15, 2021. Of course, the company also wants users to join a referral-program so early Diem participants can pass the information about Diem on to family, friends, and colleagues.

An ERC20-Compliant ‘Permissioned’ Network ‘Backed by a Basket of Currencies and Assets’

Facebook’s Diem team details that people who invite friends and such will get a bonus of “15% of the value of the contribution.” Another interesting thing to note about the Diem wallet is that the wallet address is ERC20-compliant and users are given an Ethereum-based address. “You can receive DIEM tokens to this address,” the wallet description highlights. Projectdiem.io also reveals there will be a “softcap” for 103 days for 30 million and the token “hardcap” will be 100 million.

The Diem network is a permissioned network as transactions are handled and “cryptographically entrusted to the Diem Association.” The association is made up of 27 different entities in the tech industry, telecommunications, nonprofits, and other types of organizations. Essentially, the Diem chain works by leveraging validator nodes like many centralized and permissioned blockchains. Each member of the Diem Association runs a validator node but over time the team hopes the network will build-out in a permissionless manner.

“As the network grows and becomes more self-sustaining, the Diem Association will work to gradually transition to a permissionless mode of operation,” the projectdiem.io page explains.

It is hard to say how this crypto asset will do among the 7,500+ crypto assets currently in existence. Facebook and its subsidiaries (Whatsapp, Instagram, Messenger) capture a massive user base worldwide. During the second quarter of 2020 statista stats indicate that Facebook is the largest social network globally with “2.7 billion monthly active users.” Moreover, the projectdiem.io web portal highlights that diem coin is a reserve-backed cryptocurrency.

“Unlike the majority of cryptocurrencies, diem is fully backed by a reserve of real assets. A basket of currencies and assets will be held in the Diem Reserve for every diem that is created, building trust in its intrinsic value,” the website emphasizes.

What do you think about the Diem project and the token sale? Let us know what you think about this subject in the comments section below.



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