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As it tries to distance itself from the initial controversy, Facebook‘s new “diem“ project gets hit with another lawsuit

As it tries to distance itself from the initial controversy, Facebook‘s new “diem“ project gets hit with another lawsuit

Quick Take

1 minute read

  • Last week, it was officially announced that the Facebook lead crypto project known as Diem (previously known as Libra), has been hit with legal action over its plan for the rebranding.
  • Facebook announced its idea to rebrand the project with the company claiming that this new name would help the network move away from the controversial regulation attacks.

Last week, it was officially announced that the Facebook lead crypto project known as Diem (previously known as Libra), has been hit with legal action over its plan for the rebranding.

On the 1st of December last week, Facebook announced its idea to rebrand the stablecoin project with the company claiming that this new name would help the network move away from the controversial and intense regulation attacks that occurred following its initial announcement in 2019.

Another company in the financial industry, also known as Diem, is the party taking legal action against Facebook due to the name change.

Chris Adelsbach, the co-founder of Diem recently said that he was intimidated by the idea of going into a legal battle with the social media giant but was advised to protect his brand as he said:

“It wouldn’t have taken that much effort for Facebook to find out if there’s another Diem in financial services… They obviously took the view that ‘we can just crush them, we’re Facebook.’”

The chief executive officer of Diem, Geri Cupi went on to say that he was shocked to learn of the Facebook lead project rebranding itself as such. He added:

“As a small startup, we are concerned that customer confusion resulting from Libra’s actions will significantly impact our growth.”

A soft launch for Diem was initiated in October this year and since then has attracted a big following. It will be interesting to see how this lawsuit plays out against Facebook and how the two companies will be able to come to an agreement. Maybe Facebook will need to rebrand that Libra project once more… Third time’s the charm?

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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