Whenever new cryptocurrencies are introduced, it usually sends the crypto world abuzz with what could potentially be in store. The same can be said for the Diem cryptocurrency, which has been in the works for the past few years and was scheduled for initial release back in 2020.
Learning more about new cryptocurrencies like Diem is the key to making better crypto investments. To learn more about it and what you can expect upon release, refer to the coming sections:
How the Diem cryptocurrency came to be
Back in 2019, the announcement to release Diem was first published by Facebook. Blueprints were released and initial features were disclosed as well. At the time, Diem was still called Libra and was set to launch by January 2020.
The idea of such a popular social platform like Facebook taking part in cryptocurrencies got more people interested. Both beginners and experienced crypto traders wanted to learn more and anticipated each announcement about Libra.
However, there were several problems surrounding the Libra cryptocurrency at the time. It was first introduced as a universal cryptocurrency that could be tied to fiat currencies like Euros and U.S. dollars. The initial plans for Libra created controversy among some regulators, saying that it could be a risk for investors and money laundering.
As a result, the Libra proposal went through a rebranding, releasing a new whitepaper. Facebook was no longer spearheading the project and the coin was renamed, Diem. The Diem Association in Switzerland is a non-profit organization that took the reins and began working with large businesses worldwide to promote Diem as a stablecoin.
Some of these big names include Lyft, Uber, Spotify and Coinbase. Even if Facebook is no longer in charge of the coin, it is still a member of the Diem Association and supports the cryptocurrency in other ways.
After a long rebranding and rebuilding process, Diem is now scheduled for its official release in the latter part of 2021. Its long-awaited launch has traders excited about what it could have in store for the world of cryptocurrencies.
Key features that the Diem coin offers
If you want to know more about the Diem coin and whether or not it’s a good investment, proper research is the key to do so. While the information surrounding Diem as of now is still limited, there are tons of things to know about this long-awaited digital coin.
Check out some of the features that investors know about the Diem cryptocurrency so far:
Diem was rebranded as a stablecoin
After the problems surrounding the initial pitch with Libra, Diem was created as a stablecoin and is designed to be attached to fiat currencies, particularly the U.S. dollar. This means it has a more fixed value and offers more stability for traders.
Some of the other stablecoins in the crypto market like Tether (USDT) and Dai (DAI) are doing exceptionally well. This gives traders the opportunity to expect similar features and trading opportunities for Diem when it’s officially launched.
Diem will cater more to traders in the U.S.
When the Libra coin was announced back in 2019, the idea was for the cryptocurrency to cater to both American and European audiences. Since it was rebranded, the focus was shifted to the U.S. instead. This is because the Diem coin will be backed by Silvergate Bank, which is based in California.
Diem has its own blockchain
Since the Diem coin has not been released, no one knows the specifics of how the process of trading works or what the blockchain offers. However, people do know that Diem will be operating under its own blockchain built with secure features and technology to ensure a safe and fair trading environment.
Investors can expect that transactions with Diem should be smooth and hassle-free thanks to its blockchain technology. Not only is the entire process decentralized, but traders can also enjoy efficient validating processes and accurate recording of transactions.
Diem could offer more efficient security measures
Since Diem will be operating on its own blockchain, this means that all transactions should be better and more efficient. The technology has spent years in the making so all of the trades must be secure. Compared with other stablecoins in the market, Diem should also hold its own when it comes to the security of its transactions.
The fact that Diem is also backed up by fiat currency should also increase its security measures. Silvergate Bank has already talked about its partnership with Diem, saying that it’s an avenue that should ‘transform existing payment systems’.
Diem’s prices could be competitive with other stablecoins in the market
Since Diem is yet to be released this year, no one knows the extent of its price or the overall process of how the Diem network will function. For now, users are comparing it to the prices and performance of other stablecoins in the market.
USDT and DAI, for example, have great track records where prices are not as volatile and traders can expect a more stable crypto trading experience. If Diem is somewhat similar to these prices, then they should be accessible to all investors interested in trading.
Diem already has a huge following since 2019
Ever since the announcement of Libra back in 2019, avid crypto traders have been on the edge of their seats. The idea of a tech giant like Facebook dabbling in digital assets has piqued the interest of many people, even when Libra was rebranded into Diem.
More than 2 years later, Diem is finally set to be released later this 2021. One of its advantages is that the coin already has a huge following that has been building up since 2019. When the launch date finally arrives, who knows how successful the Diem cryptocurrency will be?
Count the days until Diem’s release!
With all of the amazing features surrounding the Diem cryptocurrency, it comes as no surprise that people want to get their hands on it as soon as possible. For now, you can continue doing your personal research about the Diem coin and look forward to its upcoming release this 2021.
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