The Lesson Of Facebook's DIEM

By now most everyone heard the DIEM project was sold by Facebook. This was originally named the LINRA project. When it was introduced, it sent shockwaves throughout the entire cryptocurrency world.

It also alerted the regulators, politicians, and other entities that cryptocurrency was something serious. In other words, it was a threat to their way of life.

After putting the world on notice with a massive (and public) introduction, the sale of DIEM went out with a whimper.

So what happened over the last couple years?

Uncovering that is the lesson for anyone involved in cryptocurrency.

Silence Is Not Golden

There is an old saying that "Silence is Golden". In this instance it is the exact opposite.

For much of the past couple years, Facebook was silent about what was taking place with the DIEM project. While that is not completely unusual for a private company, it is something to pay attention to if one is investing or getting involved in cryptocurrency.

Some corporations are notoriously quiet. Apple, for example, is known for its secrecy. This is a strategic approach the company opts to utilize. Tesla, on the other hand, led by Elon Musk, sends out emails knowing they are going to be "leaked" to the public.

When it comes to cryptocurrency and the associated projects, however, silence usually means death, or at least being on life support. Projects going quiet is never a good sign.

One of the keys to success is ongoing development. This is something that separates those who are moving forward as compared to the ones that become distant memories.

Keep in mind the ICO craze was filled with dozens of projects filled with great ideas. Like LIBRA, they were going to change everything. Also similar, most of them are gone.

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Incremental Progress Is Still Progress

It can be painful watching things happening on a daily basis. This is akin to watching grass grow. Rarely do we get an update that is "earth-shattering". Most are barely noticeable.

Such is the nature of development.

However, without development, progress is sunk. That is the first concept. We are dealing with technology. Hence, someone has to be banging away at a keyboard to move things forward. As long as that is happening, there is a chance at success.

We also can get discouraged by slow user growth. Here again, we need to follow the same path. Certainly all involved want millions of people signing up to an application each month. So far, that is not the case. Nevertheless, that does not mean things are stalled out.

Incremental progress is still growth. That means that growth, even creeping along, is growth. A 10% rate is not very impressive yet it does show forward advancement.

Naturally, for start up projects, which cryptocurrency still is, a much higher growth rate is needed. The point is that sometimes all the trudging along is what ends up creating the environment where the major explosion happens.

Slowly. Slowly. Then Quickly.

Be Grateful For Updates

Updates are something to be grateful for. Many seem to complain when "deadlines" are missed. Delays are a part of life, especially when coding is involved. Anyone doing this knows that most of the bugs come to life when the update goes live. That is when things tend to crash.

Even getting to that point can be a monumental task. The amount of work that sometimes goes into repairing what is broken can be astonishing. To say this is more art than science is an understatement.

Communication is always key. How often did we see something in cryptocurrency come out with great fanfare and, then, nothing? This is par for the course.

A good rule of thumb is when a project team is not saying anything, that means they probably have nothing to say. And that is not a good thing.

When teams are communicating, even announcing delays, they are still updating those involved. Delays are not always death. Unless a team is misleading (lying), delays often turn into results. It is true the timeframe is longer than expected but the day does arrive.

The DIEM project took the exact opposite approach. A lack of communication was a sign of little progress. While work might have been done, few were even following. It is not a great surprise that the project was quietly sold.

Over the last few years, there were few updates by Facebook. For someone so public as Zuckerberg, this is a sign. While he is not as "out front" as Musk, he is rather open about what the company is working on. With DIEM, little was said.

No news is not good news.

Put Up Or Shut Up

Of course, there needs to be a point where the communication is backed up with results. We know there are some who take the opposite approach: they are communicating like crazy yet never delivering.

We live in a results driven world. Ultimately, something concrete needs delivering. People will only go on promise for so long.

Here is another barometer people need to use. The above section is also pertinent. Updates, no matter how small, are progress. It is delivering, at least in part, upon what was promised. As long as this continues, those involved can feel confident about what is taking place.

Those projects that do regular updates or AMAs are ones that are worthy of attention. Many of us follows a few that are like that. Each week or two, they get together for a call that is usually recorded and available for playback. After all, with today's technology that is not very difficult.

If that is not undertaken, at least put up a quick video or blog post about what is taking place. This does not have to be done daily but every week or two is not too much to ask.

This is something that helps to attract people. The incremental growth is often a result of communication of this sort. Again, it will not pull in millions of people yet can serve to keep the existing ones engaged. Here we see a step that enables people to confidently share what they are involved with.

Facebook failed on all ends with this. Certainly, because of its size and name, success could have resulted by taking a different path. However, the natural inclination that silence meant little was happening certainly applies.

There is no great shame in failed projects. That is the norm in the technology world. A lot of great ideas are shelved for a variety of reasons. Often, things simply are not possible at a particular moment in time.

Nevertheless, as individuals who get involved with different ones, we need to avoid spending our time and money with that which is not going to work out. Yes, we should accept that failure is part of what takes place but it is also something to minimize.

If a project you are involved with is behaving similar to Facebook with DIEM, perhaps it is time to re-evaluate. There is a tremendous lesson in here.

Those projects that are not saying what is happening are usually doing so because nothing is really happening.

In the end, this could be a major problem.


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43 comments
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That's news to me. I am still crypto-hesitant since I like the tangible over the intangible.

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And yet you write those words in an intangible realm.

Why didnt you put it down on a piece of paper?

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I actually do write on paper. It’s the best way to brainstorm and write creatively for me.

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pixresteemer_incognito_angel_mini.png
Bang, I did it again... I just rehived your post!
Week 92 of my contest just started...you can now check the winners of the previous week!
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(Edited)

I think you mean the LIBRA project. Am I right on that and there is a typo saying: LINRA?

Edit: Oh it must be a typo because further down I see you use Libra. I thought maybe there was a project that I had missed or something! 🤠

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Nevertheless, as individuals who get involved with different ones, we need to avoid spending our time and money with that which is not going to work out. Yes, we should accept that failure is part of what takes place but it is also something to minimize.

Yeah failure is part of the game is always advisable to watch out on any projects you are into once there's no more news or updates about that particular project I think is a sign for us. Thank you for this article.

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Yeah we must be careful of what is out there. In addition to all the scams/rug pulls, there is the simple fact that a large percentage of the stuff people intend to do cannot be completed.

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Exactly that's why is always good to read and make extra research on any projects before going into any projects

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Another reason to only invest in as many projects as you're actually interested in and can and will follow.

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That's right the fewer the projects are the more you can do the follow up.

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That is true. Those who follow my stuff know that I believe in 4 or 5 projects as a core. This is manageable for most people.

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We didn't know about what the project DIEM is, also where it stemmed from.

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Facebook wasn't entirely silent. They flapped their gums at the start of the project that their stablecoin would be pegged to the US dollar, but would be regulated out of Switzerland.

If it was pegged against the Swiss franc, or against a basket of currencies, they'd have been fine. But they enraged the Americans by trying to have a dollar based coin outside their jurisdiction - and they put pressure on the Swiss and other partners to kill it.

Sometimes the only thing worse than silence is saying the wrong thing.

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Certainly they were not silent when the project was introduced and during the first blowback, but they did not state much publicly over the last couple years.

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Wasn't Facebook facing a bunch of pressure from the governments regarding it? I would guess the problem lied there instead of the development but I guess development might of been the issue. I agree that delays are better than no updates at all.

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Yes they were. The blowback was immediate and swift. The company probably did not anticipate that. It did put the regulators and politicians on guard though.

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Maybe at a time Meta were accumulating too much projects and they are earning less money each year.

Maybe they were more working on their metaverse than Diem.

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We know more about #projectblank than we did from Libra. Khal always keep saying SOON 😂😂😂

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At least Khal keeps mentioning it and showing up. Plus they do roll out some stuff in the meantime.

So there is a greater level of trust in my opinion.

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Facebook has added new feature and it is interesting to see which direction is crypto is heading towards. Every time I come here, I find new and important things to learn and think.
Thanks for this insightful thoughts. You really write good things.,👍

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Trying to spread information about what is happening on Hive and within cryptocurrency.

It is how we all can be excited about what is taking place.

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Yeah,you are doing pretty well,friend.
Go a long way, best wishes with you.. 🙂💗

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On a different note, it is incredible to see how this tech giant is fighting a series of failure. It will be interesting to see how or if they pivot to take a positive turn.

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Some believe the end of Facebook is approaching us. Users are finicky and something like TikTok could really cause a lot of damage.

Of course, we are all hoping Web 3.0 adds another layer of pain to the likes of FB.

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End of facebook as the superstar company we know of is definitely coming. I don't think how we would treat the other products from the parent company though. Whatsapp and Instagram have their own cult following. The company could end up being the second best to a new shiny app like TikTok. With Web 3.0 I suspect it would be the conversation around censorship and morality of views presented in platforms. Let's see.

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Perhaps they were silent in order to stall the growth of crypto?... They were, after all, banning crypto ads and all that.

Maybe they knew it was the next new hot thing, but once they figured they were too big to enter(I thought I read somewhere that they would have the most used currency because of their user base) they had to fold it somehow. Or just perhaps focusing on the meta, who knows. I think a lpt of the web 3 folk are happy not to have a reason to log back on😎🤑

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I think they saw the opportunity and were ready to go for it. The backlash from governments might have caught them off guard.

Facebook is facing regulatory scrutiny as it is. So they are not likely to want to add more tot he mix.

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That's impressive how much a company like that can fail a project that big.
They wanted to become the biggest bank in the world and earn billions for that and they just gave up.

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I think the fact they got attacked on so many fronts caused them to realize they didnt want to risk the rest of their business.

Facebook is being hammered, especially in Europe. So the idea of taking on the regulators over something else might have been too much.

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They are really not turning good. They are having so much trouble from so many sides :')

I'm not really sure about the success about their Metaverse :') And I really hope somebody else will make it better than them :')

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I am happy with the fact that Facebook didn't just fail with Diem. It's is failing continuously and getting scrutinized by its users for abusing their data and even the governments all over the world. Their business model is not going to work long term.

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Yeah well now they can spend more time in support of their core business.

The key will be to see if it continually losses users. We need to start peeling more people away from there.

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