The parent company of Facebook, loses its CEO in crypto.
David Marcus, Head of Meta Digital Wallet (Ticker: FB), announced the
He plans to leave the company at the end of 2021. Marcus said his “leading DNA” was pushing him to leave. He will be replaced by Mita’s CEO Stephen Kesrel.
Mark Zuckerberg, CEO of Meta, wrote about Marcus .’s Facebook page.
Marcus led Novi, the company’s digital wallet and payment system Launched in October. It is designed for international money transfers, initially using a stable currency called Pax Dollar (USDP), a cryptocurrency pegged to the US dollar. Meta says it plans to integrate Novi into the Messenger and WhatsApp platforms soon.
Novi is just one part of the Meta Cryptocurrency strategy. The other big one is Diem, which is a stablecoin in development with a handful of other companies, including
Deem, formerly known as Libra, has been slow to launch. The Deem Association works with banking regulators in the United States and abroad to win approval for its token. Represented Marcus Meta on the board of directors of the Dime Society and met with Biden administration officials about the digital token In September, according to a The Washington Post report.
However, Diem appears to be stuck with the regulators. The association works with
(SI) to issue US dollar tokens, in partnership with its federally accredited bank, Silvergate Bank. But Treasury officials appear to be cautious, expressing concern that the Dim token could undermine the stability of the financial system, according to the newspaper.
Marcus was a major advocate of cryptography in the Meta. He testified before the Senate in 2019, making the case for Libra (which was to be backed by a basket of notes). Just a few days ago, he delivered Bitcoin, noting on Twitter that with inflation at 6.25%, $100,000 today would reach $54,800 in 10 years.
“Double is a mighty force,” Tweeted. “Satoshi has [popcorn] Somewhere now,” referring to the anonymous Bitcoin inventor, Satoshi Nakamoto.
Mita has lost two other co-CEOs to Novi and Diem over the past 18 months. The company is also grappling with an employee backlash against some of its business practices, after malicious testimony and documents from Congress were leaked by Whistleblower Frances Hogan.
Some analysts view Marcus’ departure as a sign that Meta may have trouble retaining top talent at a critical juncture. The company is now pivoting toward the “metaverse,” a new virtual reality world for commerce, social networking and gaming, with the goal of shifting the company’s strategy from its core social media platform, Facebook.
Analyst Needham said: “My gut feeling is that Mark is now focusing on the real meaning, which is bigger than digital payments Laura Martin in an interview. “He started out on the coin side, but he’s going to spend $10 billion on the metaverse, which isn’t just payments. It’s not good that he’s losing people, and it’s more expensive to hire now.”
Martin earned a Hold rating on the stock, in part due to concerns about the high cost of the metaverse initiative.
A Meta spokesperson declined to comment referring Baron to Marcus Twitter feed.
Meta shares fell 3.3% to $326.87 in recent trading, versus a 1.4% drop in
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