Meta was responsible for starting the NFT metaverse and gaming revolution. Despite its initial success with blockchain projects, some projects have suffered recently. Meta announced the closure of the Novi money transfer service, which utilized the company’s native crypto digital wallet. This project was also heavily scrutinized by the United States Congress in the past. The complete shutdown of the project comes as a bold step from the company. Novi technology, however, will remain in use for projects like its original universe. The Novi app and Novi on WhatsApp will no longer be available, according to Meta. Users will no longer be able to add funds to their accounts starting July 21. Users are advised to withdraw their balances as soon as possible. Users will not be able to access their transaction history or other data after the test period.
Crypto Crash Impacts Celsius Network & Three Arrows Capital Liquidity, as Libra Launch Struggles With Regulations
Meta launched the Novi pilot last October to dominate the crypto remittance space. In place of Meta’s Diem token, Novi uses Paxos Trust Co.’s USDP stablecoin to allow wallet users in parts of the United States and Guatemala to trade. These funds are secured by Coinbase Global Inc. While testifying before Congress in 2019, Zuckerberg tried to assuage concerns about the company’s launch of Libra without regulatory approval. Meta’s ambitions for Novi are fading, and the crypto market boom is also fading. In addition, Celsius Network and Three Arrows Capital are experiencing liquidity issues.
“We’ve spent years building capabilities for Meta as a whole on the blockchain and launching new products such as digital collections,” Meta said in the statement. “You can expect us to see more in the web3 space as we are very optimistic that these technologies can bring value to people and businesses in the metaverse.”