Topic: Why are investors pulling out of Libra? (Read 280 times)

You are looking at this question too deeply.In fact, investors just realized that they are dealing with shitcoin which simply has no future.

Big names and companies pulling out assets and interests vested upon Libra is a clear sign that Facebook Inc. hasn't really done a great job pitching and selling their beloved cryptocurrency to everyone. There's just too many scandals and data breaches Facebook had found itself in within the last few years, and I don't think people would even be glad to be a part of this anymore. Same goes to the partners who had pulled out of the partnership as well.

We'll see within the next few months who would be the next to bail out of this partnership. It's already crumbling before the project even comes to fruition.

The exits of partners they are having now shows how Libra is destined to fail in the crypto market aside from Facebook's scrutiny against their data protection for their customers there is also another issue on how several countries have also stated that Libra will not be welcome in their country that is why you will see these companies are pulling out and they don't want to be associated on this project since they will have a bad image from them on these countries who don't want Libra in the first place, their exit shows that they are afraid to face some kind of legal problem against these countries who are not in favor of Libra.

They are just scared of powerful government coming after their already existing and profitable businesses. Libra has been too much opposed by the government and enemies of cryptocurrencies. No one wants to be blacklisted by the world government.

Facebook is still complicated with Libra and always seems to be unable to convince the congress.

but the libra association still claims many investors are still paying attention and can join at the right time. For supporting partners who have already resigned, they also don't want their steps to ultimately affect the company's reputation which affects shareholders, just a kind of protective measure.

Regulatory issues indeed, however, it takes too long as big companies are beginning to lose. So as one started to pulled out their support it will start to continue on till it got no longer supporter. Although facebook has the capability of its own but it doesn't matter in a sense of they cannot lift up their major project due to particular problems.

The potential partners you've listed only withdrew their support for the project once they realized how difficult it would be for Facebook's Libra cryptocurrency project to launch in the US amongst other places due to regulatory hurdles, but once these are overcome it should be a success and bring further adoption of these technologies to the entire market

If the Libra project has been released secretly then that is not good because it has lied to the public with the news that Libra will not be launched in 2020. Investing in Libra before it was released is that convincing so there is a lot of news with this

Yes, indeed those who come out are big investors. But in my opinion, without these investors, Libra can still stand with funds from other investors and their own funds from Facebook.
I am sure if libra is finished with their regulatory issues, there will certainly be many other investors who come to pick up the opportunity.
I am not a fan of libra, but this is only in my mind.

same question suddenly pop in my head after reading this topic  . how can they invest when the project is not released yet  ? or libra is already secretly released long time ago but not available for public presale   .

 i think i already see someone before that they already have a crowdfunding even if  the project is still an idea or on its planning phase yet because they need to pay for some expenses like hiring a people to start doing some task  .

   I don't know anyone who invested in Libra, to be honest I don't know where and how someone can invest in Libra, after
all it's still just an idea, I don't know is that idea have some beginning, or it's still just talk.
   US and EU are the most important here, if Facebook doesn't do what US and EU tell them there will be no Libra. Bitcoin
doesn't need US and EU.
   

There are many reasons why Libra will never be able to be launched, even the Facebook CEO admits that Libra may not be launched by 2020. But recently I saw Libra's roadmap V2 and It seems that they have changed a lot to accommodate legal issues from EU countries and the US, hope it will help Libra be accepted in the near future

That will be a big problem and seemingly they looked untrusted by then. Not a surprise that investors, as well as the community, will be pulling out their support for they know that they got nothing from Libra. The team hasn't given such words and it turns out that they are lying to the community.

The body language of the Libra team suggests that they themselves are looking for an exit strategy. This has cast doubt on a number of their partners and it is not surprising to see many of them pulling out. Fist of all, Libra was not an ideologically driven project. The intention was not to introduce some technology that could work for the betterment of humanity. The sole purpose was to boost the stagnating profits of Facebook. Under such circumstances, I am not really surprised that Libra is failing to take off.

Some of their answer is obviously absurd and lack of concrete reason. These kind of response is politics alibi which is clearly that have some deeper reason for leaving out Libra Project. I guess its about misunderstanding and probably financial disagreement. Of course being in the loop must have some benefit which I think they dont agreed on.

I suspect because these big corporations know that Libra is an experiment bound to fail.

As a cryptocurrency, it doesn't have the aspect of decentralisation that cryptos like BTC have which prevent them from being censored by the government. Especially with how the Fed and other regulators have responded to Libra, it's not all so optimistic certainly.

Paypal for example obviously wants to diversify their own company portfolio in the payment services sector, but they won't invest in something that can land them in trouble potentially.

Facebook capability and endless resources will pull them through on these, we really haven't seen those things that Facebook's Libra capable of doing, we just read the roadmap and detractors points, but with being highly regulated things are very different, for all we know regulators Facebook will be fined if they violate some of the rules imposed by the regulators.

The first time hearing about a number of partners in the Libra by the Facebook project was indeed surprising. Because, a few months ago, Libra became a very convincing topic of conversation to become a top coin. What's more with the joining of PayPal, Visa, eBay, Stripe, and others. However, when they finally decided to resign, this became a big problem for Libra. In fact, it is very influential in the future and also the development of the Libra coin itself.
The question is, is Libra able to attract other big partners to convince the market that Libra is a promising coin for the future?

Related to the future of Libra, I am also curious whether this coin is able to overcome various negative news and responses. And make potential investors trust the coin again by gaining various partners who are very influential.
What's more, lately we hear negative issues related to data leakage by Facebook which certainly makes Libra's image increasingly declining.

I can't offer a resource right now. But I've read about a problem between Libra and the SEC. Therefore, it was written that the release of the Libra was delayed. The SEC says it believes that the Libra's market release could harm the USD. So I think they want some arrangements.

They just don't like to face any problem when they launch and operate and these companies are wise enough to back out their support. They don't want to have any headache and be associated with a project that's being questioned by the government.
Because it can affect the reputation they have and probably might be questioned with their participation if they haven't withdrew.

Many reason can we see about that but I'm sure that only a rumors, we never know the truth is. When collaborate or work together and doesn't reach the deal the reason is simple somebody want something that others can't give it, about what I don't know. We see the reason came is just like doubting Libra capability. This is new project but you must see who's behind it, can' give him safety if the project fail? the answer is " YES ". In business trust is very important and seems both side doesn't have it.

After the announcement of Libra reversing great expectation from investors and traders whoever using digital currencies. I have seen news stating Facebook company lost big remote loss after the Started Libra project.

It was obvious in the first sentence, they do not want to deal with the regulatory problems that comes with creating something like this. Facebook thinks they could just build some sort of code and release it and be done with it but it is fortunately for us not that simple for them. A company as gargantuan as Facebook can't get away with creating their own coin and make billions of dollars in profit from transactions without anyone checking it over.

Yeah, there are banks that get away with many stuff but at least they are checked properly most of the time, unregulated coin printing could only lead to horrible results. They need to be careful and they need to abide the laws like everyone else does. Proper regulations and Libra following them perfectly could lead to a great innovation tho.

The main obstacle of the Libra project is regulation and I think this will take a long time. Large companies certainly do not want to be affected by this regulatory problem because it will cost a lot of money because they have to pay for lawyers and other negative effects. But I think the Libra Project will continue even though it takes a long time and I think Facebook will be able to find legal loopholes so that the Libra Project can pass because they are supported by expensive lawyers

Nice recap. I don't think they're telling the truth. The main reason for their exit from the association must be of the regulatory issue after that Congressional Hearing. Big company hates that. Especially as the responses from Congress members aren't good either. I'm not against Libra overall, I thought they could pave the way for Bitcoin and other crypto but turns out nope.

Due to regulations problems those investors are getting out from libra because the US government still not give any clear information about when it will going to review the libra proposal about legal rights of launching libra crypto currencie so we have to wait until next year due to libra postponed due to legal issue.

Everything that happens reminds me a bit of sec and ethereum. It seems to me when the scales make concessions and the needs of higher authorities then the matter will go forward. Everyone is looking for their own benefit.

As far as many restricted and want to put regulations on libra it will be hard for them to go through in their project. They can still start operating in some countries that is not putting limitations but their market might be too small than expected that's investors think it's not worthy doing so.

if not launched next year, then when, is there a specific reason that makes you sure about that?
or is it just your personal opinion?

Libra is still under different USA regulations and coding development. For the different regulations, still they aren't able to announce their specific date of emission to the crypto market. Hence many big companies are leaving it. If the can overcome USA regulations, it will be the huge achievement for the crypto lovers.

Yes! But it's not jus Frace and Germany, even US government has raised concerns about this project which is definitely creating confusion among the partners and they are pulling out! Read the below article to know more about SEC's stance of Libra,

https://www.coindesk.com/facebook-libra-might-not-ever-launch-concedes-firm

The matter is only becoming complex day by day and we are nowhere close to resolve it. I seriously don't think Libra will be rolled out in 2020.

The regulation is a problem why many large companies withdraw from the Libra project. They certainly do not want to be involved in legal matters unless the regulatory problem has been resolved. But if you see China will issue its own cryptocurrency, I think the regulation of crypto in America will change and might try to compete with China's crypto.

It's not caused by lack of the regulation but it's about there is no deadline about when the problem with the regulator approval will be done. By the way if those investors are pulling out from libra needs the dead line as they are doing serious business. Remember about after pulling out from the libra and some of them was running to the a new platform.
Investors needs ETA about when that will be done. It's not just a gimmick only and the difficulty of the regulator approval becomes the point where they are giving up right now.

Facebook CEO was unable to convince the congress about the operations of Libra coin, the pulling out must be as a result this and probably those companies might face the Litigation if they continue to support what the congress sees as unworthy since they all operate and binded by the US laws.

Lack of regulations seem to be the problem here just like most crypto today, we will have more investors if crypto ever get regulated, people needs more assurance

For additional informations :

Taken from joint statement issued by the French and German governments.

And i am sure those statement is one of the reasons why several institutions like you mentioned above are withdraw their support for facebook project.

Libra coin is a permissioned blockchain and cryptocurrency founded by Facebook. The coin has yet to be launched, and only experimental code has been released so far. When the Libra cryptocurrency was announced in June 2019, 28 companies signed up to be part of The Libra Association. Paypal, Visa, Mastercard, and Coinbase teamed up to help build and operate services associated with the Facebook coin. However, investors have started pulling out of the project with many citing regulatory issues surrounding the Libra coin. So, why are investors pulling out of Libra coin? Let’s take a look.

https://www.youtube.com/watch?v=v8yKNmeU30U

Who’s pulled out so far?
Want to know why investors are pulling out of the Libra cryptocurrency? Things seem pretty divided at the moment. Some are citing regulatory issues, while others aren’t really giving a reason at all.

Paypal
Paypal was the first company to pull out of The Libra Association in October, but they didn’t really give a reason. In a statement, Paypal said that it had decided to “forgo further participation in the Libra Association at this time and to continue to focus on advancing our existing mission and business priorities as we strive to democratize access to financial services for underserved populations.”

However, in an interview with Fortune, Paypal CEO Dan Schulman said that they pulled out because it didn’t really seem like Facebook had a clear idea of where Libra coin was going (although not in so many words). He said, “It was just about, “Where do we want to put our attention, and what do we want to do today to advance our mission?” Once they start figuring things out, we’ll take another look at where they are.”

https://www.youtube.com/watch?v=sLq3yWJQ6aQ

Stripe
Stripe is an online payment processing system that works on providing payment solutions for internet businesses. Stripe was involved with the Libra Association, but has since pulled out. A spokesman for the company said, “We will follow its progress closely and remain open to working with the Libra Association at a later stage.”

EBay
EBay was once the largest e-commerce company, but it has since been knocked off its throne by Amazon. EBay was also originally involved with the Facebook coin, but has apparently decided not to move forward as a founding member of the Libra Association. Again, they don’t cite a reason as to why they made their decision.

Visa
Visa has also made a swift exit from the Libra Association. However, Visa seems open to potentially rejoining the project saying that its future participation would be largely dependant on Libra’s “ability to fully satisfy all requisite regulatory expectations.”

What has this done to Facebook’s stock?
Since the Libra coin was announced on 18 June 2019, Facebook’s stock prices have fluctuated quite dramatically. One 12 July 2019 they hit $204.87, the highest for the year (at the time of writing) but plummeted shortly after. As of 5 December, Facebook’s stocks are sitting at $198.71. It should be noted that Facebook’s stock rose shortly after Libra’s announcement, and fell to $174,60 on 2 October. This was two days before Paypal pulled out of the Libra Association.

Facebook’s stocks seem to be on the up, so now’s probably a good time to get in. You can trade Facebook stocks on platforms like eToro. And who knows, if Libra ever comes into fruition, you’ll most likely find it there too.

https://twitter.com/Libra_/status/1184221099543973890

Libra’s Future
Why are investors pulling out of Libra coin? Regulatory issues seem to be the main focus, although it looks like the problem really comes down to a lack of faith in Facebook’s ability to really pull this project off. Are Visa, Paypal, Stripe and EBay wrong for having pulled out? Only time will tell. As for right now, the Libra Association is still ongoing but things seem a little shaky.

https://www.tgdaily.com/cryptocurrency-and-blockchain/why-are-investors-pulling-out-of-libra