Last updated on August 6th, 2023 at 07:15 am
The trouble isn’t over for Facebook’s Libra Foundation even as it changed its crypto name to Diem.
It is facing legal action over the new name. A UK-based FinTech firm Diem is laying claim to the name.
This is coming a few hours after the German authority faulted Facebook’s Libra to Diem name change.
A London FinTech berated the social media giant for rebranding its crypto project without doing its due diligence before picking Diem, an existing name already taken.
Diem is a finance app in London and has vowed to drag Facebook to court for copying the name.
Facebook’s Libra Foundation has rebranded with the hope to distance itself from its original format, which has faced intense regulatory questions around the world.
“We were flabbergasted on 1st December to find that Facebook’s Libra Foundation had chosen to rebrand to Diem.
Sifted quoted as saying, “As a small startup, we are concerned that customer confusion resulting from Libra’s actions will significantly impact our growth,” founder and CEO of Diem Geri Cupi said.
About Diem App:
The Diem app allows users to sell their possessions instantly, rather than waiting for bidders on eBay; offering a digital pawnbroker of sorts.
“Diem is an app that helps match people needing work done with people who will get it done. Post the task, set a time and budget and consider it done!”
Diem started a soft-launch in October and it has already been bootstrapped by Cupi, who successfully exited a previous business to Levis alongside a blockchain startup.
Among Diem’s partners include Chris Adelsbach, one of Europe’s biggest fintech investors, who described Facebook’s action as being deliberate to test their power against an upcoming company.
“It wouldn’t have taken that much effort for Facebook to find out if there’s another Diem in financial services… They obviously took the view that “we can just crush them, we’re Facebook,” Adelsbach said.
What does it mean for Facebook’s Diem?
There is possibility Facebook resolve the issue out of court, but if the legal continues, it would be a huge setback for Facebook’s cryptocurrency project at the time some G-7 members are sceptical about the sincerity of Libra foundation regarding regulation.
One of its product once faced a lawsuit from a FinTech. It was accused of trademark infringements over one of its logos. It had to alter the logo and the project’s partner payments unit was renamed from Calibra to Novi Financial.
At the time of this report, DIEM was yet to confirm where exactly the lawsuit would be filed.
Would the lawsuit go directly to Facebook, which also has offices in London or to the Diem Association based in Geneva?
We’ll keep you updated.