Why are investors pulling out of Libra?

[JessicaVL]

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

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[CucakRowo]

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France and Germany consider that the Libra project, as set out in Facebook’s blueprint, fails to convince that those risks will be properly addressed.

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.

[TanakabZX]

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

[tinyteapot]

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.

[asriloni]

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

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.

[TheClownSong]

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

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.

[avikz]

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France and Germany consider that the Libra project, as set out in Facebook’s blueprint, fails to convince that those risks will be properly addressed.

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.

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.

[Malam90]

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.

[naikturun]

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.

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?

[Beparanf]

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.

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.

[duuuuude]

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.

[sureshnsnet]

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.

[CodyAlfaridzi]

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.

[jcarlo]

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.

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.

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

[fullhdpixel]

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.

[diazepam666]

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.

[nicolas1979]

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.

[batang_bitcoin]

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.

[Nadziratel]

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.

[Rengga Jati]

Who’s pulled out so far?
--snip--

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?

Libra’s Future
Why are investors pulling out of Libra coin?
--snip--

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.