Diem (FKA Libra) Price, and How to Buy It
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Diem is about to launch its first stablecoin by the end of the year, which means that we will get one more massive market player soon. If everything goes according to the plan of the Diem Association, and the coin is actually released later this year, we’ll be able to buy it in the near future.
That’s why it is the right time to figure out where to buy Diem and how much it will cost. But first, let’s take a step back and learn a bit more about the project itself.
What to know about Diem before trading
Of course, Diem is a well-known Facebook-backed cryptocurrency that you’ve heard about a million times. But it is still a good idea to learn more about the project before buying its tokens. We’ll share some general information about Diem in this post, but if you’d like to find out more, be sure to read our previous articles about the history of Diem and Diem’s structure and products.
Diem is a project announced by Facebook in June 2019. It is a whole ecosystem of different technological solutions (Diem Payment system, Diem blockchain, and Diem Reserve) operated by the Diem Association.
Here is a short overview of the key components of the Diem project.
- Diem Association is an independent membership organization governing the project. It consists of the world-known businesses and non-profit organizations, such as Andreessen Horowitz, Blockchain Capital, Coinbase, Novi, Lyft, Shopify, Spotify, Uber, and others.
- Diem payment system is a reliable and interoperable payment system that will be built on the Diem public blockchain. It will support single-currency stablecoins (e.g., ≋USD, ≋EUR, ≋GBP, etc.) and a multi-currency coin (≋DIEM).
- Diem Blockchain was developed from scratch to prioritize scalability, security, efficiency in storage and throughput, as well as future adaptability of the network. The blockchain will use a combination of innovative approaches, such as a specially designed Move language, and well-understood tools like Byzantine Fault Tolerant (BFT) consensus and Merkle tree structure.
- Diem Reserve will provide liquidity to Diem coins and mitigate risks. It will hold, in cash or cash equivalents and very short-term government securities, an amount at least equal to the face value of each Diem Coin in circulation.
By developing and implementing these products, the Diem Association aims to enable a simple global payment system and financial infrastructure that empowers billions of people.
Facebook-backed Diem price
To understand how much the Diem coin costs, it is essential to consider the types of tokens that are to be released by the Diem Association. At the moment, there are two of them: stablecoins and multi-currency coins.
Diem single-currency stablecoins will be 1:1 coins pegged to major fiat currencies, such as USD, EUR, GBP, etc. Each of them will be supported by the Diem Reserve with cash or cash equivalents and very short-term government securities. They will only be minted and burned in response to market demand for that coin.
It is crucial to mention that Diem stablecoins are developed as a complement to, not a replacement for, domestic currencies, so they will not interfere with any country’s monetary sovereignty and monetary policy.
In the case of Diem single-currency stablecoins, it is pretty easy to predict the price since it will be pegged to the corresponding fiat currencies. Similar to USDT, USDC, or TUSD, Diem stablecoin pegged to the US dollar will be connected to the USD. And the same logic will be implemented to other Diem stablecoins pegged to EUR, GBP, and other fiat currencies.
When it comes to the multi-currency Diem coin, however, the situation is different.
This multi-currency coin is a fully backed basket of world currencies in the Reserve. It is aimed to operate as a settlement coin in cross-border transactions, serving as a neutral and low-volatility alternative and increasing financial inclusion.
The Diem coin will be implemented as a smart contract that aggregates single-currency stablecoins using fixed nominal weights (e.g., ≋USD 0.50, ≋EUR 0.18, ≋GBP 0.11, etc.). For this reason, it is impossible to predict the final price of this coin until it is finally released.
How to buy Diem
It is pretty hard to say where the Diem coins will be traded until the pilot launch, and the Diem Association hasn’t made any announcements yet. However, it is safe to say that users will be able to buy and sell both single-currency stablecoins and a multi-currency Diem coin on different decentralized exchanges.
The Diem Association has created a specific Policy for the Designated Dealers who will extend liquidity to exchanges. Such entities will be able to buy Diem Coins from and sell Diem Coins to exchanges and over-the-counter (OTC) dealers to facilitate the market in Diem Coins for end-users. Simply put, they will buy and sell Diem tokens so that anyone can access them.
The Designated Dealers will commit to creating high volume trading. And if for some reason, they fail to fulfill their obligations, the Diem Network will burn Diem coins to make payment as appropriate with the help of a third-party administrator or dealer.
Please note that the Diem coin has not been released yet, so if you come across any websites or applications offering Diem for sale, they are likely scams. Make sure to get all the information from the official Diem website as it is the only trusted source of news.