- Meta concentrates on implementing non-fungible (NFT) tokens into its platforms.
- Diem was sold to Silvergate Bank for $200 million.
- Lightspark will provide backend services for businesses.
David Marcus, the crypto former and chief of Meta formally known as Facebook. In November 2021, he closed the Stablecoin project (Diem) after the product failed to launch multiple times. Now Marcus creates his own Bitcoin-based company Lightspark. Andreessen Horowitz (A16z) and Paradigm are the early investors in the new company. The Bitcoin startup will attempt to extend Bitcoin’s use cases.
Lightspark will provide backend services for businesses, merchants, and developers who want to accept Bitcoin payments and use Lightning Network. The Network is a planned improvement to the Bitcoin network that will address Bitcoin’s capacity and speed difficulties by allowing for lower-cost micro-transactions.
The company’s first funding round will be co-led by A16z and Paradigm. Participants include Thrive Capital, Coatue, Felix Capital, Ribbit Capital, Matrix Partners, and Zeev Ventures. Last year several Diem leaders shifted to a16z Crypto, which is supporting Marcus’ new project.
The company did not reveal its worth or the amount of money it has raised from the investors. Also, they stated that it will not focus on developing its own stablecoin or cryptocurrency.
Sriram Krishan, an A16z investor, commented that
We’ve always been big believers in Bitcoin’s unique history and role in crypto. We’ve been looking to back a team to build on top of Bitcoin and believe David Marcus and the Lightspark team that he’s assembled can bring exciting new technological innovation to Bitcoin and the Lightning Network.
Diem has returned in multiple forms. In February, former Diem developers announced the project will continue in the form of Aptos a new Blockchain. Shortly before that, Diem was sold to Silvergate Bank for $200 million.