A crazy few weeks for Libra, summarized

Lately, Libra has had almost as many ups and downs as Bitcoin’s price action. Through backers missing meetings, big companies bailing, the crypto community rejoicing and the head of Coinbase defending them, it’s safe to say it’s been a long week.

CoinFLEX countdown to Libra Futures

Before any of Zuckerberg’s turmoil began, the derivative exchange CoinFLEX started a countdown to their Libra IFO (Initial Futures Opening). Basically, users will buy a $0.30 promise to receive $1 worth of Libra if it releases before January 2021.

According to Cointelegraph, the 30 cents reflects “a roughly 30% likelihood that Libra will launch by December 2020.” With the recent developments, some people might find those 30% odds to be unrealistic.

PayPal ghosts Libra meeting 

On October 3rd, PayPal pulled out of a “key meeting,” Financial Times reported. They also talked to an anonymous source “close to PayPal” who said that the company didn’t want regulatory scrutiny to bleed into their business. Throughout the day, there was speculation on whether or not PayPal would pull out of Libra. 

Goodbye PayPal

On October 4th, PayPal became the first of the 28 inaugural members to dissociate themselves with the Libra Association. Afterwards, the Financial Times reported that three other members were unhappy with regulatory measures. 

Things were quiet for another 7 days. 

OpenLibra announces a fork

At DevCon 5, on October 3rd, Morgan Beller announced a new project that plans fix all of the things blockchain enthusiasts hate about libra. He wants to create a fork of Libra’s open source code and make it less centrally governed

Beller had a bunch of big names in the dev world on the OpenLibra‘s website, but the names were removed a day later. There were also some concerns from the community about Beller’s previous project making false promises to investors.

Several backers follow PayPal

On October 11th, Visa, eBay, Mercado Pag, Stripe Inc. and Mastercard followed in PayPal’s footsteps. Though it was only six companies at this point, they were some of the largest in the group. 

It didn’t come as too much of a surprise as most of these companies had been reportedly thinking about dropping out. On the same day, David Marcus, Co-Creator of Libra showed was maintaining confidence in the project. 

“I would caution against reading the fate of Libra into this update. Of course, it’s not great news in the short term, but in a way it’s liberating.”

Coinbase CEO defends Libra’s honor 

October 13th, Coinbase CEO Brian Armstrong responded to a negative statement about Libra by U.S. lawmakers by calling it “un-American.” 

“It is chilling to think what could happen if Facebook combines encrypted messaging with embedded anonymous global payments via Libra,” Senator Brian Schatz and Sherrod Brown stated in a letter.

Armstrong wasn’t happy about the implications and said that if people don’t like the service, they won’t use it. Coinbase shortly after became one of the first official backers of Libra. 

21 sign the “Libra charter” 

October 15th, Big Zuck got sick of backers leaving and made the rest sign a blood oath (kidding.. I think..).A document was released by the Libra Association announcing a formal council had been created. Initially, backers had put money up but could pull out at any time. 

A long lasting criticism of Libra is how centralized it is for a blockchain network. People complained about governance being comprised of only 28 businesses, and now those circumstances have worsened. 

A board of directors and one COO were chosen during the meeting. The Libra Association clarified that 1500 entities have shown interest in joining the project and 180 meet the requirements.