Meta once had David Marcus as the company's crypto cheif but now, the former executive has now launched his own crypto payment startup. The startup is backed by two notable players in the investing world, Paradigm and a16z.
Meta's Former Crypto Chief Starts New Company Lightspark
According to the story by TechCrunch, Marcus left Facebook, which is now known as Meta, in November and his departure started speculation in the crypto industry regarding where he would end up. Now, the executive is announcing his next company.
Marcus was joined by an executive of PayPal to announce Lightspark. So far, early details regarding Lightspark and this includes information regarding where it will be built.
Former Meta Members Join Lightspark's Executive Team
Lightspark will be built on Bitcoin's Lightning network to allow it to send Bitcoin transactions faster and at lower costs. Marcus will be joined by other ex-Meta crypto team members.
Marcus will become CEO while the executive roles will fall to a number of former members of Meta's crypto team. TechCrunch notes that, as of press time, other details are still limited regarding what Lightspark will be doing.
Lightspark Aims to Exploration, Building, and Extending Capabilities and Utility of Bitcoin
The former Meta crypto chief announced on Twitter that the startup aims to help improve certain aspects of Bitcoin through exploration, building, and extending the "capabilities and utility." As per TechCrunch, due to the lightning network's capability of providing both cheaper and faster transactions, this makes it an ideal platform for payments and decentralized apps leverage.
The firm, however, did not announce tthe total funding amount that it has been able to raise for the Lightspark company. The company's first round of funding was co-led by both Paradigm and a16z.
Bear Market Could Lead to Things Becoming Harder for Lightspark
Other participants include Coatue, Thrive Capital, Ribbit Capital, Felix Capital, Zeev Ventures, and even Matrix Partners. The announcement of Lightspark comes at a time when Bitcoin, along with the broader crypto market, have sustained massive losses.
Should the crypto bear market continue, this could result in it becoming harder to hire talent and a smaller investor pool for LightSpark. According to CNBC, over $200 billion was wiped out from the whole crypto market as the sell-off continues.
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Bitcoin Fell Below $26K Mark for the First Time in 16 Months
As per the report, Bitcoin fell below the $26K mark, which was recorded as the first time its price has ever dropped that low after 16 months. The price of BTC dropped down to $25,401.29 on Thursday, as per Coin Market Cap.
Bitcoin's price, as of press time, is getting closer to $30K mark sitting at $29,941.54. The report details that investors are now exiting the crypto market while stocks have also plunged amidst the pandemic.
This comes at a time that inflation in the United States has increased by 8.3% in April. This is recorded to be the highest increase in the span of 40 years.
Related Article: Bitcoin Slumps Below the $29K Mark, Inciting Panic Amid Crypto Market as TerraUSD Crashes
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Written by Urian B.
