Many people in the cryptocurrency business made assumptions about David Marcus’ future after his departure from Facebook in November. The former CEO of Messenger and Paypal provided some early information about his upcoming business, Lightspark, which will be based on the Lightning network of Bitcoin. Marcus will act as the company’s CEO, while other former members of the Meta crypto team will have senior positions.
There are little specifics about what the startup is doing. The startup’s goal is to “research, create, and extend the capabilities and utility of Bitcoin,” according to a brief news statement. Bitcoin is a more suitable platform to use for payments and decentralized apps because of its lightning network, which enables cheaper and quicker transactions than the base level network.
Oddly, the company did not disclose fundraising amounts, but it did reveal that a16z Crypto and Paradigm co-led its first round, which also included Thrive Capital, Coatue, Felix Capital, Ribbit Capital, Matrix Partners, and Zeev Ventures. Given the recent significant losses experienced by Bitcoin and the larger crypto market, the timing of the revelation could have been better. A protracted crypto bear market can result in dwindling investor interest and a smaller pool of potential employees.
Bitcoin is a more suitable platform to use for payments and decentralized apps because of its lightning network, which enables cheaper and quicker transactions than the base level network. Marcus, who was previously in charge of Facebook Messenger, provided some information about his next business, Lightspark, which would create the Lightning network for Bitcoin.
A16z Crypto and Paradigm, who are leading the firm, are claimed to be joined by Thrive Capital, Coatue, Felix Capital, Ribbit Capital, Matrix Partners, and Zeev Ventures. The startup did not reveal the amount of money received. Several prominent executives have left Facebook as the firm strives to shift towards the metaverse. Marcus, the head of cryptocurrencies at Meta, made his impending departure from the firm known in December.
His resignation after the company’s unsuccessful attempt to introduce a cryptocurrency that would allow users of Facebook products to pay money online to anybody in the globe; after serving as president of PayPal for two years, Marcus joined Meta, the organization formerly known as Facebook, in August 2014.
He began working for Facebook as a vice president in charge of the Messenger platform. In May 2018, he departed the Messenger division to establish Facebook’s finance initiatives section. In June 2019, the division declared that it hoped for the company’s Libra blockchain currency and the Calibra digital wallet to go online in 2020.