Thread by @JackNiewold

Facebook's Diem stablecoin will change the cryptocurrency landscape forever.

Diem has hinted at partnerships with existing cryptos. Any solid announcement of a partnership would cause that crypto to go parabolic.

So which crypto is it? Read on👇

(warning: tinfoil hat time)

I first came across the rumor on Twitter.

It originated from an update video from $COTI founder @shahafbg.

Quote: "as our integration to a major enterprise continues, I really look forward to letting you know who that enterprise is, when it's done, I will let you know."

People took him to be hinting at COTI launching a stablecoin with FB, so I decided to take a look.

Firstly, let's take understand a little bit about FB's cryptocurrency Diem:

1. It's stablecoin-based
2. It's built on crypto rails
3. It will be USD-denominated
4. It will be US-regulated

So any existing partner in the crypto world will need to fit those requirements.

COTI fits the bill pretty well:
• Crypto-native
• Has the tech to issue stablecoins
• Centralized enough to be regulated

COTI is Tel Aviv-based and is quite different than other cryptos.

• Has the power to arbitrate/reverse disputed transactions
• Can process over 100,000 tx/per second
• Designed to be integrated with existing credit card payment processors
• Is a DAG, not a blockchain

DAGs (directed acrylic graphs) are quicker than centralized cryptos, in fact, they're not blockchains at all and can process transactions quicker.

That kind of makes COTI perfect for what facebook is looking for.

Okay, now let's take a look at Tel Aviv.

The city of about 400,000 people is home to both COTI and First, a startup dedicated to servicing the Diem stablecoin for businesses.

And they're about six minutes away from each other.

While COTI doesn't have a direct connection I can find to to Facebook, First definitely does. They've produced some of the documentation for DIEM.

That's kind of crazy, right? These two businesses are literally walking distance away from each other!

First used to be called First DAG, but rebranded after Facebook decided to end their Libra project and change to Diem.

It was an acronym, but why did they take 'DAG' out of their name?

Because it would be confusing now that Diem would be issued on a Directed Acrylic Graph?

Some other connections:
• The CEO of Diem and the Cofounder of COTI used to work together at HSBC

• COTI's Mainnet 2.0 launched less than two weeks after Facebook's digital wallet, @novi, launched

• Diem's technical lead manager Dimitri Perelman overlapped with COTI's CTO Nir Haloani in the research department @ IBM. Both are Israeli Math PhDs.

• The timelines of the announcements line up (Diem launching before EOY, COTI announcing enterprise partner in the next month)

So will $COTI be a partner on Facebook's Diem?

You be the judge. It's probably a stretch, but if I was a trillion dollar company trying to issue a stablecoin, $COTI definitely wouldn't be a bad pick.

Either way, we'll probably find out soon enough.

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