More on Web3 & Crypto
Faisal Khan
2 years ago
4 typical methods of crypto market manipulation
Market fraud
Due to its decentralized and fragmented character, the crypto market has integrity difficulties.
Cryptocurrencies are an immature sector, therefore market manipulation becomes a bigger issue. Many research have attempted to uncover these abuses. CryptoCompare's newest one highlights some of the industry's most typical scams.
Why are these concerns so common in the crypto market? First, even the largest centralized exchanges remain unregulated due to industry immaturity. A low-liquidity market segment makes an attack more harmful. Finally, market surveillance solutions not implemented reduce transparency.
In CryptoCompare's latest exchange benchmark, 62.4% of assessed exchanges had a market surveillance system, although only 18.1% utilised an external solution. To address market integrity, this measure must improve dramatically. Before discussing the report's malpractices, note that this is not a full list of attacks and hacks.
Clean Trading
An investor buys and sells concurrently to increase the asset's price. Centralized and decentralized exchanges show this misconduct. 23 exchanges have a volume-volatility correlation < 0.1 during the previous 100 days, according to CryptoCompares. In August 2022, Exchange A reported $2.5 trillion in artificial and/or erroneous volume, up from $33.8 billion the month before.
Spoofing
Criminals create and cancel fake orders before they can be filled. Since manipulators can hide in larger trading volumes, larger exchanges have more spoofing. A trader placed a 20.8 BTC ask order at $19,036 when BTC was trading at $19,043. BTC declined 0.13% to $19,018 in a minute. At 18:48, the trader canceled the ask order without filling it.
Front-Running
Most cryptocurrency front-running involves inside trading. Traditional stock markets forbid this. Since most digital asset information is public, this is harder. Retailers could utilize bots to front-run.
CryptoCompare found digital wallets of people who traded like insiders on exchange listings. The figure below shows excess cumulative anomalous returns (CAR) before a coin listing on an exchange.
Finally, LAYERING is a sequence of spoofs in which successive orders are put along a ladder of greater (layering offers) or lower (layering bids) values. The paper concludes with recommendations to mitigate market manipulation. Exchange data transparency, market surveillance, and regulatory oversight could reduce manipulative tactics.
The Verge
3 years ago
Bored Ape Yacht Club creator raises $450 million at a $4 billion valuation.
Yuga Labs, owner of three of the biggest NFT brands on the market, announced today a $450 million funding round. The money will be used to create a media empire based on NFTs, starting with games and a metaverse project.
The team's Otherside metaverse project is an MMORPG meant to connect the larger NFT universe. They want to create “an interoperable world” that is “gamified” and “completely decentralized,” says Wylie Aronow, aka Gordon Goner, co-founder of Bored Ape Yacht Club. “We think the real Ready Player One experience will be player run.”
Just a few weeks ago, Yuga Labs announced the acquisition of CryptoPunks and Meebits from Larva Labs. The deal brought together three of the most valuable NFT collections, giving Yuga Labs more IP to work with when developing games and metaverses. Last week, ApeCoin was launched as a cryptocurrency that will be governed independently and used in Yuga Labs properties.
Otherside will be developed by “a few different game studios,” says Yuga Labs CEO Nicole Muniz. The company plans to create development tools that allow NFTs from other projects to work inside their world. “We're welcoming everyone into a walled garden.”
However, Yuga Labs believes that other companies are approaching metaverse projects incorrectly, allowing the startup to stand out. People won't bond spending time in a virtual space with nothing going on, says Yuga Labs co-founder Greg Solano, aka Gargamel. Instead, he says, people bond when forced to work together.
In order to avoid getting smacked, Solano advises making friends. “We don't think a Zoom chat and walking around saying ‘hi' creates a deep social experience.” Yuga Labs refused to provide a release date for Otherside. Later this year, a play-to-win game is planned.
The funding round was led by Andreessen Horowitz, a major investor in the Web3 space. It previously backed OpenSea and Coinbase. Animoca Brands, Coinbase, and MoonPay are among those who have invested. Andreessen Horowitz general partner Chris Lyons will join Yuga Labs' board. The Financial Times broke the story last month.
"META IS A DOMINANT DIGITAL EXPERIENCE PROVIDER IN A DYSTOPIAN FUTURE."
This emerging [Web3] ecosystem is important to me, as it is to companies like Meta,” Chris Dixon, head of Andreessen Horowitz's crypto arm, tells The Verge. “In a dystopian future, Meta is the dominant digital experience provider, and it controls all the money and power.” (Andreessen Horowitz co-founder Marc Andreessen sits on Meta's board and invested early in Facebook.)
Yuga Labs has been profitable so far. According to a leaked pitch deck, the company made $137 million last year, primarily from its NFT brands, with a 95% profit margin. (Yuga Labs declined to comment on deck figures.)
But the company has built little so far. According to OpenSea data, it has only released one game for a limited time. That means Yuga Labs gets hundreds of millions of dollars to build a gaming company from scratch, based on a hugely lucrative art project.
Investors fund Yuga Labs based on its success. That's what they did, says Dixon, “they created a culture phenomenon”. But ultimately, the company is betting on the same thing that so many others are: that a metaverse project will be the next big thing. Now they must construct it.
Scott Hickmann
4 years ago
YouTube
This is a YouTube video:
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Hudson Rennie
3 years ago
My Work at a $1.2 Billion Startup That Failed
Sometimes doing everything correctly isn't enough.
In 2020, I could fix my life.
After failing to start a business, I owed $40,000 and had no work.
A $1.2 billion startup on the cusp of going public pulled me up.
Ironically, it was getting ready for an epic fall — with the world watching.
Life sometimes helps. Without a base, even the strongest fall. A corporation that did everything right failed 3 months after going public.
First-row view.
Apple is the creator of Adore.
Out of respect, I've altered the company and employees' names in this account, despite their failure.
Although being a publicly traded company, it may become obvious.
We’ll call it “Adore” — a revolutionary concept in retail shopping.
Two Apple execs established Adore in 2014 with a focus on people-first purchasing.
Jon and Tim:
The concept for the stylish Apple retail locations you see today was developed by retail expert Jon Swanson, who collaborated closely with Steve Jobs.
Tim Cruiter is a graphic designer who produced the recognizable bouncing lamp video that appears at the start of every Pixar film.
The dynamic duo realized their vision.
“What if you could combine the convenience of online shopping with the confidence of the conventional brick-and-mortar store experience.”
Adore's mobile store concept combined traditional retail with online shopping.
Adore brought joy to 70+ cities and 4 countries over 7 years, including the US, Canada, and the UK.
Being employed on the ground floor, with world dominance and IPO on the horizon, was exciting.
I started as an Adore Expert.
I delivered cell phones, helped consumers set them up, and sold add-ons.
As the company grew, I became a Virtual Learning Facilitator and trained new employees across North America using Zoom.
In this capacity, I gained corporate insider knowledge. I worked with the creative team and Jon and Tim.
It's where I saw company foundation fissures. Despite appearances, investors were concerned.
The business strategy was ground-breaking.
Even after seeing my employee stocks fall from a home down payment to $0 (when Adore filed for bankruptcy), it's hard to pinpoint what went wrong.
Solid business model, well-executed.
Jon and Tim's chase for public funding ended in glory.
Here’s the business model in a nutshell:
Buying cell phones is cumbersome. You have two choices:
Online purchase: not knowing what plan you require or how to operate your device.
Enter a store, which can be troublesome and stressful.
Apple, AT&T, and Rogers offered Adore as a free delivery add-on. Customers could:
Have their phone delivered by UPS or Canada Post in 1-2 weeks.
Alternately, arrange for a person to visit them the same day (or sometimes even the same hour) to assist them set up their phone and demonstrate how to use it (transferring contacts, switching the SIM card, etc.).
Each Adore Expert brought a van with extra devices and accessories to customers.
Happy customers.
Here’s how Adore and its partners made money:
Adores partners appreciated sending Experts to consumers' homes since they improved customer satisfaction, average sale, and gadget returns.
**Telecom enterprises have low customer satisfaction. The average NPS is 30/100. Adore's global NPS was 80.
Adore made money by:
a set cost for each delivery
commission on sold warranties and extras
Consumer product applications seemed infinite.
A proprietary scheduling system (“The Adore App”), allowed for same-day, even same-hour deliveries.
It differentiates Adore.
They treated staff generously by:
Options on stock
health advantages
sales enticements
high rates per hour
Four-day workweeks were set by experts.
Being hired early felt like joining Uber, Netflix, or Tesla. We hoped the company's stocks would rise.
Exciting times.
I smiled as I greeted more than 1,000 new staff.
I spent a decade in retail before joining Adore. I needed a change.
After a leap of faith, I needed a lifeline. So, I applied for retail sales jobs in the spring of 2019.
The universe typically offers you what you want after you accept what you need. I needed a job to settle my debt and reach $0 again.
And the universe listened.
After being hired as an Adore Expert, I became a Virtual Learning Facilitator. Enough said.
After weeks of economic damage from the pandemic.
This employment let me work from home during the pandemic. It taught me excellent business skills.
I was active in brainstorming, onboarding new personnel, and expanding communication as we grew.
This job gave me vital skills and a regular paycheck during the pandemic.
It wasn’t until January of 2022 that I left on my own accord to try to work for myself again — this time, it’s going much better.
Adore was perfect. We valued:
Connection
Discovery
Empathy
Everything we did centered on compassion, and we held frequent Justice Calls to discuss diversity and work culture.
The last day of onboarding typically ended in tears as employees felt like they'd found a home, as I had.
Like all nice things, the wonderful vibes ended.
First indication of distress
My first day at the workplace was great.
Fun, intuitive, and they wanted creative individuals, not salesman.
While sales were important, the company's vision was more important.
“To deliver joy through life-changing mobile retail experiences.”
Thorough, forward-thinking training. We had a module on intuition. It gave us role ownership.
We were flown cross-country for training, gave feedback, and felt like we made a difference. Multiple contacts responded immediately and enthusiastically.
The atmosphere was genuine.
Making money was secondary, though. Incredible service was a priority.
Jon and Tim answered new hires' questions during Zoom calls during onboarding. CEOs seldom meet new hires this way, but they seemed to enjoy it.
All appeared well.
But in late 2021, things started changing.
Adore's leadership changed after its IPO. From basic values to sales maximization. We lost communication and were forced to fend for ourselves.
Removed the training wheels.
It got tougher to gain instructions from those above me, and new employees told me their roles weren't as advertised.
External money-focused managers were hired.
Instead of creative types, we hired salespeople.
With a new focus on numbers, Adore's uniqueness began to crumble.
Via Zoom, hundreds of workers were let go.
So.
Early in 2022, mass Zoom firings were trending. A CEO firing 900 workers over Zoom went viral.
Adore was special to me, but it became a headline.
30 June 2022, Vice Motherboard published Watch as Adore's CEO Fires Hundreds.
It described a leaked video of Jon Swanson laying off all staff in Canada and the UK.
They called it a “notice of redundancy”.
The corporation couldn't pay its employees.
I loved Adore's underlying ideals, among other things. We called clients Adorers and sold solutions, not add-ons.
But, like anything, a company is only as strong as its weakest link. And obviously, the people-first focus wasn’t making enough money.
There were signs. The expansion was presumably a race against time and money.
Adore finally declared bankruptcy.
Adore declared bankruptcy 3 months after going public. It happened in waves, like any large-scale fall.
Initial key players to leave were
Then, communication deteriorated.
Lastly, the corporate culture disintegrated.
6 months after leaving Adore, I received a letter in the mail from a Law firm — it was about my stocks.
Adore filed Chapter 11. I had to sue to collect my worthless investments.
I hoped those stocks will be valuable someday. Nope. Nope.
Sad, I sighed.
$1.2 billion firm gone.
I left the workplace 3 months before starting a writing business. Despite being mediocre, I'm doing fine.
I got up as Adore fell.
Finally, can we scale kindness?
I trust my gut. Changes at Adore made me leave before it sank.
Adores' unceremonious slide from a top startup to bankruptcy is astonishing to me.
The company did everything perfectly, in my opinion.
first to market,
provided excellent service
paid their staff handsomely.
was responsible and attentive to criticism
The company wasn't led by an egotistical eccentric. The crew had centuries of cumulative space experience.
I'm optimistic about the future of work culture, but is compassion scalable?
Laura Sanders
3 years ago
Xenobots, tiny living machines, can duplicate themselves.
Strange and complex behavior of frog cell blobs
A xenobot “parent,” shaped like a hungry Pac-Man (shown in red false color), created an “offspring” xenobot (green sphere) by gathering loose frog cells in its opening.
Tiny “living machines” made of frog cells can make copies of themselves. This newly discovered renewal mechanism may help create self-renewing biological machines.
According to Kirstin Petersen, an electrical and computer engineer at Cornell University who studies groups of robots, “this is an extremely exciting breakthrough.” She says self-replicating robots are a big step toward human-free systems.
Researchers described the behavior of xenobots earlier this year (SN: 3/31/21). Small clumps of skin stem cells from frog embryos knitted themselves into small spheres and started moving. Cilia, or cellular extensions, powered the xenobots around their lab dishes.
The findings are published in the Proceedings of the National Academy of Sciences on Dec. 7. The xenobots can gather loose frog cells into spheres, which then form xenobots.
The researchers call this type of movement-induced reproduction kinematic self-replication. The study's coauthor, Douglas Blackiston of Tufts University in Medford, Massachusetts, and Harvard University, says this is typical. For example, sexual reproduction requires parental sperm and egg cells. Sometimes cells split or budded off from a parent.
“This is unique,” Blackiston says. These xenobots “find loose parts in the environment and cobble them together.” This second generation of xenobots can move like their parents, Blackiston says.
The researchers discovered that spheroid xenobots could only produce one more generation before dying out. The original xenobots' shape was predicted by an artificial intelligence program, allowing for four generations of replication.
A C shape, like an openmouthed Pac-Man, was predicted to be a more efficient progenitor. When improved xenobots were let loose in a dish, they began scooping up loose cells into their gaping “mouths,” forming more sphere-shaped bots (see image below). As many as 50 cells clumped together in the opening of a parent to form a mobile offspring. A xenobot is made up of 4,000–6,000 frog cells.
Petersen likes the Xenobots' small size. “The fact that they were able to do this at such a small scale just makes it even better,” she says. Miniature xenobots could sculpt tissues for implantation or deliver therapeutics inside the body.
Beyond the xenobots' potential jobs, the research advances an important science, says study coauthor and Tufts developmental biologist Michael Levin. The science of anticipating and controlling the outcomes of complex systems, he says.
“No one could have predicted this,” Levin says. “They regularly surprise us.” Researchers can use xenobots to test the unexpected. “This is about advancing the science of being less surprised,” Levin says.
Katharine Valentino
3 years ago
A Gun-toting Teacher Is Like a Cook With Rat Poison
Pink or blue AR-15s?
A teacher teaches; a gun kills. Killing isn't teaching. Killing is opposite of teaching.
Without 27 school shootings this year, we wouldn't be talking about arming teachers. Gun makers, distributors, and the NRA cause most school shootings. Gun makers, distributors, and the NRA wouldn't be huge business if weapons weren't profitable.
Guns, ammo, body armor, holsters, concealed carriers, bore sights, cleaner kits, spare magazines and speed loaders, gun safes, and ear protection are sold. And more guns.
And lots more profit.
Guns aren't bread. You eat a loaf of bread in a week or so and then must buy more. Bread makers will make money. Winchester 94.30–30 1899 Lever Action Rifle from 1894 still kills. (For safety, I won't link to the ad.) Gun makers don't object if you collect antique weapons, but they need you to buy the latest, in-style killing machine. The youngster who killed 19 students and 2 teachers at Robb Elementary School in Uvalde, Texas, used an AR-15. Better yet, two.
Salvador Ramos, the Robb Elementary shooter, is a "killing influencer" He pushes consumers to buy items, which benefits manufacturers and distributors. Like every previous AR-15 influencer, he profits Colt, the rifle's manufacturer, and 52,779 gun dealers in the U.S. Ramos and other AR-15 influences make us fear for our safety and our children's. Fearing for our safety, we acquire 20 million firearms a year and live in a gun culture.
So now at school, we want to arm teachers.
Consider. Which of your teachers would you have preferred in body armor with a gun drawn?
Miss Summers? Remember her bringing daisies from her yard to second grade? She handed each student a beautiful flower. Miss Summers loved everyone, even those with AR-15s. She can't shoot.
Frasier? Mr. Frasier turned a youngster over down to explain "invert." Mr. Frasier's hands shook when he wasn't flipping fifth-graders and fractions. He may have shot wrong.
Mrs. Barkley barked in high school English class when anyone started an essay with "But." Mrs. Barkley dubbed Abie a "Jewboy" and gave him terrible grades. Arming Miss Barkley is like poisoning the chef.
Think back. Do you remember a teacher with a gun? No. Arming teachers so the gun industry can make more money is the craziest idea ever.
Or maybe you agree with Ted Cruz, the gun lobby-bought senator, that more guns reduce gun violence. After the next school shooting, you'll undoubtedly talk about arming teachers and pupils. Colt will likely develop a backpack-sized, lighter version of its popular killing machine in pink and blue for kids and boys. The MAR-15? (M for mini).
This post is a summary. Read the full one here.