Author: azeeadmin

Reddit raises more funding, Shopify expands payments to Facebook and a study suggests that the Apple Watch might be able to predict COVID diagnoses. This is your Daily Crunch for February 9, 2021.

The big story: Reddit raises $250M

This latest funding announcement comes after Reddit has returned to the headlines, with the WallStreetBets subreddit playing a crucial role in the spectacular rise and fall of GameStop shares (along with other stocks). The company also ran a five-second Super Bowl ad on Sunday, consisting of a single static image.

Reddit announced the round in a blog post that said the money comes from “existing and new investors” and will allow the company to “make strategic investments in Reddit including video, advertising, consumer products and expanding into international markets.”

The tech giants

Shopify expands its payment option, Shop Pay, to its merchants on Facebook and Instagram — This is the first time Shop Pay will be made available outside of Shopify’s own platform.

CD Projekt hit by ransomware attack, refuses to pay ransom — “We have already secured our IT infrastructure and begun restoring data,” the game company said.

Spotify confirms it’s (finally) testing a live lyrics feature in the US — Though the streaming music service today offers live lyrics in a number of markets, it has not done so in the U.S. for many years.

Startups, funding and venture capital

Swarm’s low-cost satellite data network is now available to commercial clients — One of the original startups that set out to create a low-Earth orbit satellite constellation to provide a data network here on Earth is now open for business.

Mighty Buildings nabs $40M Series B to 3D print your next house — The startup says it can 3D print a 350-square-foot studio apartment in just 24 hours.

Seed firm Eniac Ventures raises $125M for its fifth fund — The size of Eniac’s funds has grown dramatically over the past decade, from its $1.6 million first fund in 2010 to its $100 million fourth fund in 2017.

Advice and analysis from Extra Crunch

Decrypted: A hacker attempted to poison Florida town’s water supply — Oldsmar is a small town in Florida that became the center of the cyber world this week.

Are SAFEs obscuring today’s seed volume? — SAFEs are a quick and cheap method for raising capital.

(Extra Crunch is our membership program, which helps founders and startup teams get ahead. You can sign up here.)

Everything else

Announcing the agenda for TC Sessions: Justice — Our second-ever dedicated event to diversity, equity, inclusion and labor in tech is coming up on March 3.

Mount Sinai study finds Apple Watch can predict COVID-19 diagnosis up to a week before testing — The investigation, dubbed the “Warrior Watch Study,” used a dedicated Apple Watch and iPhone app and included participants from Mount Sinai staff.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.

When Amazon announced last week that founder and CEO Jeff Bezos planned to step back from overseeing operations and shift into an executive chairman role, it also revealed that AWS CEO Andy Jassy, head of the company’s profitable cloud division, would replace him.

As Bessemer partner Byron Deeter pointed out on Twitter, Jassy’s promotion was similar to Satya Nadella’s ascent at Microsoft: in 2014, he moved from executive VP in charge of Azure to the chief exec’s office. Similarly, Arvind Krishna, who was promoted to replace Ginni Rometti as IBM CEO last year, also was formerly head of the company’s cloud business.

Could Nadella’s successful rise serve as a blueprint for Amazon as it makes a similar transition? While there are major differences in the missions of these companies, it’s inevitable that we will compare these two executives based on their former jobs. It’s true that they have an awful lot in common, but there are some stark differences, too.

Replacing a legend

For starters, Jassy is taking over for someone who founded one of the world’s biggest corporations. Nadella replaced Steve Ballmer, who had taken over for the company’s face, Bill Gates. Holger Mueller, an analyst at Constellation Research, says this notable difference could have a huge impact for Jassy with his founder boss still looking over his shoulder.

“There’s a lot of similarity in the two situations, but Satya was a little removed from the founder Gates. Bezos will always hover and be there, whereas Gates (and Ballmer) had retired for good. [ … ] It was clear [they] would not be coming back. [ … ] For Jassy, the owner could [conceivably] come back anytime,” Mueller said.

But Andrew Bartels, an analyst at Forrester Research, says it’s not a coincidence that both leaders were plucked from the cloud divisions of their respective companies, even if it was seven years apart.

“In both cases, these hyperscale business units of Microsoft and Amazon were the fastest-growing and best-performing units of the companies. [ … ] In both cases, cloud infrastructure was seen as a platform on top of which and around which other cloud offerings could be developed,” Bartels said. The companies both believe that the leaders of these two growth engines were best suited to lead the company into the future.

Mate Fertility, the new Los Angeles startup launching today with $2.8 million in financing, has a mission to create a more inclusive network of family planning services for people struggling with the high cost and low availability of fertility clinics around the country.

Founded by serial entrepreneur Oliver Bogner and his brother Gabriel, Mate was born from both brothers’ struggles with trying to start a family. For Oliver, that was when he and his partner were looking at IVF as a way to screen for the BRCA1 gene from her embryos after she found out that she was a carrier. Meanwhile, Gabriel, an IVF baby who is a member of the LGBTQ community, felt that the services for family planning weren’t always accepting of the gay community.

“IVF and surrogacy were the only options for me to have kids,” the younger Bogner said. “And the queer community has been locked out of these services. It became my mission to democratize healthcare for my community.”

Once Oliver started doing research into the market and discovered that there were only 460 fertility clinics in the U.S. and that over 80% were concentrated in five major metropolitan areas, he knew there was an opportunity for a new business.

The Bogner brothers enlisted famed reproductive endocrinologist Dr. Jeffrey Steinberg, who trained under the British doctors that pioneered In Vitro Fertilization, to come on board and together the three men launched Mate Fertility.

The co-founders have enlisted an impressive array of financiers to back their business boasting an investor base that includes Andy Dunn, the founder of Bonobos; Peter Pham, the co-founder of the LA-based consumer focused company incubator, Science; Patrick Schwarzenegger; Brian Schwartz; the investors behind Roman, Allbirds, and Caspar, Rosecliff Ventures; Pure Imagination Brands; Mana Ventures, and Maschmeyer Group Ventures.

Mate is launching first in Oklahoma City, where two legacy providers are charging anywhere from 10% to 15% above the national average for family planning services. “We’re going in at anywhere from 50% to 60% lower costs than they are,” said Oliver Bogner.

The company said it would offer egg freezing services for as low as $5,000 and IVF for $8,000, while the national average for IVF cycle costs ranges from $15,000 to $18,000, including medication.

“We’re still making healthy margins that allow us to operate the business. It’s not a matter fo these procedures costing more. These 460 clinics are allowed to radically mark up the process,” said the elder Bogner. “One of these clinics is making approximately 1,000% profit margin on every procedure.”

Given the fact that the company estimates roughly 18% of the U.S. population will face some fertility issue, the need for more clinics — setting aside the lower costs — would be enormous.

“We need 3,000 clinics to properly serve our population, today we have 460. There’s a huge gap in care,” said Bogner. 

The company is working with the architects behind Dry Bar, Heitler Houstoun, to design its clinics in an effort to popularize and destigmatize the services.

“We were really intrigued by Oliver and Gabe. In terms of what the biggest risks are… you’re not playing around. You’re not creating software, you’re creating life,” said Adam Struck, the founder of Mate Fertility’s lead investment firm, Struck Capital. “The ultimate KPI which is success rate for our patients is top tier. There’s a lot that Nate is doing to ensure that some of the best medical personnel in the world are part of the Mate mission.” 

Mate Fertility offers modern EHR platforms, an e-pharmacy, proven protocols, payment assistance and digital patient and provider portals for services that include IVF, genetic screening, egg freezing, surrogacy and LGBTQ family building treatments, the company said.

Its first locations will be clinics in Oklahoma City, Anchorage, Ark., Bakersfield, Calif. Lancaster, Pa., Austin, and Portland.

Mate Fertility, the new Los Angeles startup launching today with $2.8 million in financing, has a mission to create a more inclusive network of family planning services for people struggling with the high cost and low availability of fertility clinics around the country.

Founded by serial entrepreneur Oliver Bogner and his brother Gabriel, Mate was born from both brothers’ struggles with trying to start a family. For Oliver, that was when he and his partner were looking at IVF as a way to screen for the BRCA1 gene from her embryos after she found out that she was a carrier. Meanwhile, Gabriel, an IVF baby who is a member of the LGBTQ community, felt that the services for family planning weren’t always accepting of the gay community.

“IVF and surrogacy were the only options for me to have kids,” the younger Bogner said. “And the queer community has been locked out of these services. It became my mission to democratize healthcare for my community.”

Once Oliver started doing research into the market and discovered that there were only 460 fertility clinics in the U.S. and that over 80% were concentrated in five major metropolitan areas, he knew there was an opportunity for a new business.

The Bogner brothers enlisted famed reproductive endocrinologist Dr. Jeffrey Steinberg, who trained under the British doctors that pioneered In Vitro Fertilization, to come on board and together the three men launched Mate Fertility.

The co-founders have enlisted an impressive array of financiers to back their business boasting an investor base that includes Andy Dunn, the founder of Bonobos; Peter Pham, the co-founder of the LA-based consumer focused company incubator, Science; Patrick Schwarzenegger; Brian Schwartz; the investors behind Roman, Allbirds, and Caspar, Rosecliff Ventures; Pure Imagination Brands; Mana Ventures, and Maschmeyer Group Ventures.

Mate is launching first in Oklahoma City, where two legacy providers are charging anywhere from 10% to 15% above the national average for family planning services. “We’re going in at anywhere from 50% to 60% lower costs than they are,” said Oliver Bogner.

The company said it would offer egg freezing services for as low as $5,000 and IVF for $8,000, while the national average for IVF cycle costs ranges from $15,000 to $18,000, including medication.

“We’re still making healthy margins that allow us to operate the business. It’s not a matter fo these procedures costing more. These 460 clinics are allowed to radically mark up the process,” said the elder Bogner. “One of these clinics is making approximately 1,000% profit margin on every procedure.”

Given the fact that the company estimates roughly 18% of the U.S. population will face some fertility issue, the need for more clinics — setting aside the lower costs — would be enormous.

“We need 3,000 clinics to properly serve our population, today we have 460. There’s a huge gap in care,” said Bogner. 

The company is working with the architects behind Dry Bar, Heitler Houstoun, to design its clinics in an effort to popularize and destigmatize the services.

“We were really intrigued by Oliver and Gabe. In terms of what the biggest risks are… you’re not playing around. You’re not creating software, you’re creating life,” said Adam Struck, the founder of Mate Fertility’s lead investment firm, Struck Capital. “The ultimate KPI which is success rate for our patients is top tier. There’s a lot that Nate is doing to ensure that some of the best medical personnel in the world are part of the Mate mission.” 

Mate Fertility offers modern EHR platforms, an e-pharmacy, proven protocols, payment assistance and digital patient and provider portals for services that include IVF, genetic screening, egg freezing, surrogacy and LGBTQ family building treatments, the company said.

Its first locations will be clinics in Oklahoma City, Anchorage, Ark., Bakersfield, Calif. Lancaster, Pa., Austin, and Portland.

Although the popular audio chat platform Clubhouse today includes a way to share your upcoming hangouts and events across social media, the resulting link that displays is fairly boring. A new link-sharing tool called ClubLink can help. The tool allows hosts to better promote their events by offering a more customized social media preview featuring a photo that includes the room name, who’s attending, the date and time (using the host’s time zone), and even profile icons of the hosts themselves.

The tool was built by two Germany-based colleagues, online marketer Jens Polomski and coder and digital marketer, Peter Thaleikis.

Polomski says he came up with the idea last month because he kept seeing Clubhouse links shared on Twitter and thought they just didn’t look that good.

“I noticed many people share — especially on Twitter — because Clubhouse has this built-in sharing feature,” he says. “But the preview image is not well-optimized and lacks any relevant information.”

Polomski reached out to Thaleikis and convinced him to help build a better version.

Their resulting ClubLink tool is simple to use. You just paste in your Clubhouse event link on the ClubLink website, and it automatically generates the ClubLink you can use. It’s a similar process as to how URL shorteners like tinyurl.com work, for example.

In ClubLink’s case, though, it’s doing a bit more than just returning a shorter URL. The tool visits the Clubhouse link provided and takes a screenshot to help create the image — but it’s not scraping data from Clubhouse, Polomski says. The tool also renames the image file it creates to include the host’s name for better discoverability and, perhaps, for better search engine optimization in the future.

In fact, the SEO aspects of the ClubLink URLs were considered when the tool was built, given its creators have digital marketing backgrounds.

“We’re taking care that the technical SEO background from the links are as good as possible — and that’s something Clubhouse, right now, didn’t do,” notes Polomski. However, he notes that it’s too soon to tell how well those efforts have paid off, as the first ClubLink URLs were just launched last week and only a few have been indexed by Google so far.

After you’ve created the link on the ClubLink website, you’re directed to a page where you have the option to immediately share it out to Twitter, Facebook and LinkedIn.

Being able to publicize your rooms in advance is a important way to build a following on the audio-based social network, so likely many hosts will begin to put this new tool to use in the days ahead.

Here’s one example of a ClubLink in action:

Of course, sharing a link while you’re in a room is useful too — especially if you’ve landed in a great room you think others should know about. Clubhouse, in its most recent update, noted that you’re now able to click the “+” sign while in room to get a link that you can post to social media. Unfortunately, these “room” links don’t work yet in the ClubLink tool, but the team said they’re already discussing a solution for that.

ClubLink is one of now several small tools that’s popped up in recent days to offer expanded functionality and new features for Clubhouse power users.

We’ve also come across the Clubhouse Bio Creator at clubhousebio.xyz, which helps people perfect their profile bio on the desktop then copy it over to Clubhouse on their phone. Other popular tools help users make their profile picture stand out, like Clubhouse Glow, Clubhouse Avatar Maker, and Thriveepic‘s Canva template.

This is still a version one though. Right now, you don’t see your full timeline through Protect, so essentially it means that you toggle between Protect and whatever Twitter client you are using. Some might find that onerous, although on the other hand Bala noted that a sign of Sentropy’s success is that people will actually let it work in the background and you won’t feel the need to constantly check in.

Redgrave also noted that the service is still exploring how to add in other features, for example the ability also to filter direct messages.

Audi revealed Tuesday the 2022 e-tron Quattro GT and its higher-performing sibling the RS e-tron GT — flagships of the German automaker’s growing electric vehicle portfolio and its first departure from the crossovers and SUVs that have so far dominated the lineup.

The Audi e-tron GT and RS are the third and fourth all-electric vehicles in the company’s U.S. portfolio, followed by the e-tron SUV and e-tron Sportback that debuted in 2019. The Audi Q4 e-tron — another SUV — will be the automaker’s fifth electric vehicle. All of these e-tron models are part of Audi’s plan to launch more than 30 electric vehicles and plug-in hybrids by 2025.

“This car is a new, very progressive interpretation of the classical GT,” Marc Lichte, head of Audi design, said in Tuesday’s presentation. “That means proportions like a super sports car, and the usability of a real four seater. And that’s something completely new.”

The e-tron GT, which goes into production this spring and will hit the U.S. market this summer, packs in the performance and luxury in its sporty package. The base e-tron GT has two motors that produce the equivalent of 469 horsepower — or 522 hp with “overboost” — and can travel an estimated 238 miles on the 93.4-kilowatt battery. Under the European WLTP standard, the e-tron GT range is 298 miles.

The RS e-tron has the same front motor as the entry-level GT, but has a more powerful rear motor. Together, the motors can produce 590 horsepower and up to 637 horsepower with overboost. As a result, the RS e-tron GT can accelerate from zero to 60 miles per hour in 3.1 seconds and has a 155 mph top track speed, the company said. The RS has an estimated EPA range of 232 miles.

The company has yet to receive an official EPA estimate for either variant.

The vehicles also have an 800-volt electrical architecture — the same that is in the Porsche Taycan. (Remember Porsche and Audi are both another VW Group companies). That architecture allows the e-tron GT, like the Taycan, to replenish its battery from 5% to 80% in 22.5 minutes, one of the quickest charging rates in the industry. 

Inside, the e-tron GT comes standard with a 12.3-inch Audi virtual cockpit digital instrument cluster and a central 10.1-inch touchscreen, where drivers can control music, navigation and other controls as well as electric vehicle-specific features such as searching for charging stations. Owners can opt for an upgrade and add a head-up display as well.

The vehicle also comes standard in a leather-free interior featuring recycled materials including an artificial suede called Dinamica, although a Nappa leather option is also available as an upgrade.

All of this performance and luxury comes at a price. The base model of the e-tron GT quattro starts at $99,900, followed by a higher trim level priced at $107,100. The RS e-tron GT starts at $139,900. Those prices push even higher for those that opt for the additional features, notably the company’s Matrix LED headlights, which are only available in Europe.

Aerion has been working on ushering in a new era of commercial supersonic flight for nearly a decade now, and the company just revealed that it has signed a new partnership with NASA to put that experience to use in the pursuit of supersonic point-to-point travel – the technical name for putting the kind of high-speed flight typically associated with space launches to use in helping people move very quickly from one place on Earth to another.

The new collaboration comes via the Space Act Agreement, which basically allows NASA to enlist the aid of private companies to help it achieve its various goals. NASA has been developing high-Mach, supersonic aircraft technologies for some time now, in particular though its arrangement with Lockheed Martin to build and fly the X-59 QueSST, a demonstrator aircraft that will show how supersonic craft can also operate relatively quietly, with so-called ‘low-boom’ capabilities that avoid the loud sonic booms produced by most supersonic vehicles when they break the sound barrier.

NASA announced a similar partnership under the Space Act Agreement with Virgin Galactic last year, with the goal of helping the agency develop technologies that will assist in the eventual deployment of sustainable supersonic commercial flight. Aerion’s team-up with the agency will focus specifically on studying commercial flight capabilities in speeds ranging between Mach 3 and Mach 5, with a focus on propulsion and thermal management systems, power generation and technologies for use in the passenger and crew cabins.

Aerion’s own high-speed commercial aviation efforts are currently on track to see its AS2 private jet for business customers enter production in 2023, which will set the stage for its AS3 commercial supersonic passenger aircraft to follow after that.

This isn’t Aerion’s first team-up with NASA: The two have collaborated twice previously on similar projects, with the first collaboration begun way back in 2012. Now that Aerion’s closer to actual production, it’s likely that both partners will gain a lot towards their mutual goals of helping the U.S. develop commercially viable and sustainable supersonic passenger flight technologies.

There’s a popular misconception that the cryptocurrency industry is a realm of rogue tech-bro cowboys. But the reality is many of the most ambitious entrepreneurs in fintech are betting big on institutional bitcoin adoption. 

Such is the case with Lebanese-American venture capitalist Soona Amhaz of Volt Capital, whom Forbes recently listed as one of the most influential people in Silicon Valley. She discovered bitcoin through Reddit, back when she was an engineering student at the University of Michigan. Now her firm has invested in 11 crypto startups and is working alongside institutional players like TD Ameritrade, Cumberland and CMT Digital as part of the Chicago DeFi Alliance (CDA). 

“Where institutions are at now is they’re looking to back quality founders in the space early on. They’re looking to be market makers for a lot of these [crypto] projects, and they’re looking to help with integrations and partnerships between decentralized finance [DeFi] projects and more established financial firms,” Amhaz said. “They see where the puck is going and the smart ones are getting ahead of the curve.” 

When it comes to “DeFi,” Amhaz said the term includes bitcoin and the variety of blockchain-based systems gaining popularity among day traders during the pandemic.

“Specific DeFi projects that are gaining more traction now include automated market makers (AMMs), stablecoins and platforms for decentralized exchange (DEX) aggregation, lending and derivatives,” Amhaz said. “Recent DeFi projects simply offer more avenues to use bitcoin as a productive asset, not just a reserve asset.” 

Until now, most institutions have preferred indirect exposure to cryptocurrency. Goldman Sachs alum Juthica Chou, who co-founded the derivatives exchange LedgerX back in 2013, pioneered the physically settled bitcoin futures that are now mainstay offerings among firms like Bakkt and CME Group. Futures contracts and bitcoin options offer a way for institutions to bet on the price of bitcoin without actually owning bitcoin directly. A cash-settled product means the buyer is paid in dollars, such as getting $10,000 when the option to buy at $10,000 expires, instead of getting paid in bitcoin. Rumor has it the asset management giant BlackRock will soon become the next player offering bitcoin futures products. 

So far, many institutions are willing to forgo some profits in exchange for lower risk. One of the most popular institutional product providers, Grayscale’s Bitcoin Trust (GBTC), reportedly saw $1.2 billion in fresh investor funds in January 2021. 

“I’m still bullish on options and derivatives,” Chou said, adding there’s enough demand from institutions for trust shares like GBTC, bitcoin options and even prospective exchange-traded funds (ETFs) to all generate substantial wealth in 2021. 

“The environment has way more infrastructure than we had back in 2013,” Chou said. “There’s security infrastructure and best practices for custodians, auditing infrastructure … banking is another great example. Compared to 2013, the difference between where we were and where we are today is night and day.”

With regards to GBTC, in particular, insatiable demand for shares with lower risks than custodying bitcoin leads to sky-high premiums, sometimes up to 100% more expensive than buying cryptocurrency directly. That’s why Valkyrie CEO Leah Wald launched her own Texas-based asset management firm in 2020. According to Crunchbase, she was one of roughly 800 women founders who raised capital last year. 

“It was really difficult to raise during a pandemic… not being able to organically expand my network,” Wald said. “I couldn’t have a meeting with someone even if I wanted to. And so much of seed investing is trusting in the team; trust built through high-quality, in-person conversations.”

Yet by January 2021, her startup had raised an undisclosed seed round from angel investors like Coinbase alum Charlie Lee, then applied to the Securities and Exchange Commission for permission to launch a bitcoin ETF. Chou said such a bitcoin ETF would boost the whole ecosystem because it would “open access for people who are already users brokers or securities services.”

Several ETF proposals have been rejected over the years, starting with a proposal by Tyler and Cameron Winklevoss in 2013. However, Wald says now she believes there’s never been better timing for an ETF to get approved. Among futures and options, trust shares and ETFs, all these products have different regulatory shapes that allow them to be redeemed faster, or traded in different ways, than the underlying asset, bitcoin, could be at-scale. Generally speaking, institutions seek indirect ways to gain exposure to these nascent, and often lucrative, crypto markets. 

“Bitcoin’s market cap has grown large enough that it may have finally surpassed an important threshold in the minds of the regulators,” Wald said. “I believe the biggest reason the regulators were nervous about approving a bitcoin ETF in 2017 was concerns around custodial solutions and security. And I agree with that. We’re much closer to better security and custody now with institutional-grade options.” 

Wald added that both Valkyrie’s bitcoin trust shares and prospective ETF are structured to reduce volatility and premiums.  

“We wanted to create a more transparent product. I wanted our product to trade closer to the net asset value [NAV],” Wald said. “We’re the only bitcoin trust launching an ETF fund so everyday investors can buy exposure to bitcoin.”  

This propensity among women entrepreneurs using cryptocurrency isn’t restricted to American tech bubbles. According to Toya Zhang, head of marketing at the Hong Kong-based crypto and futures exchange AAX, women make up 25% of her platform’s users and a third of the top users. 

“Our biggest market is in Russia. Other than Russia, our biggest markets are Hong Kong, Korea, Indonesia and India,” Zhang said. “Asian women are more often the one to take care of finances. If you look at stock investment user groups in China and Hong Kong, women are more than half of them.”

The highly specialized crypto landscape is quickly gaining diversity, compared to other financial sectors. At India’s Coinswitch.co exchange, women reportedly make up 50% of around 25,000 users, depending on the specific region. Women also make up at least 40% of British cryptocurrency users, according to a survey by the crypto exchange Gemini. 

Across borders, the clear gender disparity may be associated with net worth rather than any lack of interest. In 2018, the World Bank estimated women only held 38% of capital wealth. Plus, Crunchbase tallied just 15,379 companies, less than 20% of startups that raised capital, that had women founders from 2009-2019. 

Beyond startups, there are also several companies like the New York Digital Investments Group (NYDIG), where women executives took the helm in order to innovate on established brokerage models. 

In December 2020, the insurance company Massachusetts Mutual Life Insurance Co. purchased $100 million in bitcoin and acquired NYDIG equity, a move that signaled a bullish outlook on institutional demand for bitcoin exposure in 2021. Then, on February 8, 2021, Elon Musk’s publicly traded car company Tesla validated the institutional thesis by buying $1.5 billion worth of bitcoin. 

“In 2021, the greater acceptance of bitcoin by traditional investors and allocators is really exciting,” said NYDIG president Yan Zhao. “We’ll give banks and wealth managers the ability to offer bitcoin products and exposure. We’ll handle the back end.”

Zhao said her bitcoin-focused firm has roughly $4 billion under management, including derivatives, and is currently courting prospective clients like private banks and various asset managers. Her firm is open to exploring ideas like a bitcoin ETF or trust shares, she said, but isn’t interested in Ethereum-based DeFi products. 

“We’ve made a conscious decision to focus on bitcoin,” Zhao said.

Likewise, Chou was skeptical about many of the Ethereum-based DeFi options available today, while remaining cautiously optimistic about the future of DeFi derivative options.

“Crypto-native products are important because that’s how you can really harness the power of not having centralized authorities involved to facilitate the transaction,” Chou said.

In short, now traditional options offer indirect access to cryptocurrency gains. At the same time, cryptocurrency itself is experimentally being used to offer comparable, yet more accessible, financial products. These DeFi products are designed for new functionality, not just price exposure. 

Meanwhile in California, from network scaling crusader Elizabeth Stark, CEO of Lightning Labs, to Amhaz at Volt Capital, the next generation of bitcoin whales may look remarkably different from Silicon Valley’s past unicorn-building bros. 

“The face of our industry looks different than how the tech industry looked in the early 90s or how finance has looked since forever,” Amhaz said. “We’re starting at a higher, more informed baseline. So, although there’s still work to be done here, I’m optimistic.”

Disclosure: Together, Leah Wald and Leigh Cuen are volunteer co-founders of the Digital Salon Initiative.

 

Oldsmar is a small town in Florida that became the center of the cyber world this week when a hacker broke into its drinking water supply and tried to poison it.

It’s the nightmare scenario that the security community has warned for years, one that could kill thousands by targeting the critical infrastructure that we all rely on. The hacker gained access to a computer at the water facility used for running remote control software TeamViewer, according to Reuters, and jacked up the levels of sodium hydroxide, aka lye, which would have made the water highly toxic to drink.

It’s not known what security was in place to prevent unauthorized users from gaining access to the critical system. Sheriff Bob Gualtieri said in a press conference that there were fail-safes and alarms in place to prevent tainted water from reaching residents, and as a result there was little risk to the population of some 15,000 residents.

But suffice to say, running remote control software in a facility that controls the local water supply is a disaster waiting to happen. These networks are supposed to be isolated from the internet to prevent this exact scenario. But you can look for clues in this Reuters report: The water facility is a public utility owned by the town and has its own internal IT staff.

Gualtieri, in his remarks, said: “The important thing is to put everyone on notice.” He’s not kidding; it’s a similar picture to a lot of small-town America, where much of these facilities are under-resourced and underfunded. Robert Lee, founder and chief executive at industrial security startup Dragos, set the context:

The FBI confirmed it has been called in to investigate. But what’s unlikely to change any time soon is that small towns are underfunded and don’t get the resources that other critical infrastructure gets. In the end, a TeamViewer subscription will be cheaper than a person’s salary, and there is no greater incentive to cut costs than during a pandemic.

On with the rest of Decrypted.

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THE BIG PICTURE

Hackers post stolen health data after hospital ransomware attacks

As COVID-19 vaccines begin to roll out, ransomware actors are hitting back. NBC News this week revealed two hospitals that were hit by data-stealing ransomware. After the hospitals refused to pay the ransom, the hackers started to publish highly sensitive health and medical data stolen from the hospital networks.