The Internet

Low-Wage Earners To Get High-Speed Internet For $30 in Biden Program (washingtonpost.com) 226

echo123 writes: Twenty Internet providers, including AT&T, Comcast and Verizon, have agreed to provide high-speed service at a steep discount to low-income consumers, the White House announced Monday, significantly expanding broadband access for millions of Americans. The plan, a feature of the $1 trillion infrastructure package passed by Congress last year, would cost qualifying households no more than $30 per month. The discounts plus existing federal Internet subsidies mean the government will cover the full cost of connectivity if consumers sign on with one of the 20 participating companies. The White House estimates the program will cover 48 million households, or 40 percent of the country.

The 100-megabit-per-second service is fast enough for a family to work from home, complete schoolwork, browse the Internet and stream high-definition movies and TV shows, the White House said. Households can qualify for the subsidies, called the Affordable Connectivity Program, if their income is at or below 200 percent of federal poverty guidelines, a member of the household participates in certain federal anti-poverty initiatives -- including Medicaid, Supplemental Nutrition Assistance Program, federal housing assistance, Pell Grant tuition assistance, or free or reduced-price school meals -- or if the household already qualifies for an Internet provider's low-income service program. Consumers can check whether they qualify for discounted service at getinternet.gov.

Education

Illinois College, Hit By Ransomware Attack, To Shut Down (nbcnews.com) 58

Lincoln College is scheduled to close its doors Friday, becoming the first U.S. institution of higher learning to shut down in part due to a ransomware attack. From a report: A goodbye note posted to the school's website said that it survived both World Wars, the Spanish flu and the Great Depression, but was unable to handle the combination of the Covid pandemic and a severe ransomware attack in December that took months to remedy. "Lincoln College was a victim of a cyberattack in December 2021 that thwarted admissions activities and hindered access to all institutional data, creating an unclear picture of Fall 2022 enrollment projections," the school wrote in its announcement. "All systems required for recruitment, retention, and fundraising efforts were inoperable. Fortunately, no personal identifying information was exposed. Once fully restored in March 2022, the projections displayed significant enrollment shortfalls, requiring a transformational donation or partnership to sustain Lincoln College beyond the current semester." The Illinois school, which is named after President Abraham Lincoln and broke ground on his birthday in 1865, is one of only a handful of rural American colleges that qualify as predominantly Black institutions by the Department of Education.
Businesses

Uber CEO Tells Staff Company Will Cut Down on Costs, Treat Hiring as a 'Privilege' (cnbc.com) 64

Uber will cut back on spending and focus on becoming a leaner business to address a "seismic shift" in investor sentiment, CEO Dara Khosrowshahi told employees in an email obtained by CNBC. From the report: "After earnings, I spent several days meeting investors in New York and Boston," Khosrowshahi said in the email, which was sent out late Sunday. "It's clear that the market is experiencing a seismic shift and we need to react accordingly." [...] To address the shift in economic sentiment, the ride-hailing firm will slash spending on marketing and incentives and treat hiring as a "privilege," Khosrowshahi said. "We have to make sure our unit economics work before we go big," the Uber boss wrote. "The least efficient marketing and incentive spend will be pulled back... We will treat hiring as a privilege and be deliberate about when and where we add headcount," he added. "We will be even more hardcore about costs across the board."
Businesses

The Tech Industry's Epic Two-Year Run Sputters (wsj.com) 24

Investors are divided about whether technology companies are set for a deep retrenchment or if growth is simply slowing from pandemic highs. From a report: The technology industry, which powered the U.S. economy during the pandemic and grew at tremendous scale during a decade of ultralow interest rates, is confronting one of the most punishing stretches in years. Global powerhouses and fledgling startups are feeling pain from a variety of economic, industry and market factors, spawning postpandemic turbulence in e-commerce, digital advertising, electric vehicles, ride-hailing and other segments. Companies that emerged as job-creating juggernauts in the past two years -- collectively adding hundreds of thousands of workers to their payrolls in engineering, warehouse and delivery jobs -- have begun to freeze hiring or even lay off employees.

Concerned that some of the forces that have propelled tech ever upward have begun to fade, investors have sent share prices for a number of companies, including Lyft and Peloton plunging on disappointing financial results or other news. The stocks of Netflix, Facebook parent Meta Platforms and Amazon.com all are down more than 30% this year, exceeding the more-than-13% drop in the S&P 500. Investors are divided on the question of whether the slowdown is temporary -- as well-positioned companies work through a period of stagnation after expanding ultrafast in recent years -- or if these are the early signs of a deeper retrenchment for the industry and its investors.

Social Networks

Instagram To Start Testing NFTs With Select Creators this Week (techcrunch.com) 12

Instagram head Adam Mosseri announced today that the platform is going to start testing NFTs with select creators in the United States this week. From a report: Mosseri noted that there will be no fees associated with posting or sharing a digital collectible on Instagram. At launch, the supported blockchains for showcasing NFTs on Instagram are Ethereum and Polygon, with support for Flow and Solana coming soon. The third-party wallets compatible for use will include Rainbow, Trust Wallet and MetaMask. Creators and people who are part of the test can now share NFTs that they've made or that they've bought. You can share these NFTs in your main Feed, Stories, or in messages. Mosseri outlined that only a limited number of people have access to the test, but the company plans to roll out more functionality related to NFTs in the future once it gets feedback from its initial testing.
China

Pentagon's China Warning Prompts Calls To Vet US Funding of Startups (wsj.com) 20

Congress may soon require government agencies to vet tech startups seeking federal funding, after a Defense Department study found China is exploiting a popular program that funds innovation among small American companies. From a report: The study, which was viewed by The Wall Street Journal, found China is using state-sponsored methods to target companies that have received Pentagon funding from the Small Business Innovation Research program. The SBIR program for decades has sought to promote innovation through a competitive U.S. government award process.

The April 2021 report, which has been circulating among lawmakers on Capitol Hill, details eight case studies it says have "national and economic security implications." The studies include examples of program participants who dissolve their American companies, join Chinese government talent programs and continue their work at institutions that support the People's Liberation Army, the armed wing of the Communist Party. The report also documents instances of SBIR recipients taking venture-capital money from Chinese state-owned firms and of working with Chinese entities that support the country's defense industry. The report concludes that the SBIR program needs a due-diligence process to identify entities of potential concern that would then receive a more detailed review.

Businesses

NSO Group Keeping Owners 'in the Dark', Manager Says (ft.com) 24

Israeli spyware company NSO Group has stonewalled questions over whether it is operating legally, according to consultants acting on behalf of the controversial company's owners. From a report: Berkeley Research Group, the US consultancy that was last year put in charge of the private equity fund that owns 70 per cent of NSO, has told EU lawmakers that its inquiries about NSO's "lawfulness" have been "ignored and/or frustrated by NSO Group's management team." Concerns remain about âoethe historical management of the NSO Group" and "possible ongoing activities in relation to which [BRG is] being kept in the dark," BRG's lawyers wrote in a letter to MEPs. BRG's complaint is a further escalation of the controversy surrounding NSO, which was once a highly prized asset that Israel used as a diplomatic calling card, but is now facing lawsuits from Meta and Apple and has been blacklisted by the US. NSO's Pegasus software can infiltrate a smartphone and mirror its encrypted contents. It was last year found to have been used to target smartphones belonging to 37 journalists, human rights activists and other prominent figures.
GNOME

GNOME Patent Troll Gets Stripped of Patent Rights (opensource.org) 40

An anonymous Slashdot reader writes: Remember that patent lawsuit filed against GNOME's Shotwell in 2019? An enterprising open source lawyer has challenged it within the patent office and gotten the whole thing canceled!
OpenSource.org argues that decision by the U.S. patent office "may well give patent trolls cause to steer clear of open source projects — even more than the fierce resistance the community impressively funded and mounted in the GNOME case." Of the many methods developed over the past 20 years to eliminate patent threats against FOSS, none is as powerful as challenging the nefarious patents directly. That's what McCoy Smith, founder of OSI sponsor LexPan Law, did.... Smith pointed out in a re-examination request to the U.S. Patent & Trademark Office that the patent was not for any new invention.

They agreed. As a result, all of these "claims" in the Rothschild '086 Patent — the part of a patent describing what the patent rights cover — have consequently been canceled. The Rothschild '086 patent can no longer be used against any victim, including open source projects.

Of course, that's little comfort to the 20+ victims attacked after GNOME with the now-proven-worthless Rothschild '086 patent, or the 50+ companies targeted with related patents that haven't yet been re-examined.... Still, it's good to know there are open source champions of all sizes defending the development of open software.

Censorship

Millions of Russians are 'Tearing Holes in the Digital Iron Curtain' Using VPNs (msn.com) 96

After Russia invaded Ukraine in late February, "VPNs have been downloaded in Russia by the hundreds of thousands a day," reports the Washington Post, "a massive surge in demand that represents a direct challenge to President Vladimir Putin and his attempt to seal Russians off from the wider world.

"By protecting the locations and identities of users, VPNs are now granting millions of Russians access to blocked material...." Daily downloads in Russia of the 10 most popular VPNs jumped from below 15,000 just before the war to as many as 475,000 in March. As of this week, downloads were continuing at a rate of nearly 300,000 a day, according to data compiled for The Washington Post by the analytics firm Apptopia, which relies on information from apps, public data and an algorithm to come up with estimates. Russian clients typically download multiple VPNs, but the data suggests millions of new users per month. In early April, Russian telecom operator Yota reported that the number of VPN users was over 50 times as high as in January, according to the Tass state news service.

The Internet Protection Society, a digital rights group associated with jailed Russian opposition leader Alexei Navalny, launched its own VPN service last month and reached its limit of 300,000 users within 10 days, according to executive director Mikhail Klimarev. Based on internal surveys, he estimates that the number of VPN users in Russia has risen to roughly 30 percent of the 100 million Internet users in Russia. To combat Putin, "Ukraine needs Javelin and Russians need Internet," Klimarev said....

In the days before the war, and in the weeks since then, Russian authorities have also ratcheted up pressure on Google, asking the search engine to remove thousands of Internet sites associated with VPNs, according to the Lumen database, an archive of legal complaints related to Internet content. Google, which did not respond to a request for comment, still includes banned sites in search results.... Although downloading a VPN is technically easy, usually requiring only a few clicks, purchasing a paid VPN has become complicated in Russia, as Western sanctions have rendered Russian credit and debit cards nearly useless outside the country. That has forced many to resort to free VPNs, which can have spotty service and can sell information about users.

Vytautas Kaziukonis, chief executive of Surfshark — a Lithuania-based VPN that saw a 20-fold increase in Russian users in March — said some of those customers are now paying in cryptocurrencies or through people they know in third countries.

One 52-year-old told the Post that downloading a VPN "brought back memories of the 1980s in the Soviet Union, when he used a shortwave radio to hear forbidden news of dissident arrests on Radio Liberty, which is funded by the United States."

"We didn't know what was going on around us. That's true again now."
Google

The UK Government's Plan to Rein in Big Tech (bbc.com) 24

The BBC reports: Large tech companies such as Google and Facebook will have to abide by new competition rules in the UK or risk facing huge fines, the government said. The new Digital Markets Unit (DMU) will be given powers to clamp down on "predatory practices" of some firms.

The regulator will also have the power to fine companies up to 10% of their global turnover if they fail to comply.... The Department for Digital, Culture, Media and Sport (DCMS) said as well as large fines, tech firms could be handed additional penalties of 5% of daily global turnover for each day an offence continues. For companies like Apple that could be tens of billions of US dollars. "Senior managers will face civil penalties if their firms fail to engage properly with requests for information," the government said. However, it is unclear when exactly the changes will come into force, as the government has said the necessary legislation will be introduced "in due course...."

Google's search engine, which is currently the default search engine on Apple products, will also be looked at by the regulator, the government said.

It added it wants news publishers to be paid fairly for their content — and will give the regulator power to resolve conflicts.

The BBC reports the new rules also "aim to give users more control over their data," and that the new regulator "will also make it easier for people to switch between phone operating systems such as Apple iOS or Android and social media accounts, without losing data and messages."
Transportation

Mercedes-Benz Opens Sales of Level 3 Self-Driving System In Germany (motor1.com) 71

An anonymous reader quotes a report from Motor1: The two flagship models from Mercedes-Benz, the S-Class and the all-electric EQS, will soon be able to be ordered with conditional self-driving tech in Germany. Starting from May 17, the so-called Drive Pilot system will be offered as an extra-cost option for the two sedans, allowing the driver to hand the entire control of the machine over to the system under certain conditions. The Stuttgart-based automaker became the first in the industry to receive international approval for Level 3 autonomous tech in December last year. Releasing the system on the market now becomes the next logical step and Mercedes will ask 5,000 euros for Drive Pilot on the S-Class and 7,430 euros on the EQS, respectively around $5,260 and $7,813 at the current exchange rates. These figures include both the required hardware and software and for now, no further subscriptions are needed.

It's important to note that Level 3 doesn't mean a fully autonomous vehicle. The system used by Mercedes allows the driver to hand all driving tasks to the tech in heavy traffic or on suitable motorways in Germany with speeds of up to 60 kilometers per hour. Under these conditions, the driver can fully disengage from driving with the system controlling the speed and distance, as well as guiding the vehicle within its lane. More importantly, the system also reacts to unexpected traffic situations and avoids dangerous maneuvers.
Mercedes is currently working on receiving certification in the United States, notes Motor1.
Bug

Google Docs Crashes On Seeing 'And. And. And. And. And.' (bleepingcomputer.com) 63

A bug in Google Docs is causing it to crash when a series of words are typed into a document opened with the online word processor. BleepingComputer reports: It's official -- Google Docs crashes at the sight of "And. And. And. And. And." when the "Show grammar suggestion" is turned on. A Google Docs user, Pat Needham brought up the issue on Google Docs Editors Help forum. [...] Another user, Sergii Dymchenko, said strings like "But. But. But. But. But." triggered the same response. Some also noticed putting any of the terms like "Also, Therefore, And, Anyway, But, Who, Why, Besides, However," in the same format achieved the outcome.

Once crashed, you may not be able to easily re-access the document as doing so would trigger the crash again. BleepingComputer was able to reproduce the issue last night and reached out to Google. Google told us it is aware of the bug and working on a fix. [...] Until Google has an answer as to what causes this problem, it might be wise to turn off grammar suggestions by navigating to Tools, Spelling and grammar and unticking 'Show grammar suggestions.' If the bug has already been triggered and you're locked out of the Google Doc in question, there might be a workaround. Use the Google Docs mobile app to access the document, remove the offending words and the file should now open up gracefully on your Google Docs web version too.

Social Networks

'Buy Now, Pay Later' Is Sending the TikTok Generation Spiraling Into Debt (sfgate.com) 193

SFGATE reports on the alarming rise of "Buy Now, Pay Later" services that are being heavily marketed by influencers and brands on TikTok and Instagram. "Gen Z, in particular, has fallen in love with the short-term loans, spending 925% more now through point-of-sale services than in January 2020," notes the report.

"But coupling nearly instantaneous loans with an influencer-addled social media culture that prioritizes exorbitant spending and normalizes debt could be further jeopardizing the financial futures of young people through just four easy payments." Here's an excerpt from the report: Financial experts who spoke with SFGATE expressed significant concerns about the way companies are targeting Gen Z consumers. "They are marketing very heavily to an audience that is younger, that might not just have as much experience on how to use credit and what credit implications are or what it means to have multiple loans at one time," Marisabel Torres, the California policy director of the Center for Responsible Lending, told SFGATE.

Few of the services do significant credit checks, which would help determine whether people will be able to repay the loans. And plenty of people are spending more than they can afford: 43% of Gen Z users have missed at least one payment, according to a survey by the polling site Piplsay. Of Gen Z consumers who used a point-of-sale loan for something they needed, 30% missed at least two payments, according to a survey by Credit Karma.

The companies are fully aware that their services encourage people to spend more. In fact, several of them market it as a benefit to stores that want to partner with them. "We do see larger cart sizes, larger purchases, relative to what they would put onto their debit cards and credit cards," Libor Michalek, the president of technology at Affirm, told SFGATE. Still, high-level staffers at Affirm and Afterpay -- both based in San Francisco -- positioned their services as more responsible, less predatory alternatives to credit cards and personal loans in interviews with SFGATE. They also emphasized the accessibility of these services, especially for younger consumers looking to bolster their credit and consumers working to restore their credit scores, despite the fact that many of the services don't report on-time payments to credit agencies.
The report concludes by saying regulation is (probably) on its way. California Attorney General Rob Bonta, for example, signaled his support earlier this year for increasing regulations around point-of-sale loans. We're likely to see other states look into it in the coming months and years as well.

"While these services may be a responsible alternative to credit card debt for a good chunk of consumers, it seems increasingly likely that, without regulations, this kind of debt will burden the most financially vulnerable, just as credit cards, payday loans and layaway have in the past," reports SFGATE.
The Courts

Judge Dismisses Trump Lawsuit Seeking To Lift Twitter Ban (cnbc.com) 81

A judge on Friday dismissed a lawsuit by former President Donald Trump seeking to lift his ban from Twitter. But San Francisco federal district court Judge James Donato left the door open for Trump and other plaintiffs to file an amended complaint against Twitter that is consistent with his written decision Friday to toss the lawsuit in its entirety. CNBC reports: The social media giant had banned Trump on Jan. 8, 2021, citing the risk of the incitement of further violence on the heels of the Capitol riot by a mob of supporters of the then-president two days earlier. Trump, the American Conservative Union, and five individuals had sued Twitter and its co-founder Jack Dorsey last year on behalf of themselves and a class of other Twitter users who had been booted from the app. [...] His suit alleged that Twitter violated the plaintiffs' First Amendment rights to free speech, arguing that the bans were due to pressure on the company by Democratic members of Congress.

But in his 17-page ruling, Donato wrote that Trump and the other plaintiffs "are not starting from a position of strength" with their First Amendment claim. The judge noted, citing federal case law, that, "Twitter is a private company, and "the First Amendment applies only to governmental abridgements of speech, and not to alleged abridgements by private companies.'" Donato rejected the notion that Twitter's ban of Trump and the others was attributable to the government's actions, which would be the only way to uphold the claim of a violation of the First Amendment. "Overall, the amended complaint does not plausibly allege that Twitter acted as a government entity when it closed plaintiffs' accounts," Donato wrote.

The suit also asked the judge to rule that the federal Communications Decency Act was unconstitutional. The CDA says online service providers such as Twitter cannot be held responsible for content posted by others. Donato dismissed that claim after finding that the plaintiffs did not have legal standing to challenge the CDA. The judge said the only way they could have such standing was to show that Twitter "would not have de-platformed the plaintiff" or others but for the legal immunity conferred by the CDA when it came to content. [...]
Shortly after Twitter announced that it has agreed to be acquired by Elon Musk, Trump told Fox News that he is "not going back to Twitter," adding: "I am not going on Twitter, I am going to stay on Truth. I hope Elon buys Twitter because he'll make improvements to it and he is a good man, but I am going to be staying on Truth."
Android

Amazon Kindle Book Purchases Are the Next Google Play Billing Casualty (arstechnica.com) 12

Following up on its earlier move to pull Audible audiobook purchases from its Play Store app, Amazon is also turning off Kindle digital book purchases on Android. Ars Technica reports: The Google Play purchasing crackdown is to blame, of course. Starting on June 1, Google will require all Play Store apps to use Google Play billing for digital purchases or face removal from the marketplace. Google Play billing technically has been in the rules for a while, but Google is ending a hands-off enforcement policy that effectively allowed companies to run their own billing systems. When you visit the Amazon app, you can still buy physical books, but digital purchases now show a "Why can't I buy on the app?" link instead of a purchase button. Amazon's link shows a popup that says, "To remain in compliance with the Google Play Store policies, you will no longer be able to buy new content from the app. You can build a reading list on the app and buy on [the] Amazon website from your browser."

Amazon Music purchases have also been shut down on the Google Play app. The move brings Amazon's Google Play app in line with the iOS app, which also doesn't allow digital purchases. On Android, Amazon is pushing users to the website, where they can still buy digital content or sign up for an unlimited subscription, which avoids the Play Store purchase lockdown. Google Play billing takes a percentage of in-app purchases (usually 30 percent, though media can be as low as 10 percent), and several big companies have responded to the rule change by removing purchases from their Android apps.

The Internet

Cable Giants, ISPs, Telcos End Legal Fight Against California's Net Neutrality Law (theregister.com) 14

An anonymous reader quotes a report from The Register: California Attorney General Rob Bonta on Wednesday welcomed the decision by a group of telecom and cable industry associations to abandon their legal challenge of the US state's net neutrality law SB822. "My office has fought for years to ensure that internet service providers can't interfere with or limit what Californians do online," said Bonta in a statement. "Now the case is finally over. Following multiple defeats in court, internet service providers have abandoned this effort to block enforcement of California's net neutrality law. With this victory, we've secured a free and open internet for California's 40 million residents once and for all."

In December 2017, then Federal Communications Commission (FCC) chair Ajit Pai tossed out the 2015 net neutrality rules put in place during the Obama administration, freeing broadband providers to block, throttle, and prioritize internet traffic, among other things -- all of which were disallowed under the 2015 rules. On September 30, 2018, then California Governor Jerry Brown signed into law Senate Bill 822 (SB822), which more or less restored those rules. That same day, the Justice Department under the Trump administration challenged the law, as subsequently did the broadband companies benefiting from what Pai at the time referred to as a "light-touch approach."

The Justice Department, under the Biden administration, ended its opposition to California's net neutrality law back in February, 2021. The industry plaintiffs continued fighting SB822 in court but faced a setback in January, 2022, when the US Court of Appeals for the Ninth Circuit refused to block the law's enforcement as litigation progressed. Now those groups -- ACA Connects (America's Communications Association), CTIA (The Wireless Association), NCTA (The Internet & Television Association), and USTelecom (The Broadband Association) -- have withdrawn too. The trade associations, with the agreement of Bonta, filed a joint stipulation of dismissal without prejudice [PDF], which ends the telco legal challenge but allows the claim to be refiled at some later date.

Communications

Frontier Lied About Internet Speeds and 'Ripped Off Customers', FTC Says (arstechnica.com) 22

The Federal Trade Commission today said it "has moved to stop Internet service provider Frontier Communications from lying to consumers and charging them for high-speed Internet speeds it fails to deliver." From a report: Frontier was sued by the FTC in May 2021, and on Thursday, it agreed to a settlement with the FTC and district attorneys in Los Angeles County and Riverside County who represented the people of California. Frontier must pay $8.5 million to California "for investigation and litigation costs" and another $250,000 that will be distributed to Frontier customers who were harmed by Frontier's alleged actions. Frontier must also make changes, such as letting customers cancel service at no charge and "discount[ing] the bills of California customers who have not been notified that they are receiving DSL service that is much slower than the highest advertised speed," the FTC said.
United States

US Takes Aim at North Korean Crypto Laundering (nbcnews.com) 8

The U.S. sanctioned a cryptocurrency swap service on Friday, part of a larger effort to crack down on North Korea's practice of using hackers to steal money for the state. From a report: The sanctions, leveled against the company Blender.io, mark the first time that the U.S. Treasury Department has taken action against what is known in the cryptocurrency industry as a mixer, a for-profit service that allows users to move crypto between accounts without leaving a clear transaction record. Treasury said in a news release that North Korea has used Blender.io to launder more than $20.5 million of cryptocurrency that it allegedly stole from the online game Axie Infinity in March. Hackers stole more than $600 million worth of cryptocurrency from the game's owner. Blender.io did not immediately respond to an emailed request for comment. Its site was inaccessible Friday.
Businesses

Wi-Fi 7 Home Mesh Routers Poised To Hit 33Gbps (arstechnica.com) 58

It's looking increasingly likely that Wi-Fi 7 will be an option next year. This week, Qualcomm joined the list of chipmakers detailing Wi-Fi 7 products they expect to be available to homes and businesses soon. From a report: The Wi-Fi Alliance, which makes Wi-Fi standards and includes Qualcomm as a member, has said that Wi-Fi 7 will offer a max throughput of "at least 30Gbps," and on Wednesday, Qualcomm said its Network Pro Series Gen 3 platform will support "up to 33Gbps." These are theoretical speeds that you likely won't reach in your home, and you'll need a premium broadband connection and Wi-Fi 7 devices, which don't exist yet. Still, the speeds represent an impressive jump from Wi-Fi 6 and 6E's 9.6Gbps.
Businesses

Coinbase's NFT Marketplace Opens To All, But Users Don't Show Up (bloomberg.com) 35

Coinbase's new marketplace for nonfungible tokens is now officially open to all -- and it's getting off to a very slow start. From a Bloomberg report on Wednesday: After letting in a select number of users from its waiting list in the last few weeks, the U.S.'s biggest crypto exchange opened the marketplace to everyone as of noon Wednesday New York time. The site -- which Coinbase says is still in testing -- recorded fewer than 110 transactions as of about 5:15 pm, representing less than $60,000 in sales, according to tracker Dune Analytics. (Update: Fewer than 1,700 transactions at the time of publication, representing less than $700,000 in sales) That compares with $124 million in transaction volume for No. 1 NFT marketplace OpenSea on May 3, the most recent day available, per Dune. The result is hardly the mad rush expected by some on Wall Street after Coinbase's NFT project attracted several million signups to its waiting list when it first announced the marketplace last fall. The new site is part of efforts by Coinbase to diversify its revenue and fuel growth, which is expected to turn negative this year. The NFT project is overseen by Surojit Chatterjee, a former Google employee who joined Coinbase last year at a compensation package of $646 million.

Nick Tomaino of 1confirmation, an investor at Coinbase, tweeted earlier this week, in part: I haven't sold a share of Coinbase but will sell all my shares if the company doesn't make a strong move in NFTs in the next year. The current NFT product is not it. Coinbase built a massive business by being the bridge that connects fiat and crypto and keeping a finger on the pulse of the bleeding edge of crypto. For the first decade of the company the main way people entered the space was cryptocurrency so being laser focused on BTC and later other coins made a lot of sense. NFTs are now the most important onramp to crypto. The data this year is undeniable. Macro enviornment weak, NFTs strong. The fact that Coinbase hasn't yet shipped a fiat > NFT onramp product is very bad for shareholders. There's already been billions of dollars left on the table by not offering a marketplace product.

Their whole approach to NFTs has been off. Months of vaporware to drum up hype and then an Instagram-like feed for NFT influencers feels like an approach from an out of touch Silicon Valley company who knows NFTs are hot but doesn't understand them deeply from user perspective. This is a major divergence from the crypto native company with a finger on the pulse that Coinbase has been historically. Being first to trends and having the will within the company to get meaningful shit done has been the hallmark. As a company grows it's always hard to keep that, but if the finger on the pulse is gone and Coinbase is no longer the leading bridge between fiat and crypto it is no longer a great asset to own imo.

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