Week in Review: Alternative Assets and Twitter's Interest in Clubhouse

Greetings, and welcome once again to Week in Review!

Previously, the deceleration of user acquisition for Clubhouse was discussed. Notably, reports surfaced this week concerning discussions with Twitter regarding a potential $4 billion acquisition, indicating continued interest in the platform.

The primary focus of this week’s review centers on an article published a few days ago, which effectively encapsulates the current dynamic landscape of alternative investments.

A Deep Dive into Alternative Assets

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The article in question sheds light on the increasingly unusual trends within the realm of alternative assets. It demonstrates the complexities and rapid changes occurring in this investment sector.

Alternative assets are gaining prominence, and the story details several key developments. These developments highlight both the opportunities and the risks associated with these investments.

Clubhouse and Twitter: A Potential Union

The reported acquisition talks between Twitter and Clubhouse are a significant event. They suggest that even platforms experiencing growth challenges still hold substantial value.

A $4 billion valuation, if realized, would represent a considerable outcome for Clubhouse. It underscores the ongoing appeal of social audio and the potential for integration with a larger platform like Twitter.

The possibility of this acquisition is being closely watched by industry observers. It could reshape the competitive landscape of social media and audio-based communication.

This week’s developments serve as a reminder of the fast-paced nature of the tech industry. They also illustrate the evolving strategies of major players in the digital space.

A Significant Shift in the Digital Asset Landscape

For those who have managed to remain unaware of the recent surge in popularity, NFTs (Non-Fungible Tokens) are currently experiencing a market correction following a period of rapid growth in February and March. Despite this, expect to see continued interest from public figures, even as prices stabilize.

This pullback may actually benefit NFT platforms focused on long-term viability, allowing them to concentrate on future development and establishing genuine value.

Exploring the CryptoPunks Community

Recent discussions with members of the CryptoPunks community – one of the earliest and most established NFT groups – provided valuable insight. This platform features 10,000 unique 24x24 pixel portraits, which are currently being traded at substantial values.

One particular portrait recently sold for $1.05 million.

Conversations with a dozen investors, some of whom have invested tens of thousands or even millions of dollars in these digital portraits, revealed a surprising perspective.

These investors do not view these assets as fundamentally different from investments in traditional markets, such as the stock exchange.

As one participant, Max Orgeldinger, explained to TechCrunch:

“This market is undoubtedly speculative… however, it possesses a degree of transparency often lacking in the stock market.” He further noted, “Consider Elon Musk and Tesla – the stock price isn’t necessarily supported by underlying fundamentals. The same applies to GameStop. The NFT community, in contrast, operates with a certain honesty; there’s no illusion of complex calculations obscuring the value. Prices are determined by supply and demand.”

Christie’s and the Expanding NFT Market

Following the publication of a related article, Christie’s announced an auction of nine CryptoPunks, anticipated to generate at least $10 million based on current market conditions.

This announcement spurred a market rally, resulting in significant trading volume and the creation of new NFT millionaires.

Is this situation irrational? Perhaps.

However, it undeniably reflects the current state of alternative asset investing in 2021.

You can find the original article here.

Weekly Tech Highlights

This compilation presents several technology news items that garnered particular attention this week.

Amazon Union Vote Outcome

Amazon has expressed relief following a vote by employees at its Bessemer, Alabama facility against unionization. This outcome represents a significant setback for labor organizers who had anticipated this event would inspire further union efforts among Amazon’s workforce.

While the results are being contested, the margin of victory appears substantial.

Supreme Court Ruling in Google vs. Oracle

The Supreme Court’s decision to side with Google in its legal dispute with Oracle stands as the most impactful event for the web this week. This ruling has the potential to significantly shape the future trajectory of software development.

Coinbase Financial Performance

With its direct listing approaching, Coinbase is revealing key financial data. The company’s performance indicates substantial growth driven by the increasing popularity of cryptocurrency, reporting revenue of $1.8 billion in the last quarter.

Apple's App Tracking Transparency

Apple is poised to reshape the digital advertising landscape and has released further details regarding its upcoming App Tracking Transparency feature. This feature will empower users with greater control over their data and how it is tracked.

Mobile App Usage Trends

Recent data from App Annie, a mobile analytics company, reveals a significant increase in time spent using smartphone applications. The average user now dedicates 4.2 hours daily to apps, a 30% rise over the past two years.

Sonos Roam Bluetooth Speaker Review

The new Sonos Roam bluetooth speaker has been reviewed by our colleague, Darrell. As an audio enthusiast, this review was particularly interesting. Despite a higher price point, the speaker has received positive feedback, and a personal listening experience is anticipated.

Featured Articles

This week’s selection of noteworthy articles sourced from our Extra Crunch subscription service is presented below.

The StockX EC-1

StockX occupies a distinctive position, existing where two significant shifts converge. It’s not merely reshaping markets, but also influencing cultural norms. The rise of e-commerce altered traditional marketplaces, reducing direct interaction by connecting buyers and sellers digitally.

Simultaneously, the internet fostered instant communication, enabling excitement and demand to spread rapidly. In an era of abundance, scarcity holds value, and the associated enthusiasm has reached unprecedented levels.

These combined trends created a demand for a marketplace centered around hype, an opportunity StockX has actively capitalized on.

Assembling a Team for a High-Growth Startup

Prior to initiating the hiring process, it’s crucial to carefully consider the type of organization you aim to build. This involves a thorough understanding and clear definition of your company’s culture.

As you expand from a small team to a larger one, remember that effective managers are pivotal to your company’s achievements. Their importance to overall success cannot be overstated.

Securing Series A Funding

The number of companies securing seed funding will naturally exceed those raising Series A rounds. This is largely due to the high failure rate of startups, and the fact that venture capital is only suitable for a limited number of businesses.

Each funding round requires a renewed effort to demonstrate the potential for substantial returns. Investors need to be convinced that the time is right for the startup to progress to the next stage.

Until next time,
Lucas M.

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