My NFT's Value & Tech Week Observations - A Deep Dive

The TechCrunch Exchange: A Weekly Startup & Market Update

Greetings! This week’s edition of The TechCrunch Exchange, our regular startups and markets newsletter, is here. It draws inspiration from the daily Exchange column, but is offered freely for your weekend enjoyment.

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Disrupt Recap & Observational Notes

This week centered around the Disrupt conference. A significant portion of my time was dedicated to observing panel discussions and startup presentations.

The event proved enjoyable, though it resulted in a slightly reduced number of scheduled calls compared to a typical week.

A Shift in Focus

Consequently, this newsletter is somewhat condensed and leans more toward observations than in-depth reporting. We’ll take a more relaxed approach this time around.

Let's explore some interesting insights and perspectives!

Disrupt provided a unique vantage point to assess current trends and emerging technologies.

The conference atmosphere fostered a sense of innovation and collaboration among attendees.

Observing the pitches allowed for a glimpse into the future of startups and their potential impact on the market.

A Firsthand Look at NFT Trading

I recently began exploring the realm of Non-Fungible Tokens (NFTs) with a small investment. Having previously reported on this area, I wanted to gain practical experience, as direct participation often provides deeper insights than simply reading about it.

I made a conscious effort to sidestep potential ethical concerns, believing that acquiring a modest amount of cryptocurrency to attempt a purchase of an inexpensive digital image wouldn't significantly impact the broader landscape.

The initial experience wasn't particularly successful, however, an NFT gifted to me by a generous Twitter follower is now attracting considerable interest in the form of bids. Despite not finding the image itself exceptionally appealing compared to other online visuals, observing the bidding activity has been quite engaging.

Unexpected Market Interest

Offers reaching hundreds of dollars have been submitted – the current highest bid stands at $382.94 – prompting me to consider the motivations of potential buyers. It appears the offers reflect speculation regarding the collectible value of the NFT.

This experience has provided a clearer understanding of the enthusiasm surrounding the NFT community and their self-created market. The ability to potentially create tangible value from a previously valueless image feels remarkably advantageous.

However, I've decided against selling the NFT due to concerns about potential tax implications and the ethical considerations of profiting from its sale. Therefore, I anticipate holding onto it indefinitely.

• NFTs offer a new avenue for digital asset ownership.
• Speculation plays a significant role in the NFT market.
• Ethical considerations are important when participating in NFT trading.

A Favorable Period for Fintech Initial Public Offerings

The decidedly cool response from the public market to Toast, the Boston-based fintech company valued at over a billion dollars, this week demonstrated that achieving software-like valuations for payment revenue streams is attainable. This is contingent upon demonstrating a substantial rate of expansion. Our assessment was that the positive reception of Toast’s market debut signaled an opportune moment for fintech unicorns to initiate the process of becoming publicly traded companies.

This assessment remains valid. However, what may have been overlooked is the considerable volume of potential investment currently available. This isn't regarding valuation – those figures are already known – but rather the sheer number of users.

Consider the following observation shared on social media:

The ranking of Chime in fifth place was unexpected, yet these statistics suggest exceptionally large payment volumes. As recently evidenced, such volumes are presently valued as highly as gold reserves. Therefore, NuBank, Chime, Dave, and similar companies, is it time to proceed with an IPO?

Growing Concerns Regarding Chinese Technology

Recent reports indicate potential regulatory hurdles for the Zoom-Five9 acquisition due to Five9’s Chinese origins. Should Zoom’s research and development presence in China jeopardize this substantial deal, it would signify a widening gap between the world’s two largest economies.

Furthermore, it could represent a closure of a potential avenue for technological investment and financial flow.

Lithuania has also issued a warning this week concerning hardware produced by the prominent Chinese smartphone manufacturer, Xiaomi.

The devices were found to possess the capability to identify and suppress specific keywords deemed sensitive by the Chinese government.

While this functionality may be standard across all Xiaomi phones, the discovery presents a negative perception.

According to reports, Lithuania has advised its government employees to replace their Chinese-made smartphones.

This action follows expert findings revealing the presence of automatic censorship software and other security vulnerabilities within the devices.

The situation is increasingly indicative of a problematic trend.

– Alex