The $49 billion meltdown of the algorithmic stablecoin Terra USD (UST) coin and it’s lined token, Luna this month has shown the shaky grounds on which the lofty valuations of stablecoins have been built. Terra which has fallen in value from being pegged to USD to less than 5 cents and Luna which was one of the top 10 stablecoins in Jan is now worth less than 1 cent. The death of Terra and Luna has also led to a $300 billion decline in the crypto industry.
Earlier this month, the Presidents Working Group on Financial Markets (PWG) released a report on Stablecoins. This represents first attempt in designing prudential safeguards for stablecoin issuers.
The consulting company, Bain & Company (‘Bain’) released their second annual Technology report recently. There are 3 main patterns identified; (1) Tech is the main disruptive force now in every sector
(2) Cloud Computing will have an extraordinary impact in coming years causing an unbeatable edge for those companies already ahead (Apple, Amazon, Facebook, Microsoft, Alibaba, Tencent). (3)
Geopolitical and regulatory influences on tech companies are more important than before.
What is the DNA effect? The DNA effect is the ability of large technology companies to build a competitive advantage by leveraging user generated data in their networks. DNA in this context stands for ‘data-network-activities’ and refers to how the business model of large technology companies (like Google, Apple, Facebook, Alibaba, Tencent aka Big Tech) depends on direct interactions of users which generates lost of data and the ability of these companies to use this data to scale up operations and enter into new areas like financial services.
The popular view that emerging technologies like Artificial Intelligence (AI), Robotics will dramatically improve our personal and professional lives usually gets contrasted against the threat of the millions of jobs that are at risk from automation. Against this backdrop, a report last year based on a three year study by MIT offers a balanced perspective on the relationship between these emerging technologies and future of work and the labor market.
An approach to measuring the value of the free digital services provided by the Big Tech companies i.e. Google, Facebook, Wikipedia by valuing how much users would have to be compensated to not use them for a period of time.