Sports, film and music stars have all flocked to the NFT market to buy pictures of apes, endorse corporate partners or even launch their own art collections.
Even as the crypto sector suffers a rout with sales and values plunging and scams proliferating, celebrities continue to sign up to the craze for so-called Non-Fungible Tokens.
– Gone Ape –
The Bored Ape Yacht Club is the ground zero of NFT “collectables”.
It features cartoon images replicated thousands of times with algorithm-generated variations.
The initial collection of 10,000 computer generated images has been followed by several other generations and many millions of fakes.
To fans, they are a status symbol, a key to an exclusive club where ordinary folk can mix with the famous and wealthy.
Brazilian footballer Neymar and tennis legend Serena Williams tweeted out their ape images on the same day in January.
US talk show host Jimmy Fallon and socialite Paris Hilton showed off their apes on TV.
Madonna declared on Instagram in March that she had “entered the MetaVerse” with a purchase of an ape, reportedly for more than $500,000.
She was following the likes of musicians Justin Bieber, Eminem and Snoop Dogg, basketball luminaries Shaquille O’Neal and Stephen Curry, and actors including Gwyneth Paltrow.
To NFT critics, these apes symbolise all that is wrong in the crypto world — fundamentally worthless yet selling for vast sums with valuations based on hype.
And ultimately these celebrities don’t own the ape pictures in any traditional sense — anyone can download and use the images.
What they own is essentially a digital receipt linked to the picture.
But celebrity backing is vital.
The apes, along with cartoon collections like CryptoPunks, appear to be weathering the crash better than other parts of the crypto sector.
– Solo missions –
Celebrity NFT enthusiasts have gone a lot deeper into the industry than just buying ape images — plenty have created their own NFT collections, with mixed results.
US musician Grimes got in early, managing to bag almost $6 million for some fantasy-inspired art last year.
However, many of these NFTs are now all but worthless, selling for fractions of their original prices — when they sell at all.
Other collections have failed even to get off the ground. Wrestler John Cena sold just a handful of NFTs from a collection he put together last year with the WWE.
He admitted it was a “catastrophic failure”.
Skateboarder Tony Hawk has been more successful with sales, but at the cost of the admiration of some of his fans.
He announced on Twitter last year he would sell versions of his famous tricks as NFTs, prompting responses ranging from “Stop this Tony” to “Tony, no, not you too”.
Hawk has not mentioned the project on Twitter since, though he has continued to deal in NFTs.
– Just business –
One of the mainstays of the celebrity-NFT relationship is the old-fashioned brand endorsement.
This week, French megastar footballer Kylian Mbappe became the latest star to sign on as an “ambassador” and invest in French start-up Sorare.
The firm runs a fantasy football game where players can buy sports-card style NFTs.
Serena Williams, along with footballers Gerard Pique and Rio Ferdinand, have already invested in the game.
And not to be outdone, the world’s most famous footballer, Cristiano Ronaldo, last week announced a partnership with Binance, the world’s biggest crypto firm.
The offerings will apparently include designs created in collaboration with Ronaldo, who said in a statement he looked forward to “bringing unprecedented experiences and access through this NFT platform”.
Natural disaster losses hit $72 bn in first half 2022: Swiss Re
Total economic losses caused by natural disasters hit an estimated $72 billion in the first half of 2022, fuelled by storms and floods, Swiss reinsurance giant Swiss Re estimated Tuesday.
Though the figure is lower than the $91 billion estimate for the first six months of 2021, it is close to the 10-year average of $74 billion, and the weight is shifting towards weather-induced catastrophes.
“The effects of climate change are evident in increasingly extreme weather events, such as the unprecedented floods in Australia and South Africa,” said Martin Bertogg, Swiss Re’s head of catastrophe perils.
The Zurich-based group, which acts as an insurer for insurers, said the losses were also propelled by winter storms in Europe as well as heavy thunderstorms on the continent and in the United States.
So-called secondary natural disasters like floods and storms — as opposed to major disasters such as earthquakes — are happening more frequently, the reinsurer said.
“This confirms the trend we have observed over the last five years: that secondary perils are driving insured losses in every corner of the world,” Bertogg said.
“Unlike hurricanes or earthquakes, these perils are ubiquitous and exacerbated by rapid urbanisation in particularly vulnerable areas,” he said.
“Given the scale of the devastation across the globe, secondary perils require the same disciplined risk assessment as primary perils such as hurricanes.”
Swiss Re said floods in India, China and Bangladesh confirm the growing loss potential from flooding in urban areas.
Man-made catastrophes such as industrial accidents added on a further $3 billion of economic losses to the $72 billion from natural disasters, taking the total to $75 billion — which is down on the $95 billion total for the first half of 2021.
– Insured losses at $38 bn –
Total insured losses stood at $38 billion: $3 billion worth of man-made disasters and $35 billion worth of natural catastrophes — up 22 percent on the 10-year average, said the Swiss reinsurer, warning of the effects of climate change.
February’s storms in Europe cost insurers $3.5 billion, according to Swiss Re estimates.
Australia’s floods in February and March set a new record for insured flood losses in the country at so far close to $3.5 billion — one of the costliest natural catastrophes ever in the country.
Severe weather and hailstorms in France in the first six months of the year have so far caused an estimated four billion euros ($4.1 billion) of insured market losses.
The Swiss group also mentioned the summer heatwaves in Europe, which resulted in fires and drought-related damage, without providing estimates at this stage.
A warming climate is likely to exacerbate droughts and thereby the likelihood of wildfires, causing greater damage where urban sprawl grows into the countryside, Swiss Re said.
“Climate change is one of the biggest risks our society and the global economy is facing,” said the group’s chief economist Jerome Jean Haegeli.
“With 75 percent of all natural catastrophes still uninsured, we see large protection gaps globally exacerbated by today’s cost-of-living crisis.”
Uber posts quarterly loss, but revenue exceeds expectations
Uber on Tuesday reported better-than-expected revenue in the second quarter, fueled by strong demand for the San Francisco-based company’s ride-hailing and food delivery services.
Revenue more than doubled to $8.1 billion in the three months through June — a 105 percent increase. Though it still posted a net loss of $2.6 billion, investors reacted positively: shares shot up more than 12 percent, to $27.58, in pre-market trading.
The company posted $1.8 billion in revenue from its freight operations. It also said the boost in revenue was partially explained by a change in how it accounts for its rides business in Britain.
Uber notched gains in monthly active platform consumers, gross bookings and trips compared with a year ago, reflecting higher demand but also a higher number of drivers for its signature ride service and food delivery operations.
Uber CEO Dara Khosrowshahi said both consumers and earners were at “all-time highs.”
“Last quarter I challenged our team to meet our profitability commitments even faster than planned — and they delivered,” Khosrowshahi said in a statement.
Uber primarily attributed its loss to the falling value of its investments in financially strapped companies such as Singapore’s VTC Grab, US self-driving vehicle start-up Aurora and Indian food delivery service Zomato.
US manufacturing growth slows further in July: survey
The US manufacturing sector continued to grow in July, but the pace was impacted by dimming demand while price increases have slowed dramatically, according to an industry survey released Monday.
And amid a tight American job market, hiring slowed for the third straight month, but firms are reporting less trouble filling open positions and no signs of layoffs, the Institute for Supply Management’s latest report showed.
But firms continue to have trouble filling orders due to ongoing problems getting materials.
ISM’s manufacturing index dipped to 52.8 percent, just two-tenths below the prior month, but the lowest level since June 2020 during the pandemic downturn.
However, that level was still above the 50-percent threshold indicating expansion for the 26th consecutive month.
“The U.S. manufacturing sector continues expanding — though slightly less so in July — as new order rates continue to contract, supplier deliveries improve and prices soften to acceptable levels,” ISM manufacturing survey chair Timothy Fiore said.
The new orders index fell 1.2 points, to 48 percent, signaling a slowdown, and production fell by slightly more but continues to grow.
“Lead times remain at elevated levels, and fundamental raw material prices continue to persuade buyers to remain on the sidelines,” Fiore said
The prices index fell a whopping 18.5 points — the fourth biggest decline on record — to 60 percent, with a much higher share of firms reporting falling prices, the survey showed. The index has been above 60 percent for nearly two years.
Covid-19 lockdowns in China and Russia’s war in Ukraine have been exacerbating shortages experienced, fueling the global inflation surge, especially for energy, and prompted the Federal Reserve to raise borrowing costs aggressively.
Survey respondents noted ongoing supply issues and the impact of rising prices, and several expressed concern about the future
“Our markets are still holding up; however, I believe a slowdown is coming,” one said. “I believe the general market is in the beginnings of a recession.”
Oren Klachkin of Oxford Economics said challenges are mounting for firms.
“Manufacturers will face many of the same challenges in the second half of 2022 that they did in H1,” he said in an analysis.
“The confluence of hot inflation, higher interest rates, ongoing supply chain issues and normalizing spending patterns will make demand more fragile.”
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