'Bloomberg Technology' Full Show (10/01/2021)

from the heart of where innovation money and power collide in silicon valley and beyond this is bloomberg technology with emily chang [Music] i'm emily checking san francisco and this is bloomberg technology coming up in the next hour tesla could be on the verge of reporting its biggest quarter ever with record deliveries of its electric cars what does it mean for the model s x 3 and y we'll discuss plus facebook facing the fury of washington and parents amidst revelations the company knew instagram could be toxic to teens but didn't do anything about it the star of the netflix hit the social dilemma tristan harris joins us to talk about what's at stake and how do we build a safe online future for our children and a bitcoin surge to end a rocky week in the markets the digital currency spiking the most since july in a matter of minutes we'll explore what's driving the shock rally all that in a moment but first let's get a wrap of the week which ended on a high note for bitcoin what about everything else let's bring back our credit gupta credit wrap it up for us well emily you did see green on the screen today but tech not driving the charge higher and you really see that here the s p 500 ending 1.2 after the selling you saw this week this is really a little bit of a technical balance but as i pointed out big tech was not driving today's action what was even worse those chinese adrs we were talking about big tech in u.s versus china china really not able to get in on this technical bounce back let me just visualize that for you show you a terminal chart here of what that looks like for the arc innovation etf this is kathy woods fund that really has that extra expertise that extra focus in tech in particular this does include chinese adr so you can see on a quarterly basis going all the way back to 2015 this is the first quarterly outflow that we've seen from this fund so really important to really visualize how just how severe the tech selloff was after this major run-up that you've seen but let's go back to the intraday story for today because a lot of it had to do with the biotech sector and merck in particular that helped some of that reopening trade that travel trade even higher coming out and saying that not only does their antiviral drug reduce the risk of hospitalization and death by 50 percent it works against all the variants including the delta variants and of course great news for merck but that really did hit some of those vaccine makers and of course bring the nasdaq biotech index into the red by pretty significant about 1.9 percent i believe at the end of the session emily let's see if that turns around next week all right quitting thanks for that roundup meantime tesla is expected to report a record quarter any moment now analysts are estimating tesla delivered 224 000 vehicles in the most recent quarter this would be of course another milestone for ceo elon musk deliveries are a key barometer of consumer demand for electric cars dan ives of wed bush joins us now with more so 224 000 dan is consensus what's your number how big do you think the quarter will actually be yeah i think they're going to beat it by being potentially north of a 230 000 number and you take a step back given the chip shortage that's about a 10 000 15 000 headwind this is really something back against the wall chip shortage some china issues and i think it's really going to start i think a sentiment change in tesla and very impressive especially what we're seeing in terms of this green tidal wave shift so what's going to make the difference you know whether it's 220 or or 230 what do you think will account for that you know getting it over the line well i think to put it into months i mean if you look at july and august we think combined about 85 to 90 000 units you'll get september i i think it's a month that could approach forty five hundred fifty thousand that's significant because the ultimate bull story here is when you take away the chip shortage and some of those issues from china earlier this year this is a company right now it's on a run rate probably north of 1.5 million units next year and i think that's what the streets focused on it's also profitability if you look at the margin profile especially what we're seeing on china that's continuing the uptick and that's part of the broader thesis and part of our thousand dollar price target how does that set them up for the rest of the year and is this pace sustainable that's a great question i think going into this street thought that 900 000 was basically impossible maybe best case eight fifty eight sixteen now especially with the q4 they could track potentially toward that nine hundred thousand number and there's about forty thousand units in there that's a headwind just because of the chip shortage i think as the street starts to sort of triangulate this going into next year and even the next call two to three years you're looking at a run rate that's even more than bulk case and i think that's because not what you're seeing in china but we're starting to see this in europe and the us and then you you get giga in terms of berlin up from a capacity perspective then austin next year this is a company where we're going to be talking about millions of units per year not hundreds of thousands and i think that speaks to just the early days of what i've used a five trillion dollar green tidal wave globally meantime tesla has faced a major setback in china losing this fraud case sued by a driver a chinese driver what do you think the fallout from this will be on the bigger picture i think we've seen it earlier this year i think musk you know and i think tesla ultimately maybe you know sort of pushed us aside in terms of the issues they were seeing from pr the shanghai auto show the safety issues and now this i do believe they've navigated a lot of these a lot better than expected and i think that's something that we're starting to see in terms of the china numbers especially going into the rest of the year but these pr issues and some of the legal issues in china it's important because it's a winch pin in terms of china to the overall full thesis and tesla we think 40 of deliveries next year has come from china so this is something that mosque and tesla has taken very seriously i think you've seen them do a better job in the pr front but it's important because you know along with china ultimately goes tesla stock all right dan ives always appreciate you giving us your look ahead at wedbush securities thanks so much thank you for joining us have a great weekend all right another hurdle for the global economy a metal used in everything from car parts to computer chips has become very scarce the shortage in silicon metal has driven prices up 300 percent in less than two months this is blamed on a production cut in china which was the result of efforts to reduce power consumption and coming up continuing fallout from the facebook files with lawmakers and parents up in arms what is the future of the social network and how can users take back control for themselves and their children tristan harris founder of the center for humane technology joins us next this is bloomberg [Music] [Music] this research is not a bombshell it's not causal research it's in fact just well i beg to differ with you ms davis uh this this research is a bombshell it is powerful gripping riveting evidence that facebook knows of the harmful effects of its sight on children and that it has concealed those facts and findings facebook taking center stage in washington this week as lawmakers grilled the company's global head of safety and tiganey davis they're accusing the social network of prioritizing greed over the mental health of its youngest users based on documents leaked to the wall street journal and the account of a whistleblower just what is at stake tristan harris president and co-founder of the center for humane technology is one of the most respected voices on these issues most notably in the netflix documentary the social dilemma tristan great to have you back with us you know obviously you've been talking about these you've been talking about these issues for a long time and i'm curious if you found the recent research that was linked to the wall street journal bombshell and what you find most alarming about these new revelations yeah well um in other news water is wet right i mean this is essentially we know now the obvious which is that this business model of monetizing attention is connected to just like you know war is good for gdp there's things we don't like in society that are really profitable suicidal ideation in teenage girls is good for engagement for facebook and for instagram uh alienation and body image dysmorphia issues is good for instagram and good for engagement there's evidence in the facebook files that political parties making political parties more negative and divisive has been good for facebook in fact specifically in the facebook files there was a change they made in 2018 to the algorithm and that change caused political parties in poland and spain uh and all sorts of places to actually go 80 more negative and divisive and to basically only get traffic that shows that these companies have an unparalleled amount of power now with respect to the hearings yesterday i you know i think everyone's just frustrated because we we already knew this and they're acting like a tobacco company this is what i think you asked this is a bombshell this is a bombshell in that it puts a nail in the coffin on the story on any doubt that they they knew the harms that they were causing and they continued to prioritize engagement anyway now as you and i both noted the stock price hasn't moved does that mean that investors don't care or does that mean that the business model of having a network effect on monopolizing the means of communication so if you're a teenage girl i mean emily you and i we probably use imessage or text messaging on our iphones to communicate with each other but for mo for many teenagers instagram messaging is the number one way that you communicate with your friends so if you don't use instagram you are ostracized and excluded from your community and they know this by the way they design to lock you in and this is the problem is that we have something that is taken hostage our country our teenager's mental health and our democracy and we know that it's bad for us and even then the stock price doesn't move but i'm optimistic because i do think this is the moment to make a transformational change to the business model of these companies and i think there's a way that that can happen and i hope that that happens i think the whistleblower is going to be testifying next week in front of congress we are going to be following that whistleblower's testimony on tuesday tristan we often hear the argument well kids are online anyway so we have to figure out how to manage that experience how do you respond to that and can we trust facebook to be the one to shape and build that experience and if not who should it's a great question um the art the reason why i mean the challenge obviously is it's a race for attention so instagram says if i don't do it i know that tic toc is going to do it they're going to do the body image filters and the engagement machine uh and that's why we call it the race to the bottom of the brainstem um i do think we have to have standards you know when i was growing up we had a we had a something called saturday morning cartoons and there was time man or place restrictions we had actually child psychologists define what was good for children during those operating hours and in an unregulated environment it's just a race to manipulate your kids and and how could we allow this to happen i do think apple has a role in in because they control the app store uh they're almost like the the constitutional uh uh sort of central bank of attention and they can define the terms by which things can can interact with children um i also do think we obviously need standards for these companies i don't blame one company i see it not as the facebook files but as the social media files and so long as the business model is lifetime you know value of a user an addiction addiction is very good for their business and stretching earlier and earlier and earlier into a child's development so that's fundamentally incompatible i think with our society so who then is responsible for regulating that experience should it be congress take a listen to this from adam kovasevich who was a long time former google executive but now spends his time lobbying in washington he wanted to hear more from these hearings not just penalizing facebook take a listen what i hear is parents you know grappling with a lot of these questions about screen time bullying jealousy and kids are going through their adolescence online the good the bad the ugly it would be great to see congress work together with industry to devise some old solutions because i think that's what parents want but that's not really what we saw today so should we should congress have this responsibility and will they actually make it happen you know i think we're we're at a fundamental crossroads because the private sector has eaten up the public interest whether it's democratic elections or media we don't have governments that can define those things anymore we have technology companies that are defining those things um i do think we need to have obviously expert bodies that can actually work out these issues there is such a way to design technology humanely though you don't have to design for maximizing the ability for one person to reach as many people as possible especially in youth in in our the young kids um and i think that business that decision to say when you post something as a 13 year old it's visible to as many people as possible that's because that was good for engagement that's what creates the bullying dynamics from afar that creates the social visibility to be shamed in public and that's creates the social pressure and social anxiety but the whole design needs to change it's not the advertising it's the whole design model we don't have to have children that are basically broadcasting their lives from this early and one thing we know from the facebook documents they actually had a slide i think called the play date as a growth level where they actually said how do we use the play date to get kids hooked into basically feeling comparison with other kids and to start getting into the sharing uh treadmill earlier in their lives we don't have to have that kind of social media we can have khan academy we can have youtube that's all about learning um china as an example has actually recently created a youth mode they forcibly required tiktok for under the age of 14 they they limit usage and they create museum and science experiments you can do at home museum exhibits they put all this stuff into the news feed more for an educational experience that's because they see this as a threat i'm not saying we should do what china's doing but we need an open society answer that recognizes that we have to choose something speaking of china take a listen to this from senator sullivan about china uh and how that played out yesterday can you really on your own help people take a break or do we the u.s government have to help people take a break like the chinese are doing right now as as a parent i'd much prefer to be able to to determine my child's time online than to have uh china tell me how to how to raise my child tristan does china have something right here or not i think we like i said i'm not saying we should do what china is doing but we need an open society answer here's the current state of affairs right now it's unregulated basically a super computer pointed at your kid's brain to basically stall the development of children's brains to basically say my job is to overwhelm your self-control because literally the way tic toc and instagram work is they have a trillion dollars of compute power to figure out what's the next video that's going to keep you scrolling as opposed to giving you a stopping queue that allows you to get up and take a break and sesame street elmo gets up and says hey do you want to do a little dance and so he gets the kids up to do a dance once the kids are up now they can actually do something else sesame street would do that because their business model is not screwing up kids and monetizing their attention but so long as again instagram and tech talk are we have to have something like that i do think we need some standards we had to develop things like the five seconds of black you know between tv shows we had to develop things like the the elmo concept in sesame street i think these kinds of things can exist but we actually have to have them in an open society way not the authoritarian model that china's doing these things are going to take time and as a parent i've got four children every parent is asking themselves this question how do i gatekeep technology for my child right now i remember you recommending to adults a digital sabbath um you know taking a day off from your devices what do we do for our children right now when these tools and products aren't necessarily available yet i think that the oftentimes when we talk about addiction or what kids should do it feels like we have to sort of tie our hands behind our back and not use it it's a restraint driven approach but the reason that we're so vulnerable to what we call a hyper normal stimuli which is a sort of dopamine extra sugar extra salt extra dopamine kind of social media world is because we live in a hypo normal meaning a under stimulating and under-fulfilling environment when you don't have social connection or oxytocin or touch or or love or just conversation in your life that feels fulfilling that's what makes us vulnerable if you were out there doing acro yoga with your friends or sewing or having a really engaging conversation with people you love or something you're really passionate about or dancing those are the things that actually make us less vulnerable we don't want to check our phones when we're doing those things but what we need is technology that steers us in the direction of what lifts up us into a more fulfilling environment so that we don't feel so compelled by these hypernormal stimuli that's actually the way out obviously to do that we need to have a collaboration with tech that's not about predating on the vulnerabilities of our children so do you think facebook should be not involved in developing these tools at all like should facebook stop instagram for kids entirely should we be you know looking to sesame street to build these products i i honestly think that the entire thing tick tock instagram snapchat are all bad for children and if i were recommended i'd say that they shouldn't use them at all the problem of course is that it's not an individual decision for one kid or one parent to make because again they have lock-in effects and you'll be ostracized from your community which again they do deliberately because they know that's what keeps their users i do think that apple has a role in trying to make safer standards apple and google and setting the standards of the app stores and hopefully this pressure could lead to some of that to happen because they're above the competition as you said if facebook doesn't build instagram for kids that doesn't stop the problem all the kids are still right there on instagram anyway using it i really do think that all these things are horrible for for children and i would recommend that most parents if they're looking for just advice to to avoid it as much as they can so do we take the ipads away from our kids right now until there are better options or what well no i keep in mind the distinction i'm saying here uh which is it's not about the technology it's not this piece of metal it's not that the rectangle or the glowing rectangle is the the evil thing we should feel worried about touching it's about what is on there are the interests of the people designing the technology the same as your interest i mean i've studied the sesame street history they had child psychologists who cared about what is the developmental level of children and what's appropriate for that developmental level and they did that by using all the things we know about television but then combining it with what would be a fiduciary value or interest to children's development none of the people who are building this stuff now are doing it in the interests of children that's the thing that needs to change quick question tristan and i know we could talk about this for days but the next chapter is the metaverse how do we get this right for kids and grown-ups um yeah i mean i think you know it's one thing when you run out of attention that people are going to look at on their screens it's another thing to credit to try to create an entire universe that people are going to stare at through virtual reality and augmented reality 24 7. and that's what they're really competing for i mean the way to grow the size of the attention economy is to get people to live in in these virtual worlds as much full-time as you possibly can uh i think that if we don't get it right at the beginning uh i worry we're gonna end up i mean i wish that we had had these conversations so many years earlier so many of us have been saying for you know eight years that we shouldn't be allowing this engagement driven business model that focuses on monetizing human attention as opposed to you're the customer you're not the product the key line in the social dilemma is that things that are the that treat you as the as the customer not the product that's the distinction that we need so what if we had for the metaverse and for the augmented reality and virtual reality there was no such thing as engagement-driven business models would you want a brain implant in your in your brain a neurosurgeon installs a brain implant and the business model of that brain implant was to get you to think certain thoughts constantly and they wanted you to use it constantly we would never allow that kind of brain implant right um questions to ponder as we deal with this tristan harris of the center for humane technology thank you as always for your thoughtful and nuanced opinions here coming up zoom's biggest potential acquisition has been scrapped we'll discuss next this is bloomberg [Music] [Music] other tech stories we're watching zoom and call center software provider 59 have scrapped their 14.7 billion merger agreement a steep decline in zoom shares cut the deal's value by almost a third that led nine shareholders to reject the offer two advisory firms had recommended voting against the deal saying that zoom's prospects have fallen in a post-pandemic environment and a setback for crypto platforms hoping to upend the traditional finance system a bug in an update of d5 platform compound sent users nearly 89 million dollars worth of crypto in error the ceo is now begging users to send it back coming up coinbase robin hood and just this week amplitude the public listings keep coming for 2021 after the break we're joined by nasdaq senior vice president jeff thomas to talk about it all this is bloomberg [Music] [Music] [Applause] welcome back to bloomberg technology i'm emily chang in san francisco this just in billionaire bill gross was ordered to spend five days in jail for flouting a judge's order not to annoy his southern california neighbor with loud music that settings was suspended citing the covet 19 pandemic but gross and his wife were both fined thousand dollars each let's get back to the markets now and kriti gupta critty what else are you watching to end the week well emily we have to talk about ipos because they were such the rage all the rage i should say at the start of the year and then they kind of fell a little bit but it seems like in september they really made a comeback i mean take a look at this the s p 500 in the last month has had quite the sell-off tech stocks being a major part of it but ipos like dutch brothers on holding a laplex they've actually been higher and by no mere amount look at these 100 percent doubling almost in value for some of those september ipos pretty interesting considering the broader weakness i want to zoom out for a second and look at that year-to-date chart because if you compare the ipo index to the s p 500 it's been underperforming for the better part of the year really not recovering back to that february peak we saw like you said when ipos were all the rage so does that mean maybe people are preferring direct listings well let's check it out because in the last five days alone two major direct listings amplitude and warby parker have also been doing pretty well emily if this is an indication of kind of where the new money is going if they don't prefer tech if they don't prefer the traditional s p 500 and etfs where's the money going it looks like they're going into these new direct listings these new ipos that could very much change in october but something to watch in the month ahead all right pretty thank you for that roundup cody have a great weekend well it's been a record-breaking year for ipos on the nasdaq with over 560 ipos year-to-date companies like robin hood and more recently freshworks amplitude and olaplex have had major debuts and there's more to come joining us now jeff thomas nasdaq senior vice president and head of western u.s listings and capital markets jeff great to have you back with us so how do you see this year going down in the record books especially compared to last year we are off the charts so like you said we've had over 560 ipos raising 136 billion dollars and we're only three quarters of the way through if you go back two years ago to 2019 we had 124 ipos for the whole year that raised 24 billion dollars just to give you about the order of magnitude now a lot of that increase has come from the spac ipos which are mixed into there but even if you just look at the operating companies we've already had over 250 operating companies go public this year so it's really off the charts so let's talk about the spec attack and the surge of companies choosing that route how many of you of these do you think will actually end up being good bets this year we've already had 84 stack business combinations on nasdaq representing over 200 billion dollars in market cap and some really great companies including sofi 23andme lucid motors so a lot of really big name companies are choosing this people say why look at a spac versus an ipo and one thing i like to say is a spac is a lot like an ipo but in reverse so in an ipo you'll get all your paperwork together go back and forth with the sec then do the road show set the price on a spac you set the price then you go out do all the paperwork with the sec get your shareholder vote and then you're public so it's really a lot of the same process a lot of the same disclosure but just a different order of operations you had your second direct listing for the year this week with amplitude the ceo of amplitude i guess one of the youngest guys ever to take a company public joined us on the show coinbase was your first of the year how many more direct listings do you see coming up do you see this as being part of a longer term trend or will these continue to be one-offs we are talking to about 10 different tech companies right now about a direct listing uh nobody is planning one for the rest of this year but i think in 2022 we're going to see this trend continue uh as you saw there are about twice as many companies that did a direct listing this year as last year so we think this is going to continue as a reminder right now for a direct listing you can't raise capital so this is really for companies that are well-funded through the private markets and are more interested in liquidity versus capital raising so let's talk about that ambulance two chairs ended the day up more than 50 percent clearly there was demand there but they didn't take that opportunity to raise any money for themselves was a direct listing really the right call you know they were extremely well funded they did a private round this summer and so they had already raised capital and so this was all about a liquidity event for them for being able to go out give their shareholders the opportunity to sell in the open market and just the way the stock has traded this week has been phenomenal so they set the reference price at 35 a share which was right around that private round this summer we opened the stock at 50 a share and it's traded within a really tight range between 54 and 52 all week so it's been traded like a very mature stock very early in its life so what are you anticipating for fall but we've got a really healthy lineup of deals coming this fall so we see a lot of technology biotech and retail companies getting ready to come to market i think people are looking to take advantage of the attractive valuations and the amount of capital that's out there in the ipo market so they want to go out and raise that capital while the windows open and if we're seeing so many companies get out of the gate this year what does that mean for next year next year could we see a slow down well i think as long as there's a good valuation environment which we have right now we don't see any sign of that changing although it's been a little bit rockier lately and that's one of the things we really watch is the volatility index so we have seen the tech name straight off a bit as interest rates have gone up so you've got the 10 year hovering right around one and a half percent that's a key indicator for what the future cash flows of these high growth companies are going to trade at and so if you see the uh the fixed income markets start to rise that could be trouble for some of the valuations we see you're also seeing some more switches to nasdaq from other u.s exchanges which i know is a huge coup for you what's driving this behind the scenes well so it all goes back to 2005 when the sec changed the rule where companies could take their stock ticker to either exchange and so since they've changed that rule we've had over two trillion dollars transferred from the new york stock exchange to nasdaq uh one of the more recent ones was honeywell which just joined the nasdaq 100 index which was a major reason why they wanted to come join the nasdaq family but on top of that we offer really robust solutions around investor relations corporate governance and esg disclosures that companies want to take advantage of they also love all the branding and visibility they get through a nasdaq listing meantime there are some uncertainties about you know whether biden's economic plan for example will pass tax issues that affect a lot of pre-ipo shares and could impact founders and their decisions to go public and seek that liquidity or raise additional funding on the public markets how much do you think some of these macroeconomic uncertainties will impact the decisions that founders and ceos are making over the next 12 months i definitely think it's driving a lot stronger activity in the private equity back companies so the private equity sponsors are looking at their alternatives between a trade sale or an ipo for liquidity and with the potential tax changes coming next year a lot of them are moving to take their companies public this year as opposed to waiting until next year just this week alone you saw advent international bring out both olaplex which raised over one and a half billion dollars and then first watch a great restaurant brand on nasdaq and with the pandemic obviously we're coming out of it but you know you you've had more sort of virtual listings less you know people come into the the nasdaq itself to to ring that bell um do you see more of a blended listing day experience to continue in the future or do you think we will go back to that sort of traditional we're all here in new york mentality well our clients health and safety is really our top concerns we've got to place some really good protocols around vaccination and testing requirements for those that choose to come to the nasdaq market site in times square to celebrate as you saw both freshworks and amplitude had really great celebrations we also had their employees here in san francisco at our entrepreneurial center watching the bell at 6 30 in the morning out here on the west coast so we're really back to those in-person celebrations but we're not going to lose some of the virtual offerings that make the ipo day that much more inclusive we actually have a mobile app now that lets employees around the globe watch the bell ceremony snap a picture of themselves and then they can post that picture up on our tower in times square for a really unique keepsake from their ipo day as we've been talking jeff rivian just filed for its ipo seeking to list on the nasdaq rivian of course the um hot electric car maker there's a long waiting list for rivian vehicles anything you can tell us about this listing we've had a really great run here with the electric vehicle segment this year on nasdaq so obviously lucid motors that was another one of those transfers from the new york stock exchange when they were acquired by a new york listed spac listed on nasdaq of course our friends at tesla faraday so there's a lot of interest in this space right now and obviously riven will be an extremely exciting offering for us this fall and of course backed by nasdaq listed amazon all right big news glad we had you here to react to that nasdaq jeff thomas great to have you with us as always meantime the white house plans to enlist 30 other countries to join forces in the fight against increasingly frequent ransomware attacks and other kinds of cyber crime officials say the first meeting will be this month hosted by the united states and held virtually the group also plans on looking into illegal use of cryptocurrency and coming up crypto is on the docket bitcoin sudden rise we're going to take a look at the cryptocurrency sudden leap and the latest in the world of decentralized finance this is bloomberg [Music] bitcoin rose within minutes to its biggest daily gain since july as much as 10 percent this following a slump of more than seven percent in september amidst concerns about increasing regulatory pressure in both china and the united states but the feds now coming out with some reassurance saying they intend on regulating crypto but have no intention on banning cryptocurrencies joining me now to talk about this and much more john woo president at the blockchain startup ava labs john thank you so much for joining us obviously big job for bitcoin today not you know these these roller coaster rides not unusual necessarily but what do you think is driving this particular what we're calling a shock rally um in particular thanks for having me here emily um the shock rally as you call it i think people first of all like you said have to get used to some of this volatility and it is the the statements that were made where they don't plan on banning crypto but possibly just regulating certain parts and that gave people more certainty that sensible regulation will happen at least in the u.s so that is the hope and that's why a lot of these uh coins actually had a very good day so if china is banning crypto and the u.s says it's going to regulate it but not ban it what are the ripple effects of that so what china's doing is actually in line with the trend of what they've been doing for seven eight years in the cryptocurrency world this is a little more harsh than normal um and also it's in line with what they're doing with technology they are coming in and becoming more heavy-handed in their regulation luckily from where i see sit as an operator in the space what i see is that it's actually a uh incredible boom for decentralized finance and distributed and governance and and decentralized applications if you look at what's happened since the announcements the decentralized finance and applications in the space have actually increased in volume and usage sometimes three four times in just the last couple of weeks so it is classic they come in and they try to ban it and users who have such passion they look for refuge elsewhere and they find a way and the whole ethos of crypto again is self-governance and they find a way to find the decentralizing exchanges as well as the d5 applications to express themselves your avalanche is now available on coinbase as of yesterday how big a step forward to is this and what do we need to know thank you for recognizing that it is a big step forward and i think what it is it's a vote of confidence for the demand from u.s individuals for fast and speedy and low-cost uh blockchain where they can actually try some of these d5 nfts and other social tokens in a way that is also what's exciting about it for them is that it's also ethereum compatible avalanche that is so therefore now they can go back and forth and experience different ecosystems and see which future features that they prefer and that's why we are so excited about it and that's why the users and hopefully the 68 million users at coinbase as well as the incremental us demand note avalanche will see will have a a very incredible experience what do you think the role of avalanche or what do you hope the role of avalanche will be in both institutional and decentralized financed avalanche and avalanche the company that the software economy behind avalanche was started obviously to help create a decentralized permissionless world however the ultimate goal for ava labs is to enable traditional financial services companies and traditional enterprises to tokenize their assets it's not just about the 200 billion dollars in the d5 ecosystem it's going to be about the 700 trillion dollars of assets that sit on financial services balance sheets that's our vision at ava labs for avalanche that's why we are so excited and that's why i see a lot of developers continuing to migrate to avalanche and trying to tap into basically a great market and provide access to people across the world for financial products that they don't actually have access to now there are some traffic congestion issues that are impacting the broader ecosystem long wait times for ethereum users for example how does your traction on the blockchain compare with ethereums or polka dots so avalanche is ethereum compatible and it is a way to basically be complementary to ethereum when there's a lot of activity in ethereum avalanche can easily provide the same ecosystem and sometimes native applications in d5 and nfts but giving them speeds and finality instant finality and speeds that are probably like a hundred times faster and most importantly emily the cost the cost is pennies versus sometimes 10 20 30 hundreds of dollars for one simple transaction what if the entire ecosystem of stable coins gets regulated though is that a concern great question in the short term it is but in my opinion if you have clear definition and people understand what is backing these stable coins and there's transparency i cannot see how that won't create even more adoption obviously stable coins now is one of the largest components and it's done i can tell you from talking to people partners in the space and as an operator people use this they feel sometimes hesitant because they too don't realize what is underneath the collateral that actually supports these stable coins so they gravitate to a few that they are comfortable if there is proper regulation and transparency into what is collateral this space will grow even faster okay john woo avalabs president thanks for breaking that down for us we'll be watching avalanche coming up as the world of marvel and dc comics enter the digital collectible realm we're gonna find out why it may not be good news for the artists behind their success that's next this is bloomberg [Music] [Applause] dc comics is getting into nfts with a giveaway for fans later this month this comes just months after rival marvel also entered the digital collectible space and while it may be good news for publishers and fans it's causing concerns for some comic book artists this from bloomberg's quick take [Music] [Music] i'm quick takes madison i'm about to go speak to a comic dealer about nfts now nfts or non-fungible tokens our way of classifying artwork through the blockchain making it possible to sell it in a purely digital form the comic book industry would be an obvious winner in this one would assume but that's not the case as marvel and dc have clamped down on sales of nfts with their characters so the comic book industry is predominantly made up of marvel and dc so marvel and dc are the two big players because they own the majority of the ips that you'll see on tv so the majority of artists and creators that become big in the industry ultimately will have some dealings with marvel and dc and do they pay well that's that's very dependent on the individual if you're a new starter then marvel and dc tend to pay at a much lower level what artists make money from is from selling the original artwork okay so let's cut to the chase do you sell nfts currently no um predominantly because of the fact that marvel and dc do not allow nft sales of any of their projects from the artists that draw digitally so that makes it quite hard to sell nfts i i don't i'd be interesting if that stance softens but as it stands at the moment we we have to wait and sort of see what marvel and dc tell everybody why do you think they issued this ban i mean like if i can sell the physical original why can't i sell it in a digital format i think the problem is is that over the years because a lot of artists have moved to a digital platform that ultimately then hurts them in terms of selling artwork because they don't have physical artwork to sell but if that difference can be bridged and they can effectively sell on nf sell nfts then it will change things dramatically i think if marvel and dc soften their attitude towards nfts then i think the marketplace opens i mean i mean some of those pieces could be sold for thousands as we left the brixton warehouse it became evident that nfts are a new frontier but simply put they are a way for artists to make more money what i wanted to do is do a proof of concept right the only way i could show to do that was to burn my own artwork which in its own way was very cathartic it sold for 182 000. when i saw that when i'm sitting and watching the auction and i was just like what and what do you think is the potential of nfts in the comic industry a new market like this allows them to not only create but to tap into other monies and it also breaks the chains of traditional paychecks so marvel and dc aren't very happy with this whole nft situation um what's your take on that there is a supreme court law out there that that is that has been passed that an artist can paint or do one of it can do an original piece that's theirs that's their interpretation that's their everything after speaking to artists and dealers in the us and the uk i wanted to find out just how important nfts will be in the arc of comic history the value that it can bring to different types of creators or consumers is pretty profound so the main reason that art or collectibles have taken off is because you can pass a royalty so that every time a piece of artist's work gets sold in in the future they receive a cut of that which is pretty impactful if you're talking about you know the the full length career of an artist despite the size of the nft market at the moment they will be a crucial part of the comic book industry's next evolution and companies issuing major bans are defining who's going to reap the financial benefits when the time comes any big company that comes in there and wants to wants to take that in and just sort of strangle the artist a little bit i really need to think about it think about what they're doing in august marvel launched into the nft space via an app called vivi selling nfts of spider-man for up to 400 so far there has been no mention of the creators of the nfts or the original work marvel says they are looking into the issue and will be addressing it in the coming months that was bloomberg quick takes mattis kabash there and that does it for this edition of bloomberg technology stay with the bloomberg television my colleague david weston coming up with wall street week and some great guests you don't want to miss i'm emily chang in san francisco have a wonderful weekend everyone this is bloomberg [Music] [Music] you

Channel: Bloomberg Technology

Views: 11,748

Rating: 4.9085712 out of 5

Keywords: Bloomberg

Id: GUL7Kmwzzjc

Length: 46min 55sec (2815 seconds)

Published: Fri Oct 01 2021