Hello friends and welcome back to Week in review!
Last week we took a break from contextualizing some consumer guides. This week we’re looking at what’s going on in a Jack Dorsey’s mind.
You can do this in your inbox from the Newsletter page, and follow my tweets @lucasmtny.
(Photo by Joe Raedle / Getty Images)
the big thing
While Elon Musk screwed his path to crypto-sanctity, Jack Dorsey took the blockchain gospel far more seriously than most.
As the CEO of Twitter – he was until Monday when he unexpectedly resigned – Most of his most passionate official communications didn’t focus on the power of the Twitter platform or even the great opportunities for his other company – fintech giant Square. The former dual CEO has spent the past year spreading the gospel of Bitcoin and using his multi-billion dollar companies to spread the same message by advancing crypto-rich features more aggressively than his peers.
He has no argument. “#Bitcoin will unite a deeply divided country. (and finally: World), ”he tweeted in August.
At a Bitcoin-centric conference in Miami earlier this year, he was even more generous with his praise: “For me, Bitcoin changes absolutely everything. What attracts me most about it is the ethos, what it represents, are the conditions that created it, which are so rare and so special and so precious. I don’t think there’s anything more important in my life to work on, and I don’t think there is anything more enabling for people around the world. “
His zeal as a manager led both Twitter and Square to leverage bitcoin and blockchain-centric features that sit deep within platforms that millions rely on. In July, Dorsey said this was a “big part” of the company’s future. Recent initiatives at Square have included a hardware wallet to hold bitcoin and research into building a dedicated bitcoin mining system.
With platforms with a myriad of unsolved and often pressing issues, Dorsey’s seemingly one-sided public focus on the revolutionary power of Bitcoin didn’t always go down well with viewers, who were already concerned about whether his status as dual CEO meant he was less in line was with the needs of its individual business. Early last year, activist-investor hedge fund Elliott Management released a list of claims against Twitter – whose boss was that Dorsey resign – after tacitly adding a substantial stake in the company.
Dorsey’s announcement of resigning as CEO of Twitter sent the company’s stock skyrocketing on Monday. While some were delighted that Twitter could reach its full potential under a full-time CEO, others speculated about what Dorsey was doing and whether he could leave Twitter to start a “web3” company focused entirely on Bitcoin and Blockchain-based technologies concentrated. It appears that instead of starting a new business from scratch, Dorsey has tried to rethink the existing opportunities in his other company, Square. On Wednesday he announced a comprehensive rebranding, which the fintech firm, originally known for its tiny plastic credit card dongles, renamed Block, a not-so-subtle nod to CEO / founder Dorsey’s increasing infatuation with the blockchain.
Unlike yesterday’s public companies that increased their share price by adding “blockchain” to their company name, Square isn’t a penny stock – it’s already worth nearly $ 90 billion. At this point, it’s worth noting that Square has specifically stated that there won’t be a major reorganization with the rebranding, even though Square Crypto is getting its own brand – Spiral. However, it’s difficult not to read between the lines, given Dorsey’s bitcoin boosterism and recent Square initiatives like hardware wallets and mining rigs that could reposition the company as a crypto-first company.
In many ways, Block’s hodgepodge of features, including the Tidal music streaming app and the Cash app, seems like a potential full Web3 empire, or it could just be an opportunity to piss off a ton of diverse interest groups through the arbitrary weaving of crypto technologies in products they don’t need.
Credit: GIPHY
other things
Here are a few stories this week that I think you should check out:
British antitrust watchdog orders Meta to sell Giphy
Facebook, now Meta, is in a regulatory environment where it may struggle to conduct M&A as usual. The British competition and market regulator has instructed Meta to reverse the takeover of the gif giant Giphy and to sell the startup. “The link between Facebook and Giphy has already eliminated a potential challenger in the display advertising market. In the absence of action, Facebook will also allow Facebook to build on its considerable market power in social media by controlling competitor access to Giphy GIFs, ”one of the group’s leaders said in a statement.
Facebook may have changed its name to hide consumer dislike for its corporate brand, but its regulatory issues go nowhere.
Facebook’s leading crypto manager is leaving the company
Facebook’s leading cryptocurrency expert is leaving the company after years of planning an ambitious entry for the company into the crypto world. Long-time crypto supporter David Marcus previously led the company’s messenger app team. His departure is another important exit of a long-time Facebook executive – in September Facebook CTO Mike Schroepfer announced that he will be stepping down from his position after 13 years with the company.
Despite being one of the most influential executives in the crypto space, Marcus couldn’t get too much out of the door due to regulatory pressures on Facebook. He indicated in his announcement that his next goal was entrepreneurial activities.
Twitter revises security policy
Twitter’s new CEO got into hot water just a day after his tenure when user backlash against the company’s new security policies increased. The guidelines, designed to prevent harassment and abuse, prohibit the sharing of pictures or videos of individuals without their consent. “If we are notified by a person depicted or an authorized representative that they have not consented to their private picture or video being shared, we will remove it,” Twitter said in its To update. “This policy does not apply to media with public figures or individuals where media and accompanying tweet text is shared in the public interest or has value for public discourse.”
It’s a very broad rule that is sure to spark further controversy. Twitter clearly received more backlash than expected; whether this leads to unexpected consequences in implementation is the broader question.
Credit: TechCrunch
Things added
Some of my favorite readings from our newly renamed TechCrunch + Subscription service this week:
Let’s talk about the SaaS sell-off
“… Not only are software stocks technically flirting with bear market territory, but we are seeing a pretty remarkable drop in the value of even the fastest growing tech companies. This means that public rating multiples – key indicators for still private unicorns and younger startups – are shrinking. Have ratings shifted enough to slow the current venture capital bonanza? Probably not. But we could be closer to this turning point than you think … “
Steps to Survive and Thrive in Fundraising
“… So how do you prepare for this important phase of business growth, master the challenges of a fundraiser and not let the process overwhelm the responsibility for running your business? While not every fundraiser is created equal, founders can draw on the experiences of others who have come down this path to ensure that their fundraiser is efficient, and most importantly, successful …“
3 ways to recruit engineers who fly under LinkedIn’s radar
“… companies must not influence their approach today through the attitudes of their employees in the past – this means that not only the quantity of developers, but also their quality and diversity are missed. The remote revolution has not only expanded where we can recruit, but also who we can bring on board. With this in mind, these are the best ways to unlock the hidden treasures of the developers … “
Thank you for reading! Again, you can do this in your inbox from the Newsletter page, and follow my tweets @lucasmtny.
