Category Archives: Financial

Business, Computer Chips, Crypto, Financial, Science, Security, TechNews

Hacker Attacks on Crypto Protocols: Nearly $500M in Damage Last Quarter

Image: Hacker, Free Stock Picture, MorgueFile.com.

As the company Atlas VPN has found, hacker attacks have been particularly successful in recent months. Chainalysis had already warned of a record month.

Although the cryptocurrency sector is now much better regulated and more and more investors are taking the necessary steps to increase security – such as storing their own coins in hardware wallets – hacker attacks are still a big issue in the cryptocurrency sector, albeit only in relation to the volume traded affect a fraction of the sector.

In one quarter, hackers cause almost half a billion dollars in damage

According to Atlas VPN data , in the third quarter of 2022, criminals stole around $483 million worth of cryptocurrencies through targeted attacks. The number of hacks fell by 43 percent compared to the second quarter. In the first quarter, the damage amounted to around 1.3 billion US dollars.

Even if the damage appears large in absolute numbers and was certainly significant for those affected, in relation to the size of the crypto sector with a value of around $970 billion according to CoinMarketCap, it is not quite as dramatic as it might seem at first glance.

Ethereum, Polkadot and BNB Chain particularly affected

The hacks primarily affected the Ethereum network. A total of 11 attacks on Ethereum blockchain-based protocols caused $348 million in damage. However, considering that most protocols run on Ethereum, this is not surprising. For Polkadot, it was $52 million in just two attacks. While projects on the BNB chain have been attacked 13 times, the damage amounts to only $28 million.

It is important here that the blockchains themselves are not attacked. Instead, it is mainly smart contracts in the DeFi area that cause security gaps.

This quarter could be a record

Chainalysis also deals primarily with the damage caused by cybercrime in the cryptocurrency sector. The figures determined by Atlas VPN for the third quarter correspond to the information from Chainalysis, which expects a record month for October. As Chainalysis announced on October 12, eleven hacker attacks with damage totaling $718 million had already been registered by then.

If the trend of the month continues, the fourth quarter is likely to be the most momentous for the cryptocurrency sector. The BNB chain hack caused a stir this month , in which at least no funds were stolen from other users. Instead, the attackers created over $100 million worth of coins out of thin air.

Business, Financial, TechNews

Adobe buys Figma

“The merger of Adobe and Figma will herald a new era in collaborative creativity,” Adobe said in a statement on the multi-billion dollar deal.

The US software manufacturer Adobe has announced the acquisition of Figma. In the morning of September 15, the news site Bloomberg initially announced a potential deal. Citing insider information, followed a little later by official statements from Adobe and Figma .

Image: Financial, Free Stock Picture, MorgueFile.com.

Figma and Adobe: These are the details of the deal

Figma is a platform for collaborative web design. It was previously considered more of a competitor program to Adobe. Now the company is being transferred to the software giant’s portfolio for around 20 billion US dollars. Part of the purchase price will be paid by Adobe in shares. It is the largest known deal in the history of the software manufacturer.

“The merger of Adobe and Figma will usher in a new era of collaborative creativity,” Adobe says, and: “Figma’s web-based multiplayer capabilities will accelerate the delivery of Adobe’s Creative Cloud technologies on the web and make the creative process more productive and make it accessible to more people.”

However, it will probably take a while before the deal is finalized: on the one hand, Figma’s shareholders have to agree to the takeover, and on the other hand, official approvals are required. Adobe expects to close in 2023, by which time the two companies would “continue to operate independently.”

Figma co-founder remains CEO after Adobe acquisition

According to Dylan Field, co-founder of Figma, there will not be a radical change in leadership: “Adobe is determined to continue operating Figma independently, and I will continue to act as CEO and report to David Wadhwani.” Wadhwani is Chief Business Officer of Figma Digital Media at Adobe.

Field also writes about the acquisition: “We have a great opportunity to accelerate the growth and innovation of the Figma platform with access to Adobe’s technology, expertise and creative resources.”

Some things would remain the same for the time being – for example the pricing. Since it is known “that we are in an unpredictable, inflationary environment”, no price changes are currently planned. “And finally, Figma will continue to be free for educational purposes” – that was a crucial part of the negotiation talks with Adobe.

Business, Financial

Investment opportunity lithium: coveted, scarce and expensive

Image: Circuit Board Chip, Free Stock Picture, MorgueFile.com.

Lithium is an elementary building block for lithium-ion batteries. And as the electric vehicle market expands rapidly, so does the demand for lithium. A development that also offers opportunities for investors.

Electromobility is picking up speed worldwide. Last year, more than 6.5 million electric cars were sold around the world, which corresponds to an increase of 108 percent compared to the previous year.

Around 16.5 million electric cars are now moving from A to B worldwide, which is around three times as many as in 2018. That the market share in the entire automotive market is also increasing sharply – from 4.7 percent in 2020 to 9.5 percent now percent – ​​is therefore not too much of a surprise. A trend that is likely to continue in the future as a result of stricter emission standards and climate change.

The management consultancy Boston Consulting Group expects battery cars to account for around 20 percent of all global sales in 2025 – and by the middle of the next decade it will already be 59 percent. In short: The electric car trend is here to stay.

Persistent supply deficit

In the wake of the rapid growth in electric cars, lithium-ion batteries – and the light metal lithium that goes with them – are also becoming increasingly important. So much so that the already existing supply deficit is likely to increase further.

The official institutes see a supply deficit of up to 200,000 tons of lithium around 2030. Other estimates see a deficit of a similar magnitude or, in some cases, an even greater deficit.

The world market prices for lithium carbonate have been taking this expectation into account for months. While a ton of the “white gold” cost less than 100,000 Chinese yuan (about 14,666 USD) last summer, this price is now around 470,000 yuan. And: Against the background of the probable ongoing supply deficit, the price could still have room for improvement.

Interested investors need to take a closer look

Unlike crude oil, copper or zinc, there are no futures markets for lithium. The world market price is therefore the sum of many supply contracts that have been concluded within the industry and which can sometimes differ greatly depending on the quality of the lithium and the key data of the agreement. That doesn’t make it any easier for interested investors.

Since there are no futures contracts on lithium, derivatives on official prices are no longer used as an investment instrument. However, investors who expect a further price increase can participate indirectly in the price development – ​​for example by taking a closer look at individual companies in the industry. Well-known names include Albemarle from the USA, Allkem from Australia and the Chilean chemical company SQM.

In addition to the big names, there are also numerous smaller companies that claim to want to mine and sometimes process lithium in the future.

One of these companies is the German-Canadian company Rock Tech Lithium. A few weeks ago, the company, which is valued at around 260 million USD, concluded a framework agreement with an undisclosed German car manufacturer and agreed, among other things, to cooperate with a subsidiary of Thyssenkrupp.

Lithium hype: seize opportunities and reduce risks

In the search for returns, however, investors should not be too hastily blinded by supposed success stories and consider that smaller companies in particular without major operational business must first make large investments in order to be able to act on the market.

Many investors have also jumped on the lithium bandwagon in recent months. A diversified engagement and a preference for companies with a transparent supply chain and a sharpened ESG profile could therefore be an important prerequisite for successful investments in the lithium market.

Above all, the lithium extracted from South American salt lakes is considered problematic for reasons of environmental and water protection.

Basically, broadly diversified ETFs score above all because they spread the opportunities and risks over several shoulders. Not only is the choice of lithium ETFs — passively managed funds that invest in companies involved in lithium mining or lithium battery production — not only limited, but these ETFs are often new and relatively new also have a relatively small volume.

Investors who are interested in such an ETF should therefore have a certain willingness to take risks.

Investors who are not exclusively focused on lithium and instead are more interested in companies that cover the entire range of e-mobility can invest in a variety of corresponding ETFs that have a much higher volume and cover significantly more companies. For example, the ETF iShares Electric Vehicles and Driving Technology, which is around three and a half years old, is around 700 million USD and distributes the fund volume to over 100 companies.

Be careful: Despite the promising prospects for the lithium and electromobility market, investors are not guaranteed a nice return.

The contents of this column do not constitute investment advice or a solicitation to buy or sell any financial instrument. Past performance is not a reliable indicator of future performance. Investments in the capital market are associated with risks.

Business, Comes Next, Financial, Streaming, TechNews

Disney+ with advertising in December

Disney will launch Disney+ with advertising in December, but you won’t save anything. It will cost $7.99 per month – the same as the current ad-free plan.

Disney has revealed more details about its ad-supported offering, including how much it will cost and when it will be available. Interestingly, this doesn’t make Disney+ any cheaper for existing subscribers.

If you were hoping for an even cheaper version of Disney+ with ads, costing well under $8, that’s not going to happen. Starting December 8, 2022, you’ll be able to watch Disney+ with ads for $7.99 a month. This is the current price for the original ad-free offer. On the day the ad-supported plan launches, Disney will increase to $10.99 per month ad-free in the US. This news shouldn’t come as too much of a surprise, as Disney has been telling investors for months that its flagship streaming service will include advertising, and has never promised any savings.

Image: Disney Direction Signs, Free Stock Picture, MorgueFile.com.

Still, when the Disney+ advertising schedule rolls out later this year, it will feature “a reduced advertising load and frequency to ensure a great experience for viewers,” Disney CEO Bob Chapek said during the company’s third-quarter earnings call . Disney is reportedly planning to limit commercial breaks to four minutes per hour. The company also confirmed during Wednesday’s conference call that no ads will be running on child profiles.

Disney plans to expand the promotional schedule internationally in 2023. You will only be able to get it on a monthly basis. (Also, the annual subscription for Disney+ without ads will be increased by $30 to $109 per year).

Business, Financial

Disney is catching up with Netflix

Disney’s streaming service continues to grow rapidly. In the second quarter of 2022, Disney caught up with its competitor Netflix.

Entertainment giant Disney has seen rapid growth with its streaming services in the most recent fiscal quarter. The on-demand services Disney Plus, Hulu and ESPN Plus together had a total of 221 million subscriptions at the end of June, as the group announced on Wednesday after the US stock market closed.

221 million user accounts – Disney catches up with Netflix

Disney has caught up with the previous market leader Netflix, which recently lost customers and also ended the past quarter with 221 million user accounts. “We had an excellent quarter,” said Disney CEO Bob Chapek.

Disney Plus and ESPN Plus flourished with annual growth rates of 31 and 53 percent, respectively, to a good 152 million and almost 23 million subscribers, respectively. Disney’s third streaming service Hulu increased the number of subscriptions by eight percent to 46 million users.

Image: Disney Castle, Free Stock Picture, MorgueFile.com.

The Disney Plus streaming service, which was launched in November 2019 as a Netflix hunter, gained 14.4 million customers in three months – significantly more than experts expected. With the Star Wars series Obi-Wan Kenobi and Marvel’s Ms. Marvel” he landed two big hits.

Disney immediately used the strong demand to introduce strong price increases. For example, the price for the ad-free standard subscription to Disney Plus for customers in the United States will increase by three dollars to $10.99 per month on December 8th.

But Disney – like Netflix – wants to introduce a cheaper version with commercial breaks. This offer is said to cost $7.99 a month – as much as the ad-free subscription used to be. With Hulu, the price goes up by $1 to $2 per month, depending on the subscription model. ESPN Plus also recently announced a price increase in the US.

Disney sees revenue growth

Financially, too, things were going well for the entertainment empire, which also includes the classic TV cable division as well as film studios, theme parks, holiday resorts and cruise ships. Sales grew 26 percent year-on-year to $21.5 billion. Profit rose 53 percent to $1.4 billion.

The quarterly figures significantly exceeded analysts’ expectations. The stock responded after hours with a price increase of more than four percent. Disney has recently had a difficult time on Wall Street – the share has been down 28 percent since the beginning of the year.