I Was Gone For 20 Days 😥

Good morning. It's Tuesday, Jul. 2, and we're covering Mara, a Coinbase-backed crypto Startup that lost $16M, Anthropic Launches a Program to Fund the Development of Comprehensive AI Benchmarks, China Criticizes US Restrictions On AI Investments and much more. First time reading? Sign up to get this newsletter: Sign up here.

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MARKETS

Cryptocurrency Prices by Market Cap

• Today's global cryptocurrency market cap is $2.32 Trillion, a 0.58% decrease in the last 24 hours.

• The total crypto market volume over the last 24 hours is $53.39B, which makes a 1.12% increase.

• The total volume in Defi is currently $3.9B, 7.30% of the total crypto market 24-hours.

• The volume of all stablecoins is now $49.43B, which is 92.58% of the total market 24-hour volume.

• Bitcoin’s dominance is currently 53.49%, a decrease of 0.10% over the day.

BUSINESS & FINANCE

Mara, Coinbase-Backed Crypto Startup, Loses $16M Amid Leadership Turmoil and Financial Mismanagement

Mara, a cryptocurrency startup founded in 2021 and backed by Coinbase Ventures and other investors, faced financial and leadership challenges leading to a $16 million loss in 2022. The company raised $23 million in May 2022 and developed a crypto wallet and blockchain. However, high operating costs and the departure of key co-founders led to financial difficulties. Efforts to secure additional funding failed amid the 2023 crypto winter.

Takeaway: Mara quickly attracted investor interest. In May 2022, it raised $23 million from Alameda Research, the trading arm of FTX, Coinbase Ventures, and over 100 other investors. Internal documents revealed Mara's unsustainable cash burn. The company lost $15.9 million in 2022, primarily due to high salaries, bonuses, and allowances totaling $9.1 million for its 130 employees. The expenses were astronomical considering Mara had not yet launched a product in 2022, resulting in no revenue. ( Read Deeper )

Tesla's Deliveries Decline For Second Consecutive Quarter Amidst Market Challenges

Tesla's June-quarter deliveries are anticipated to drop by 6%, marking the first time the leading electric vehicle (EV) manufacturer is set to record two consecutive quarters of decline. The company is expected to deliver 438,019 vehicles from April to June, based on an average estimate from 12 analysts polled by LSEG. Consumer preferences are shifting towards cheaper gasoline-electric hybrid vehicles, leading to an increase in Tesla's inventory. The company has responded with price cuts and incentives, including cheaper financing options and leases.

Why It Matters: The slowdown comes as Tesla faces intense competition in China and sluggish demand due to a lack of affordable new models. This downturn follows years of rapid growth that positioned Tesla as the world's most valuable automaker. In January, Tesla warned that delivery growth in 2024 would be "notably lower" as the effects of prolonged price cuts diminish. ( Read Deeper )

TECHNOLOGY & SCIENCE

Anthropic Launches Program to Fund Development of Comprehensive AI Benchmarks

Anthropic has announced a program to fund the development of new AI benchmarks, aimed at evaluating the performance and impact of AI models, including generative models like its own Claude. The program will provide funding to third-party organizations to create benchmarks that effectively measure advanced AI capabilities. Anthropic's initiative focuses on AI safety and societal implications, targeting tasks like cyberattacks, weapon enhancement, and manipulation through deepfakes. The company plans to develop an "early warning system" for AI risks and support research into benchmarks for scientific study, multilingual conversations, bias mitigation, and toxicity self-censorship.

Why It Matters: Anthropic envisions platforms for subject-matter experts to develop evaluations and large-scale model trials involving thousands of users. While Anthropic's initiative is commendable, there are concerns about its influence over definitions of "safe" or "risky" AI and its focus on "catastrophic" risks, which some experts argue could divert attention from immediate regulatory issues. The program aims to set a new industry standard for comprehensive AI evaluation, though collaboration with corporate-unaffiliated efforts remains uncertain. ( Read Deeper )

Salesforce Shareholders Reject CEO Marc Benioff's Compensation Plan

Salesforce shareholders voted against the executive compensation plan, which included equity awards for CEO Marc Benioff. Despite the board's recommendation to approve the plan, the vote saw 404.8 million against and 339.3 million in favor. Shareholder advisory firms Glass Lewis and Institutional Shareholder Services raised concerns, particularly about a second equity award granted to Benioff in January, valued at $20 million. They questioned the necessity of this additional compensation given Benioff's substantial existing stake in the company, which aligns his interests with those of shareholders.

Takeaway: Benioff's total pay for the 2024 fiscal year rose to $39.6 million from $29.9 million the previous year, including stock, option awards, and non-equity incentive plan compensation. This increase included previously unbilled security fees. The board cited Salesforce's strong financial performance and transformation actions as justification for the additional equity award. However, Glass Lewis deemed these grants unwarranted and lacking a convincing rationale. ( Read Deeper )

AROUND DE WORLD & POLITICS

China Criticizes US Restrictions On AI Investments, Calls for Inclusive Development

China's UN envoy, Fu Cong, criticized the United States for targeting certain investments in artificial intelligence (AI) in China, stating that such actions are detrimental to the healthy development of AI technology and global cooperation. The criticism follows the U.S. Treasury Department's draft rules issued last month, which proposed banning or requiring notification of specific investments in AI and other tech sectors in China due to national security concerns. Ambassador Fu expressed firm opposition to these sanctions after the UN General Assembly adopted a Chinese-drafted resolution promoting international cooperation in AI capacity-building.

Takeaway: The resolution urges the global community to ensure a fair, open, inclusive, and non-discriminatory business environment for AI systems. The U.S. restrictions are part of a broader effort initiated by President Joe Biden to prevent American expertise from aiding China's development of advanced technologies and to maintain U.S. competitiveness in global markets. ( Read Deeper )

Ukraine Foils Alleged Coup Plot Amidst Ongoing Conflict with Russia

Ukraine's Security Service (SBU) announced on Monday that it thwarted an alleged coup attempt aimed at overthrowing the government, which would have favored Russia's interests. The plot, scheduled to incite a riot in Kyiv on June 30, sought to seize control of the Ukrainian parliament and oust the military and political leadership. Four suspects have been identified, with two currently in custody, facing up to 10 years in prison if convicted.

Takeaway: The SBU seized weapons, ammunition, and electronic records as evidence. The alleged coup leader had rented a large hall and recruited military personnel and armed guards from private companies to execute the takeover. President Volodymyr Zelensky has appealed for more long-range weapons following a recent missile strike that killed seven people, including three children, in Vilniansk. ( Read Deeper )

ENTERTAINMENT & SPORTS

Redemption For Tearful Ronaldo At 'Last Euros'

Cristiano Ronaldo's emotional journey at what he announced as his last European Championship took a dramatic turn. In a tense last-16 match against Slovenia, goalkeeper Jan Oblak tipped Ronaldo's extra-time penalty onto the post, leading to heartbreak and tears for the 39-year-old legend. As the game ended goalless, it moved to a penalty shootout. Ronaldo redeemed himself by scoring the first penalty kick for Portugal. Goalkeeper Diogo Costa then made Euro history by saving three penalties, securing Portugal's victory and preventing a shocking exit. ( Read Deeper )

Jamie Foxx Breaks Silence On Mysterious Health Crisis: "I Was Gone For 20 Days"

Actor and comedian Jamie Foxx has finally opened up about the mysterious health condition that left him hospitalized for weeks in April 2023. The 56-year-old star, who had kept details of the incident private, shared his experience during an impromptu conversation in downtown Phoenix. Foxx revealed that his ordeal began with a severe headache on April 11, 2023. After asking a friend for an Advil, he lost consciousness and woke up 20 days later with no memory of what had happened. He recounted how his sister and daughter rushed him to a doctor in Atlanta, where he received critical medical attention. ( Read Deeper )

PODCAST(WHAT WE ARE LISTENING TO)

• Marc and Ben dive deep into the REAL story behind the creation of Netscape, a web browser co-created by Marc that revolutionized the internet and changed the world.? ( Listen )

EXTRA BREVITI

• Kenya’s NCBA Group has acquired AIG Kenya, a prominent insurer, for an undisclosed amount. ( Read More )

• Hurricane Beryl intensified to a Category 5 storm late Monday, causing widespread destruction across the southeastern Caribbean. ( Read More )