Connect with us

Startups

Will the latest selloff finally shake up how investors value startups? – TechCrunch

Published

on

Well, here we are.

The bad things are still happening: The U.S. stock market opened in the red this morning, with broad indices losing ground (the S&P 500 is off 2.3%) and the tech-heavy Nasdaq taking even more punishment (off 2.7%).


The Exchange explores startups, markets and money.

Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday.


 

Closer to home for startups are cloud stocks, a collection of companies that sell software along modern lines — read: SaaS via public cloud. They’re taking even heavier blows, with one key index off 3.33% at the moment I write this to you.

But that damage is modest compared to what is going on in the decentralized world, with major cryptos falling sharply, again, adding to their seven-day losses. A quick (rounded) update on the red ink:

  • Bitcoin: -3% last 24 hours, off 20% in the last week
  • Ether: -7% last 24 hours, off 30% in the last week
  • Cardano: -7% last 24 hours, off 32% in the last week
  • Sol: -11% last 24 hours, -39% in the last week

That screaming sound you hear in the background is every trader who was holding leveraged longs on decentralized assets. If you bought the last dip, you just got punched. If you bought the dip with extra hot sauce, you took an even greater loss. (I don’t mean to make light here; if you are seriously taking hits, care for yourself, and remember that all money is an invention.)

The result of the carnage is that late-stage valuations are starting to stutter. The Wall Street Journal interviewed Mary D’Onofrio of Bessemer Venture Partners — a regular here on The Exchange — about the selloff last week, before today’s added pain. She said the following:

The public market reset is affecting how we think about our private-market entry prices for VC deals.

D’Onofrio is a growth-stage investor, so her notes here carry quite a lot of weight. More simply, the translation from public market pullback to private market reset is already underway, but on enough of a time delay that the earlier stages of startup investment are unlikely to feel it for a while yet.

Source link

Startups

Crash Team Rumble gives the bandicoot a competitive multiplayer twist

Published

on

Activision Blizzard announced Crash Team Rumble today during The Game Awards. The new title will come out in 2023 for PlayStation 5, Xbox Series X/S, PlayStation 4 and Xbox One.

This new Crash Bandicoot game is a four-vs.-four multiplayer affair, with players controlling crash and friends (or foes) in a contest to claim the most Wumpa fruit. Multiplayer spin-offs are not unusual for the series, as Crash has starred in kart racers and the Mario Party-inspired Crash Bash in the past.

Toys For Bob, the studio behind 2020’s Crash Bandicoot 4: It’s About Time, is developing the project. It looks like Activision Blizzard has loosened the developer’s Call of Duty support studio leash.

Source link

Continue Reading

Startups

Kim Kardashian, Floyd Mayweather Jr. and Fellow Celeb Crypto Promoters Beat Lawsuit

Published

on

Opinions expressed by Entrepreneur contributors are their own.

Since crypto winter began in the summer of 2022, celebrities have learned some hard lessons about the dangers of shilling new products. Several, including Kim Kardashian and Floyd Mayweather Jr., managed to avoid court-ordered payouts after a California judge dismissed the lawsuit against them, concluding that investors were unaware of the celebs’ promotional efforts.



Taylor Hill | Getty Images

In January, a lawsuit was filed claiming that EthereumMax executives and celebrity promoters took part in a scheme meant to induce investor purchases of EMax tokens — an action that drove up the cryptocurrency‘s price, netting significant profits once the celebs and execs sold their holdings.

Here’s more from CNN:

US District Judge Michael Fitzgerald in Los Angeles said that the investors may amend and refile their proposed class action.

The decision comes as other celebrity promoters face lawsuits from users of the failed cryptocurrency exchange FTX, whose collapse has deepened an ongoing “crypto winter.”

Attorney Sean Masson represented the plaintiffs in the EthereumMax suit. He indicated plans to change investors’ claims by adding “additional facts demonstrating defendants’ wrongdoing and liability.”

CNN also quoted Kim Kardashian’s attorney Michael Rhodes, who had no complaints, saying reps for the celebs were happy with what he termed “the court’s well-reasoned ruling.”

Judge Michael Fitzgerald explained his dismissal by stating that the plaintiffs could not prove any intention to mislead investors. Additionally, investors didn’t say whether they’d seen the promotions, such as Mayweather sporting an EthereumMax logo on his trunks in the ring or Kardashian’s Instagram posts.

The claim was permanently dismissed. According to Judge Fitzgerald, the California statute protects consumers regarding fraud related to real-world products or services — cryptocurrency is considered intangible. However, aggrieved investors may still get their day in court, as they can file suit again once they’ve revised their claims.

Continue Reading

Startups

Dune: Awakening is an open world survival MMO

Published

on

Dune: Awakening made its debut at The Game Awards as an open world survival massively multiplayer online game.

The game from Funcom and Nukklear looks beautiful, full of very detailed imagery of the desert planet Arrakis, also known as Dune. The game asked for beta signups, but we got no other information. Survival is the key word. Dune is a very deadly world, with sandworms and an unforgiving climate.

You can see places in the trailer like the city of Arakeen by day and night, as well as desert biomes and more. It’s not clear when it is coming. With luck, it will be close to the second Dune movie coming in late 2023.

Source link

Continue Reading

Trending

URGENT: CYBER SECURITY UPDATE