Weekly news and stories covering everything from the Fashion System, Investment, and AI to WEB3 and Crypto that truly matter in Metaverse Fashion.
[OP-ED]A NEW ERA OF CREATIVITY AND INNOVATION | [SINGULAIRTY]
Ugyen Wangmo for METAVERSE FASHION COUNCIL
👚 The fashion industry, amid a digital transformation, is yet again confronted with a new shift as artificial intelligence increasingly infiltrates every domain, the industry that was once historically steeped in tradition. With the introduction of AI, fashion magazines are seeing fundamental changes in their operations—including changes in how contents are created, curated, and consumed.
💎 Once limited to print and static digital formats, fashion magazines are becoming increasingly dynamic and responsive. Reader experiences are enhanced, and artists and designers are empowered to push the boundaries of creativity. Drawing from the innovative practices at FORWARD Fashion, an independent publication headquartered in Toronto, Ontario, Canada, we explore how AI is innovative and deeply impactful.
↗ FORWARD Fashion fosters a space where technology meets creativity, pushing the boundaries of traditional fashion journalism and exploring new grounds of artistic expression. The magazine's dedicated platform, FORWARDai, has become successful as a vibrant community and a hub for collaboration among AI artists and fashion innovators. The power of partnership, which has always been the lifeline, now sees AI allowing it to have an even wider reach and diverse talents to come together and create an ecosystem where ideas can flourish and groundbreaking projects come to life. Our articles spark conversations and encourage our audience to think critically about the role of AI in Fashion. Along with the AI Artists, we aim to drive the industry towards a more innovative and inclusive future by fostering a community of curious and forward-thinking individuals.
💥 Empowering the AI community is one of the primary purposes of the FORWARDai initiative. We function to bring AI artists closer to a broader audience, help them communicate their work, and share their stories. The magazine features in-depth interviews and articles highlighting these artists' journeys to showcase their creations while discussing their challenges and opportunities to help aspiring AI artists start their journey into these limitless creative possibilities. By giving a voice to AI creators, these creative innovators have helped inspire others in the industry for thought-provoking content that challenges conventional ideas about Fashion and technology.
WHAT CONDE NAST'S EMBRACE OF AI MEANS FOR FASHION MEDIA | [FASHION SYSTEM]
The Business of Fashion
🤝 This week, the publisher announced it had inked a partnership with OpenAI, the Microsoft-backed company behind ChatGPT. Going forward, content from Condé Nast publications — including Vogue, Vanity Fair and GQ — will appear on OpenAI’s platforms, including ChatGPT and a prototype version of the forthcoming SearchGPT.
💎 In a memo announcing the partnership to Condé Nast staff, chief executive Roger Lynch wrote that it is a way to “make up for some of that revenue” that had been lost as tech companies “eroded publishers’ ability to monetise content.” He argued that in partnering with OpenAI, Condé Nast would be able to protect and invest in its journalism.
💵 In some ways, Condé Nast is learning from past mistakes. Legacy media was slow to adapt to the internet, going back to the rise of Craiglist classified ads three decades ago. It’s only within the past decade that Condé Nast and its primary rival, Hearst, began meaningfully investing in their titles’ websites. That delay cost publishers dearly. Tech giants like Meta and Google began syphoning away their ad dollars. Even as media properties tried to use social media and search to their advantage, tech companies have implemented rapidly-changing strategies (remember the “pivot to video”?) that further impacted their bottom line.
🤖 From the moment ChatGPT was released nearly two years ago, media watchers conjured up similar visions of AI-generated content replacing traditional journalism (not to mention traditional marketing, traditional social media and countless other fields). While the internet is now awash in robot-written articles, Instagram ads and tweets, much of that content is error-ridden clutter.
👾 That is changing fast. Google’s AI overview scrapes text from a publication’s website and condenses it into a bite-sized summary that displays on their results page. Start-ups like Perplexity offer AI-generated search results that negate the need to ever click a link; they’ll soon to be joined by OpenAI’s SearchGPT. Publishers have already found it’s had a negative impact on their traffic.
HOW AI CAN BECOME YOUR PERSONAL STYLIST | [SINGULARITY]
Metaverse Fashion MAGAZINE
🤖 AI integration into the decision-making process can significantly enhance the efficiency, accuracy, and effectiveness of decisions across various sectors, including beauty, finance, healthcare, and more. AI naturally excels at processing vast amounts of data, making it a powerful tool for big-data analysis. Its ability to access and analyze large datasets enables it to identify patterns and trends that may escape human observation.
👾 On the flip side, AI also enhances the customer experience by offering a more personalized experience based on the analysis of customer behavior, browsing history, and purchase patterns. The fashion and beauty industries are no exception, as AI enables them to analyze customer needs in depth and provide individualized consultations.
👚 StyleDNA is a perfect example of how AI can provide customers with a more individually tailored styling experience. StyleDNA is an AI-powered fashion stylist app that creates a personalized style profile for each user.
📢 “Our AI stylist is available 24/7, completely objective, and processes requests within seconds. It searches among 5 million products, taking into account the user’s color type, style, body type, existing wardrobe, and preferences. Go ahead and let the AI Stylist create up to 5 outfits for various occasions based on a text request or any selected items in just 9 seconds. Style DNA is a scalable solution ready to assist millions of people with their everyday style dilemmas.” –said Elena Volkova, Co-founder and CEO of StyleDNA.
CHEAP 'DUPES' PROMISE CHINESE SHOPPERS THE QUALITY OF BRANDS LIKE LULULEMOND AND HERMES —WITHOUT THE LOGOS | [FASHION SYSTEM]
Fortune
👔 Near-facsimiles of some of the world’s most popular fashion staples, from Lululemon Athletica Inc.’s yoga tights to Hermès International SCA’s handbags, are appearing in closets across China for a fraction of the price.
Known in Chinese as “pingti” and Gen Z shopping parlance as “dupes,” their popularity reflects a backlash against brands among formerly label-loving Chinese shoppers. But they’re not cheap counterfeits either: these local makers sell products at relatively high prices by promising the same quality as top global brands—just without the logos.
🚀 Sales have skyrocketed since last year, as Chinese consumers search for better value amid faltering economic confidence. In the 12 months ending in July, some of the top local labels selling cheaper alternatives saw double-to-triple-digit growth on China’s dominant e-commerce platforms, Alibaba Group Holding Ltd.’s Taobao and Tmall, data from analytics firm Hangzhou Zhiyi Technology Co. show. At the same time, some of the foreign brands whose products they emulate saw slower growth or declines on the platforms, according to the data.
👾 While online sales aren’t the full picture for foreign brands that have brick-and-mortar shops, the meteoric rise of dupes are the latest threat facing global retail giants who can’t seem to figure out what Chinese shoppers want. The economic slowdown is turning consumers more frugal, but even midrange brands like Nike Inc. and Fast Retailing Co.’s Uniqlo are stumbling. Instead, the rise of pingti likely reflects what Uniqlo called “a new set of consumer values”—the same instinct that’s pushing consumers to seek out products sold directly by manufacturers, cutting out the brand middlemen.
🗣 “Chinese consumers’ understanding of luxury goods is changing, as the traditional mindset that a luxury handbag could signal prestige status is no longer their only preference,” said Pengjun (Blair) Zhang , a senior luxury and fashion analyst with Mintel in Shanghai. “There’s no more blind trust in well-known brands under the currently-cautious spending trends. Instead, there’s more rational shopping decisions that spur active discussions on cheaper alternatives.”
👜 Leather goods manufacturer Sitoy Group Holdings Ltd. says on social media videos that the quality of its $100 handbags is almost identical to those sold for upwards of $1,000 when churned out by the same production lines that manufacture for for luxury brand clients such as Prada, Tumi and Michael Kors.
WHY DECENTRALIZED AI IS GAINING STEAM | [SINGULARITY]
CoinDesk
💡 Decentralized AI is arguably the hottest topic in the web3 space. Dozens of projects — maybe hundreds, it’s hard to keep track — are now racing to merge the tools of blockchain with the taming of AI. The space is booming. By the time you finish reading this article, another DePIN startup will have launched. And the architects of this movement are converging in Austin, for Consensus 2024, in CoinDesk’s inaugural “AI Summit.” (I’ll cop to some bias: I helped organize the event and I’ll be hosting on May 31.)
💲 You could argue that the stakes of decentralized AI are higher than the stakes of decentralized finance. In some ways the principles are the same. Satoshi Nakamoto was wary of centralized financial institutions that acted badly and jeopardized people’s money. As AI becomes a greater part of our lives — and that feels inevitable — it will have the power to shape how we see the world, how we interact with the world, and how we present to the world. It could shape how we think. Should this be controlled by the billionaire de jour?
👾 Let’s look at two concrete examples, one that’s straightforward and one that’s chilling. The next frontier of Gen AI is likely the rise of AI agents, which can do things like book your flight, pay your phone bill, or invest your money in stocks. (“Hey Siri, go ahead and put $1,000 in the S&P.”)
🌐 More chilling: It’s likely that millions of people will someday use AI chatbots — perhaps through audio or even video — as coaches or even therapists. Early versions are here now. (On my podcast AI-Curious, for example, I interviewed a longtime coach who’s working with the German Research Center to develop AI-based personal coaching. It’s coming. It’s inevitable.) Millions of people will share their inner-most thoughts, longings, fears, sexual desires, confessions and embarrassments. Do we want this sliced and diced by Zuckerberg and co.? The decentralized and privacy-preserving tech of blockchain, potentially, could give us the fruits of AI without the poison of Big Tech.
OPENSEA RECEIVES SEC WELLS NOTICE ALLEGING NFTS ARE SECURITIES | [METAPHYSICS]
nft now
🔥The U.S. Securities and Exchange Commission (SEC) has broadened its regulatory efforts in the cryptocurrency sector by issuing a Wells notice to OpenSea, a leading NFT marketplace. This move suggests that the SEC is considering taking formal action against the platform for allegedly dealing in unregistered securities.
🗣️OpenSea’s CEO, Devin Finzer , announced the receipt of the Wells notice in a statement posted on X (formerly Twitter) on Wednesday (Aug. 28). The notice indicates that the SEC is investigating whether the NFTs traded on OpenSea might be classified as securities, a determination that could lead to enforcement action
♦️To support those who might be similarly targeted, OpenSea has pledged $5 million to help cover legal expenses for NFT creators and developers who receive similar notices. Finzer argued that NFTs are fundamentally creative products and should not be regulated in the same way as financial instruments like securities.
🛳️The SEC’s move against OpenSea is part of a larger pattern of increased scrutiny on the cryptocurrency industry. This year, the agency has issued Wells notices, filed lawsuits, or reached settlements with several crypto-related companies, including ShapeShift, TradeStation, and Uniswap. Centralized trading platforms like Coinbase, Kraken, Binance, and Robinhood have also been involved in legal disputes with the SEC.
💭 Despite the legal challenges, Finzer remains confident that OpenSea is operating within the law. “I hope the SEC will come to its senses sooner rather than later, and that they’ll listen with an open mind,” he writes.
MANCHESTER FASHION INSTITUTE PIONEERS ‘VIRTUAL TRADE FAIR’ FOR STUDENT BUYERS | [METAPHYSICS]
Fashion Network
👗Pioneering Manchester Fashion Institute (MFI) has launched a virtual trade fair for fashion-buying students.
♻️ Claiming digital fashion events are a “step towards sustainability in the industry”, the inaugural ‘Virtual Trading Fair’ is the result of Manchester Met’s fashion buying students working with BrandLab360 to develop an immersive buying experience.
🔥 It enables participants to “virtually attend and collaborate from any location in the world”. Buyers can virtually walk from room to room and view the designs, “a direction that experts at MFI believe the fashion industry will be heading towards in the future”.
🗣️ Anita Mitchell MFI’s Digital Strategic Lead, said: “Virtual Reality and the Metaverse continues to be an important focus within our concurrently refreshed curriculum. This digital partnership with BrandLab360 is integral in supporting the digitalisation of our fashion curriculum by further extending our vast experience in this area.”
⚡️The event will support graduate employability and sustainable fashion practice by ensuring students have the practical experience of solving real-world industry challenges with the latest digital tools and skills.
LANVIN GROUP POSTS 20% DROP IN SALES AMID LUXURY SLOWDOWN | [FASHION SYSTEM]
The Business of Fashion
📉 Lanvin Group’s revenue decreased 20 percent year over year to €171 million ($191 million) in the first half of 2024. The company, like many operators in the luxury sector, attributed its slowdown to lagging demand in China and Europe and disappointing sales with retail partners.
👾 The group — which owns its flagship brand Lanvin, along with shoe maker Sergio Rossi, knitwear seller St. John and intimates brand Wolford — also generated a €42 million loss during the period as a result of the dip in sales. Lanvin’s revenue dropped 15 percent to €48 million, and Sergio Rossi’s revenue fell 38 percent percent to €20 million. It expects the slowdown to continue this year.
🤖 But Lavin Group is in the middle of a turnaround plan, starting with a creative overhaul. The company hired designer Peter Copping, who worked at Balenciaga, as artistic director at Lanvin starting in September, as well as Paul Andrew, former creative director at Ferragamo, as creative director at Sergio Rossi. The company also increased brand marketing to drum up excitement for its portfolio and drive sales in the coming months.
💰 The group has already seen some improvements in the business. It said several of its brands, including Lanvin and St. John, generated more full price sales in the first half of the year. The company’s stock rose nearly 13 percent following its earnings release.
EUROPE NEEDS A NEW ECONOMIC VISION | [COMMONWEALTH]
Project Syndicate
🏰 With its current course leading only to economic stagnation, the EU must establish a vision for a more dynamic, productive future. Above all, Europeans must answer a simple but critical question: What should the EU look like – in terms of innovation, the economy, security, and resilience – in a decade?
💥 The global economic shocks of the past few years have left Europe particularly vulnerable. While virtually everyone has suffered from climate- and pandemic-related disruptions, the European Union has also had the Ukraine war unfolding on its doorstep, and its acute dependence on energy imports has meant that rising prices – and the need to shift away from Russian fossil fuels – have bitten especially hard. Both growth and economic security are under pressure.
📈 But the EU faces a number of formidable economic challenges that will not simply go away. For starters, rising security risks in its neighborhood, combined with growing doubts about the durability of America’s commitment to European defense, have put pressure on the EU to strengthen its own capabilities. This implies not only more coordination across countries, but also a significant increase in overall defense expenditure: the bloc’s total spending currently amounts to 1.3% of GDP, well below NATO’s 2%-of-GDP target.
👨💻 The main reasons for the EU’s innovation deficit are well known. Both basic and applied research and development have suffered from chronic underinvestment. The effectiveness of funding for basic research is undermined by a decentralized approach, with uncoordinated and poorly targeted national programs taking precedence over EU-level finance and administration. In addition, the integration of the single market remains incomplete, particularly in services. This is especially important in digital fields, where returns on investment in innovation depend on market size.
🦄 This will be no easy feat. Long-term productivity growth in the developed economies depends significantly on structural change, driven mainly by technological innovation. This is where Europe’s principal problem lies: in a range of areas, from artificial intelligence to semiconductors to quantum computing, the US and even China are leaving Europe in the dust.
MAGNETAR STARTS FIRST-EVER VENTURE FUND, TARGETS GENERATIVE AI | [VALUE PROPOSITION]
Bloomberg
💵 Magnetar Capital, the $17.5 billion money manager known for alternative credit and hedge fund investing, is pushing into newer territory: venture capital. Magnetar has launched its first-ever dedicated fund for backing startups, with a focus on generative artificial intelligence technology. It’s the first step in a broader move to build out a venture business.
📢 “We are going through a generational technology revolution that’s going to require possibly trillions of dollars of investments,” said Jim Prusko, Magnetar’s senior portfolio manager who is helping oversee the fund. “So there are going to be many opportunities given the scale and rapidly changing nature of AI and machine learning technology.”
👾 The shift comes as Silicon Valley has embraced AI startups, ramping up investments and sending valuations soaring. Generative AI in particular has dazzled audiences, with tools that generate coherent poems, images and videos based on a few words of prompting. But at the same time, some investors have started to question whether the increased spending on AI tools is justified.
💻 In addition to traditionally structured investments, Magnetar’s fund will also get equity in exchange for providing startups with compute power, which has become a highly coveted resource for AI companies. It will purchase the compute from CoreWeave Inc., in which Magnetar is already an investor.
💥 The new fund is a significant move for Magnetar, but it’s not their first time dabbling in less liquid wagers. The firm has been making private investments for nearly two decades, mostly focused on alternative credit bets like corporate debt, mortgage-backed investing and specialty credit. On occasion, its various funds have backed the debt and equity of venture companies. In 2021, the firm began focusing on AI startups, investing in companies like CoreWeave. This year, it backed Cohere Inc.
👽 Magnetar is the latest in a string of alternative asset managers and hedge funds to push into venture capital investing, though they are a bit later than their peers. Many others furiously ramped up their bets during the peak of the market — and were burned when it turned in 2022. Since then, valuations have generally declined, providing more attractive buying points in recent months. Still, many AI startups remain highly priced as hype over the sector continues.
Weekly news and stories covering everything from the Fashion System, Investment, and AI to WEB3 and Crypto that truly matter in Metaverse Fashion.
[OP-ED]A NEW ERA OF CREATIVITY AND INNOVATION | [SINGULAIRTY]
Ugyen Wangmo for METAVERSE FASHION COUNCIL
👚 The fashion industry, amid a digital transformation, is yet again confronted with a new shift as artificial intelligence increasingly infiltrates every domain, the industry that was once historically steeped in tradition. With the introduction of AI, fashion magazines are seeing fundamental changes in their operations—including changes in how contents are created, curated, and consumed.
💎 Once limited to print and static digital formats, fashion magazines are becoming increasingly dynamic and responsive. Reader experiences are enhanced, and artists and designers are empowered to push the boundaries of creativity. Drawing from the innovative practices at FORWARD Fashion, an independent publication headquartered in Toronto, Ontario, Canada, we explore how AI is innovative and deeply impactful.
↗ FORWARD Fashion fosters a space where technology meets creativity, pushing the boundaries of traditional fashion journalism and exploring new grounds of artistic expression. The magazine's dedicated platform, FORWARDai, has become successful as a vibrant community and a hub for collaboration among AI artists and fashion innovators. The power of partnership, which has always been the lifeline, now sees AI allowing it to have an even wider reach and diverse talents to come together and create an ecosystem where ideas can flourish and groundbreaking projects come to life. Our articles spark conversations and encourage our audience to think critically about the role of AI in Fashion. Along with the AI Artists, we aim to drive the industry towards a more innovative and inclusive future by fostering a community of curious and forward-thinking individuals.
💥 Empowering the AI community is one of the primary purposes of the FORWARDai initiative. We function to bring AI artists closer to a broader audience, help them communicate their work, and share their stories. The magazine features in-depth interviews and articles highlighting these artists' journeys to showcase their creations while discussing their challenges and opportunities to help aspiring AI artists start their journey into these limitless creative possibilities. By giving a voice to AI creators, these creative innovators have helped inspire others in the industry for thought-provoking content that challenges conventional ideas about Fashion and technology.
WHAT CONDE NAST'S EMBRACE OF AI MEANS FOR FASHION MEDIA | [FASHION SYSTEM]
The Business of Fashion
🤝 This week, the publisher announced it had inked a partnership with OpenAI, the Microsoft-backed company behind ChatGPT. Going forward, content from Condé Nast publications — including Vogue, Vanity Fair and GQ — will appear on OpenAI’s platforms, including ChatGPT and a prototype version of the forthcoming SearchGPT.
💎 In a memo announcing the partnership to Condé Nast staff, chief executive Roger Lynch wrote that it is a way to “make up for some of that revenue” that had been lost as tech companies “eroded publishers’ ability to monetise content.” He argued that in partnering with OpenAI, Condé Nast would be able to protect and invest in its journalism.
💵 In some ways, Condé Nast is learning from past mistakes. Legacy media was slow to adapt to the internet, going back to the rise of Craiglist classified ads three decades ago. It’s only within the past decade that Condé Nast and its primary rival, Hearst, began meaningfully investing in their titles’ websites. That delay cost publishers dearly. Tech giants like Meta and Google began syphoning away their ad dollars. Even as media properties tried to use social media and search to their advantage, tech companies have implemented rapidly-changing strategies (remember the “pivot to video”?) that further impacted their bottom line.
🤖 From the moment ChatGPT was released nearly two years ago, media watchers conjured up similar visions of AI-generated content replacing traditional journalism (not to mention traditional marketing, traditional social media and countless other fields). While the internet is now awash in robot-written articles, Instagram ads and tweets, much of that content is error-ridden clutter.
👾 That is changing fast. Google’s AI overview scrapes text from a publication’s website and condenses it into a bite-sized summary that displays on their results page. Start-ups like Perplexity offer AI-generated search results that negate the need to ever click a link; they’ll soon to be joined by OpenAI’s SearchGPT. Publishers have already found it’s had a negative impact on their traffic.
HOW AI CAN BECOME YOUR PERSONAL STYLIST | [SINGULARITY]
Metaverse Fashion MAGAZINE
🤖 AI integration into the decision-making process can significantly enhance the efficiency, accuracy, and effectiveness of decisions across various sectors, including beauty, finance, healthcare, and more. AI naturally excels at processing vast amounts of data, making it a powerful tool for big-data analysis. Its ability to access and analyze large datasets enables it to identify patterns and trends that may escape human observation.
👾 On the flip side, AI also enhances the customer experience by offering a more personalized experience based on the analysis of customer behavior, browsing history, and purchase patterns. The fashion and beauty industries are no exception, as AI enables them to analyze customer needs in depth and provide individualized consultations.
👚 StyleDNA is a perfect example of how AI can provide customers with a more individually tailored styling experience. StyleDNA is an AI-powered fashion stylist app that creates a personalized style profile for each user.
📢 “Our AI stylist is available 24/7, completely objective, and processes requests within seconds. It searches among 5 million products, taking into account the user’s color type, style, body type, existing wardrobe, and preferences. Go ahead and let the AI Stylist create up to 5 outfits for various occasions based on a text request or any selected items in just 9 seconds. Style DNA is a scalable solution ready to assist millions of people with their everyday style dilemmas.” –said Elena Volkova, Co-founder and CEO of StyleDNA.
CHEAP 'DUPES' PROMISE CHINESE SHOPPERS THE QUALITY OF BRANDS LIKE LULULEMOND AND HERMES —WITHOUT THE LOGOS | [FASHION SYSTEM]
Fortune
👔 Near-facsimiles of some of the world’s most popular fashion staples, from Lululemon Athletica Inc.’s yoga tights to Hermès International SCA’s handbags, are appearing in closets across China for a fraction of the price.
Known in Chinese as “pingti” and Gen Z shopping parlance as “dupes,” their popularity reflects a backlash against brands among formerly label-loving Chinese shoppers. But they’re not cheap counterfeits either: these local makers sell products at relatively high prices by promising the same quality as top global brands—just without the logos.
🚀 Sales have skyrocketed since last year, as Chinese consumers search for better value amid faltering economic confidence. In the 12 months ending in July, some of the top local labels selling cheaper alternatives saw double-to-triple-digit growth on China’s dominant e-commerce platforms, Alibaba Group Holding Ltd.’s Taobao and Tmall, data from analytics firm Hangzhou Zhiyi Technology Co. show. At the same time, some of the foreign brands whose products they emulate saw slower growth or declines on the platforms, according to the data.
👾 While online sales aren’t the full picture for foreign brands that have brick-and-mortar shops, the meteoric rise of dupes are the latest threat facing global retail giants who can’t seem to figure out what Chinese shoppers want. The economic slowdown is turning consumers more frugal, but even midrange brands like Nike Inc. and Fast Retailing Co.’s Uniqlo are stumbling. Instead, the rise of pingti likely reflects what Uniqlo called “a new set of consumer values”—the same instinct that’s pushing consumers to seek out products sold directly by manufacturers, cutting out the brand middlemen.
🗣 “Chinese consumers’ understanding of luxury goods is changing, as the traditional mindset that a luxury handbag could signal prestige status is no longer their only preference,” said Pengjun (Blair) Zhang , a senior luxury and fashion analyst with Mintel in Shanghai. “There’s no more blind trust in well-known brands under the currently-cautious spending trends. Instead, there’s more rational shopping decisions that spur active discussions on cheaper alternatives.”
👜 Leather goods manufacturer Sitoy Group Holdings Ltd. says on social media videos that the quality of its $100 handbags is almost identical to those sold for upwards of $1,000 when churned out by the same production lines that manufacture for for luxury brand clients such as Prada, Tumi and Michael Kors.
WHY DECENTRALIZED AI IS GAINING STEAM | [SINGULARITY]
CoinDesk
💡 Decentralized AI is arguably the hottest topic in the web3 space. Dozens of projects — maybe hundreds, it’s hard to keep track — are now racing to merge the tools of blockchain with the taming of AI. The space is booming. By the time you finish reading this article, another DePIN startup will have launched. And the architects of this movement are converging in Austin, for Consensus 2024, in CoinDesk’s inaugural “AI Summit.” (I’ll cop to some bias: I helped organize the event and I’ll be hosting on May 31.)
💲 You could argue that the stakes of decentralized AI are higher than the stakes of decentralized finance. In some ways the principles are the same. Satoshi Nakamoto was wary of centralized financial institutions that acted badly and jeopardized people’s money. As AI becomes a greater part of our lives — and that feels inevitable — it will have the power to shape how we see the world, how we interact with the world, and how we present to the world. It could shape how we think. Should this be controlled by the billionaire de jour?
👾 Let’s look at two concrete examples, one that’s straightforward and one that’s chilling. The next frontier of Gen AI is likely the rise of AI agents, which can do things like book your flight, pay your phone bill, or invest your money in stocks. (“Hey Siri, go ahead and put $1,000 in the S&P.”)
🌐 More chilling: It’s likely that millions of people will someday use AI chatbots — perhaps through audio or even video — as coaches or even therapists. Early versions are here now. (On my podcast AI-Curious, for example, I interviewed a longtime coach who’s working with the German Research Center to develop AI-based personal coaching. It’s coming. It’s inevitable.) Millions of people will share their inner-most thoughts, longings, fears, sexual desires, confessions and embarrassments. Do we want this sliced and diced by Zuckerberg and co.? The decentralized and privacy-preserving tech of blockchain, potentially, could give us the fruits of AI without the poison of Big Tech.
OPENSEA RECEIVES SEC WELLS NOTICE ALLEGING NFTS ARE SECURITIES | [METAPHYSICS]
nft now
🔥The U.S. Securities and Exchange Commission (SEC) has broadened its regulatory efforts in the cryptocurrency sector by issuing a Wells notice to OpenSea, a leading NFT marketplace. This move suggests that the SEC is considering taking formal action against the platform for allegedly dealing in unregistered securities.
🗣️OpenSea’s CEO, Devin Finzer , announced the receipt of the Wells notice in a statement posted on X (formerly Twitter) on Wednesday (Aug. 28). The notice indicates that the SEC is investigating whether the NFTs traded on OpenSea might be classified as securities, a determination that could lead to enforcement action
♦️To support those who might be similarly targeted, OpenSea has pledged $5 million to help cover legal expenses for NFT creators and developers who receive similar notices. Finzer argued that NFTs are fundamentally creative products and should not be regulated in the same way as financial instruments like securities.
🛳️The SEC’s move against OpenSea is part of a larger pattern of increased scrutiny on the cryptocurrency industry. This year, the agency has issued Wells notices, filed lawsuits, or reached settlements with several crypto-related companies, including ShapeShift, TradeStation, and Uniswap. Centralized trading platforms like Coinbase, Kraken, Binance, and Robinhood have also been involved in legal disputes with the SEC.
💭 Despite the legal challenges, Finzer remains confident that OpenSea is operating within the law. “I hope the SEC will come to its senses sooner rather than later, and that they’ll listen with an open mind,” he writes.
MANCHESTER FASHION INSTITUTE PIONEERS ‘VIRTUAL TRADE FAIR’ FOR STUDENT BUYERS | [METAPHYSICS]
Fashion Network
👗Pioneering Manchester Fashion Institute (MFI) has launched a virtual trade fair for fashion-buying students.
♻️ Claiming digital fashion events are a “step towards sustainability in the industry”, the inaugural ‘Virtual Trading Fair’ is the result of Manchester Met’s fashion buying students working with BrandLab360 to develop an immersive buying experience.
🔥 It enables participants to “virtually attend and collaborate from any location in the world”. Buyers can virtually walk from room to room and view the designs, “a direction that experts at MFI believe the fashion industry will be heading towards in the future”.
🗣️ Anita Mitchell MFI’s Digital Strategic Lead, said: “Virtual Reality and the Metaverse continues to be an important focus within our concurrently refreshed curriculum. This digital partnership with BrandLab360 is integral in supporting the digitalisation of our fashion curriculum by further extending our vast experience in this area.”
⚡️The event will support graduate employability and sustainable fashion practice by ensuring students have the practical experience of solving real-world industry challenges with the latest digital tools and skills.
LANVIN GROUP POSTS 20% DROP IN SALES AMID LUXURY SLOWDOWN | [FASHION SYSTEM]
The Business of Fashion
📉 Lanvin Group’s revenue decreased 20 percent year over year to €171 million ($191 million) in the first half of 2024. The company, like many operators in the luxury sector, attributed its slowdown to lagging demand in China and Europe and disappointing sales with retail partners.
👾 The group — which owns its flagship brand Lanvin, along with shoe maker Sergio Rossi, knitwear seller St. John and intimates brand Wolford — also generated a €42 million loss during the period as a result of the dip in sales. Lanvin’s revenue dropped 15 percent to €48 million, and Sergio Rossi’s revenue fell 38 percent percent to €20 million. It expects the slowdown to continue this year.
🤖 But Lavin Group is in the middle of a turnaround plan, starting with a creative overhaul. The company hired designer Peter Copping, who worked at Balenciaga, as artistic director at Lanvin starting in September, as well as Paul Andrew, former creative director at Ferragamo, as creative director at Sergio Rossi. The company also increased brand marketing to drum up excitement for its portfolio and drive sales in the coming months.
💰 The group has already seen some improvements in the business. It said several of its brands, including Lanvin and St. John, generated more full price sales in the first half of the year. The company’s stock rose nearly 13 percent following its earnings release.
EUROPE NEEDS A NEW ECONOMIC VISION | [COMMONWEALTH]
Project Syndicate
🏰 With its current course leading only to economic stagnation, the EU must establish a vision for a more dynamic, productive future. Above all, Europeans must answer a simple but critical question: What should the EU look like – in terms of innovation, the economy, security, and resilience – in a decade?
💥 The global economic shocks of the past few years have left Europe particularly vulnerable. While virtually everyone has suffered from climate- and pandemic-related disruptions, the European Union has also had the Ukraine war unfolding on its doorstep, and its acute dependence on energy imports has meant that rising prices – and the need to shift away from Russian fossil fuels – have bitten especially hard. Both growth and economic security are under pressure.
📈 But the EU faces a number of formidable economic challenges that will not simply go away. For starters, rising security risks in its neighborhood, combined with growing doubts about the durability of America’s commitment to European defense, have put pressure on the EU to strengthen its own capabilities. This implies not only more coordination across countries, but also a significant increase in overall defense expenditure: the bloc’s total spending currently amounts to 1.3% of GDP, well below NATO’s 2%-of-GDP target.
👨💻 The main reasons for the EU’s innovation deficit are well known. Both basic and applied research and development have suffered from chronic underinvestment. The effectiveness of funding for basic research is undermined by a decentralized approach, with uncoordinated and poorly targeted national programs taking precedence over EU-level finance and administration. In addition, the integration of the single market remains incomplete, particularly in services. This is especially important in digital fields, where returns on investment in innovation depend on market size.
🦄 This will be no easy feat. Long-term productivity growth in the developed economies depends significantly on structural change, driven mainly by technological innovation. This is where Europe’s principal problem lies: in a range of areas, from artificial intelligence to semiconductors to quantum computing, the US and even China are leaving Europe in the dust.
MAGNETAR STARTS FIRST-EVER VENTURE FUND, TARGETS GENERATIVE AI | [VALUE PROPOSITION]
Bloomberg
💵 Magnetar Capital, the $17.5 billion money manager known for alternative credit and hedge fund investing, is pushing into newer territory: venture capital. Magnetar has launched its first-ever dedicated fund for backing startups, with a focus on generative artificial intelligence technology. It’s the first step in a broader move to build out a venture business.
📢 “We are going through a generational technology revolution that’s going to require possibly trillions of dollars of investments,” said Jim Prusko, Magnetar’s senior portfolio manager who is helping oversee the fund. “So there are going to be many opportunities given the scale and rapidly changing nature of AI and machine learning technology.”
👾 The shift comes as Silicon Valley has embraced AI startups, ramping up investments and sending valuations soaring. Generative AI in particular has dazzled audiences, with tools that generate coherent poems, images and videos based on a few words of prompting. But at the same time, some investors have started to question whether the increased spending on AI tools is justified.
💻 In addition to traditionally structured investments, Magnetar’s fund will also get equity in exchange for providing startups with compute power, which has become a highly coveted resource for AI companies. It will purchase the compute from CoreWeave Inc., in which Magnetar is already an investor.
💥 The new fund is a significant move for Magnetar, but it’s not their first time dabbling in less liquid wagers. The firm has been making private investments for nearly two decades, mostly focused on alternative credit bets like corporate debt, mortgage-backed investing and specialty credit. On occasion, its various funds have backed the debt and equity of venture companies. In 2021, the firm began focusing on AI startups, investing in companies like CoreWeave. This year, it backed Cohere Inc.
👽 Magnetar is the latest in a string of alternative asset managers and hedge funds to push into venture capital investing, though they are a bit later than their peers. Many others furiously ramped up their bets during the peak of the market — and were burned when it turned in 2022. Since then, valuations have generally declined, providing more attractive buying points in recent months. Still, many AI startups remain highly priced as hype over the sector continues.
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