Everledger CEO Leanne Kemp explores how critical minerals mining must evolve in line with growing investor appetite for ESG compliance. In any moment, in any circumstance, a junction appears where we must align ourselves with Trust, Transparency & Truth to prevail. Could provenance technology help tell the truthful stories that investors need to read?
The race is on to supply the critical minerals and metals that are the essential building blocks for the clean energy technologies of the future. The reality is that today’s electric vehicle batteries, electronics batteries, wind turbines, charging stations, solar panels, and transmission lines can’t be built without copper, lithium, nickel or cobalt alongside other rare earths.
Yet, while the opportunity for mining companies and jurisdictions is clear, so too are the rising challenges around environmental, social and governmental (ESG) compliance. Consumer demand, government regulation and, perhaps most telling, investor pressure, have focused the attention on green credentials. When the largest investors such as Blackrock BLK , with more than US$10 trillion under management (yes trillion), screen out poorESG credentials, it becomes a necessity for industry, business, shareholders and governments to listen up.
All considerations, from now on, must be seen through a climate lens, especially as investors buy into the journey to net zero. There is no capital shortage – it’s the supply of bankable projects that is lacking. Climate risk is investment risk, and the narrowing window for governments to reach net-zero goals means that investors need to start adapting their portfolios.
“The call for zero net emissions by 2050 is a major wake-up call for the mining industry,” explained Jeff Hawarth, Director of the Geological Survey for the government of Western Australia, an important territory for critical metals, minerals and rare earths in energy, automotive, aeronautic and defense markets. “How do we actually become negative in carbon emissions, and yet still supply the world’s needs for critical minerals? It’s a daunting proposition. Clean energy technologies will quadruple by 2040. Demand for batteries will accelerate nine to 10-fold over the next decade. All countries and car companies have ambitions around batteries and EVs, so we need to mine those resources responsibly. We can’t rely on carbon offsets.”
Price and provenance
Over the last five years, Jeff has seen ESG become more and more important in discussions with investors. “Jurisdictions such as the European Union are driving that change with its Battery Passport and the strengthening of certification by CERA (Certification of Raw Materials) and IRMA (Initiative for Responsible Mining Assurance). Suppliers increasingly need to prove that they are mining with environmental responsibility, fair labor costs and conditions, as well as benefits to impacted communities. The major car OEMs are coming on board with that as well, demanding evidence of ethical and green mining. It used to be all about price, not provenance. Now, buyers are increasingly willing to pay a premium price, knowing that a mineral or metal is ethically mined, sourced, or recycled.”
MORE FOR YOU
Tony Knight is Chief Geologist for the state of Queensland, also in Australia, helping the industry become more efficient and effective in exploration, discovery and development of new mineral supply chains or supply in general. “There’s no doubt we’re going to see a substantial change in the way we find and process minerals to minimize our carbon and water footprint,” he said. “This wholescale modernization will require a change to the economics-first approach, whereby profit is the key and only driver. We have a global problem that resources are running out, even as the population is rising dramatically. Demands will grow, while the planet cannot. That means a shift to minimize what we take, and to maximize what we can put back.”
Within the next decade, Tony believes that the provenance of a mineral will become as fundamental as its quality. “Purity of ore can’t just entail chemical composition. It needs to describe whether it was sourced from an unethical part of the world or at huge expense to the environment. That provenance story is becoming mainstream for products such as food and also clothing. The mineral sector needs to be part of the societal transition.”
Show not tell
Simply saying you’re doing the right thing is no longer sufficient with investors or regulators. Likewise, the media and consumers are developing an acute sense for greenwashing. This ability to prove ESG credentials beyond doubt is part of the challenge faced by mining companies. “For a long time, we focused on ‘what we supply’,” said Tony. “The ‘how we supply it’ piece is incredibly important these days. That’s what will differentiate suppliers into the future. We’re seeing greater urgency to trace where a product came from and then track its journey into second life within the circular economy. This will eventually become business as usual, but the early-moving jurisdictions, industries or sectors will stand to benefit from short-term price differential.”
Jeff agrees that more needs done to broadcast a truthful story that connects back to underlying data and proof. “In Western Australia, we’re stepping away from diesel towards natural gas and also renewable energy to reduce greenhouse gases, and there’s a growth in haulage trucks powered by hydrogen or ammonia to further reduce that footprint. Markets are looking at electrification of the railway lines from mine to the ports, as well as autonomous mining to reduce the impact on personal safety and performance, while further cutting emissions. We also have a lot of good stories about how the mining industry contributes to local Aboriginal and rural communities. So, we have those ESG credentials, we just don’t talk about them as well as we could.”
He welcomed the launch of a blockchain pilot programme by the Commonwealth Government that aims to create a ‘digital certification’ for critical minerals throughout the supply chain from extraction to processing and export to global markets. The pilot will help companies in the sector adhere to compliance regulations and increase the demand for Australian minerals in global markets, while also simplifying the process and lowering costs.
“This will prove helpful for us as regulators, but also help the mining companies, purchasers and OEMs that need to know where metals and minerals have come from. Western Australia is an important global supplier of both lithium and nickel, and we are looking at fingerprinting of both these critical minerals, learning from the recent progress by the gold mining industry. It’s important for governments to help companies navigate their way through these ESG and emissions requirements, because they can be quite complicated, especially for small and medium-sized companies.”
Creating new markets
The pilot shows the abundant opportunities for tech companies and entrepreneurs to accelerate the green transition, in mining and other sectors. For example, provenance technology can help strengthen domestic mineral supply chains, reduce the reliance on foreign minerals, and minimize carbon emissions, helping local industries rise to the top of an ethical, sustainable supply chain.
The flood in investment in green technologies opens the door to innovation, such as the development of substitutes for rare materials that are more plentiful, sustainably sourced or more easily recycled, recovered and reused. “We’ll see technologies introduced to make manufactured goods easier to recycle and new industries arise from the opportunity to recycle minerals. It feels inevitable that governments will demand better use of minerals, moving from a linear to circular economy,” said Tony.
However, we’re not there yet. While green technologies such as urban mining and circular economy are beginning to be better understood by industry, we’re still in the education phase. “The mineral sector will take time to let go of the economic imperative, which obviously can’t be abandoned entirely,” conceded Tony. “We have to recognise that payback periods can’t be as short as they used to be. We need more patient capital to get these cycles running properly.”
From my own perspective it’s also encouraging to see that marketplaces such as the London Metals Exchange begin to list “green” metals in a positive, experiential way with where associated carbon footprints attract a premium.
Nature positive
One of the big discussions at COP26 was around carbon tax. Some countries are introducing it, or have already introduced it, and others are sitting on the fence. We are at a crossroads. Do we accept that the price the planet is paying is simply a cost externality that’s simply too expensive to deal with? Or could provenance technology play a role in helping to establish where taxes should be introduced, and identifying where companies are doing the right for rebate or showing best practice?
I was also interested to hear the growing buzz in Glasgow around climate financial disclosures and how they are edging closer to government policy. In recent years, we have seen a fundamental shift in responsibility through, first, the climate-related financial disclosures and now the nature-related financial disclosures. The slogan “no carbon negative without being nature positive” was voiced in many conversations.
“We can’t just see nature as a commodity, but a finite resource,” said Tony. “The question we need to ask is: How can we adopt the economics of nature, giving the natural environment a value that we haven’t done in the past? Surely, we can avoid situations where it’s cheaper to pump methane into the environment than it is to manage it. Does that change come from government regulation, market forces or is it voluntary? Either way, there seems an inherent logic in preventing pollution. We need to think of commerce beyond just price. It’s got to be price and provenance in the same realm.”
Investors increasingly want to see a better balance between people, planet, profit and prosperity. That will require trade-offs. There needs to be an awakening around the externality of costs to the planet that we ignore. In effect, the environment is subsidizing our economic activities. Eventually, it will run out of patience.
Everledger CEO Leanne Kemp explores how critical minerals mining must evolve in line with growing investor appetite for ESG compliance. In any moment, in any circumstance, a junction appears where we must align ourselves with Trust, Transparency & Truth to prevail. Could provenance technology help tell the truthful stories that investors need to read?
The race is on to supply the critical minerals and metals that are the essential building blocks for the clean energy technologies of the future. The reality is that today’s electric vehicle batteries, electronics batteries, wind turbines, charging stations, solar panels, and transmission lines can’t be built without copper, lithium, nickel or cobalt alongside other rare earths.
Yet, while the opportunity for mining companies and jurisdictions is clear, so too are the rising challenges around environmental, social and governmental (ESG) compliance. Consumer demand, government regulation and, perhaps most telling, investor pressure, have focused the attention on green credentials. When the largest investors such as Blackrock BLK , with more than US$10 trillion under management (yes trillion), screen out poorESG credentials, it becomes a necessity for industry, business, shareholders and governments to listen up.
All considerations, from now on, must be seen through a climate lens, especially as investors buy into the journey to net zero. There is no capital shortage – it’s the supply of bankable projects that is lacking. Climate risk is investment risk, and the narrowing window for governments to reach net-zero goals means that investors need to start adapting their portfolios.
“The call for zero net emissions by 2050 is a major wake-up call for the mining industry,” explained Jeff Haworth, Director of the Geological Survey for the government of Western Australia, an important territory for critical metals, minerals and rare earths in energy, automotive, aeronautic and defense markets. “How do we actually become negative in carbon emissions, and yet still supply the world’s needs for critical minerals? It’s a daunting proposition. Clean energy technologies will quadruple by 2040. Demand for batteries will accelerate nine to 10-fold over the next decade. All countries and car companies have ambitions around batteries and EVs, so we need to mine those resources responsibly. We can’t rely on carbon offsets.”
Price and provenance
Over the last five years, Jeff has seen ESG become more and more important in discussions with investors. “Jurisdictions such as the European Union are driving that change with its Battery Passport and the strengthening of certification by CERA (Certification of Raw Materials) and IRMA (Initiative for Responsible Mining Assurance). Suppliers increasingly need to prove that they are mining with environmental responsibility, fair labor costs and conditions, as well as benefits to impacted communities. The major car OEMs are coming on board with that as well, demanding evidence of ethical and green mining. It used to be all about price, not provenance. Now, buyers are increasingly willing to pay a premium price, knowing that a mineral or metal is ethically mined, sourced, or recycled.”
MORE FOR YOU
Tony Knight is Chief Geologist for the state of Queensland, also in Australia, helping the industry become more efficient and effective in exploration, discovery and development of new mineral supply chains or supply in general. “There’s no doubt we’re going to see a substantial change in the way we find and process minerals to minimize our carbon and water footprint,” he said. “This wholescale modernization will require a change to the economics-first approach, whereby profit is the key and only driver. We have a global problem that resources are running out, even as the population is rising dramatically. Demands will grow, while the planet cannot. That means a shift to minimize what we take, and to maximize what we can put back.”
Within the next decade, Tony believes that the provenance of a mineral will become as fundamental as its quality. “Purity of ore can’t just entail chemical composition. It needs to describe whether it was sourced from an unethical part of the world or at huge expense to the environment. That provenance story is becoming mainstream for products such as food and also clothing. The mineral sector needs to be part of the societal transition.”
Show not tell
Simply saying you’re doing the right thing is no longer sufficient with investors or regulators. Likewise, the media and consumers are developing an acute sense for greenwashing. This ability to prove ESG credentials beyond doubt is part of the challenge faced by mining companies. “For a long time, we focused on ‘what we supply’,” said Tony. “The ‘how we supply it’ piece is incredibly important these days. That’s what will differentiate suppliers into the future. We’re seeing greater urgency to trace where a product came from and then track its journey into second life within the circular economy. This will eventually become business as usual, but the early-moving jurisdictions, industries or sectors will stand to benefit from short-term price differential.”
Jeff agrees that more needs done to broadcast a truthful story that connects back to underlying data and proof. “In Western Australia, we’re stepping away from diesel towards natural gas and also renewable energy to reduce greenhouse gases, and there’s a growth in haulage trucks powered by hydrogen or ammonia to further reduce that footprint. Markets are looking at electrification of the railway lines from mine to the ports, as well as autonomous mining to reduce the impact on personal safety and performance, while further cutting emissions. We also have a lot of good stories about how the mining industry contributes to local Aboriginal and rural communities. So, we have those ESG credentials, we just don’t talk about them as well as we could.”
He welcomed the launch of a blockchain pilot programme by the Commonwealth Government that aims to create a ‘digital certification’ for critical minerals throughout the supply chain from extraction to processing and export to global markets. The pilot will help companies in the sector adhere to compliance regulations and increase the demand for Australian minerals in global markets, while also simplifying the process and lowering costs.
“This will prove helpful for us as regulators, but also help the mining companies, purchasers and OEMs that need to know where metals and minerals have come from. Western Australia is an important global supplier of both lithium and nickel, and we are looking at fingerprinting of both these critical minerals, learning from the recent progress by the gold mining industry. It’s important for governments to help companies navigate their way through these ESG and emissions requirements, because they can be quite complicated, especially for small and medium-sized companies.”
Creating new markets
The pilot shows the abundant opportunities for tech companies and entrepreneurs to accelerate the green transition, in mining and other sectors. For example, provenance technology can help strengthen domestic mineral supply chains, reduce the reliance on foreign minerals, and minimize carbon emissions, helping local industries rise to the top of an ethical, sustainable supply chain.
The flood in investment in green technologies opens the door to innovation, such as the development of substitutes for rare materials that are more plentiful, sustainably sourced or more easily recycled, recovered and reused. “We’ll see technologies introduced to make manufactured goods easier to recycle and new industries arise from the opportunity to recycle minerals. It feels inevitable that governments will demand better use of minerals, moving from a linear to circular economy,” said Tony.
However, we’re not there yet. While green technologies such as urban mining and circular economy are beginning to be better understood by industry, we’re still in the education phase. “The mineral sector will take time to let go of the economic imperative, which obviously can’t be abandoned entirely,” conceded Tony. “We have to recognise that payback periods can’t be as short as they used to be. We need more patient capital to get these cycles running properly.”
From my own perspective it’s also encouraging to see that marketplaces such as the London Metals Exchange begin to list “green” metals in a positive, experiential way with where associated carbon footprints attract a premium.
Nature positive
One of the big discussions at COP26 was around carbon tax. Some countries are introducing it, or have already introduced it, and others are sitting on the fence. We are at a crossroads. Do we accept that the price the planet is paying is simply a cost externality that’s simply too expensive to deal with? Or could provenance technology play a role in helping to establish where taxes should be introduced, and identifying where companies are doing the right for rebate or showing best practice?
I was also interested to hear the growing buzz in Glasgow around climate financial disclosures and how they are edging closer to government policy. In recent years, we have seen a fundamental shift in responsibility through, first, the climate-related financial disclosures and now the nature-related financial disclosures. The slogan “no carbon negative without being nature positive” was voiced in many conversations.
“We can’t just see nature as a commodity, but a finite resource,” said Tony. “The question we need to ask is: How can we adopt the economics of nature, giving the natural environment a value that we haven’t done in the past? Surely, we can avoid situations where it’s cheaper to pump methane into the environment than it is to manage it. Does that change come from government regulation, market forces or is it voluntary? Either way, there seems an inherent logic in preventing pollution. We need to think of commerce beyond just price. It’s got to be price and provenance in the same realm.”
Investors increasingly want to see a better balance between people, planet, profit and prosperity. That will require trade-offs. There needs to be an awakening around the externality of costs to the planet that we ignore. In effect, the environment is subsidizing our economic activities. Eventually, it will run out of patience.
The Bulletin of Atomic Scientists earlier this year voted to keep the hands of the Doomsday Clock that measures humanity’s likelihood of self-destructing closer to midnight than ever. One of those scientists is now leading a new generation of teachers fighting for our survival by changing the way we think about our place in space and time.
It’s the summer of 1969, but it may as well be today. A newly-formed womens’ rights group known as the Redstockings storms the New York State legislature to protest its handling of abortion laws. Armed members of the Black Panther Party take to the streets across America, protecting black citizens from police brutality. Two nuclear powers, China and the Soviet Union, battle over a disputed border in Manchuria.
Hovering high above, three Apollo 11 astronauts are cruising at 2,000 miles per hour towards the moon. This first sojourn of humans to the chalky, white orb is simultaneously a rallying cry for the great things the species is capable of doing, and a reminder of America’s ability to launch nuclear weapons anywhere in the world. The Doomsday Clock, created by Albert Einstein and others who helped invent the nuclear bomb, is set to 10 minutes till midnight. If the clock strikes 12, it’s unlikely anyone will know, as the world will have blinked out of existence in a nuclear flash.
As the spindly-legged Eagle moon-lander begins its 70-mile descent to the moon’s surface, a restless 31-year old nuclear physicist named Robert Socolow is just one of 500 million humans glued to their television sets. Shortly before sunset, in his young family’s ranch-style rental home near Stanford’s Linear Accelerator, Socolow’s wife Elizabeth brings their sleeping son David to the living room and places him in a blue crib they inherited from her parents. As astronaut Neil Armstrong takes his first step on the powdery surface, Socolow gently lifts the boy from the crib and sets him on his lap.
“We wanted him to see the moon landing,” says Elizabeth, now 81, recalling the moment from her home in Lawrenceville, New Jersey, 50-years later. “I could see him telling his own children he had seen the landing,” Rob chimes in from the back patio of his four-acre estate near Princeton. “That his dad had put him on his lap, facing the television as it was happening.”
At their rental home in California, physicist Robert Socolow holds his newborn son David in the summer of 1969.
Elizabeth Anne Socolow
Over the course of the next several years, the power of that black and white moment grew, impacting policy decisions and inspiring a new generation of academics. So, when the last crew to travel to the moon on Apollo 17 snapped a full-color high-resolution photo of the Earth, now known as The Blue Marble, the image sent shockwaves around the world. The tiny planet floating alone in a vast sea of blackness became an emblem that shifted the eons-old, tribal fight to survive to a planetary scale, says Socolow, now 83 and a professor emeritus at Princeton. “I single out the images of the Earth from space as having a kind of shock effect on our species. Virtually every university asked itself how it would respond to what was clearly some new agenda?”
As governments and businesses now prepare to take the first humans to other planets, Socolow’s answer to that question is only getting more refined. After co-founding Princeton’s environmental science program in 1971, he joined the Bulletin of Atomic Scientists’ Science and Security Board and served on the committee that earlier this year voted to keep the Doomsday Clock at 100 seconds to midnight, the closest it’s ever been. Instead of just waiting and hoping things would improve, he’s taking matters into his own hands, teaching a small class he calls Destiny Studies, which moves beyond the sense of patriotism taught by institutions around the world to what he calls Planetary Identity, the sense that the bonds we’ve long experienced from coming from the same place could be extended far beyond tribal and national borders.
It turns out, he’s not alone. Countless other scientists and teachers around the world have been transformed by seeing the Earth as it truly was, floating and alone. Many of them are now working to better understand exactly why the change in perspective occurs, and figure out if maybe it can be taught on the grandest scale. If they’re successful, these scientists and teachers could change not just how we deal with nuclear weapons, global pandemics, and other emerging threats, but help build a new kind of identity—one embraced by future generations of astronauts on their way to Mars and beyond.
“We don’t know that there’s life anywhere else, and until such time as we do, we ought to consider ourselves to be something extraordinary in the universe, who are figuring out who we are,” says Socolow. “Planetary identity supplements the many other identities we have. We don’t think of our religion as detracting from our nationalism, or our affinity with a ball team from our cultural identity—they’re all parts of our identity that supplement and round out a personality. We have been delinquent in not bringing planetary thinking into science education from kindergarten on up.”
The Blue Marble Image, from 18,000 miles away.
NASA/Apollo 17 crew
Planetary Identity
Born on December 27, 1937, Socolow describes his childhood, growing up in a liberal Jewish New York neighborhood, as “cosmopolitan,” from the Greek for citizen of the cosmos. When he was eight, he enrolled at the progressive Walden School in New York, where instead of singing the Star Spangled Banner, the students sang the unofficial United Nations anthem. After a year in France studying with the non-profit “Experiment on International Living,” Socolow enrolled at Harvard University and studied theoretical high-energy physics under Kenneth Bainbridge, the former director of the Manhattan Project’s Trinity nuclear test.
While any serious scientist at the time was expected to advance rapidly from one course to another, as a sophomore, Socolow shocked his professors when he opted to study poetry under Pulitzer Prize winner Archibald MacLeish, whose poem Conquistador opened his eyes to the destruction that well-meaning colonists wrought in an attempt to spread their culture. “I’ve always been someone who said science is not enough,” says Socolow. “But it’s a part of it.”
In 1959, his career in physics was again delayed. Instead of going straight into the PhD program, Socolow accepted Harvard’s Frederick Sheldon travel fellowship and spent the potentially pivotal year of his career on the road. Instead of taking the “grand tour” of Europe, as past winners of the fellowship typically did, he cycled through Cambodia, took a train to Vietnam, a bus to India and a flight to East Africa. “It became clear to me that I was interested in the whole world, global issues, the way cultures connected, and how science fit into all of that,” he says. “I came back a global citizen.”
3 MINUTES TO MIDNIGHT | In 1960, after seven years set at two-minutes to midnight at the height of the Cold War, the Doomsday Clock was set back one minute, in part thanks to the Antarctic Treaty, which saw twelve nations agree not to militarize the southern continent.
Socolow’s travels abroad further spun him away from physics in the spring of 1969, when 44,000 Americans and countless Vietnamese had already been killed in the Vietnam War. More than a black and white story on television, color images of actual places he’d been and people he met swirled around his head. “I was feeling in my bones from that whole year of travel, that we were on the wrong side,” he says.
After spending much of the summer commuting back and forth between the Stanford Linear Accelerator and protests on the other side of the San Francisco Bay, at the University of Berkeley, the young Socolow helped organize a campus-wide event critiquing scientists’ complicity in the war. “The question I was asking at the time was, ‘If I’m going to leave pure science for something with social context, what’s that going to look like?’” says Socolow. “And I didn’t have a good answer.”
That all changed on July 21st, 1969, the morning after he set his son on his lap to watch the moon landing. He awoke to find the words of his college professor, Archibald MacLeish, documenting the epiphany he and the rest of the world had started to experience, seeing the Earth in the sky above, published on the front page of the New York Times:
…We stand here in the dusk, the cold, the silence…
and here, as at the first of time, we lift our heads.
Over us, more beautiful than the moon, a
moon, a wonder to us, unattainable,
a longing past the reach of longing,
a light beyond our light, our lives–perhaps
a meaning to us…
Earthrise Image, from 238,900 miles away.
Nasa/Apollo 8
He had found his answer. That summer, instead of returning to his work at the Linear Accelerator, he flew to Florida, and trying to better understand how plans for an airport would impact the native wildlife, canoed deep into a labyrinth of wetlands studying long-legged limpkins, pink flamingos, and reptilian-looking spoonbills. “The Earth was the system I was interested in,” says Socolow. “It’s nowhere near as universal as the universe. It is cascading down, not up, but down from the physics, which was about the neutron and the proton everywhere, Earth was a very special case. It was not as romantic as studying the universe. But it had ethical content, it was about what we were doing here on Earth, as a species.”
10 MINUTES TO MIDNIGHT | Following the ratification of the Nuclear Non-Proliferation Treaty by the U.S. Senate, the Doomsday Clock was moved back the previous year from seven-minutes to midnight.
The Overview Effect
Illustration by Forbes
After the moon landing—and the flood of images that came with it—it became clear that Socolow was not the only one whose perspective was changing. Five months later, U.S. President Richard Nixon signed the Endangered Species Act, helping prevent the destruction of land used by threatened animals. The following April, Republican Senator Gaylor Nelson hosted the first Earth Day to draw attention to the impact humans were having on the planet.
Perhaps no one experienced the perspective of science “cascading down” more than the astronauts spiraling the earth. While Socolow’s perspective—and much the rest of the so-called terranauts—evolved after seeing images on a screen, the astronauts experienced this new vantage point in high-definition, full-color, zero-gravity reality. In his 1974 book Carrying the Fire, Apollo 11 astronaut Michael Collins described the experience of seeing the Earth from space as “invaluable to getting people together to work out joint solutions, by causing them to realize that the planet we share unites us in a way far more basic and far more important than differences in skin color or religion.”
In many ways, this paradigm shift culminated on February 14, 1990, just as Voyager 1 approached the edge of our solar system. At the recommendation of Pulitzer Prize-winning astronomer Carl Sagan, the NASA engineers on Earth turned around the spaceship’s camera and snapped a photo of our home from nearly four billion miles away. Any further, and the few blueish pixels that represented the Earth would have vanished completely. “A pale blue dot,” as Sagan described what he saw in his 1994 book on the experience. “The Earth is the only world known so far to harbor life,” he wrote. “Like it or not, for the moment the Earth is where we make our stand.”
The Earth seen from 3.7 billion miles away, remastered in 2020.
Nasa/Voyager 1
By 2014, this sense of epiphany—that the planet is fundamentally borderless and alone—had touched so many lives that Harvard professor Frank White coined the phrase “Overview Effect” to describe it. “Some common aspects of [the Overview Effect] are a feeling of awe for the planet,” he writes in his book named after the effect. “A profound understanding of the interconnection of all life, and a renewed sense of responsibility for taking care of the environment.”
Retired U.S. Army colonel, Jeffrey Williams, 63, says that during his record-setting 534 days on the International Space Station he was at first struck by an affinity with his present and past homes. Then, after countless orbits around the earth, the amateur photographer slowly started to identify with places he’d seen on previous cycles of the same trip, until at last his identity itself began to scatter. Author of the 2010 book The Work of His Hands: A View of God’s Creation from Space, Williams says he now feels a sense of duty to use the photographs he took as a tool to bring people “vicariously” to the perspective. “When we have tensions at the highest levels that are very public, it’s very important to appreciate and understand and foster and empower the positive engagements that we have,” he says. “Dealing with people is the same everywhere in the world, often in contrast to the way administrations publicly deal with each other.”
Awe and Wonder
k
t
In early 2011, Williams had a unique opportunity to fulfill his mission to help others vicariously see through his eyes. An international team of scientists, philosophers and artists approached him as part of their preparation for a number of experiments being developed at the University of Central Florida, just a 30-minute drive from The Kennedy Space Center, where eleven years earlier he launched on his first trip to space. Designed by cognitive scientist Shaun Gallagher, the experiments would test if the Overview Effect that had changed Socolow and others’ perspectives could be taught in a lab.
6 MINUTES TO MIDNIGHT | In part as a result of U.S. President Barack Obama and Russian President Dmitri Medvedev agreeing to nuclear arms negotiations, the Doomsday Clock was set back one minute.
With a grant from the John Templeton Foundation and help from virtual reality professor at Humboldt University, Jörg Trempler, the first experiment simulated a work desk on the International Space station. Standing in a room outside the Virtual Space Lab, research assistant and PhD candidate Patricia Bockelman addressed 38 psychology students who volunteered for a battery of tests and a new kind of flight simulation. “Welcome to your pre-flight preparation,” she said. “Let’s begin the first phase by having you follow me to the cockpit where we will begin your astronaut qualification examination.”
As part of “suiting up” for the virtual space trip, the students answered a battery of questions about whether they were right-handed, color-blind, or believed in god. Alpha, theta, and beta waves emitted from the students’ brains during the test were measured by nine electrodes affixed to a cap on the student’s head with a tenth electrode measuring their heartbeat. Bockelman then drew back a black curtain revealing two massive 120 degree screens behind portholes riveted to the wall.
One by one, the students entered a chamber described in the 2015 book on the experiments, A Neurophenomenology of Awe and Wonder, as a “virtual Plato’s cave.” Mimicking the restricted movement of an actual space flight, they were strapped into a chair. Lights in the room dimmed and the sounds of rockets blared through speakers so loud the room shook. “We tried to put them in a frame of mind where they were expecting to be launched into space,” says Gallagher, now 72, and a professor at the University of Memphis. As the sounds of the rockets dimmed, a pale blue image depicting a crescent-shaped sliver of the earth slowly rotated into view.
For 24 minutes the subjects were silently shown images of the earth, the International Space Station and finally the stars of deep space. A second experiment depicted a virtual launch from the iconic University of Central Florida campus, whose concentric paths around the student union emulate the Kennedy Center launch site. Instead of a rapidly pounding heartbeat, as the scientists expected, the subjects appeared to enter a meditative state with an ever-slowing pulse. Sifting through hours of interviews with the test subjects, the researchers identified 42 instances of what they describe as a change in moral perspective, and 22 instances each of contentment, inquisitiveness, and insignificance compared to the vastness of space. Far from a jarring experience, the perspective seemed to calm them. 39 subjects in the second experiment experienced a clear sense of awe and wonder.
One 19-year-old female psychology student, identified in the book only as Participant 44, put it this way: “You’re [not just] looking at pictures and saying, ‘Oh, this is China,’ and, ‘Oh, this is what the sun looks like.’ Instead you see all of it, all at once and you think, oh, this is what everything looks like put together.” At at least this basic level, the Overview Effect was indeed teachable.
One of the Neurophenomenology of Awe and Wonder’s co-authors, philosopher Bruce Janz, sees a larger impact of the Overview Effect than just the breaking down of national borders. The co-director of the University of Central Florida’s Center for Humanities and Digital Research, Janz studies the impact of modern technology on human consciousness. A dual citizen, born in Canada and now living in the United States, Janz specializes in how concepts of place are influenced by the spaces in which they’re set—in the Awe and Wonder experiments, how the concept of one’s self is influenced by where we are on Earth, and how our concepts of the Earth are influenced by whether or not we see the planet firmly planted beneath our feet or hovering in empty space.
Janz suggests that the experience of physical borders being broken down since technology opened up travel and communication, is echoed in the breaking down of other borders that define gender, sexuality, food, language, and more. He says the resulting fear, experienced by many of those forced to see themselves as inherently connected to people they disagree with, could be in part to blame for the recent reaction against globalization: the building of walls on previously open borders, the dissolution of international unions, and a fear of anything seen as homogenizing culture.
To combat this fear, a vital component of Socolow’s Planetary Identity, Janz proposes a new understanding of globalization, which he calls “glocalization.” Janz’s own paradigm shift presents hospitality as a way to interact with the ever-increasing number of strangers we confront, without sacrificing one’s national, tribal and other identities. “There is a certain approach to hospitality, which is both about the person you’re meeting and about the examination of yourself in that context,” he says. “In the world of glocalization, or borderlessness, we have the resources within us, if only we’re willing to let go of what we think our certainties are, and actually encounter something new.”
Building on what he learned from the experiments, in September Janz applied for a grant from the Department of Defense’s Minerva Research Initiative on social science to better understand the impact of remoteness on astronauts traveling to Mars and beyond. “No human has ever been out of sight of either the Earth or the moon,” he says. “And of course, we need different tools to think about living as humans when we are out of that range.”
Destiny Studies
Illustration by Forbes
For much of the last nine years Socolow has been helping create those tools by developing more than just a class on Planetary Identity, but an entirely new field, which he calls Destiny Studies. After first describing the field in February 2012 during a keynote address to the Vanderbilt Law Review, he codified its mission in an article for the Bulletin of Atomic Scientists. “The goal,” he wrote, “should be to foster science and technology, to intensify planetary consciousness, to strengthen those international institutions that reinforce the reality that all countries are in one boat, to resist over managing the planet, and to learn to think coherently about future time.”
In a baton-passing ceremony of sorts, the professor emeritus at Princeton’s Department of Mechanical and Aerospace Engineering celebrated his retirement in April 2019 by inviting speakers from the World Bank, the International Monetary Fund, Caltech, Georgetown, the University of São Paulo, U.C. Berkeley, Harvard and elsewhere to participate in a daylong event called “Destiny Studies for a Small Planet.” Gathering at Princeton’s Andlinger Center for Energy and Environment, the group of leaders addressed an audience of about 200 people to describe what Destiny Studies means through diverse lenses including geophysics, finance, energy and law.
Judge Edith Brown Weiss, 79, from the International Monetary Fund’s Administrative Tribunal, and a professor at Georgetown Law, spoke about her work helping the Hague establish a theoretical framework that views resources as part of a planetary trust, creating what she calls intergenerational equity. “Those of us living today have to pass the Earth and our natural and cultural resources to future generations in at least as good condition as we received them, so that they can meet their own needs,” she says.
100 SECONDS TO MIDNIGHT | In 2020, following the end to a number of arms treaties and government unwillingness to act on climate change, the Doomsday Clock is set closer to midnight than ever, a position reaffirmed the following year.
As Socolow laid the formal foundation for Destiny Studies in Princeton, similar endeavors were spontaneously emerging around the world. In 2010, 40 schools and 800 teachers from Austria, Benin, Brazil, the United Kingdom and the Czech Republic created the Global Curriculum Project, aimed at helping educators from any discipline adopt their existing curricula to connect the “micro-realities” at school, at home and in cities to the “macro-reality” of the planet. “It is vital to raise new generations with a global/planetary conscience in order to assure sustainability of life on Earth,” wrote professors Madza Ednir and Débora Maria Macedo from Brazilan non-profit Centro de Criação de Imagem Popular in a paper published by the Journal of Field Actions.
Among a number efforts that have sprung up over the years to teach planetary identity and related concepts is the Ecole Urbaine de Lyon’s School of Anthropocene, which for the past three years has been developing the Anthropocene Manifesto, an evolving document about what it feels like to be an Earthling; the JP Morgan-funded MIT Center for Collective Intelligence to help large numbers of people communicate peacefully and to better predict the future; and Stanford’s Millennium Alliance for Humanity and the Biosphere, which develops strategies for shifting the way cultures deal with a wide range existential threats.
Pensive Socolow at his April 2019 Symposium.
Sameer A. Khan
In the fall of 2020, just a short drive from where Socolow lives, NYU philosophy professor and author of Cosmopolitanism: Ethics in a World of Strangers, Kwame Anthony Appiah, hunkered down in the attic of a farmhouse to teach an online class on what Aristotle, Confucius, and Abu Hamid Al-Ghazali have to say about successfully living in a community. As Covid-19 was about to take its one-millionth victim, over 50 students from China, Nigeria, the United States and across Europe gathered remotely, virtually raising their hands to ask questions. At the click of a button, Appiah changed the view of his personal library behind him to the Vatican library in Rome and Michel de Montaigne’s office in the south of France.
“We’re all together, because we’re thinking about global issues,” says Appiah, 67. “But they’re not abandoning their homes, they’re rooted in where they are, but desperately keen to interact with people from other places.”
Appiah too was inspired by the moon. Back in the summer of 1969, on the other side of the Atlantic Ocean from where the Socolows watched the landing, the 15-year-old London-native, raised in Ghana, was dialing the knobs on his brand-new silver boombox to record a radio signal broadcasting the same event. “I just wanted some record of having been there when our species did this thing for the first time,” reflects Appiah. “In the very longest of long term, the only way our species or the species that descends from us will survive is if we figure out how to get to the cosmos, and this was the first step.”
As the Doomsday Clock approaches its 75th anniversary in January, the man who Bulletin president Rachel Bronson calls the “institutional memory” of the organization continues his own work with new ways to implement some of the first Destiny Studies courses in a series of freshman seminars called “Time Capsules for Climate Change to be Opened At Your Reunions.” For the past five years he’s taught a group of interdisciplinary Princeton students to analyze contingencies for how problems like pollution or transportation might play out over generations and millennia. Will electric cars be little more than toys for the rich, for example, or will they dominate global transportation? The main objective, as he wrote in his own letter deposited in the latest time capsule earlier this month, is to expand the students’ “range of empathy” across both space, and time.
“You will be engaged by the challenge of sharing the planet, both spatially and temporally,” he writes. “Inventing ways to make human aspirations less injurious to the planet.” On December 9, he and the nine students in his latest class delivered the letter and their own contributions to the university library, which will store it until their graduation in 2025, their 10th reunion, their 20th reunion and their 50th reunion. “When you read this essay,” he concludes. “I expect that you will find that I have been no better than you at anticipating the future. In 2050 and 2075, give me a shout in heaven to let me know.”
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Nike has acquired RTFKT Studios, adding the virtual sneaker startup’s logo next to those of Nike, … [+]Jordan Brand and Converse.
Nike
Nike is taking another step into the metaverse by acquiring RTFKT Studios, a virtual sneaker and collectibles startup.
While the deal is already being seen by many as Nike’s way of saying “Just Do It” to the Web3 era, it’ll also likely signal to NFT startups and legacy clothing brands alike that the world of virtual fashion will further heat up in 2022.
Founded in 2019, RTFKT has becoming increasingly popular with sneaker and Web3 enthusiasts, and has gained momentum during the NFT boom that began earlier this year. In February, the startup released several virtual sneaker designs in collaboration with the artist Fewocious and quickly made more than $3 million buy selling more than 600 pairs that can’t even be worn in the physical world. In March, it partnered with Atari on a limited edition Atari-themed virtual sneaker. And just last month, RTFKT partnered with the artist Takashi Murakami on an NFT auction to sell 20,000 3D avatars that are a part of the CloneX collection.
Terms were not disclosed, but Nike President and CEO John Donahoe said in a statement that the deal “accelerates Nike’s digital transformation and allows us to serve athletes and creators at the intersection of sport, creativity, gaming and culture.”
“We’re acquiring a very talented team of creators with an authentic and connected brand,” Donahoe said. “Our plan is to invest in the RTFKT brand, serve and grow their innovative and creative community and extend Nike’s digital footprint and capabilities.”
Nike and rival Adidas have both invested in Web3 topics in recent months. In September, Nike built a Nikeland experience and virtual showroom inside of the popular game Roblox. (Long before that, Jordan Brand collaborated back in 2019 with Fortnite.) In November, Adidas confirmed a new partnership with Coinbase and the crypto-enabled virtual platform The Sandbox. And earlier this month, Adidas expanded its NFT collaborations by announcing new partnerships with Bored Ape Yacht Club, Punks Comic and Gmoney. Nike has also filed multiple trademarks and patents with the U.S. Patent and Trademark Office to have its logo used in the form of virtual footwear, clothing, headwear and other products and apparel.
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Since starting RTFKT in 2019, cofounders Benoit Pagotto, Chris Le and Steven Vasilev have raised $9.5 million, according to Crunchbase, including an $8 million seed round with participation by Andreesen Horowtiz and Shrug Capital. In a joint statement with Nike, Pagotto said Nike “is the only brand in the world that shares the deep passion we all have for innovation, creativity and community.”
“This is a unique opportunity to build the RTFKT brand and we are excited to benefit from Nike’s foundational strength and expertise to build the communities we love,” Pagotto said.
Album art for a new NFT song created by deadmau5 and Portugal. The Man that was created with … [+]Mintbase.
Mintbase
Since the Recording Industry Association of America introduced the idea of “going platinum,” the milestone of selling 1 million albums has been coveted by musicians throughout the evolution of formats. Now, DeadMau5 has a plan to go platinum in the crypto era.
Deadmau5—whose real name is Joel Zimmerman— has collaborated with the rock band Portugal The Man on “This Is Fine,” a new single minted as a non-fungible token (NFT) that debuted today. The project also poses somewhat of a public challenge to the music industry: Can an NFT song go platinum if all 1 million copies are sold? While RIAA has a set of standards for streaming and downloaded music, NFTs are new territory.
“I’m excited to see how the RIAA recognizes it,” Zimmerman told Forbes in an interview. “If things go the way of the DAO, then the RIAA is going to have to do something about it. They’re going to have to track something. It’s going to be the new contender.”
The musicians’ NFT, which went on sale today, was minted on the NFT platform Mintbase using the Near blockchain, an alternative to blockchains such as Ethereum. Each “This Is Fine” NFT costs .25 NEAR each—or around $2.19 USD as of this week—with 750,00 available this week during Art Basel Miami. Others in the million will be sold as individuals or as bundles. For example, one “Ultimate Bundle,” will total 50,000 units and include artwork, a limited edition NFT, merchadise pack and a spot on DeadMau5’s guest list. Another 200 will include 1,000 NFTs, with each pack having their own unique artwork.
To support the NFT drop, DeadMau5, Portugal The Man and Near are running an out-of-home campaign to promote both the new NFT and also market Near and blockchain technology in Miami and several key cities. The OOH ads—will will be roaming around on several buses—are in Miami this month, in New York City from late December through early January, and then in San Francisco all of next month. With messages such as “Crypto, but easy” and “Crypto without the Carbon”— along with QR code’s that direct people back to Mintbase—the ads are an attempt to make the world of crypto easily understood and accessible to people who are perhaps not as familiar yet with the space.
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DeadMau5 is no stranger to crypto. Over the past year, he’s done a number of other crypto and NFT projects. In April, Deadmau5 collaborated with the fellow Canadian DJ REZZ to on an NFT drop around the song, “Hypnocurrency,” which now has more than 14 million streams and is currently both DJs’ most popular hit on Spotify. In August, he launched a second blockchain card collection on the Worldwide Asset eXchange (WAX). And just last month, he helped launch an NFT music streaming platform called MODA DAO.
“When we wrote the track, it was really just kind of something to put on the album and nothing more. And then over the next year was when we started to delve into all our other blockchain and crypto projects.”
Other Web3 project that DeadMau5 projects include collaborations with Roblox, the blockchain-based gaming platform Mythical Games, Sandbox and Decentraland. He also recently worked with music producer Richie Hawkin to launch Pixelynx, an augmented reality gaming platform. Zimmerman has also sold DeadMau5 art on platforms such as SuperRare, an Ethereum-based digital art market. (Portugal The Man has also been experimenting with crypto this year: In January, the band debuted its own coin as a way of building a new kind of fan club.)
The bands are working with Mintbase and Near to also make NFTs more accessible beyond just the cost barrier. Rather than requiring people to download a crypto wallet to buy the NFT or pay in crypto, fans will be able to buy the NFT through Stripe making it easier—and more accessible—than many other NFTs.
“People like Joel have to be those flag-bearers and sledgehammers,” Wilson told Forbes. “That’s what we’re doing. It’s the first step through the door.”
Zimmerman also see NFTs as a strategy against to overall music industry, including music-streaming giants. And rather than sell something for the highest bidder for millions of dollars or let someone bid on the only copy of a Deadmau5 album, he said “music is different” than other types of NFTs in the art world or elsewhere.
“We want to use it as a social utility for governance over our property basically and having better control over it,” Zimmerman said, acknowledging that, in five or 10 years, he may not have to rely on companies such as Spotify. “There’s a reason why these companies have billions and billions of dollars, and it’s not from viewers like you, you know? It’s from out of the back-end dividends that the artists provide.”
It was actually Wilson that got Zimmerman into NFTs in the first place when they took the DeadMau pins from vending machines at shows and made them into a digital trading cards on WAX.
“We took what was happening in the physical and brought it to the digital, and it really took off at that point,” Wilson said. “And for the first time in any artists’ life, there’s a secondary market income—which we’ve never seen apart from our tickets be sold by scalpers forever and watch them make incredible amounts of money while we never saw a cut of any of it. Now, any IP owner now has new income stream and life forever, which is pretty amazing.”
Buses promoting a new NFT song by Deadmau5 and Portugal The Man drove around in Florida on December … [+]2 during Art Basel Miami
Near
When “This Is Fine” was written back in February 2020—long before the current NFT craze began, but right in the middle of the broader momentum with blockchain and cryptocurrency. However, the origin story for the song had nothing to do with Web3. However, during the past year, DeadMau5 and his manager, Dean Wilson, started to dive into a variety of crypto and blockchain projects, and yet wanted to better understand the ecosystem and also the legalities around it.
Working with DeadMau5 and Near on the project is Mintbase, an NFT startup based in Lisbon that began as an NFT ticketing platform on the Ethereum blockchain back in 2018. Nate Geier, CEO and cofounder of Mintbase—which raised $1 million last year led by the Chinese venture capital firm Sino Global—said the fees were “going to murder us” last year, prompting the company to switch over to Near.
Geier first got connected with Deadmau5 after the company did a burning beers NFT at the Berlin Beer Festival, where they used Apple Airdrop to send digital beers to people who could then “burn” their NFTs in exchange for a real-life beer at the festival.
“People like Joel have to be those flag-bearers and sledgehammers. That’s what we’re doing. It’s the first step through the door.”
DeadMau5 also has experimented with other emerging technologies. In 2016, he created an interactive virtual reality game in collaboration with Absolut Labs, an incubator run by the vodka brand, Absolut. Along with releasing his own NFTs, Zimmerman is also collecting them and now has between 20 and 30. However, for the ones he owns, the DJ said he treats them more like art than utility.
“I like the art and a lot of the artists, because as much as everyone loves to put ‘NFT artist’ in their bio now, a lot of them have always been digital media designers,” Zimmerman said. “Like Justin Maller and Steven Baltay and a lot of really talented GGI artists that have just been doing it before the NFT craze, and then when the NFT craze slammed down, it was just all of a sudden everyone’s biography changed. Which is good for awareness and stuff like that, but kind of leaves me a little salty.”
According to Geier, the exciting part of the project is printing NFTs en masse rather than doing a limited collection that sells for a lot. He referenced the now famous NFT by the artist Beeple that Christie’s sold back in March for $69 million, adding that people aren’t getting excited about NFTs because of the money, but because of “what they’re going to do in the future.”
“Selling one NFT for $69 million to me is a yawn,” Greier said. “It’s like who cares…There’s no innovation there. Selling a million NFTs to me is next-level. This is real innovation. This is something for the masses. This is something that I think is just really starting to prove this whole idea of what we’re getting excited about.’’
Near, founded in San Francisco last year, isn’t as popular as other blockchains such as Bitcoin or Ethereum. However, it’s selling point is lower fees compared to some other more popular protocols. Last year, Near raised nearly $22 million in funding from A16Z and now has 1,600 active developers building within the ecosystem.
“In 2017, it was come to crypto, stay for crypto,” said Near CoFounder Illia Polosukhin. “Now it’s come to learn about crypto, but open up this new world of interactions. The future is every single new startup I’m seeing in the consumer space is embedding crypto into their strategy.”
On the back of the first day of trading for ProShares Bitcoin Strategy ETF, the first-ever bitcoin futures exchange-traded fund, the price of bitcoin surged to $64,145 as of 4 p.m., just shy of its previous high price of $64,899 achieved in April, while the ETF rose 4.72% during trading Tuesday.
Tuesday marked the trading debut of the first bitcoin futures ETF. (Photo Illustration by Avishek … [+]Das/SOPA Images/LightRocket via Getty Images)
SOPA Images/LightRocket via Getty Images
Key Facts
The ProShares Bitcoin Strategy ETF was a hit among investors during its trading debut, as “more than 20 million shares changed hands by around 2:54 p.m. in New York,” per Bloomberg.
The ETF trades on the New York Stock Exchange under the ticker BITO.
The price of bitcoin has been on a rapid upward trajectory this month, rising almost 50% from its September close of below $44,000.
Key Background
ProShares, the firm behind the fund, manages dozens of ETFs and more than $65 billion in reported assets. Though ProShares’ version is the first to get approved, the idea of a bitcoin ETF is not new. Between 2013 and 2018, Cameron and Tyler Winklevoss petitioned the SEC twice to list a Bitcoin ETF, though the twins most famous for being embroiled in a Facebook founding controversy were rejected both times.
Big Number
$2.5 trillion. That’s how much the total cryptocurrency market capitalization was as of Monday, an all-time high, according to cryptocurrency news site CoinDesk.
Crucial Quote
Anthony Bertolino, vice president at cryptocurrency investing firm iTrustCapital, told CNBC, “The launch of the first bitcoin-linked ETF in the U.S. will bolster the broader crypto market and help an entirely new investor class experience the benefits of BTC as a legitimate asset.”
Further Reading
Revenge Of The Winklevii (Forbes)
Why You’re Probably Better Off Buying Bitcoin Than a Futures ETF (Bloomberg)
Shivani Siroya, founder and CEO of Tala photographed at their offices in Santa Monica, CA 08/13/2019.
Robert Gallagher 2019
For the last 15 years, Shivani Siroya has been laser focused on extending financial services to the world’s unbanked. As an analyst at the United Nations, she interviewed 3,500 people in sub-Saharan and West Africa about how they earned, spent and saved money. In 2011, Siroya used what she learned in the field to found Tala, a fintech company that uses smartphone data to extend loans to people with little or no borrowing history in Mexico, the Philippines, Kenya and India.
In 2020, Tala was inching towards expanded offerings—midway through the year it launched a debit card in Mexico—when the coronavirus pandemic laid bare the need for a better digital infrastructure for the world’s underserved banking customers.
“Because of the severity of the lockdown in the Philippines, people were physically not even able to go and get their cash,” Siroya told Forbes, explaining that Tala customers who were receiving money from family overseas were having trouble leaving their homes to collect the remittances. For Siroya, who is also Tala’s CEO, the moment made clear the need to give her customers “a digital account where they could access their money whenever they needed to.”
In May of this year, Tala took a step towards this goal, announcing a partnership with Visa and crypto company Circle that allows Tala customers to send, receive and hold “stablecoin” cryptocurrency. And on Thursday, the company took another, even bigger step towards the robust future Siroya envisions: Tala is announcing that it has raised a $145 million Series E round of funding, an infusion of capital that Siroya will use to grow Tala’s account offerings and crypto capabilities.
The round brings Tala’s total funding to $350 million and values the company at $800 million (a figure that is roughly unchanged from its 2019 valuation). It was led by fintech company Upstart with participation from the Stellar Development Foundation, an open-source cryptocurrency platform that aims to speed and streamline financial transactions around the world. Existing investors IVP, Revolution Growth, and Lowercase Capital also participated in the round. And as part of the raise, Paul Gu, Upstart’s cofounder, and Denelle Dixon, the CEO and executive director of the Stellar Development Foundation, have joined Tala’s board of directors.
Siroya says she went the operator route with the Series E rather than a traditional venture-led round because of the expertise that Upstart and Stellar stand to lend Tala as the company develops its technologies. Upstart “had an ability to help us on the data science side, on the operating side in terms of thinking about their IPO journey, and on the capital markets and credit experience side,” she said. “That’s why we also brought in Stellar; as we think about the product roadmap, how do we also enhance that?”
Stellar CEO Dixon sees Tala’s presence in emerging markets and mission to increase financial inclusion among the world’s poorest populations as consistent with her own goal to shift the world’s financial infrastructures from serving the few to the many. “Bank accounts are hard to come by,” Dixon told Forbes. “I’ve always thought that having their [digital] wallet be on Stellar—and be able to leverage the fast, affordable, secure payment rails that Stellar offers with Tala’s user base—could expand their reach.”
For all the talk of crypto and digital rails, Siroya notes that Tala isn’t immediately going to ask its customers to start investing in and trading cryptocurrencies; instead, this current phase of development is focused on using crypto technology on the back end to improve Tala’s account infrastructure. An ideal use case, Siroya says, would involve a Tala customer who previously needed to rely on a physical location, like a 7-11, to retrieve a money transfer instead managing the entire experience from their phone. Not only would this be faster—Siroya estimates that retrievals take anywhere between 24 and 48 hours in the current remittance world—but it would be cheaper, too.
“In the future, our customers can actually receive that remittance directly into the Tala account. They wouldn’t have to pay any additional cash out fee,” she said. “And then the last thing is that, because they’re receiving it directly in our account, we can offer them yield.”
It’s an ambitious vision, but Siroya, after watching Tala’s lending volumes dip at the height of Covid lockdowns and then recover to its pre-pandemic level of $60 million per month, is feeling energized.
“We’ve had over six and a half million customers access our credit products already,” she says. “And so at this point, we really feel like we are in a unique position to leverage all of that work that we’ve done on the infrastructure and supply chain side to move beyond credit.”
The Philadelphia 76ers and a growing number of other sports teams and leagues have landed new … [+]sponsorship deals with cryptocurrency companies this year.
ASSOCIATED PRESS
As cryptocurrency companies seek to reach mainstream audiences, some platforms are spending hundreds of millions of dollars to sponsor sports teams, stadiums and even leagues in a bid to woo new fans.
On Sept. 22, Crypto.com struck an eight-figure deal with the Philadelphia 76ers to sponsor the jersey patch and have visibility in the arena. The crypto trading app will also work with team management to develop non-fungible tokens (NFTs) and create a way for fans to use cryptocurrency to pay for tickets and other products. The Hong Kong-based company will also show up elsewhere alongside the NBA franchise—including on TV broadcasts and various other digital platforms.
Crypto.com Chief Marketing Officer Steven Kalifowitz recognizes that in order to build the brand, he has to also educate consumers about this new asset class.
“Crypto is not just another shoe,” he says. “It’s not a commodity thing or a suitcase or something. Getting into crypto is very much a cultural thing.”
Flush with money from eager investors, a growing number of crypto brands are spending big to reach a mass audience through sports sponsorships and mainstream events. Other deals this month include the cryptofinance company XBTO sponsoring the Major League Soccer team Inter Miami, the cryptocurrency exchange FTX sponsoring Mercedes-AMG’s Formula 1 team and the nonprofit Learncrypto.com sponsoring the English Premier League team, Southampton F.C.
Perhaps sports arenas are not a bad way to go when it comes to finding new fans for a new—and still largely unregulated—asset class that some critics dismiss as gambling and proponents say is the future of the internet as well as the economy. And in a fast-growing and cluttered market, the fight is to get not just recognition but market share.
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“To me it looks like an arms race for user acquisition,” says Keith Soljacich, VP/GD of Experiential Tech at Digitas, a leading digital advertising agency. “It’s kind of like if you have a crypto wallet on a platform, it’s a lot like holding a Visa card, too.”
The 76ers deal is just one of many that Crypto.com has landed in the past year while it’s on an aggressive sponsorship spree totaling more than $400 million in deals. Earlier this month, the company became the first official crypto platform partner for the famous French soccer team Paris Saint-Germain. Crypto.com is also a sponsor of a wide range of teams including the NHL’s Montreal Canadians, Fox Sports’ college football midday coverage, UFC, and Aston Martin’s Formula One team—just to name a few. Each of these also includes various other integrations far beyond a logo.
The 76ers have been looking for a new jersey patch partner for a couple of years and spoken with hundreds of companies, according to Chris Heck, the team’s president of business operations. He said the jersey patch is the most important partnership a team has, which requires brands and teams to be “completely aligned.”
“As the world woke up to the crypto space a little over a year ago, we got a chance to venture down that road,” Heck says. “Think about it this way: Sports are entering into the crypto era world, and we get to the at the front of the line with Crypto.com. These are folks that are partnering with gold-standard brands like UFC, F1, PSG, and we get to be their brand and their of choice in the United States with major sports teams and that’s pretty cool.”
All this to go beyond the current crypto user base to reach the masses: A study Crypto.com conducted in July found that total global crypto users have doubled year-over-year from 106 million to 221 million. However, just a fraction of those are currently the company’s customers.
Earlier in September, FTX—a two-year-old startup also based in Hong Kong—announced a $20 million ad campaign starring football legend Tom Brady and his wife, the model and businesswoman Gisele Bündchen. And like Crypto.com, FTX is sponsoring a wide range of teams and leagues in rapid succession including a five-year deal with the Major League Baseball announced this summer.
“If we just stop at one deal and we’ll wait and see how it does and wait to see how that does before doing another one, the best opportunities might be gone,” says FTX.US President Brett Harrison.
According to Harrison, FTX founder and CEO Sam Bankman-Fried asked for ideas of how do something “that’s big.” Someone then came up with the idea to buy the naming rights for a stadium, and a few months later they won the rights to rename the Miami Heat’s arena FTX Arena in a $135 million deal approved in March.
“There is a group of tech companies that know it in their bones that if they don’t become brands quickly, there is a time in the future where there will be just a few left,” says Jamie Shuttlesworth, chief strategy officer of Dentsu Americas, which became FTX’s agency of record in June.
Traditional advertising methods are important for building trust in crypto brands, according to Harrison—especially since it deals with something like taking care of people’s money.
“When’s the last time you saw an ad for maybe a bank pop up on the top of your Google search and said, ‘Time to move all my money from my Chase account or Citi account?’”
Major stadium and team sponsorship are often named after brands that are already well known, but the crypto sector’s aggressive land-grab feels in some ways like people playing a game of “Risk” or “Monopoly” where people can either wait for the right properties or buy everything they can as fast as possible.
When asked about the Monopoly metaphor, Harrison joked that “we’re trying plant our pieces on as many Park Places as possible.”
There’s plenty incentive for sports organizations to team up with crypto companies. Mike Proulx, a Forester analyst and marketing expert, said many sports leagues want—and need—to attract the next generation of fans.
“These kinds of deals look to tap into crypto companies’ young skewing userbase with NFTs that are, in a way, a modern/virtual take on old school baseball cards,” he says. “And the benefit to crypto companies is, of course, getting to leverage the league IP that legitimizes their platform with trusted brands while also growing their users.”
The crypto industry has exhausted its original market, says to R.A. Farrokhnia, a professor at Columbia Business School professor and Executive Director of the Columbia Fintech Initiative. However, blockchain technology isn’t something that’s easily explained to the average person—it involves cryptography, complex networks, and other concepts—and also still aren’t to a point where users can easily navigate.
According to Farrokhnia, there are still questions about whether the foundations and interfaces are advanced enough to warrant the aggressive push toward mass adoption. Or, he asks, “are we putting the proverbial cart before the horse?”
“These are all the moving parts in this ecosystem and it seems the pace for innovation has accelerated,” he said. “But are we doing things in the right sequence?”
Farrokhnia also points out the irony that despite all of cryptocurrency’s new innovations, the companies are still using classic marketing models. However, he adds that little for athletes to market unregulated digital economies than to pitch things like CPG products or other brand categories.
“What kind of reputation risk could this have for teams or sports figures or influencers or actors who are engaging in this kind of marketing campaign or activity? Most likely they have good lawyers that would protect them against such things, but you never know.”
Fandom is the state or condition of being a fan of something. There are fans of music, food, authors, and sports. American football, soccer (football), basketball, tennis, the UFC – all these are examples of sports that have big, passionate fan bases. Fans love being part of their team. It’s not enough to watch a game. There’s attending a game in person, wearing a player’s jersey number, owning a sports jersey the player wore, owning a ball from the game, and even owning a moment from the game. That’s what NBA Top Shots did.
Dapper Labs joined with the NBA to create collectible moments on the blockchain. “It’s a new era of fandom” the NBA Top Shot website reads. They’re not wrong. The NBA released a limited number of officially licensed moments on the Dapper Labs Flow blockchain. NBA Top Shot has over 10 million marketplace transactions and more than $700 million in sales. They found a utility and market for their sport collectible NFTs.
Now Dapper Labs has expanded to service fans of football. “We’re also planning to expand everything we’ve learned to serve the 3 billion other sports fans in the world –– and letting those communities interact and share liquidity across their marketplaces as well,” said Roham Gharegozlou, CEO of Dapper Labs. Dapper Labs announced their partnership with La Liga to launch the same digital collectible experience for fans of clubs that include Real Madrid, FC Barcelona, and many others from over 10 seasons of play. The partnership will give Dapper Labs exclusivity over the league’s video NFTs. “The amazing thing here is that FCB and Real Madrid have more than 500 million followers on their social media channels alone,” said Gharegozlou.
Dapper Labs sees this partnership as more than launching NFTs and social media follower counts. Partnering with sports leagues and harnessing fan power is the foundation of fandom in the metaverse. “It’s the first step into a virtual world of football,” said Caty Tedman, head of partnerships for Dapper Labs. “The assets, which not only live in our universe, can also be used/displayed/shown off in the metaverse.”
One thing brands struggle with is defining value for NFTs. That’s not an issue for Dapper Labs’ sports play. “[Digital collectibles] will be a unit of fandom across the blockchain ecosystem to showcase your authenticity as a football fan,” said Tedman. “Football is one of, if not the, biggest sports on earth and this is an enormous step toward full mainstream adoption of blockchain technology.”
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“Fandom is fast becoming the dominant currency, both commercially and culturally, thanks to new advances in blockchain and NFTs, which Dapper Labs have already proven with Top Shot,” said Zoe Scaman, founder of Bodacious. “We’re seeing a huge shift in behavior, from fans as passive and minimally participative, to fans as active, embracing new forms of ownership and steering their experiences accordingly. Leagues and teams are recognizing the potential inherent within this and are embracing it with open arms.”
La Liga isn’t the only one to recognize Dapper Labs play for the metaverse. Dapper Labs raised a new $250 million funding round. The round was led by Coatue and included investors a16z, GV, and Version One Ventures with new investors including BOND. The investors, according to the press release, “believe in the long-term potential of Dapper Labs’ vision, its marquee titles including NBA Top Shot, which is one of the world’s fastest growing marketplaces, as well as the consumer-facing Flow blockchain.”
Dapper Labs’ ability to support a fan-friendly NFT platform along with investors who call Dapper Labs’ blockchain “consumer-facing” are positive indicators of brands, investors, and companies embracing the metaverse. “Coatue has been investing in technology trends for over 20 years and web 3.0 is one of the most exciting trends we’ve seen,” said Dan Rose, Chairman, Coatue Ventures. “We think Dapper Labs is a leader in the space at the infrastructure level with Flow blockchain and in the application layer with NBA TopShot. We continue to be impressed by Roham’s strong leadership and vision and we could not be more proud to partner with him and the entire team at Dapper.”
The Future of Dapper Labs
Dapper Labs’ expansion of digital collectibles to other sports leagues like La Liga doesn’t mean they’re done with the NBA. “We see Top Shot as the home for a billion NBA fans so lots of work to do there,” said Gharegozlou. “Part of this funding will go toward expanding functionality on NBA Top shot, developing a mobile product, and connecting the digital collecting experience with the experience of a fan showing up to a live game, or even supporting their team on social media.”
To support the expansion, Dapper Labs continues to build its decentralized blockchain. “But what I get most excited about is the more than 3000 developers building on top of the Flow blockchain. We have scrappy indie developers like Chainmonsters which has been getting a lot of traction recently (Recently sold out their Genesis drop for $1.1 million. Also experienced 5x growth compared to last quarter alone, or 10x YoY) to Fortune 500 companies like Warner and Shopify who have chosen Flow as their platform of choice for NFTs,” said Gharegozlou.
“You might’ve seen our recent partnership announcement with Google, supporting the scale that’s emerging,” said Gharegozlou. The partnership lets Flow nodes operate on Google’s low latency cloud service. Gharegozlou explained, “A small portion of the funding will be used to invest in the ecosystem of startups that are starting to build on top of Flow, companies like Genies and Alchemy which are well known, or smaller groups like Recordshop who was founded by the former CTO of Andela and is having really great success in beta.”
Gharegozlou is paving the way for digital innovation through Dapper Labs, strategic partnerships, and finding the right way to engage consumers on the blockchain. “Life is increasingly digital,” he said. “That’s where people are spending time — In 2020, US adults spent 7 hours, 50 minutes per day consuming digital media.”
The Future Of Fandom
Dapper Labs’ success with NBA Top Shot, and no doubt La Liga, will grow as fans demand more access to their teams in the metaverse. As one Top Shots fan wrote, “even for peripheral fans of La Liga, like me, this will likely serve as an introduction and on-boarding experience to the league…” and possible the metaverse.
Scaman sums it up nicely,”What we’re seeing from Dapper Labs now, in terms of unlocking fandom through memorable moments and digital collectibles, is still a nascent use case. There’s so much more to come in terms of how fans will be able to leverage blockchain-built apps to gamify their collectibles, to create their own, to collaborate on projects with teams, to earn from trading their assets, to engage in governance and decision making, to granting them new forms of access, to creating IP and worldbuilding…the possibilities are enormous and we’re only just scratching the surface.”
Fandom is the state or condition of being a fan of something. There are fans of music, food, authors, and sports. American football, soccer (football), basketball, tennis, the UFC – all these are examples of sports that have big, passionate fan bases. Fans love being part of their team. It’s not enough to watch a game. There’s attending a game in person, wearing a player’s jersey number, owning a sports jersey the player wore, owning a ball from the game, and even owning a moment from the game. That’s what NBA Top Shots did.
Dapper Labs joined with the NBA to create collectible moments on the blockchain. “It’s a new era of fandom” the NBA Top Shot website reads. They’re not wrong. The NBA released a limited number of officially licensed moments on the Dapper Labs Flow blockchain. NBA Top Shot has over 10 million marketplace transactions and more than $700 million in sales. They found a utility and market for their sport collectible NFTs.
Now Dapper Labs has expanded to service fans of football. “We’re also planning to expand everything we’ve learned to serve the 3 billion other sports fans in the world –– and letting those communities interact and share liquidity across their marketplaces as well,” said Roham Gharegozlou, CEO of Dapper Labs. Dapper Labs announced their partnership with La Liga to launch the same digital collectible experience for fans of clubs that include Real Madrid, FC Barcelona, and many others from over 10 seasons of play. The partnership will give Dapper Labs exclusivity over the league’s video NFTs. “The amazing thing here is that FCB and Real Madrid have more than 500 million followers on their social media channels alone,” said Gharegozlou.
Dapper Labs sees this partnership as more than launching NFTs and social media follower counts. Partnering with sports leagues and harnessing fan power is the foundation of fandom in the metaverse. “It’s the first step into a virtual world of football,” said Caty Tedman, head of partnerships for Dapper Labs. “The assets, which not only live in our universe, can also be used/displayed/shown off in the metaverse.”
One thing brands struggle with is defining value for NFTs. That’s not an issue for Dapper Labs’ sports play. “[Digital collectibles] will be a unit of fandom across the blockchain ecosystem to showcase your authenticity as a football fan,” said Tedman. “Football is one of, if not the, biggest sports on earth and this is an enormous step toward full mainstream adoption of blockchain technology.”
MORE FOR YOU
“Fandom is fast becoming the dominant currency, both commercially and culturally, thanks to new advances in blockchain and NFTs, which Dapper Labs have already proven with Top Shot,” said Zoe Scaman, founder of Bodacious. “We’re seeing a huge shift in behavior, from fans as passive and minimally participative, to fans as active, embracing new forms of ownership and steering their experiences accordingly. Leagues and teams are recognizing the potential inherent within this and are embracing it with open arms.”
La Liga isn’t the only one to recognize Dapper Labs play for the metaverse. Dapper Labs raised a new $250 million funding round. The round was led by Coatue and included investors a16z, GV, and Version One Ventures with new investors including BOND. The investors, according to the press release, “believe in the long-term potential of Dapper Labs’ vision, its marquee titles including NBA Top Shot, which is one of the world’s fastest growing marketplaces, as well as the consumer-facing Flow blockchain.”
Dapper Labs’ ability to support a fan-friendly NFT platform along with investors who call Dapper Labs’ blockchain “consumer-facing” are positive indicators of brands, investors, and companies embracing the metaverse. “Coatue has been investing in technology trends for over 20 years and web 3.0 is one of the most exciting trends we’ve seen,” said Dan Rose, Chairman, Coatue Ventures. “We think Dapper Labs is a leader in the space at the infrastructure level with Flow blockchain and in the application layer with NBA TopShot. We continue to be impressed by Roham’s strong leadership and vision and we could not be more proud to partner with him and the entire team at Dapper.”
The Future of Dapper Labs
Dapper Labs’ expansion of digital collectibles to other sports leagues like La Liga doesn’t mean they’re done with the NBA. “We see Top Shot as the home for a billion NBA fans so lots of work to do there,” said Gharegozlou. “Part of this funding will go toward expanding functionality on NBA Top shot, developing a mobile product, and connecting the digital collecting experience with the experience of a fan showing up to a live game, or even supporting their team on social media.”
To support the expansion, Dapper Labs continues to build its decentralized blockchain. “But what I get most excited about is the more than 3000 developers building on top of the Flow blockchain. We have scrappy indie developers like Chainmonsters which has been getting a lot of traction recently (Recently sold out their Genesis drop for $1.1 million. Also experienced 5x growth compared to last quarter alone, or 10x YoY) to Fortune 500 companies like Warner and Shopify who have chosen Flow as their platform of choice for NFTs,” said Gharegozlou.
“You might’ve seen our recent partnership announcement with Google, supporting the scale that’s emerging,” said Gharegozlou. The partnership lets Flow nodes operate on Google’s low latency cloud service. Gharegozlou explained, “A small portion of the funding will be used to invest in the ecosystem of startups that are starting to build on top of Flow, companies like Genies and Alchemy which are well known, or smaller groups like Recordshop who was founded by the former CTO of Andela and is having really great success in beta.”
Gharegozlou is paving the way for digital innovation through Dapper Labs, strategic partnerships, and finding the right way to engage consumers on the blockchain. “Life is increasingly digital,” he said. “That’s where people are spending time — In 2020, US adults spent 7 hours, 50 minutes per day consuming digital media.”
The Future Of Fandom
Dapper Labs’ success with NBA Top Shot, and no doubt La Liga, will grow as fans demand more access to their teams in the metaverse. As one Top Shots fan wrote, “even for peripheral fans of La Liga, like me, this will likely serve as an introduction and on-boarding experience to the league…” and possible the metaverse.
Scaman sums it up nicely,”What we’re seeing from Dapper Labs now, in terms of unlocking fandom through memorable moments and digital collectibles, is still a nascent use case. There’s so much more to come in terms of how fans will be able to leverage blockchain-built apps to gamify their collectibles, to create their own, to collaborate on projects with teams, to earn from trading their assets, to engage in governance and decision making, to granting them new forms of access, to creating IP and worldbuilding…the possibilities are enormous and we’re only just scratching the surface.”