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Rogers network outage hits millions of Canadians, drawing outrage

  • Rogers dominates Canada’s telecom sector
  • Banking services down, transport disrupted
  • Outage renews criticism over telecom sector competition

TORONTO/OTTAWA, July 8 (Reuters) – A major network outage at one of Canada’s biggest telecom operators shut banking, transport and government access for millions all day on Friday, drawing outrage from customers and adding to criticism over Rogers Telecommunications’ (RCIb.TO) industry dominance.

Nearly every facet of life has been disrupted, with the outage affecting internet access, cell phone connections and landline phone connections. Some callers could not reach emergency services via 911 calls, police across Canada said.

Canadians who work from home crowded into cafes and public libraries that still had internet access and hovered outside hotels to catch a signal. Canada’s border services agency said the outage affected its mobile app for incoming travelers. Retailers’ cashless pay systems went down; banks reported issues with ATM services.

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Rogers said it would provide credits to affected customers. Its shares closed down 73 cents at $61.54 on the Toronto Stock Exchange.

Later on Friday, Kye Prigg, a senior vice president at Rogers, told the CBC the company did not “have an ETA of when the problem will be fixed” and was still working to identify a cause.

“I wouldn’t like to say whether it’s going to be fully online today or not,” he said.

A spokesperson for Public Safety Minister Marco Mendicino said Friday evening that the outage was not the result of a cyber attack.

The disruption also made transport and flight bookings more difficult at the height of the summer travel season.

So far, Transport Canada has not received reports of direct safety or security impacts to any flights, marine or rail services as part of this outage, according to spokesperson Sau Sau Liu.

The interruption was Rogers’ second in 15 months. It began around 4:30 a.m. ET (0830 GMT) and knocked out a quarter of Canada’s observable internet connectivity, said the NetBlocks monitoring group.

“Today we have let you down. We are working to make this right as quickly as we can,” Rogers said in a statement.

With about 10 million wireless subscribers and 2.25 million retail internet subscribers, Rogers is the top provider in Ontario, Canada’s most populous province and home to its biggest city, Toronto. Rogers, BCE Inc (BCE.TO) and Telus Corp (T.TO) control 90% of the market share in Canada.

Canadian Industry Minister François-Philippe Champagne in a tweet called the situation “unacceptable” and said he was in communication with telecom CEOs, including those from Rogers, Bell and Telus, to find a solution.

Canadian financial institutions and banks, including Toronto-Dominion Bank (TD.TO) and Bank Of Montreal (BMO.TO), said the outage disrupted services. Royal Bank of Canada (RY.TO) said its ATMs and online banking services were affected.

General view of the Rogers Building, quarters of Rogers Communications in Toronto, Ontario, Canada October 22, 2021. REUTERS/Carlos Osorio

A spokesperson for Vancouver International airport, among Canada’s busiest, said travelers could not pay for parking, use terminal ATMs or purchase items at airport retailers.

Air Canada (AC.TO), the country’s largest airline, said its call center had been affected. Airlines in Canada, like those in Europe and the United States, have been experiencing high call volume amid flight cancellations and delays due to pandemic staffing shortages. read more

Pop star the Weeknd on Friday evening announced that his tour stop at the Rogers Centre stadium had been postponed due to service outages affecting venue operations.

“I’m crushed & heartbroken. Been at the venue all day but it’s out of our hands because of the Rogers outage,” the singer wrote in a tweet.

COMPETITION

Critics said the outage demonstrated a need for more competition in telecom.

Earlier this year, Canada’s competition bureau blocked Rogers’ attempt to take over rival Shaw Communications (SJRb.TO) in a C$20 billion deal, saying it would hamper competition in a country where telecom rates are some of the world’s highest. The merger still awaits a final verdict. read more

“Today’s outage illustrates the need for more independent competition that will drive more network investment so outages are far less likely,” said Anthony Lacavera, managing director of Globealive, an investment firm that had bid for a wireless provider involved in the Rogers/Shaw deal.

On Friday, some government agencies canceled services after losing internet access, including Canada’s passport offices and the telecoms regulator. The Canada Revenue Agency, the country’s tax collection body, lost telephone service.

‘CASH WILL BE KING’

Shops and restaurants in Toronto put “Cash Only” signs on their doors. Residents crowded into and around a nearby Starbucks coffee shop offering free Wi-Fi on an unaffected network.

“There’s tons of people here with their laptops just working away ferociously, the same as they would at home, because they’ve got no service at home,” said Starbucks customer Ken Rosenstein.

In downtown Ottawa, Canada’s capital, cafes including Tim Hortons were not accepting debit and credit cards and were turning away customers who did not have cash.

Michelle Wasylyshen, spokeswoman for the Retail Council of Canada, said outages would vary from one retailer to the next: “Cash will most certainly be king at many stores today.”

While the disruptions were widespread, several companies and transport points said their services were unaffected. The Port of Montreal reported no disruptions. The Calgary Airport Authority said it had “no major operational impacts.”

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Reporting by Yuvraj Malik, Eva Matthews, Shubham Kalia and Maria Ponnezhath in Bengaluru; Katharine Jackson in Washington; Divya Rajagopal and Chris Helgren in Toronto; Ismail Shakil in Ottawa; Writing by Rami Ayyub and Aurora Ellis; Editing by Shinjini Ganguli, Jonathan Oatis, David Gregorio and Leslie Adler

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Cryptoverse: The bonfire of the NFTs

July 5 (Reuters) – The NFT dream isn’t dead, but it’s taken a big non-fungible beating.

The market shone gloriously last year as crypto-rich speculators spent billions of dollars on the risky assets, pumping up prices and profits. Now, six months into 2022, it’s looking ugly.

Monthly sales volume on the largest NFT marketplace, OpenSea, plunged to $700 million in June, down from $2.6 billion in May and a far cry from January’s peak of nearly $5 billion.

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By late June the average NFT sale sunk to $412, from $1,754 at the end of April, according to NonFungible.com, which tracks sales on the Ethereum and Ronin blockchains.

“The crypto bear market has definitely had an impact on the NFT space,” said Gauthier Zuppinger, co-founder of NonFungible.com.

“We have seen so much speculation, so much hype around this kind of asset,” he added. “Now we see some sort of decrease just because people realise they will not become a millionaire in two days.”

The NFT market has collapsed along with cryptocurrencies, which are typically used to pay for the assets, at a time when central banks have jacked up rates to combat inflation, and risk appetite has withered.

Bitcoin lost around 57% in the six months of the year, while ether has dropped 71% .

DIP OR DEATH SPIRAL?

For critics, the crash confirms the folly of buying such assets, tradable blockchain-based records linked to digital files such as images or videos, often artwork. read more

The Malaysian businessman who bought an NFT of Jack Dorsey’s first tweet for $2.5 million last year struggled to get bids of more than a few thousand dollars when he tried to re-sell it in April. read more

But Benoit Bosc, global head of product at crypto trading firm GSR, sees the downturn as the perfect time to build a corporate NFT collection – the crypto equivalent of the fine art traditional banks display to impress clients.

Last month, GSR spent $500,000 on NFTs from what Bosc calls “blue-chip” collections – those with large online fan bases.

His purchases include an NFT from the Bored Ape Yacht Club, a set of 10,000 cartoon monkeys made by U.S.-based company Yuga Labs and promoted by the likes of Paris Hilton and Jimmy Fallon.

Such is the hype surrounding Bored Apes that Yuga Labs raised $285 million in April by selling tokens it says can be exchanged for land in a Bored Apes-themed virtual world it has not yet launched. read more

Yet the average sale price for a Bored Ape tumbled to around $110,000 in June, having halved since its January peak of $238,000, according to market tracker CryptoSlam.

In his New York office, Bosc put up three screens on which to display his NFTs, which include various pixelated characters and a Bored Ape bought for $125,000.

“For us, it’s also a brand exercise,” Bosc said. Owning a valuable NFT and using it as a profile picture on social media is a way to establish “respectability, authority and influence” in the crypto sphere, he said.

GAME OVER? GAME ON?

Nonetheless, the future of NFTs is distinctly uncertain, as the era of low interest rates which encouraged investors to take risky bets comes to an end.

Some market watchers say the influence of NFTs on the art market will shrink. Meanwhile, even though the much-hyped vision for a blockchain-based metaverse hasn’t materialised yet, enthusiasts expect NFTs to shake up the gaming industry, for example by allowing players to own in-game assets such as avatar skins. read more

“Everyone believes games are going to be the next big thing in blockchain,” said Modesta Masoit, chief financial officer at blockchain tracker DappRadar.

This risky combination of gaming and financial speculation may face difficulties, though. Most gamers prefer games which do not include NFTs or “play-to-earn” components, according to John Egan, CEO of technology research firm L’Atelier.

Although the groundbreaking new crypto regulations agreed by the European Union last week mostly excluded NFTs, Spain is separately seeking to clamp down on the way video games sell virtual assets for real money. read more

Meanwhile, the biggest NFT-based game, Axie Infinity, has seen its in-game token collapse to less than half a cent, down from a peak of 36 cents last year.

For L’Atelier’s Egan, the NFT market is unlikely to recover in its current form.

“Ultimately it’s a situation where extraordinary amounts of money are being paid for extraordinarily limited assets that don’t really produce any cash flow,” he said.

But the underlying concept of creating unique digital assets is still “fundamentally important” and will have “massive applications” for the financial sector in future, he said.

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Reporting by Elizabeth Howcroft; Editing by Pravin Char

Our Standards: The Thomson Reuters Trust Principles.

Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

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Major crypto lender Celsius freezes withdrawals as markets tumble

LONDON, June 13 (Reuters) – Major U.S. cryptocurrency lending company Celsius Network on Monday froze withdrawals because of “extreme market conditions,” in the latest sign of pressure on the sector from tumbling crypto markets.

Celsius Network, a significant player in crypto lending, offers interest-bearing products to customers who deposit their cryptocurrencies with the company, and lends out crypto currencies to earn a return.

It raised $750 million in funding late in November from investors, including Canada’s second-largest pension fund. The company was valued at the time at $3.25 billion.

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In a blog post, the company said it had frozen withdrawals, as well as transfers between accounts, “to stabilise liquidity and operations while we take steps to preserve and protect assets.”

“We are taking this action today to put Celsius in a better position to honour, over time, its withdrawal obligations.”

The Celsius move puts the spotlight on the sustainability of crypto lending firms after a period of breakneck growth last year fuelled by low interest rates and booming crypto markets.

The surge of interest in crypto lending led to concerns from regulators, especially in the United States, who are worried about investor protections and systemic risks. read more

MARKETS UNDER PRESSURE

Crypto markets have come under pressure alongside stocks and other assets in financial markets amid rising interest rates and surging inflation. The collapse in May of the so-called stablecoin terraUSD and its sister token luna has also shaken the crypto industry. read more

The largest cryptocurrency bitcoin fell further after Celsius’s announcement, dropping more than 7.8% to $24,502, its lowest since December 2020.

Ether , the second largest token, dropped as much as 12% to $1,245, its lowest since March 2021.

Major investors and venture capital firms bet heavily last year on the crypto lending sector.

As of May 17, Celsius Network had $11.8 billion in assets, its website said, down by more than half from October, and had processed a total of $8.2 billion worth of loans.

CEO Alex Mashinsky was quoted in October last year saying Celsius had more than $25 billion in assets.

Mashinsky did not immediately respond to a text message seeking comment outside U.S. business hours.

In a tweet on Monday, rival crypto lender Nexo said it had offered unspecified help to Celsius, but was refused. It said it was “putting together an offer” for any assets.

The company’s website on Monday was offering interest rates of up to 18.6%.

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Reporting by Tom Wilson in London, Abinaya Vijayaraghavan in Bengaluru and Alun John in Hong Kong; Editing by Bradley Perrett and Jane Merriman

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EXCLUSIVE Beijing gives initial nod to revive Ant IPO after crackdown cools-sources

  • Ant aims to file preliminary prospectus as soon as July-sources
  • Ant needs CSRC’s guidance on timing of prospectus filing-source
  • Ant says there is no plan to relaunch its IPO-statement
  • Warburg Pincus valued Ant at $180 bln at end-March-source

HONG KONG, June 9 (Reuters) – China’s central leadership has given billionaire Jack Ma’s Ant Group a tentative green light to revive its initial public offering (IPO), two sources with knowledge of the matter said, in the clearest sign yet Beijing is easing its crackdown on the tech sector.

Ant, an affiliate of Chinese e-commerce behemoth Alibaba Group Holding Ltd (9988.HK), aims to file a preliminary prospectus for the share offering in Shanghai and Hong Kong as early as next month, the sources said, declining to be named due to the sensitivity of the matter.

The fintech giant will need to wait for guidance from the China Securities Regulatory Commission (CSRC) on the specific timing of the prospectus filing, said one of the sources.

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In a publicly released statement, Ant said there was no plan to relaunch its IPO, without elaborating. It did not respond to Reuters request for comment on whether it had received a green light from Beijing.

The company’s stock market listing was hastily shelved at the behest of Beijing in November 2020. At the time, it was slated to be valued at around $315 billion and planned to raise $37 billion, which would have been a world record.

“Under the guidance of regulators, we are focused on steadily moving forward with our rectification work and do not have any plan to initiate an IPO,” Ant said on its WeChat account late on Thursday.

Neither the CSRC nor China’s State Council Information Office, which handles media queries for central leaders, responded to Reuters’ request for comment.

Ant wants to keep the IPO revival plans low profile pending a formal announcement, after having attracted regulatory glare in its first attempt back in 2020 with the waves the offering created as the world’s largest ever equity float, a separate source with direct knowledge of the matter said.

Chinese authorities pulled the plug on the IPO and cracked down on Ma’s business empire after he gave a speech in Shanghai in October 2020 accusing financial watchdogs of stifling innovation.

The IPO’s derailment marked the start of a regulatory crackdown to rein in China’s huge homegrown technology sector, which spread to other industries, including property and private education, wiping billions off market capitalisations and triggering layoffs at some firms.

With its economy slowing in a politically sensitive year when Xi Jinping is expected to secure an unprecedented third term as party leader, Beijing is looking to loosen it grip on private businesses including tech giants to help it meet a growth target of 5.5%, something economists have said will be hard to reach given COVID-19 lockdowns. read more

“They are rolling back on their crackdown to counterbalance the lockdown they’ve had. Any data out of China lately has been dreadful because of lockdowns and the last thing they want to do is compound that issue. In the next three to six months we are likely to see China’s crackdown unwound,” said David Madden, market analyst at Equiti Capital in London.

A revival of the IPO may also mark a rehabilitation of sorts for Ma, who has been maintaining a low public profile since Beijing swooped.

EASING EFFORTS

Chinese Vice-Premier Liu He last month told tech executives the government supported the development of the sector and will back firms pursuing listings at home and abroad. read more

In another sign of Beijing’s softer stance, China’s ride-hailer Didi Global, which has been under a cybersecurity probe since last year, is in advanced talks to buy a third of a state-backed electric-vehicle maker, Reuters reported on Wednesday.

News of the talks comes after the Wall Street Journal reported on Monday that Chinese regulators are set to conclude their investigations into Didi , which could offer more hope to investors about its recovery. read more

Bloomberg reported earlier on Thursday that Chinese financial regulators had started early stage talks on a potential revival of Ant’s stock market debut, without mentioning a timeline. read more

The top securities regulator had established a team to reassess the share sale plans, Bloomberg reported.

The regulator later said in a statement it had not conducted any assessment or research work regarding an Ant IPO.

The U.S. listed shares of Alibaba, which owns nearly one-third of Ant, were down 7% after earlier rising as much as 7% in pre-market trading on the Bloomberg report.

U.S. private equity firm Warburg Pincus, a big investor in Ant’s 2018 private fundraising, lowered its valuation of Ant to about $180 billion at end-March from $221 billion one year earlier, a separate source said.

The regulators have directed Ant to restructure as a financial rather than tech firm, and sources and analysts have said the financial sector typically carries lower valuations.

Warburg Pincus declined to comment on Thursday.

“The size of Ant and the IPO will have to be smaller than what was planned in 2020 because the market conditions have changed and cannot be compared to now,” said Dickie Wong, executive director of Kingston Securities in Hong Kong.

U.S.-listed shares of Chinese tech and e-commerce firms including Didi and Alibaba have gained this week on hints Beijing’s one-and-a-half year long crackdown may be easing.

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Reporting by Julie Zhu; Additional reporting by Medha Singh, Abinaya Vijayaraghavan, Scott Murdoch, Kane Wu and Vidya Ranganathan; Editing by Sumeet Chatterjee, Carmel Crimmins, Elaine Hardcastle and David Evans

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Cryptoverse: The early birds betting bitcoin’s bottoming out

A bitcoin representation is seen in an illustration picture taken at La Maison du Bitcoin in Paris, France, June 23, 2017. REUTERS/Benoit Tessier/File Photo

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June 7 (Reuters) – As the crypto winter creeps into June, the first signs of a thaw are emerging.

Some investors are now betting that bitcoin is bottoming out, judging by the money heading into listed cryptocurrency funds, which represent just a slice of the market yet are popular among institutional and retail players alike.

Overall flows into such funds turned positive last month, with a weekly average inflow of $66.5 million, a reversal from a dismal April when they saw a weekly average outflow of $49.6 million, according to data provider CryptoCompare.

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“It’s largely institutional, and to a degree retail investors, recognizing that the pain is already endured, and we’re closer to the bottom than we are to the top,” said Ben McMillan, chief investment officer of Arizona-based IDX Digital Assets.

“If you’re getting into crypto at these levels, a little near-term volatility could be worth a long-term payoff,” he added. “A lot of institutional investors are starting to look at crypto as a source of longer-term growth potential.”

It’s hard to know whether the tentative flows will last, though, or if the nascent trend will be replicated across the wider market.

Many people will also think twice before piling into the market again, having been mightily clobbered as crypto was buffeted by worries over global monetary tightening and rising inflation. Bitcoin has lost roughly half its value since a November peak, it is down by a third in 2022 and has been languishing at around $30,000 for a month.

The data from funds nonetheless indicate some investors are returning to crypto, albeit into the perceived safety of exchange-traded products (ETP) with their promise of greater liquidity and security.

The assets under management of several bitcoin-futures ETFs have risen in the past week, according to Kraken Intelligence. The assets of the ProShares Bitcoin Strategy ETF’s have grown 6%, while those of the Global X Blockchain & Bitcoin Strategy ETF (BITS.O) and VanEck Bitcoin Strategy ETF have climbed over 3%.

BY comparison, ProShares’ bitcoin fund saw outflows of over $127 million in April.

The bullish trend has extended into June, with global bitcoin ETP holdings jumping to an all-time high of 205,008 bitcoin in the first two days of the month, Norway-based crypto research firm Arcane Research found.

“This is a promising sign for what’s to come,” said Arcane analyst Vetle Lunde.

In an indication investors are being selective and cautious, only bitcoin funds have received inflows while funds focused on ethereum and other crypto still experienced outflows.

Reuters Graphics
Reuters Graphics

STILL IN THE RED

But let’s not forget, while the fortunes of some funds may potentially be turning up, most have posted poor returns this year as the crypto market has tanked.

U.S. digital assets funds have lost 46% on average so far in 2022, posting losses of 22% in May, according to Morningstar.

All listed digital asset investment products tracked by CryptoCompare lost money in May, with the worst performer being Grayscale’s Digital Large Cap Fund product, with a 38.5% fall.

“Bitcoin has been rangebound in concert with the broader market activity of late, investors are looking for a bottom and are uncertain where that is,” said Jack McDonald, CEO of PolySign, which specializes in digital asset custody solutions for institutional investors.

Shares of the Grayscale Bitcoin Trust (GBTC.PK) one of the biggest bitcoin funds with over $19 billion in assets, are trading at a 29% discount to net asset value, around its steepest discount since inception and indicative of low demand for the product.

And despite the pick up in May, many market watchers expect inflows to crypto funds to remain subdued until macroeconomic and regulatory risks become more clear.

“We’re waiting for a high conviction bid to come back into the markets,” added McMillan at IDX. “There’s still a lot of wood to chop on the macro front.”

Crypto and blockchain ETFs
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Reporting by Medha Singh and Lisa Pauline Mattackal in Bengaluru
Editing by Vidya Ranganathan and Pravin Char

Our Standards: The Thomson Reuters Trust Principles.

Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

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How a cheap component could help kill off combustion cars

LONDON/BERLIN, May 30 (Reuters) – The humble wire harness, a cheap component that bundles cables together, has become an unlikely scourge of the auto industry. Some predict it could hasten the downfall of combustion cars.

Supplies of the auto part were choked by the war in Ukraine, which is home to a significant chunk of the world’s production, with wire harnesses made there fitted in hundreds of thousands of new vehicles every year.

These low-tech and low-margin parts – made from wire, plastic and rubber with lots of low-cost manual labour – may not command the kudos of microchips and motors, yet cars can’t be built without them.

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The supply crunch could accelerate the plans of some legacy auto firms to switch to a new generation of lighter, machine-made harnesses designed for electric vehicles, according to interviews with more than a dozen industry players and experts.

“This is just one more rationale for the industry to make the transition to electric quicker,” said Sam Fiorani, head of production forecasting firm AutoForecast Solutions.

Gasoline cars still account for the bulk of new car sales globally; EVs doubled to 4 million last year, but still only comprised 6% of vehicle sales, according to data from JATO Dynamics.

Nissan (7201.T) CEO Makoto Uchida told Reuters that supply-chain disruptions such as the Ukraine crisis had prompted his company to talk to suppliers about shifting away from the cheap-labour wire harness model.

In the immediate term, though, automakers and suppliers have shifted harness production to other lower-cost countries.

Mercedes-Benz (MBGn.DE) was able to fly in harnesses from Mexico to plug a brief supply gap, according to a person familiar with its operations. Some Japanese suppliers are adding capacity in Morocco, while others have sought new production lines in countries including Tunisia, Poland, Serbia and Romania.

THE TESLA MODEL

Harnesses for fossil-fuel cars bundle together cables stretching up to 5 km (3.1 miles) in the average vehicle, connecting everything from seat heaters to windows. They are labour-intensive to make, and almost every model’s is unique, so shifting production is hard to do quickly.

The supply disruptions in Ukraine were a rude awakening for the auto industry. Carmakers and suppliers said that early in the war, plants remained open only thanks to the determination of workers there, who kept a reduced flow of parts moving in the face of power cuts, air-raid warnings and curfews.

Adrian Hallmark, CEO of Bentley, said the British luxury carmaker had initially feared losing 30-40% of its car production for 2022 due to a harness shortage.

“The Ukraine crisis threatened to close our factory fully for several months, much longer than we did for COVID.”

Hallmark said finding alternative production sources was complicated by the fact the conventional harnesses themselves had 10 different parts from 10 different suppliers in Ukraine.

He added that the supply problems had sharpened Bentley’s focus and investment on developing a simple harness for EVs that will be run by a central computer. The carmaker, a division of Volkswagen (VOWG_p.DE), plans a fully-electric lineup by 2030.

“The Tesla model, which is a completely different concept of wiring, we couldn’t change to that overnight,” Hallmark added. “It’s a fundamental change in the way that we design cars.”

The new generation of wire harnesses, used by electric natives like Tesla, can be made in sections on automated production lines and are lighter, a key factor because reducing an EV’s weight is crucial for extending range.

Many of the executives and experts interviewed said fossil-fuel cars, which face looming bans in Europe and China, would not be around long enough to justify redesigns to allow them to use next-generation harnesses.

“I wouldn’t put a penny into internal combustion engines now,” said Michigan-based auto consultant Sandy Munro, who estimates EVs will make up half of global new car sales by 2028.

“The future is coming up awful fast.”

‘CHANGE OF PARADIGM’

Walter Glück, head of Leoni’s harness business, said the supplier was working with carmakers on new, automated solutions for wire harnesses in EVs.

Leoni is focusing on zonal or modular harnesses, which would be split into six to eight parts, short enough for automation in assembly and reducing complexity.

“It’s a change of paradigm,” Glück said. “If you want to reduce production time in your car factory, a modular wire harness helps.”

Among automakers, BMW is also looking at using modular wire harnesses, requiring fewer semiconductors and less cable, which would save space and make them lighter, according to a person with knowledge of the matter.

The person, who declined to be named as they not authorized to speak publicly, said the new harnesses would also make it easier to upgrade vehicles wirelessly – an area Tesla now dominates.

CelLink, a Californian-based startup, has developed an entirely automated, flat and easy-to-install “flex harness”, and raised $250 million earlier this year from companies including BMW and auto suppliers Lear Corp (LEA.N) and Robert Bosch (ROBG.UL). read more

CEO Kevin Coakley would not identify customers but said CelLink’s harnesses had been installed in close to a million EVs.

Only Tesla has that scale, but the carmaker did not respond to a request for comment.

Coakley said CelLink’s new $125 million factory under construction in Texas will have 25 automated production lines which will be able switch different designs in around 10 minutes because the components are produced from digital files.

The company is working on EVs with a number of carmakers and looking at building another plant in Europe, he said.

While the lead time for changing a conventional wire harness can be up to 26 weeks, Coakley said his company could ship redesigned products in two weeks.

That kind speed is what legacy carmakers are looking for as they go electric, said Dan Ratliff, a principal at Detroit-based venture capital firm Fontinalis Partners, which was founded by Ford (F.N) Chairman Bill Ford and has invested in CelLink.

For decades, the industry has not needed to move fast to rethink a part like the wire harness, but Tesla has changed that, Ratliff added.

“On the EV side, it’s just go, go, go.”

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Reporting by Nick Carey in London and Christina Amann in Berlin; Additional reporting by Satoshi Sugiyama in Tokyo; Editing by Pravin Char

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Cryptoverse: Is the end of the bitcoin winter nigh?

May 24 (Reuters) – The crypto winter is into its ninth week and bitcoin can’t shake the chills.

From technicals to turnover, market indicators are flashing red or amber for the biggest cryptocurrency, which has lost a third of its value in just two months.

So what now?

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Bitcoin’s limited history isn’t much of a guide on crypto winters, which we’re defining as prolonged bearishness for a month or more.

There have been five since 2017 and three since 2021. Last year’s two crashes lasted 14 and 10 weeks and caused bitcoin to lose 45% to 47%. If they were typical, bitcoin’s latest drop – 36% shed in eight weeks – has road left to run.

“Bitcoin is just not attractive to retail investors right now. Nobody really sees that potential for bitcoin to give out 10 times (return),” said Joseph Edwards, head of financial strategy at fund management firm Solrise Finance.

Indeed the macro background is far from supportive for an asset class now firmly seen as volatile, risky – plus vulnerable in the face of inflation. As worries over rising global rates and geopolitics bring U.S. stocks (.SPX) close to confirming a bear market, cryptocurrencies aren’t on anyone’s shopping list.

Yet even in the icy wilderness, there are some signs that the crypto king is plotting its comeback.

Bitcoin is drawing strength from the rest of the crypto market, for example, its relative stature providing some comfort for investors fleeing altcoins such as stablecoins deemed ultra-risky after the collapse of TerraUSD in early May.

Bitcoin dominance, a measure of the ratio between its market cap to the rest of cryptocurrency markets, has jumped to a seven-month high of over 44% even as its price has decreased.

“Institutional investors particularly are fleeing to safety, to a certain extent, to bitcoin, which has the most institutional adoption,” said Marcus Sotiriou, analyst at UK-based asset broker GlobalBlock.

Last week, bitcoin futures saw their largest net long position since the contract was launched in 2018, CFTC data showed, indicating traders are increasing positioning for a rise in the price of the cryptocurrency.

Crypto winters

FEAR AND GREED

Scary times, though.

Bitcoin has lost half its value since a Nov. 10 peak of $69,000. This week, it is flirting with $30,000, after touching a 17-month low of $25,401 on May 12. It remains the largest digital asset by market cap, but the market value of all cryptocurrencies now stands at $1.3 trillion, less than half the $3 trillion peak in November.

Data platform Coinglass’s bitcoin Fear & Greed index of market sentiment – where 0 indicates extreme fear and 100 extreme greed – is hovering at 13.

Ether , the No. 2 token by market value, has hovered near the $2,000 mark, and is down about 60% from a peak of $4,868 on Nov. 10.

Bilal Hafeez, CEO at research firm Macro Hive, pointed to $2,300 and $2,500 as key levels and warned that failure to hold above either of those marks in the near term would be a bearish signal.

The crypto market is cowed.

Total spot market volume for all cryptocurrencies at major exchanges had fallen to $18.4 billion as of Monday – less than half of the $48.2 billion seen on May 14, which was the highest volume for 2022, according to news and research site The Block.

Blockchain analytics firm Glassnode said on May 9 that bitcoin at $33,600 puts 40% of investors underwater on their holdings.

“Many folks are left wondering what they should do with their coins – keep holding on for dear life or book losses and move on?” said Lindsey Bell, chief markets and money strategist at Ally Invest.

“It’s a good reminder that crypto probably shouldn’t be more than, say, 1-2% of your portfolio.”

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Reporting by Medha Singh and Lisa Pauline Mattackal in Bengaluru
Editing by Vidya Ranganathan and Pravin Char

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Musk’s $44 billion Twitter buyout challenged in shareholder lawsuit

May 6 (Reuters) – Elon Musk and Twitter Inc (TWTR.N) were sued on Friday by a Florida pension fund seeking to stop Musk from completing his $44 billion takeover of the social media company before 2025.

In a proposed class action filed in Delaware Chancery Court, the Orlando Police Pension Fund said Delaware law forbade a quick merger because Musk had agreements with other big Twitter shareholders, including his financial adviser Morgan Stanley (MS.N) and Twitter founder Jack Dorsey, to support the buyout.

The fund said those agreements made Musk, who owns 9.6% of Twitter, the effective “owner” of more than 15% of the company’s shares. It said that required delaying the merger by three years unless two-thirds of shares not “owned” by him granted approval.

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Morgan Stanley owns about 8.8% of Twitter shares and Dorsey owns 2.4%.

Musk hopes to complete his $54.20 per share Twitter takeover this year, in one of the world’s largest leveraged buyouts.

He also runs electric car company Tesla Inc (TSLA.O), leads The Boring Co and SpaceX, and is the world’s richest person according to Forbes magazine.

Twitter and its board, including Dorsey and Chief Executive Parag Agrawal, were also named as defendants.

Twitter declined to comment. Lawyers for Musk and the Florida fund did not immediately respond to requests for comment.

The lawsuit also seeks to declare that Twitter directors breached their fiduciary duties, and recoup legal fees and costs. It did not make clear how shareholders believed they might be harmed if the merger closed on schedule.

On Thursday, Musk said he had raised around $7 billion, including from sovereign wealth funds and friends in Silicon Valley, to help fund a takeover. read more

Musk had no financing lined up when he announced plans to buy Twitter last month.

Some of the new investors appear to share interests with Musk, a self-described free speech absolutist who could change how the San Francisco-based company moderates content.

Florida’s state pension fund also invests in Twitter, and Governor Ron DeSantis said this week it could make a $15 million to $20 million profit if Musk completed his buyout.

In afternoon trading, Twitter shares were down 60 cents at $49.76.

The case is Orlando Police Pension Fund v Twitter Inc et al, Delaware Chancery Court, No. 2022-0396.

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Reporting by Jonathan Stempel in New York
Editing by Howard Goller and Mark Potter

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Bored Ape NFT company raises around $285 million of crypto in virtual land sale

A representation of cryptocurrency Ethereum is seen next to non-fungible tokens (NFTs) of Yuga Labs “Bored Ape Yacht Club” collection displayed on its website, in this illustration picture taken March 24, 2022. REUTERS/Florence Lo/Illustration/File Photo

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LONDON, May 1 (Reuters) – The company behind the “Bored Ape” series of NFTs has raised around $285 million worth of cryptocurrency by selling tokens which represent land in a virtual world game it says it is building.

Last year, U.S. start-up Yuga Labs created the Bored Ape Yacht Club NFTs, blockchain-based tokens representing a set of 10,000 computer-generated cartoon apes.

As non-fungible tokens (NFTs) – crypto assets that represent digital files such as images, video, or items in an online game – exploded in popularity, Bored Ape prices surged to fetch hundreds of thousands of dollars each. read more

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They became one of the most prominent NFT brands, with Apes sold at top auction houses and owned by celebrities including Paris Hilton and Madonna. read more

Now, Yuga Labs – which raised $450 million in March in a funding round led by Andreessen Horowitz – has set its sights on the so-called “metaverse”. read more

In an online sale on April 30, Yuga Labs sold NFTs called “Otherdeeds”, which it said could be exchanged as plots of virtual land in a future Bored Ape-themed online environment called “Otherside.”

The “Otherdeeds” could only be bought using the project’s associated cryptocurrency, called ApeCoin, which launched in March.

There were 55,000 Otherdeeds for sale, priced at 305 ApeCoin each, and the company wrote on Twitter that these had sold out.

This means the sale raked in 16,775,000 ApeCoin, worth around $285 million as of Sunday, according to Reuters calculations based on the price of ApeCoin on cryptocurrency exchange Coinbase at 1210 GMT.

It was not clear how the funds would be distributed, although the company said the ApeCoin would be “locked up” for one year.

The sale indicates the continued high demand for speculative, high-risk crypto assets related to online virtual worlds. NFTs are largely unregulated, and reports of scams, fakes and market manipulation are common. read more

While many are baffled by the idea of paying real money for land which does not physically exist, some virtual land NFTs have already fetched millions of dollars. read more

The Otherside metaverse will be a multi-player gaming environment, according to its website, which says it is currently under development.

Yuga Labs declined to say how many people were working on building Otherside or when it would be launched.

Yuga Labs’ Otherdeeds sale comes shortly after the Bored Ape Yacht Club official Instagram account was hacked and a phishing link posted, allowing scammers to steal victims’ NFTs.

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Reporting by Elizabeth Howcroft; Editing by Hugh Lawson

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Tesla loses $126 bln in value amid Musk Twitter deal funding concern

April 26 (Reuters) – Tesla Inc (TSLA.O) lost $126 billion in value on Tuesday amid investor concerns that Chief Executive Elon Musk may have to sell shares to fund his $21 billion equity contribution to his $44 billion buyout of Twitter Inc (TWTR.N).

Tesla is not involved in the Twitter deal, yet its shares have been targeted by speculators after Musk declined to disclose publicly where his cash for the acquisition is coming from. The 12.2% drop in Tesla’s shares on Tuesday equated to a $21 billion drop in the value of his Tesla stake, the same as the $21 billion in cash he committed to the Twitter deal.

Wedbush Securities analyst Daniel Ives said that worries about upcoming stock sales by Musk and the possibility that he is becoming distracted by Twitter weighed on Tesla shares. “This (is) causing a bear festival on the name,” he said.

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Tesla did not immediately respond to a request for comment.

To be sure, Tesla’s share plunge came against a challenging backdrop for many technology-related stocks. The Nasdaq closed at its lowest level since December 2020 on Tuesday, as investors worried about slowing global growth and more aggressive rate hikes from the U.S. Federal Reserve. read more

Twitter’s shares also slid on Tuesday, falling 3.9% to close at $49.68 even though Musk agreed to buy it on Monday for $54.20 per share in cash. read more The widening spread reflects investor concern that the precipitous decline in Tesla’s shares, from which Musk derives the majority of his $239 billion fortune, could lead the world’s richest person to have second thoughts about the Twitter deal.

“If Tesla’s share price continues to remain in freefall that will jeopardize his financing,” said OANDA senior market analyst Ed Moya.

As part of the Tesla deal, Musk also took out a $12.5 billion margin loan tied to his Tesla stock. He had already borrowed against about half of his Tesla shares.

University of Maryland professor David Kirsch, whose research focuses on innovation and entrepreneurship, said investors started to worry about a “cascade of margin calls” on Musk’s loans.

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Reporting by Svea Herbst-Bayliss in Boston and Hyun Joo in San Francisco
Additional reporting by Noel Randewich in San Francisco
Editing by Matthew Lewis

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