Category Archives: TC

Postmates lines up another $100M ahead of IPO

Postmates, one of the earlier entrants to the billion-dollar food delivery wars, has raised an additional $100 million in equity funding at a $1.85 billion valuation, as first reported by Recode and confirmed to TechCrunch by Postmates. The round comes four months after the eight-year-old startup drove home a $300 million investment that finally knocked it into “unicorn” territory.

New investor BlackRock has joined the funding round alongside Tiger Global, which served as the lead investor of Postmates’ September financing. Led by co-founder and chief executive officer Bastian Lehmann, the company has garnered a total of $681 million in venture capital funding from investors, including Spark Capital, Founders Fund, Uncork Capital and Slow Ventures.

In line with several other tech unicorns, Postmates has begun prep for an initial public offering that could come this year, including tapping JPMorgan to advise the float. As Recode pointed out, the $100 million capital infusion was probably less of a necessary funding event but rather an opportunity for existing investors to liquidate stock ahead of an exit.

Postmates, which completes 3.5 million deliveries per month, reportedly expected to record $400 million in revenue in 2018 on food sales of $1.2 billion. The company has not confirmed that figure nor disclosed any other 2018 revenue numbers. The company currently operates in more than 500 cities, recently tacking on another 100 markets to reach an additional 50 million customers.

It will be interesting to see how Wall Street responds to a Postmates public listing. Though it was an early player in what has become an extremely crowded market, Postmates never emerged as the leader in food delivery. Now, with supergiants like Uber dominating via Uber Eats and SoftBank funneling loads of capital into Postmates competitor DoorDash, it shouldn’t count on an oversubscribed IPO.

Research finds heavy Facebook users make impaired decisions like drug addicts

Researchers at Michigan State University are exploring the idea that there’s more to “social media addiction” than casual joking about being too online might suggest. Their paper, titled “Excessive social media users demonstrate impaired decision making in the Iowa Gambling Task” (Meshi, Elizarova, Bender and Verdejo-Garcia) and published in the Journal of Behavioral Addictions, indicates that people who use social media sites heavily actually display some of the behavioral hallmarks of someone addicted to cocaine or heroin.

The study asked 71 participants to first rate their own Facebook usage with a measure known as the Bergen Facebook Addiction Scale. The study subjects then went on to complete something called the Iowa Gambling Task (IGT), a classic research tool that evaluates impaired decision making. The IGT presents participants with four virtual decks of cards associated with rewards or punishments and asks them to choose cards from the decks to maximize their virtual winnings. As the study explains, “Participants are also informed that some decks are better than others and that if they want to do well, they should avoid the bad decks and choose cards from the good decks.”

What the researchers found was telling. Study participants who self-reported as excessive Facebook users actually performed worse than their peers on the IGT, frequenting the two “bad” decks that offer immediate gains but ultimate result in losses. That difference in behavior was statistically significant in the latter portion of the IGT, when a participant has had ample time to observe the deck’s patterns and knows which decks present the greatest risk.

The IGT has been used to study everything from patients with frontal lobe brain injuries to heroin addicts, but using it as a measure to examine social media addicts is novel. Along with deeper, structural research, it’s clear that researchers can apply to social media users much of the existing methodological framework for learning about substance addiction.

The study is narrow, but interesting, and offers a few paths for follow-up research. As the researchers recognize, in an ideal study, the researchers could actually observe participants’ social media usage and sort them into categories of high or low social media usage based on behavior rather than a survey they fill out.

Future research could also delve more deeply into excessive users across different social networks. The study only looked at Facebook use, “because it is currently the most widely used [social network] around the world,” but one could expect to see similar results with the billion-plus monthly Instagram and potentially the substantially smaller portion of people on Twitter.

Ultimately, we know that social media is shifting human behavior and potentially its neurological underpinnings, we just don’t know the extent of it — yet. Due to the methodical nature of behavioral research and the often extremely protracted process of publishing it, we likely won’t know for years to come the results of studies conducted now. Still, as this study proves, there are researchers at work examining how social media is impacting our brains and our behavior — we just might not be able to see the big picture for some time.

An AR glasses pioneer collapses

In the first days of 2017, Osterhout Design Group arrived at CES with a two-story booth and huge promises. The startup’s founder, Ralph Osterhout, wanted to take the small San Francisco-based company even further past its military contractor roots in AR, building out major enterprise and consumer businesses with flashy new product lines. The company had just raised $58 million, and the Las Vegas electronics show served as its launchpad for its R-8 and R-9 augmented reality glasses lines that Osterhout hoped would bring “glasses to the masses.”

Less than a year later, however, the company had burned through its funding and couldn’t pay employees. By early 2018, ODG had lost half of its workforce as it sought loans to pay back employees. Today, a skeleton crew awaits a patent sale less than a week away after acquisitions from several large tech companies, including Facebook and Magic Leap, fell through, multiple sources tell TechCrunch.

ODG founder and CEO Ralph Osterhout

Ralph Osterhout, 73, founded ODG 20 years ago as a high-tech toy company, built after his previous venture, Machina, collapsed in what a Wired report at the time called “a spectacular bankruptcy.” After underwriting ODG with $14,000 of his own cash, Osterhout kept the startup plugging along on its own merits before he decided that it was time to reach for outside funding to turn his company into a powerhouse in the burgeoning augmented reality industry. At the end of 2016, the company raised a $58 million round led by 21st Century Fox.

ODG was already getting thousands of orders for its R-7 glasses, an enterprise-focused product that it billed as a head-worn Android tablet that could help workers go through checklists, review documents and share live video feeds hands-free. Osterhout wanted to get AR glasses into the hands of consumers and take advantage of new tech advances, even as Magic Leap was teasing the release of its own heavily hyped consumer product.

“I hope Magic Leap is a huge success. I want everyone in AR to be a huge success,” Osterhout said in an interview with TechCrunch in 2017. “[Augmented reality] is going to be transformative.”

Months later, a large Chinese firm approached ODG with an offer north of the company’s $258 million Series A valuation, a source tells TechCrunch. Talks fell through, but ODG’s leadership was at their most ambitious and felt like they couldn’t be stopped.

At the same time, following the CES 2017 product unveil, some employees wondered whether having three distinct product lines under development aimed at roughly the same customer was the right direction for the company with around 100 employees. Ralph Osterhout’s strong internal popularity kept these concerns at bay even as the company faced double-digit return rates from customers of its current-generation R-7 glasses due to manufacturing issues.

“That’s a little bit the story of ODG and Ralph, in general: everything is a prototype, nothing is finished, and before one thing is 60 percent done, you’re already onto the next one,” a former employee tells TechCrunch. “I think the heart of ODG’s downfall was its lack of focus.”

The company never ended up shipping the R-9 or the R-8 or even fulfilling all of its R-7 orders. It blew through its funding before the fall of 2017, and it wasn’t long before employees were on half-pay and soon stopped getting paid at all. ODG sought backing from Chinese firms, but sources say that a negative trade environment hampered those efforts. In 2018, it received an $8 million loan from a Chinese firm used to pay back employees as Osterhout began trying to scrounge together an exit strategy, seeking buyers for the company that bore his name.

Suitors for the company included Magic Leap, Facebook, Razer and Lenovo, sources tell TechCrunch. In each case talks fell through, as Osterhout was convinced that his company was being undervalued by the prospective acquirers.

ODG’s San Francisco offices in 2016

Sources say that Magic Leap continued to bump up its offer, eventually signing a letter of intent in the final months of 2018 to purchase the startup. The final proposed purchase price ended up at $35 million, still a far cry from its 2016 valuation, a source familiar with the deal tells TechCrunch.

This offer came with stipulations for the types of engineers Magic Leap wanted to bring aboard, leading ODG to shrink its staff to just a couple dozen employees. As the startup whittled itself down to prepare for a disappointing, yet relatively dignified, sign-off, Magic Leap began to grow cagey about finalizing the acquisition, sources say. As the deal started to fall through, some in ODG’s leadership began to wonder aloud whether Magic Leap was “acting in poor faith” and was only looking to starve the company before purchasing assets at a discount in a patent sale.

“Ralph turned around and he didn’t have a company or team anymore, and then Magic Leap goes, you know what, we’re just going to buy the IP, we don’t want the company, you don’t have a company anymore,” one source said.

Magic Leap did not respond to a request for comment.

With the deal shot and the indebted company in shambles, the team dwindled down further to a skeleton crew — essentially a deals team — as company assets were put up for sale by IP advisory firm Hilco Streambank. The company’s patent portfolio up for sale next week includes 107 issued patents and 83 pending applications.

The 20-year-old company has already seen its early work in foundational AR patents pay off. In 2014, Microsoft paid around $150 million to acquire a trove of ODG patents after deciding not to buy the company outright. In documents reviewed by TechCrunch, ODG highlights a number of AR patents in its collection on which it believes existing products from companies like Magic Leap, Google and Facebook infringe, specifically pointing to diagrams of systems like the Magic Leap One and Oculus Quest that they claim conflict with its prior art.

With a patent sale (spotted first by UploadVR), ODG’s leadership is looking to recoup enough to pay back the company’s debts, as well as the employees who worked for months on partial salaries.

Whether or not ODG’s downfall was largely a cause of mismanagement, the disparity between acquisition offers and its 2016 valuation showcases a broader cooldown in the augmented reality industry, as capital-intensive efforts in enterprise and hardware have proven to be a more difficult sell for investors heading into 2019.

Last month, Blippar, an enterprise-focused AR startup that raised more than $130 million, collapsed after failing to secure an emergency influx of cash. Just yesterday, it was reported that Meta, an AR hardware startup with $73 million in funding from Y Combinator, Tencent and Comcast, had fallen into insolvency. Magic Leap itself has had issues breaking into broader markets: In November the startup lost out to Microsoft on a $480 million military contract.

Asked whether they would pin the company’s failures on the broader industry slowdown, a former employee said, “From an internal standpoint, all I saw was, we are fucking it up.”

Ralph Osterhout did not respond to a request for comment.

Shareholder suit alleges Google covered up its sexual harassment problems with big payouts

Months after an earth-shattering New York Times investigation exposed Google parent company Alphabet’s $90 million payout to Android co-founder Andy Rubin, despite the accusations of sexual misconduct made against him, a Google shareholder is suing the company.

James Martin filed suit in the San Mateo Superior Court Thursday morning, alleging the company’s leaders deployed massive allowances to poor-behaving executives to cover up harassment scandals. Both Rubin and Google’s former head of search Amit Singhal, who peacefully left the company in 2016 amid harassment allegations that weren’t made public until the following year, are listed as defendants in the court filing. This is because the plaintiff is seeking a full return of the massive payouts awarded to the embattled former execs.

With charges including breach of fiduciary duty, unjust enrichment, abuse of power and corporate waste, per The Washington Post, the lawsuit asks for an end of nondisclosure and arbitration agreements at Google, which ensure workplace disputes are settled behind closed doors and without any right to an appeal. Martin is also requesting Google incorporate three new directors to the Alphabet board and put an end to supervoting shares, which gives certain shareholders more voting control.

The lawsuit also targets Rubin, Google co-founders Larry Page and Sergey Brin, chief executive officer Sundar Pichai and executive chairman Eric Schmidt. Former human resources director Laszlo Bock, chief legal officer David Drummond and former executive Amit Singhal are also named, as are long-time venture capitalists and Google board members John Doerr and Ram Shriram.

Google didn’t immediately respond to a request for comment.

Following the release of the NYT report, Googlers across the world rallied to protest the company’s handling of sexual misconduct allegations. The protestors had five key asks, including an end to forced arbitration in cases of harassment and discrimination, a commitment to end pay and opportunity inequity and a clear, uniform, globally inclusive process for reporting sexual misconduct safely and anonymously. Google ultimately complied with employees and put an end to forced arbitration; other tech companies, such as Airbnb, followed suit.

Astronauts land safely after Soyuz launch fails at 20 miles up

A fault in a Soyuz rocket booster has resulted in an aborted crew mission to the International Space Station, but fortunately no loss of life. The astronauts in the capsule, Nick Hague (U.S.) and Alexey Ovchinin (Russia) successfully detached upon recognizing the fault and made a safe, if bumpy, landing nearly 250 miles east of the launch site in Kazakhstan. This high-profile failure could bolster demand for U.S.-built crewed spacecraft.

The launch proceeded normally for the first minute and a half, but at that point, when the first and second stages were meant to detach, there was an unspecified fault, possibly a failure of the first stage and its fuel tanks to detach. The astronauts recognized this issue and immediately initiated the emergency escape system.

Hague and Ovchinin in the capsule before the fault occurred.

The Soyuz capsule detached from the rocket and began a “ballistic descent” (read: falling), arrested by a parachute before landing approximately 34 minutes after the fault. Right now that’s about as much detail on the actual event as has been released by Roscosmos and NASA. Press conferences have been mainly about being thankful that the crew is okay, assuring people that they’ll get to the bottom of this and kicking the can down the road on everything else.

Although it will likely take weeks before we know exactly what happened, the repercussions for this failure are immediate. The crew on the ISS will not be reinforced, and as there are only 3 up there right now with a single Soyuz capsule with which to return to Earth, there’s a chance they’ll have to leave the ISS empty for a short time.

The current crew was scheduled to return in December, but NASA has said that the Soyuz is safe to take until January 4, so there’s a bit of leeway. That’s not to say they can necessarily put together another launch before then, but if the residents there need to stay a bit longer to safely park the station, as it were, they have a bit of extra time to do so.

The Soyuz booster and capsule have been an extremely reliable system for shuttling crew to and from the ISS, and no Soyuz fault has ever led to loss of life, although there have been a few issues recently with DOA satellites and of course the recent hole found in one just in August.

This was perhaps the closest a Soyuz has come to a life-threatening failure, and as such any Soyuz-based launches will be grounded until further notice. To be clear, this was a failure with the Soyuz-FG rocket, which is slated for replacement, not with the capsule or newer rocket of the same name.

SpaceX and Boeing have been competing to create and certify their own crew capsules, which were scheduled for testing some time next year — but while the Soyuz issues may nominally increase the demand for these U.S.-built alternatives, the testing process can’t be rushed.

That said, grounding the Soyuz (if only for crewed flights) and conducting a full-scale fault investigation is no small matter, and if we’re not flying astronauts up to the ISS in one of them, we’re not doing it at all. So there is at least an incentive to perform testing of the new crew capsules in a timely manner and keep to as short a timeframe as is reasonable.

You can watch the launch as it played out here:

Grado takes the wraps off their first pair of wireless headphones

Legacy open-backed headphone maker Grado is taking their classic design into the future with the small Brooklyn company’s first pair of wireless headphones.

The GW100s have a familiar look, but integrate Bluetooth tech and volume controls. They go for $249.

Grado headphones are a favorite of mine; they have a very unique open sound that really resonates and are perfect for home listening. Previous iterations haven’t really thrived as much on the road or in noisy offices because they tend to let in a lot of outside noise and leak a lot of your tunes. The company says that they’ve redesigned the housings and internals of the GW100s to reduce noise leakage by 60 percent — no famed wooden enclosures on this design either.

Part of what’s great about Grado headphones is their history; we toured the company’s tiny Brooklyn HQ a few years back and took a look at their operations… really cool stuff.

It’s tough for a company to make do on just brand legacy alone, and even though audio tech generally has a much longer shelf life than other products, there’s always a time to adapt, especially now as more hardware makers purge headphone jacks from their devices.

In the past few years, the company branched out into some more mobile-friendly products, but the magic wasn’t all there. The wireless GW100s keep the company’s same drivers, though it’ll be interesting to hear what they sound like as the company tunes them to be more amenable to “on-the-go” listening. Speaking of which, they also look like they have a sturdier design than some of the company’s more spartan headbands, which were strangely kind of part of the appeal, but are definitely welcome for something more likely to be chucked in a backpack.

The headphones charge via micro-USB and offer a 15-hour battery life, the company says. They also pack an included 3.5mm cable if you want to use them with your old gear. More details on precise audio tuning are listed on its product page.

Copyright compromise: Music Modernization Act signed into law

Musicians are celebrating as the Music Modernization Act, an attempt to drag copyright and royalty rules into the 21st century, is signed into law after unanimous passage through Congress. The act aims to centralize and simplify the process by which artists are tracked and paid on digital services like Spotify and Pandora, and also extends the royalty treatment to songs recorded before 1972.

The problems in this space have affected pretty much every party. Copyright law and music industry practices were, as you might remember, totally unprepared for the music piracy wave at the turn of the century, and also for the shift to streaming over the last few years. Predictably, it isn’t the labels, distributors or new services that got hosed — it’s artists, who often saw comically small royalty payments from streams if they saw anything at all.

Even so, the MMA has enjoyed rather across-the-board support from all parties, because existing law is so obscure and inadequate. And it will remain that way to a certain extent — this isn’t layman territory and things will remain obscure. But the act will address some of the glaring issues current in the media landscape.

The biggest change is probably the creation of the Mechanical Licensing Collective. This new organization centralizes the bookkeeping and royalty payment process, replacing a patchwork of agreements that required lots of paperwork from all sides (and as usual, artists were often the ones left out in the cold as a result). The MLC will be funded by companies like Pandora or Google that want to enter into digital licensing agreements, meaning there will be no additional commission or fee for the MLC, but the entity will actually be run by music creators and publishers.

Previously digital services and music publishers would enter into separately negotiated agreements, a complex and costly process if you want to offer a comprehensive library of music — one that stifled new entrants to the market. Nothing in the new law prevents companies from making these agreements now, as some companies will surely prefer to do, but the MLC offers a simple, straightforward solution and also a blanket license option where you can just pay for all the music in its registry. This could in theory nurture new services that can’t spare the cash for the hundred lawyers required for other methods.

There’s one other benefit to using the MLC: you’re shielded from liability for statutory damages. Assuming a company uses it correctly and pays their dues, they’re no longer vulnerable to lawsuits that allege underpayment or other shenanigans — the kind of thing streaming providers have been weathering in the courts for years, with potentially massive settlements.

The law also improves payouts for producers and engineers, who have historically been under-recognized and certainly under-compensated for their roles in music creation. Writers and performers are critical, of course, but they’re not the only components to a great song or album, and it’s important to recognize this formally.

The last component of the MMA, the CLASSICS Act, is its most controversial, though even its critics seem to admit that it’s better than what we had before. CLASSICS essentially extends standard copyright rules to works created before 1972, during which year copyright law changed considerably and left pre-1972 works largely out of the bargain.

What’s the problem? Well, it turns out that many works that would otherwise enter the public domain would be copyright-protected (or something like it — there are some technical differences) until 2067, giving them an abnormally long term of protection. And what’s more, these works would be put under this new protection automatically, with no need for the artists to register them. That may sound convenient, but it also means that thousands of old works would be essentially copyrighted even though their creators, if they’re even alive, have asserted no intention of seeking that status.

A simple registry for those works was proposed by a group of data freedom advocates, but their cries were not heard by those crafting and re-crafting the law. Admittedly it’s something of an idealistic objection, and the harm to users is largely theoretical. The bill proceeded more or less as written.

At all events the Music Modernization Act is now law; its unanimous passage is something of an achievement these days, though God knows both sides need as many wins as they can get.

Improbable brings its massive multiplayer platform to Unity game engine

As battle royale games like Fortnite pit more players against each other, studios are starting to realize the potential of bringing a massive online audience together at one time. This ambition has always existed, but Improbable, a well-funded startup aiming to enable these vast online worlds, is looking to bring these experiences to more game developers.

Improbable has announced that it is bringing a game development kit for its SpatialOS multiplayer platform to Unity, a popular game development platform used to create about half of new video games.

Improbable has some pretty grand ambitions for multi-player gaming and they’ve raised some grand venture capital to make that happen. The London startup has raised just over $600 million for their vision to enable digital worlds with vast expanses of concurrent users. The company’s SpatialOS platform allows single instances of an online game to run across multiple servers, essentially stitching a world together with each server keeping an eye on the other, allowing for hundreds of users to see each other and their in-game actions translated in a persistent way on systems across the globe.

The company’s tech opens the door for a lot of game developers to become more ambitious. There are several developers who have released titles on the platform.

Today’s news is a major step for the company, leveraging the popularity of Unity with a lot of younger studios to enable easier MMO development on an engine that is very popular with a wide range of developers. SpatialOS was previously available in a more limited, experimental scope on Unity. It also supports some development on Unreal Engine and CryEngine.

With today’s release, developers building with SpatialOS can craft games that allow for up to 200 players. The game development kit gives developers multiplayer networking and some other related features to expand the playing field, or at least further populate it. Improbable’s involvement goes far beyond just facilitating a download; a game built for SpatialOS will be hosted on Improbable’s servers, where it can be maintained via its host of web tools.

TaxScouts wants to make filing your tax return a lot less tedious

TaxScouts, a U.K. startup founded by TransferWise and Marketinvoice alumni, is the latest online service designed to make filing your tax return a lot less tedious. However, rather than focusing on the bookkeeping part of the problem primarily tackled by cloud accounting software — which is often overkill if you are self-employed or simply earn a little additional income outside of your day job — the company combines “automation” with human accountants to help you prepare your tax submission.

“Doing taxes is either tedious when you have to do them yourself, or expensive when you hire an accountant,” says TaxScouts co-founder and CEO Mart Abramov, who was employee number 8 at TransferWise and also previously worked at Intuit, MarketInvoice and Skype. “We’re automating as much of the admin part of tax preparation as possible in our online app. We then connect you with a certified accountant who will take care of the entire tax filing process for you”.

The headline draw is that TaxScouts charges a flat fee of £99 if you pay in advance, and promises a turn-around of just 24 hours. To help with this, the web app walks you through your tax status, income and expenses without assuming too much prior knowledge. This includes asking you to upload or take a photo of any required documents, such as invoices or dividend certificates. The idea is that all of the admin is captured digitally and packaged up ready for your assigned accountant to take a look.

“As more of the menial tasks are handled by our app this allows accountants to focus on what they do best and not get stuck in admin,” explains Abramov. “They can focus on providing advice and expertise to make sure everything is done right. Our customers get both the benefits of getting a personal accountant and having a simple tool to manage it all, without the huge costs”.

Abramov tells me that TaxScouts’ typical customers are anyone who wants to have their self assessment done for them or who just wants help with tax preparation. This spans self-employed people — from construction workers to professional freelancers — entrepreneurs and company directors, and people who are entitled to some kind of tax relief or refund, such as investors on crowdfunding platforms. He also said that gig economy workers are a good fit.

Moving forward, TaxScouts plans to further develop the automation functionality, including plugging into more data sources beyond its existing integration with HMRC. Abramov says this could include a driver’s Uber data for tracking mileage claims, for example, while I can immediately see how the app could integrate with various fintech offerings that capture transactions and receipts.

To that end, the startup has raised £300,000 in “pre-seed” funding to continue building out the product. Backers include Picus Capital, Charlie Delingpole (co-founder of ComplyAdvantage and MarketInvoice), and Charlie Songhurst (former GM corporate strategy at Microsoft).

RIP “crypto”

RIP “crypto”. You had a good run.

This week veteran cryptographer Matt Blaze, finally gave in — to what must have been a near-constant, low-level drone of ‘CAn Buy Crypto.com???$$$$!’ spam — and sold the pithy domain name he registered in 1993, in the midst of the PC era crypto wars, to use as an encryption policy resource, to Monaco, a Zug, Switzerland-based payments and cryptocurrency platform startup whose self-styled mission is “accelerating the world’s transition to cryptocurrency”, positioning itself at the nexus of the current crypto craze.

So crypto.com now points to cryptocurrencies.

Which seems a fitting moment to say RIP “crypto” as shorthand terminology for an entire domain of cryptographic work that underpins so many more things than just Bitcoin or Ether or Ripple or Litecoin or Zcash — or any of the myriad digital coins that have winked (and more recently minted) into virtual existence over the last decade or so, hoping to hit the crypto jackpot.

Frankly this is not at all fair. But, linguistically, so it goes. Languages live or they die. And to live in linguistic terms means to shift your meaning as word usage ebbs and flows.

The sale of crypto.com tells us not so much that money talks, though clearly there’s that too — domain sellers were speculating that the price for crypto.com could have been a cool $5M-$10M, per this Verge report from March; though the actual price-tag paid by Monaco has not been disclosed.

Mostly it underlines that trying to push as an individual against a surging tide is hopeless. Principled, one-man-stands of linguistic resistance against the crypto(currency) craze are futile at this particular juncture of its technological development. Spam with no end in sight would worry the will of anyone.

So apologies also to the few folks who have written to complain about incorrect use of “crypto” in TC headlines. Using “cryptocurrency” is indeed more accurate if that’s what the story is about. But as a term it’s headline-unfriendly as well as being really quite a horrible mouthful.

And, well, “coin” is too generic unless you’re coin trade press.

Alternative linguistic confections — anyone for ‘cryptoc’? — were never going to fly. So cryptocurrency colloquially colonizing “crypto” was really only a matter of time, given how many joules of attention-energy are being claimed and drained in its name.

Turns out language change can have plenty to do with the price of Bitcoin.

On the flip side, any craze can be a fleeting thing, and it’s entirely possible that, in time, “crypto” could revert to its proper meaning of cryptography should the cryptocurrency hype die back, as hype is wont to do when people get bored — because something that was new and novel becomes properly understood and adopted (and thus less of a conversation starter).

Sustained acceptance can make tongue-tripping nicknames less necessary, and reset the linguistic order.

Equally, though, a nickname can stubbornly stick around for ages — outlasting any nonprofessional understanding of the logic underlying its coinage.

Or at least until evolving usage causes another terminology shift. Think, for example, of the rhythmic swings of “telephone” -> “phone” -> “mobile phone” -> “mobile”.

Crypto(currency) could ultimately even lose the ‘crypto’ prefix should the technology end up becoming so ubiquitous as to be considered synonymous with the generic term “currency”, and usurp/displace that word, sinking back into the accepted conceptual morass that envelopes the idea of money.

Of course the crypto(graphy) community have not been at all happy about the linguistic sands shifting treacherously under their foundational field.

And they do have a point, given that without their founding crypto there could be no, er, ‘crypto’…

“”Crypto” could mean encryption, cryptography, or cryptology, but never cryptocurrency,” one computing academic tells us, adding: “I’ve heard plenty of whinging about the changed meaning of “crypto” and I don’t expect a dignified fall-back.”

“Normal usage says “encryption” is only one application of “cryptography” (building schemes for encryption and similar apps) which together with “cryptanalysis” (trying to break such schemes) makes up “cryptology”,” he adds.

Certainly, don’t expect the original crypto community to migrate to alternative terminology — not willingly, and not anytime soon. Which will probably make for some confused messaging at times. But technology applying pressure points to human communications is just par for the course.

As recently as last month the content on Blaze’s (now former) website included the express declaration that: “This site does not trade in or provide services related to cryptocurrencies. It is concerned with cryptography, computer and network security, and technology policy research.”

It further capped that caveat with an explicit disclaimer — writing: “Warning: Many cryptocurrencies are scams, and I strongly advise against their use as investment vehicles.”

Visitors to crypto.com now will not encounter any such caveats. But most of these folks probably weren’t headed there looking for cautionary tales. Nor seeking Blaze’s contact details. So you really can’t blame him for moving with the times.

For the original crypto community, playing the long game and waiting for the upstart crypto usurper to get linguistically cut back down to size seems the best option.

Sure, they’ve lost this “crypto” war — but many more important crypto wars remain to be fought and (hopefully) won.

And of course, in the far-flung future, who knows how 2018’s crypto craze will be viewed? Perhaps as the pinnacle of a hype-cycle that didn’t end in the wholesale reconfiguration of business and society that the crypto oracles promise, even if they managed to shift the conversation of a certain IT crowd for a while.

On another level, given rising levels of tech-fueled disruptive uncertainty crisscrossing so many facets of life, perhaps it’s fitting for “crypto” to become something of a cipher itself, devoid of fixed meaning.

“Encryption technology is the key to the future of the information revolution,” wrote Blaze in 1996. “It allows businesses and individuals to communicate securely over any inexpensive communication platform without fear of eavesdropping.”

That sentiment at least remains constant.

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