Easier Said Than Done
Good News for Apple
Netflix's plan to cut down on password sharing isn't going so well. According to subscribers in the test regions of Costa Rica, Chile, and Peru, the policy is confusing and the streamer’s enforcement is lax.
The Point: Netflix is cracking down on rampant password sharing after years of turning a blind eye. But with subscribers fleeing the service, what looked like an easy fix is getting complicated. Users say they haven't been charged the additional $2.99 fee for sharing their accounts and claim the policy is "confusing." It's no surprise to see a company struggle with a strategic pivot. That's why significant changes roll out in test markets first. Netflix still has months to get this right, but given how much they've got riding on the change, it's a situation worth monitoring.
DeFi app Mirror Protocol has been exploited for almost $100 million. $90 million of that was taken in a breach that went unnoticed since October. A second flaw was identified on Monday that has allowed an additional $2 million to be drained from the protocol.
The Point: Mirror is a DeFi app built on the original Terra blockchain that allows users to trade tokens that track stock prices. When someone uses Mirror to bet against a stock, they have to post collateral. Unfortunately, a bug in Mirror's code allowed users to unlock more collateral than they posted. For the details, click here. DeFi has the potential to revolutionize finance, but it's going to take time. In these early days, there's little standing in the way from buggy code making its way into the wild. As always, only risk what you can afford to lose.
Foxconn, the company that assembles iPhones, said production has fared better than expected throughout China's most recent Covid-19 lockdowns.
The Point: That's a relief. Apple was worried enough about the impact on production that it warned investors it could take an $8 billion sales hit in the third quarter. While it's obviously good news for Apple, it's also encouraging for the broader market. Part of the reason stocks have been selling off is because of factory shutdowns in China. So if the worst-case scenario didn’t come to fruition, a rebound in stocks might be in store.
Japanese banking giant SBI Holdings is setting up a joint venture to create programmable money. Working with the New York-based company Digital Asset, SBI wants to bring smart money to Japan.
The Point: Programmable money is a loosely defined term. Central Bank Digital Currencies (CBDCs) are one example. Tokens that support smart contracts can also be grouped under that umbrella. Details are sparse, but what SBI and Digital Asset are working on sounds like a hybrid of the two. They're tentatively calling the concept the "Smart Yen." That could mean the token's value will be pegged to the Japanese currency. But, obviously, it won't be a CBDC since the Bank of Japan won't be the issuer. So while CBDCs are inevitable, SBI's announcement clearly indicates that private industry isn't waiting for Central Banks to act first.
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