SEC - Page 171

Reddit, the well-known social media platform, is currently under investigation by the Federal Trade Commission (FTC) of the United States concerning its practices of licensing data for the training of artificial intelligence (AI).

This probe surfaces as Reddit is on the brink of launching its highly anticipated initial public offering (IPO).

The company disclosed the FTC’s investigation in an updated Form S-1 registration statement to the U.S. Securities and Exchange Commission on March 15, 2024, following a notification from the FTC the previous day.

In the filing, Reddit expressed that the FTC’s inquiry did not come as a surprise, attributing it to the “unique nature” of its technology and business partnerships.

Despite this, Reddit maintains its stance of innocence, asserting it has not participated in any unfair or deceptive trade practices.

This investigation sheds light on the regulatory challenges Reddit faces amidst AI’s increasing integration and acceptance.

While the company is confident in its compliance with laws, it acknowledges the investigation’s potential to be drawn-out and unpredictable.

Reddit stated, “Any regulatory engagement may cause us to incur substantial costs, and it is possible for any regulatory engagement to result in reputational harm or fines, cause us to discontinue or modify our products, services, features, or functionalities, require us to change our policies or practices, divert management and other resources from our business, or otherwise adversely impact our business, results of operations, financial condition, and prospects.”

READ MORE: Shiba Inu (SHIB) Price Plummets 13% Amid Market Turbulence, On-Chain Data Reveals Speculative Trading Surge

A significant aspect of the situation is Reddit’s $60 million annual deal with Google, established in February, which allows Google access to Reddit’s vast user data for AI training purposes.

This agreement not only enhances the relationship between Reddit and Google but also gives Reddit more visibility on Google’s platforms in exchange for its valuable data.

The use of user data for AI purposes has sparked concerns among privacy advocates and regulatory bodies.

Reddit acknowledges in its filing that its data licensing efforts are in their infancy and could be affected by changing regulations.

Reddit has been proactive in its approach to AI and cryptocurrency, revealing investments in Bitcoin and Ether as part of its financial strategy in preparation for its IPO.

The company also mentioned acquiring Ether and Polygon for virtual transactions on its platform.

As Reddit ventures into AI and cryptocurrency, it aims to leverage the growing market for these technologies.

Citing forecasts by the International Data Corporation, Reddit pointed out that the global AI market, excluding China and Russia, is expected to reach $1 trillion by 2027, with a 20% compound annual growth rate.

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In the last 24 hours, the value of Pepe has experienced a significant drop of 17%, bringing its price down to $0.000007162, alongside a trading volume decrease of 20% to $1.54 billion.

This decline follows a period of gradual growth for Pepe, which hit a new all-time high (ATH) on March 14, before facing a sell-off in the meme coin sector.

After achieving a sharp increase that exceeded its prolonged consolidation range, Pepe’s price formed a bullish pennant pattern, usually indicative of potential continued upward momentum.

However, the price has recently seen a downturn within this pattern.

This was after hitting resistance at its ATH of $0.00001086, leading to bearish pressure that pushed the price toward Pepe Coin’s support level at $0.0000066.

Technical analysis shows Pepe’s price dropping below the 50-day simple moving average on the 4-hour chart, while bulls strive to maintain it above the 200-day SMA, now a key resistance level.

The Relative Strength Index (RSI) suggests a possible turnaround from the oversold condition, signaling a bullish outcome if momentum increases.

READ MORE: Hong Kong’s SFC Adds MEXC to Warning List Amid Crackdown on Unlicensed Crypto Exchanges

Despite facing resistance at its ATH, the presence of a bullish pennant hints at a potential price rebound and another bull run.

Nonetheless, if bearish trends persist, Pepe could fall to the pennant’s lower boundary at $0.00000661, or even further to a support zone at $0.00000389.

In parallel developments, the new virtual reality project, 5thScape, is nearing its $2.5 million funding target, with $1.45 million already secured.

This pioneering VR/AR mixed-reality platform aims to bring together leading minds and has promised to release several VR games compatible with popular headsets.

The project’s staking feature allows investors to earn rewards and access special features, supported by a liquidity pool that’s expected to grow with increased player engagement.

Crypto analyst Michael Wrubel has expressed optimism about 5thScape, predicting significant growth potential post-launch.

With the 5SCAPE token priced at $0.00215, investors are encouraged to act quickly before the price increases to $0.00248 in just over six days.

To participate in the presale, transactions can be made with ETH, MATIC, USDT, BNB, or directly with a bank card on the official website.

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The pending spot Ether ETF applications have an 85 percent chance of being approved by the SEC in May, according to an analysis by My Betting Edge.

The analysis is restricted to the current pending Ether ETF applications in the US, and does not cover future applications that may be filed.

My Betting Edge also emphasized that these percentage odds are for at least one of the ETFs being approved, not all of them.

In early February, the U.S. Securities and Exchange Commission (SEC) postponed making a decision regarding a proposed spot ether (ETH) exchange-traded fund (ETF), a collaboration between Invesco and Galaxy Digital.

The new financial product aims to offer professional investors a direct avenue to invest in spot ether, providing an alternative to the current method of investment through ether futures listed on the Chicago Mercantile Exchange (CME), which has been one of the few options for regulated investors and funds in the U.S. to invest in the growth of Ethereum.

James Seyffart, an analyst at Bloomberg Intelligence, commented that the postponement by the SEC was anticipated.

Earlier in January, the SEC had also deferred its decision on a similar application by Grayscale Investments, which sought to transform its Ethereum trust product (ETHE) into an ETF, as well as on an application for an ether ETF by BlackRock.

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Shiba Inu, the meme-inspired cryptocurrency, has recently witnessed a significant surge in interest from large investors or “whales.”

These major players are often known for their strategy of buying up assets during downturns, and current trends suggest they are actively accumulating SHIB tokens.

Data from IntoTheBlock reveals an astonishing 602% increase in net flows from these large holders, indicating a pronounced buying spree coinciding with a recent drop in SHIB’s price.

Over the last 48 hours, Shiba Inu’s value has fallen, marking its second day of decline amidst a broader downturn in the cryptocurrency market.

This market-wide slump was influenced by a robust inflation report, leading to speculation that the Federal Reserve might delay any cuts to interest rates.

As a result, Bitcoin and other cryptocurrencies faced downward pressure, with SHIB experiencing a 6.20% decrease to $0.00002722.

This downturn extends its fall from a high of $0.0000327 on March 15, following an earlier peak of $0.000045 on March 5. Since then, SHIB has entered a phase of consolidation, trading within a specific price range.

Analysts point out the critical price range for Shiba Inu to maintain is between $0.000026 and $0.000033.

READ MORE: Trader Misses $1 Million Jackpot by a Day in Frog-Themed Memecoin Frenzy on Solana Network

This range is significant because 4,210 addresses purchased 61.06 trillion SHIB tokens at an average price of $0.00003 within it.

Below this zone, support is considerably thinner, with 9,100 addresses having bought 2.57 trillion tokens between $0.000025 and $0.000026.

The rapid rise of Shiba Inu at the start of March did not allow much time for establishing strong support levels in its current trading range.

The most substantial support for SHIB is found between $0.000008 and $0.000014, a zone where 439,510 addresses acquired 260.48 trillion tokens at an average price of $0.000010.

As the market watches closely, the immediate future for Shiba Inu likely involves continued consolidation or range-bound trading, setting the stage for the next significant price movement.

The actions of large holders and their continued interest in accumulating SHIB during its price dips underscore the dynamic nature of cryptocurrency markets and the strategic maneuvers of significant investors.

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The Dubai International Financial Centre (DIFC), renowned for being a unique economic hub with over 5,000 inhabitants, has recently unveiled significant legislative advancements.

These include the introduction of a pioneering digital assets law, a comprehensive security law, and modifications to pre-existing legislation.

Embedded within its own legal framework that draws from English law, the DIFC’s legislative reforms are strategically designed to align with the swift evolution seen in global trade and financial sectors.

These changes aim to offer legal clarity for both investors and users involved with digital assets.

In an official statement, the DIFC underscored the importance of these legislative updates in providing legal certainty in the rapidly evolving digital landscape.

Jacques Visser, the Chief Legal Officer at the DIFC Authority, highlighted the significance of these reforms by stating, “We consider this legislation to be groundbreaking as the first legislative enactment to comprehensively set out the legal characteristics of digital assets as a matter of property law.”

The newly introduced Digital Assets Law encompasses seven pages, supplemented by appendices, marking a comprehensive approach towards regulating digital assets.

Although the law amending several previous legislations to incorporate digital assets is noted, it wasn’t accessible online at the announcement time.

READ MORE: Bitcoin Dips Below Weekly Lows Amid Market Optimism, Traders Eye Bullish Trends Despite Pullback

Furthermore, the introduction of the Security Law 2024, which supersedes the 2005 law and its 2019 update, reflects a robust framework that integrates Financial Collateral Regulations.

This law is crafted in the spirit of the United Nations Commission on International Trade Law’s Model Law on Secured Transactions, ensuring alignment with global best practices.

The DIFC has also been proactive in refining its cryptocurrency regulations in 2022 and initiated incentives for AI and Web3 companies in 2023.

Demonstrating remarkable financial health, the DIFC reported a net profit of $203 million in 2023, marking a 45% increase from the prior year, alongside a 34% surge in new registrations.

This growth trajectory is further enriched by the diversification of its ecosystem, including a notable rise in hedge fund operations and an expansion of businesses from Europe and the United States.

While the DIFC’s Digital Assets Law is positioned as an innovative legislative move, it’s important to acknowledge that other jurisdictions, including China, Singapore, and Hong Kong, have also recognized digital assets as property through judicial decisions in the preceding year.

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