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Profile: Cloud-native storage speed and enterprise smarts key for StorageOS Blocks and Files – Blocks and Files

StorageOS supplies software-defined, cloud-native storage like many other suppliers. It says what sets it apart is its focus on speed, scale and enterprise features.

The company is based in Farringdon, London, UK, and was started up in 2015 by CEO Alex Chircop, Vice President of Engineering Simon Croome, and initial CEO Chris Brandon. The company began with $2 million in seed funding and had an $8 million A-round of VC funding in 2018 plus a $10 million B-round earlier this year.The investors are Bain Capital, Chestnut Street Ventures, Downing, MMC and Uncorrelated Ventures, and the total funding to date is $20 million.

Brandon, now based in New York, had a storage technology and data centre background at EMC then BMC. Later he was at Xsigo (which was acquired by Oracle), then moved to GreenBytes and then Oracle (which promptly acquired GreenBytes). He left StorageOS in late 2019 to become a CTO in residence at AWS.

Chircop and Croome both had experience at Nomura, with Chircop going on to Goldman Sachs (serving as its Global Head of Storage Platform Engineering) and Gazprom. Croome is a specialist in agile delivery of Unix infrastructure and DevOps concepts, and led global engineering teams at Fidelity and Nomura.

StorageOS has about 30 staff, most of whom are engineers.

Chircop, Croome and Brandon saw that big enterprises code development was moving to containers, and that stateful containers needed storage preferably software-defined and cloud-native storage. Thats what StorageOS has developed: a software-defined, cloud-native storage platform for containers.

Chircop says shared external arrays simply arent working in the Kubernetes environment. People want an agnostic storage setup, not lock-in, so StorageOS is platform-agnostic and ships as a container. Its also faster and more versatile than external arrays. It can run in the cloud, for example. He says We have some unique IP and features, and is happy to list them:

StorageOS provides a storage container presenting a pool of virtual volumes to application containers. These volumes are mapped onto physical drives NVMe SSDs for example. You can download a platform architecture document to look deeper into the products design.

StorageOS wouldnt disclose its customer count, but says that more than 5500 StorageOS clusters are installed globally. Example customers include Accenture, DHL, Lloyds Bank and T-Systems.

One UK ISP customer is building an IaaS offering based on Kubernetes and Storage OS. Virtual machines are launched with Kubernetes, with Chircop pointing out that Kubernetes is agnostic about what it launches.

Chircop says there are two big trends:

For example, a traditional app could produce a bunch of files. A new Kubernetes app could provide analytics routines, and they need to process the data in these files. There needs to be some kind of bridge facilitating that access.

Chircop also revealed that StorageOS is planning to launch commercial and technical products later this year.

StorageOS is competing with a whole string of suppliers producing storage software for Kubernetes-orchestrated containers: Commvaults Hedvig, Dell EMCs Project Karavi, HPE Ezmeral, Ionir, MayaDatas OpenEBS Mayastor, NetApp Astra, Pure Storages Portworx, Robin.IO with its $86 million in funding, SUSE Rancher and others.

StorageOS is making progress with sales to enterprise customers. It has to hope that the enterprise IT infrastructure development coalface experience of its founders which is guiding its development and business strategy outweighs the attractions of competitors who lack it.

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Google Photos alternatives: Some of the best free options [Video] – 9to5Google

Now that Google Photos no longer offers free unlimited storage for your images and videos, you might be on the lookout for an alternative. After trialing a number of options, here is our shortlist of the best free Google Photos alternatives.

The biggest downside is that if youre hoping for an alternative that offers anything close to the seamless Google Photos experience without any sort of cost, then prepare to have your expectations tempered. While weve been spoiled simply by how good Google Photos is, in reality, it probably couldnt have stayed free forever.

A simple solution to your problem is to just bite the bullet and opt for the 100GB Google One plan and ensure you dont have to switch. Google One offers some neat benefits, including smartphone backups and even some perks from time to time like a free Nest Mini or YouTube Premium subscription.

If you dont want to part with any cash, then weve done our very best to find some alternative solutions. Be warned, the 15GB of free storage that comes with a Google account still trumps many of these alternatives, and to get the most from the rival services you might need to hand over money in much the same way as with the Google One service.

Note: Pricing and storage information correct as of July 2021.

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The only outright replacement for Google Photos relies heavily on a yearly subscription. However, if you are already subscribed to Amazon Prime, then Amazon Photos is the way to go. In a similar vein to that of a Google One subscription plan, youre not just getting a place to store all of your photos, the perks of Amazon Prime are also a big reason that you might want to check this out if you havent done so already.

One major sore point is that while photo storage is technically unlimited, cloud storage for video is capped at just 5GB. If you record at full HD resolution or above, you might run into problems, which means that this Google Photos alternative is best for people only wanting to store photos rather than mixed media. Should you end your Amazon Prime subscription, youll also need to find an alternate place to store all of your media too. That said, all accounts can take advantage of 5GB of free storage.

A big bonus is that you can use the Amazon Photos app on your Android or iOS to automatically back up your camera roll in much the same way as the Google Photos app. It goes a step further by allowing you to connect your PC or Mac, too, making it even easier to back things up to the cloud.

If youre a Windows 10 user, then you might already use OneDrive. Every account gets 5GB of free storage right out of the gate. Sure, its not exactly the greatest, but its a way to backup and even transfer files between your devices without too much hassle.

5GB is not very much, but its a starting point and another option to choose from when you want to store some of the files on your smartphone. Being able to sync directly with Windows 10 thanks to the OS integration, Microsofts service is a very good option that actually performs really well.

Kudos to Microsoft on the quality of the OneDrive Android app too. Its slick, clean, and provides a sensible layout for your files with added features like an encrypted Vault for any of your important files. The integration with other Microsoft suite products is also another key reason that OneDrive stacks up as a Google Photos alternative.

Flickrs 1,000 photo free storage tier doesnt sound like much compared to the original 1TB of free storage that ended in 2019. It might just be enough for sporadic photographers who just want a place to store your full-resolution images. The impressive sharing capabilities is one of the core reasons why you might choose to store some of your best images on Flickr rather than Google Photos.

The company claims that around 97% of its users have less than 1,000 photos on Flickr. A Pro tier allows you to have unlimited storage for $60 per year, which is the outright best deal for hardcore photographers as Flickr does not place limits on image file size.

Another option that, like Amazon Prime, might be useful if you already subscribe to the Adobe Creative Cloud or a specific application package. Make no mistake, Adobes cloud storage platform is very expensive if you do not use any of the extensive suite of applications as part of the Creative Cloud plan.

As just an alternative Google Photos option that you can access and havent already tried or used your free 100GB cloud locker. That sizeable allowance is only available as part of the $52.99-per-month plan that includes all Adobe software.

One of the very earliest free cloud storage options from way back in the early 2000s and while it still has a place, the free account now feels very, very stingy with a 2GB cap. If youre not willing to spend any money, then Dropbox isnt a great competitor to Google Photos.

That said, while a paltry allowance by 2021 standards, 2GB for free, is still 2GB of space to slap a few hundred photos. The Dropbox app includes some neat features like a PDF/document scanner. Unfortunately, some features including the password sync and password protected storage requires a Pro or premium account.

For $9.99 per month, you do gain 2TB of cloud storage and those aforementioned features. That is quite a substantial amount of online storage for $120 per year.

A slightly lesser-known alternative to Google Photos with a sizeable free storage option is Degoo. 100GB is a very good allowance for all of your photo storage needs and it lets you sign in to your Google account which is a nice bonus.

The app isnt that great, but Degoo offers unlimited file size uploads with no quality reduction. Heres a big bonus, for every single friend you refer, youll get an extra 5GB of free storage up to 500GB. A downside is that there are intermittent ads, plus youre limited to three devices and your account can be closed after 90 days of inactivity, which might be enough of a compromise for people wanting an extra free photo and file storage option.

500GB of monthly storage is cheap at just $2.99 per month. That paltry pricing removes ads, increases referral bonuses to 10GB per friend who joins up to 1,000GB, and ends the 90-day login requirement.

Regardless of your thoughts of the people behind Mega, the fact is that it usurps the free storage with a Google account by 5GB. 20GB (upped to 25GB with a sign-up bonus) of storage is available to all users, but there is some other features that simply dont exist on the other Google Photos alternatives.

An encrypted messenger is included, with file sharing and collaboration tools available that might prove useful if a little out of place. Mega is better suited to people wanting to share their files with friends and colleagues but does provide plenty of space to store your Google Photos library of photos and videos.

TeraBox is an outside option for online storage but touts a frankly questionable 1TB of free online storage for your photos and files. This does fire off some security concerns areas in our minds, but the app may be using this as a way to pick up Google Photos users looking for an alternative place to store massive libraries. 1024GB of online space is likely going to be enough to keep people happy for a long, long time.

While the storage allowance is fairly sizeable, we would not suggest putting sensitive files or important files on TeraBox servers. The upload speeds are fine, but download speeds are fairly slow and sometimes a little shaky. Even so, we didnt want to gloss over TeraBox as it might provide people with a high-volume free Google Photos alternative with some caveats.

Do you already have a hard drive laying around or plenty of space on your PC or laptop? Well, if you do, kiss the cloud goodbye and get back into local backups. In all honesty, this might be the best idea if you have thousands upon thousands of images and videos. The upside is that you can expand your storage at any point, the downside is that this comes with an associated cost.

However, a 4TB external drive can be picked up for under $100 and will provide more than enough space for thousands of high-resolution images and even hundreds of 4K UHD video clips and files. The process is a little slower and requires a PC or laptop for the transfer procedure, but provided you keep your drives offline, its actually one of the safest ways to store all of your personal memories and files.

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IDrive Photos is Now Faster and More Portable than Google Photos, Flickr and others – PRNewswire

LOS ANGELES, July 8, 2021 /PRNewswire/ -- IDrive Backup has made enhancements to IDrive Photos, now offering possibly the fastest and mostaffordable, original resolution, unlimited photo/video cloud backup app available for iOS and Android, enabling users to back up their entire mobile photo galleries in minutes.

Raghu Kulkarni, CEO at IDrive Inc, said that the performance comparison was made at various locations using multiple devices, and IDrive Photos outperformed all other services at most locations and for most ios and android devices. IDrive Photos is also one of the few services that offers the ability to restore the entire photos and videos backup to another mobile device with one click making it more portable than other services.

With these improvements, IDrive is ensuring that users can quickly protect all of their precious memories that are stored on their mobile devices.

Since the majority of people carry their phones with them at all times and like to document their lives through photos and videos, storing these files in a secondary location is a necessity just in case their device is no longer accessible. With IDrive Photos, users will have peace of mind that all of their photos and videos are stored securely in the cloud and ready to be recovered.

Unlike competing photo backup services, IDrive Photos offers unlimited, full resolution storage space so users don't have to pick and choose which photos and videos they want to back up. All of this comes at a price of just $9.95/year. New users can sign up directly on the IDrive website and get a 90% off first year discount for just 99 cents for a whole year!

Along with performance improvements, IDrive Photos now has enhanced sharing with ability to choose multiple files for sharing, better web based options to view and share.

Here is a summary of current feature-set for IDrive Photos:

To get started with IDrive Photos, new users have to just download the application on their iOS or Android device, create an account and sign-in, and allow access to all the photos and videos on the device to enable automatic backup.

About IDrive IDriveInc. is a privately held company specializing in cloud storage, online backup, file sharing, remote access, compliance and related technologies. Core services include IDrive, RemotePC and IBackup.

SOURCE IDrive Inc.

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Cloud Computing In India – The State Of Play And What’s Next – Privacy – India – Mondaq News Alerts

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Cloud computing allows users to access and work with data storedon remote networks. The client side front end infrastructure(laptops/desktops, etc.), connect to backend cloud storage,applications, and services that may be hosted in cloud farms orserver farms across the world. The growth of high speed Internetaccess and advances in data storage and retrieval technologies hasled to cloud computing becoming the service model of choice forboth business critical services, like banking and payments, as wellas non-critical ones like online gaming.

Since late 2019 Indian regulators are, once again, examining theneed to regulate the cloud. This State of Play update examines theregulations currently applicable to cloud service providers inIndia, and how the local regulatory landscape is evolving.

There is no overarching law at present on providing cloudservices in India. No local license is needed to provide cloudservices, specifically. Cloud services can be provided in India ona cross-border basis. A foreign cloud service provider is notrequired to incorporate a local entity, procure any operationallicenses, appoint local employees, etc., to offer cloud services tocustomers in India. There is also no restriction or foreigninvestment for setting up cloud operations in India.

A locally incorporated cloud service provider, would be subjectto compliances under Indian law pertaining to corporate matters,tax, labour, etc. These licenses/ compliances are linked to theday-to-day operations of Indian companies and not specifically tothe provision of cloud services. In addition, even an offshorecloud services provider is subject to data privacy and accesscompliances, as shown below.

Indian and foreign cloud service providers are subject tocompliances under the Information Technology Act, 2000("IT Act") and corresponding rules ondata privacy and law enforcement access.

Originally published November 1, 2020

The content of this article is intended to provide a generalguide to the subject matter. Specialist advice should be soughtabout your specific circumstances.

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Data Protection refers to the set of privacy laws, policies and procedures that aim to minimise intrusion into one's privacy caused by the collection, storage and dissemination of personal data. Personal data generally refers to the information or data which relate to a person who can be identified from that information or data whether collected by any Government or any private organization or an agency.

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Google Cloud ties up with AI Singapore on skills training – ComputerWeekly.com

Google Cloud has teamed up with Singapores national artificial intelligence (AI) programme to build up the countrys talent pool in machine learning and AI.

Under AI Singapores nine-month apprenticeship initiative, budding AI engineers will undergo two months of intensive training followed by hands-on experience in real world projects.

These projects include those that have been spearheaded by AI Singapores 100 Experiments initiative to solve problems for businesses through AI, and to support the growth of local AI start-ups.

With the partnership between Google Cloud and AI Singapore, companies will have the opportunity to use Google Clouds AI and machine learning services to produce minimal viable products, with half of the project costs co-funded by AI Singapore.

One Singapore start-up that has benefitted from AI Singapores programmes and its partnership with Google Cloud is Oceans.ai. The company has built an asset inspection platform that uses drones and robotics to identify defects in industrial equipment, such as those used by the oil and gas industry.

Weve built a basic inspection and reporting platform, using Firebase and Google Cloud services like the Cloud Run engine and cloud storage, said Vinod Govindan, founder and managing director of Oceans.ai, adding that the company is now building an AI engine to identify asset defects using drone imagery.

Govindan said using Google Cloud has enabled it to speed up development time, along with the flexibility to build front-end applications using Firebase. Once the AI engine is developed, we expect to use Kubernetes and some AI components in the Google Cloud platform in our deployment, he added.

So far, Oceans.ais platform has been able to reduce the time taken by its clients to complete their asset inspection work by 30-50%. This can be slashed by another 30% using the AI engine, Govindan said.

Laurence Liew, director for innovation and maker space at AI Singapore, said the partnership with Google Cloud is not exclusive, adding that there are projects in the 100 Experiments initiative which run on Amazon Web Services and Microsoft Azure.

That said, Liew noted that the Google partnership is a natural extension of the work that AI Singapore is already doing with cloud providers and will attract more companies to the 100 Experiments programme and the Google Cloud platform.

Google Cloud has been touting its AI capabilities for some time now as it competes with other cloud suppliers for a slice of the public cloud market.

We have an open-source methodology and weve been dealing with AI for a long time, said Paul Wilson, managing director for public sector at Google Cloud Asia-Pacific. We've really developed AI all the way up to the silicon layer with our TPUs [tensor processing units].

Google Cloud has been maintaining its growth momentum, benefiting from its Google One approach of driving cross-sell and integration opportunities across its portfolio.

Overall, it grew 56% in the first quarter this year to account for a 7% market share, according to market data from Canalys, which noted that cloud-native development and cloud migration among Google Cloud customers has been boosted by the companys focus on industry-specific solutions, machine learning, analytics and data management.

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Know Cloud Storage Software Market Compound Annual Growth Rate (CAGR) is increasing in upcoming year? The Manomet Current – The Manomet Current

Outlook of Cloud Storage Software Market:

The Cloud Storage Software market report studies vital factors about the Cloud Storage Software that are essential to be understood by existing as well as latest market players. The report highlights the essential elements such as market share, profitability, production, sales, manufacturing, advertising, key market players, regional segmentation, and many more crucial aspects related to the Global Cloud Storage Software market.

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Top Manufacturer Detail Amazon Web ServicesMicrosoftIBMHPEOracleDell EMCNetappGoogleVMwareCA TechnologiesRackspace HostingRed HatHitachi Data SystemsHuawei Technologies

The world, millions of people worldwide were infected with COVID-19 disease, and major countries around the world have implemented foot prohibitions and work stoppage orders. Except for the medical supplies and life support products industries, most industries have been greatly impacted, and Cloud Storage Software industries have also been greatly affected.

Product Type Segmentation of Cloud Storage Software MarketPrivate CloudPublic CloudHybrid Cloud

Major Applications of Cloud Storage Software Market-BFSIGovernment & EducationHealthcareTelecom & ITRetailManufacturingMedia & EntertainmentOthers

The report is segmented as follows:

By Region/Country including:

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Market Strides is a Global aggregator and publisher of Market intelligence research reports, equity reports, database directories, and economic reports. Our repository is diverse, spanning virtually every industrial sector and even more every category and sub-category within the industry. Our market research reports provide market sizing analysis, insights on promising industry segments, competition, future outlook and growth drivers in the space. The company is engaged in data analytic and aids clients in due-diligence, product expansion, plant setup, acquisition intelligence to all the other gamut of objectives through our research focus.

Our pre-onboarding strategy for publishers is perhaps, what makes us stand out in the market space. Publishers & their market research reports are meticulously validated by our in-house panel of consultants, prior to a feature on our website. These in-house panel of consultants are also in charge of ensuring that our website features the most updated reports only.

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Know Cloud Storage Software Market Compound Annual Growth Rate (CAGR) is increasing in upcoming year? The Manomet Current - The Manomet Current

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Global Cloud Storage Software Market 2021: Key Players, Industry Insights and Dynamics, Growth and Supply Chain Analysis 2026 The Manomet Current -…

The latest report, Global Cloud Storage Software Market 2021 by Company, Regions, Type and Application, Forecast to 2026 is analyzed and studied on the basis of a comprehensive analysis of the global market. The report focuses on major aspects associated with the market involving market segmentation, geographical segmentation, market dynamics, and other market growth factors. The report delivers a detailed analysis of distinguishable strategies for industrial growth that will help to determine commanding segments and know distinct factors. Scope of different segments and applications that can potentially influence the global Cloud Storage Software market in the future has been analyzed further in the report.

The report presents a comprehensive analysis of the market and contains thoughtful insights, facts, historical data, and industry-validated market data. The research report provides analysis and information according to global Cloud Storage Software market segments such as geographies, application, and industry by considering major players. The report is a detailed guide to understand several factors that play a vital role in growth progression. It contains internationally approved market evaluation guidelines that play vital roles in the growth of spreading information.

NOTE: Our report highlights the major issues and hazards that companies might come across due to the unprecedented outbreak of COVID-19.

DOWNLOAD FREE SAMPLE REPORT: https://www.marketquest.biz/sample-request/91002

Top key vendors in the market include:

Major product types covered are:

Major applications of the market covered are:

Different global regions covered by global Cloud Storage Software market report includes:

The study also includes a detailed analysis of market drivers, restraints, technological advancements & competitive landscape along with various micro & macro factors influencing the market dynamics. This study aims to describe the upcoming market trends and earnings forecasts in the global Cloud Storage Software market for the 2021 to 2026 forecast years. The overall study is designed to provide clarity on the structure of the report and some data points demonstrated in an attempt to determine insights into the study quality.

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The report highlights an executive summary of global Cloud Storage Software market evolution. In accordance with a competitive prospect, this report analyzes current market performance along with technological advancements, business abstract, strengths and weaknesses of market position, and hurdles crossed by the leading market players to gain leading position.

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This report can be customized to meet the clients requirements. Please connect with our sales team (sales@marketquest.biz), who will ensure that you get a report that suits your needs. You can also get in touch with our executives on +1-201-465-4211 to share your research requirements.

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Silk gets $55M to supercharge databases in the cloud Blocks and Files – Blocks and Files

The rebranded and refocused Kaminario all-flash array business has raised $55 million to accelerate its sales and marketing efforts and expand engineering development.

Silk is the July 2020 public rebrand of all-flash array vendor Kaminario, which has ported its array software to the cloud AWS, Azure and GCP and provided sparkling performance there (and here too.)

CEO Dani Golan said in an announcement: The cloud vendors are now beginning the fight over customers databases and other mission-critical crown jewels. To win this fight, they need to guarantee that customers will meet their own end users SLAs, by enabling prime scalability and performance of their mission-critical applications. Having this capital allows us to bring the vision [of] accelerated cloud adoption to a wider audience.

S Capital led the investment round, which it calls a B-Round (more on that below), with participation from existing investors including Sequoia Capital, Pitango, Globespan, Ibex, and Vintage, and new investors including Clal Insurance, Bank Hapoalim, Meitav Dash and Menora Mivtachim.

Silk said the round is a testimonial to its exponential growth, against a background of demand for cloud environments rising rapidly in the wake of the COVID-19 pandemic.

Silk says it is a database supercharger its software sits between the public cloud infrastructure and the customers database, and makes cloud environments run 10x faster and the entire application stack more resilient to any infrastructure hiccups or malfunctions. It claims the speed increase makes the cloud database faster than the same database running on-premises.

Silks Azure cloud speed is based on using ephemeral OS disks as explained here.

The company is a Microsoft Azure IP co-sell incentivised partner,an AWS ISV technology partner, and a GCP partner.

Kaminario became Silk in July 2020, and the overall Kaminario/Silk entitys funding history, as we have recorded it, looks like this:

We have no record of any funding for Silk since it came into being in July 2020, before todays round. Logically then, this B-round could be a Silk-only B-round. But that could only be true if, first, there has been a Silk-only A-round (of which there is no record) and second, you ignore previous Kaminario funding rounds. If you dont then this Silk B-round is actually the overall Kaminario-Silk entitys G-round.

We have asked Silk to clarify the funding round nomenclature. A Silk spokesperson told us: Silk was founded in 2019, andthe first round, which happened at founding, was $35 million. This new second (oversubscribed) round is for $55 million.

That $35 million round in 2019 was news to us and is, logically, a Silk-only A-round. Total Kaminario-Silk funding now stands at $313 million, while Silk-only funding totals $90 million.

The journey from being an all-flash array vendor, to a software-defined flash array vendor, to a public cloud database storage accelerator, has been long and hard. To be experiencing exponential growth now, after two strategy pivots, must be seriously satisfying not least because of the potential for future growth.

We note that Silk, marketing itself as a cloud database accelerator, has neatly differentiated itself from other all-flash array vendors with a cloud software presence.

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Cryptocurrency Seeks the Spotlight, With Spike Lees Help – The New York Times

Some celebrity endorsements of cryptocurrencies have run into trouble. In 2017, the Securities and Exchange Commission cautioned that some famous people were hyping the virtual currency sales known as initial coin offerings without disclosing that they had been paid to promote them. The commission has since settled charges against the boxer Floyd Mayweather Jr., the music producer DJ Khaled and the actor Steven Seagal.

Social media influencers and e-sports stars have also been linked to shady cryptocurrency schemes, accused of pumping up coins just before their value crashes.

Coin Clouds chief marketing officer, Amondo Redmond, said he hoped Mr. Lees stature would help elevate the industry by delivering something more than just cool creative, but that is really at the forefront of digital currency becoming mainstream.

Its more than just adding a celebrity face, he said.

Mr. Lee, who won an Oscar in 2019 in the best adapted screenplay category for BlacKkKlansman, has worked on ads for Capital One, Uber and, most famously, Nike. In the 1980s and 1990s, he directed and starred in commercials for Air Jordans, playing his cinematic alter ego Mars Blackmon opposite Michael Jordan.

That was lightning in a bottle, Mr. Lee said from a flight bound for the Cannes Film Festival, where he is the first Black person to lead the festival jury.

He declined to say how much he had been paid for the Coin Cloud commercial, but noted that if anyones known my body of work over the last four decades, you kind of know about the way I see the world, and when they approached me, it fit in line.

As the coronavirus pandemic continues to highlight financial disadvantages for people of color, Mr. Lee hopes to promote cryptocurrency as neutral to race, gender, age and other identifying characteristics.

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Why tether, the worlds third-biggest cryptocurrency, has got economists worried – CNBC

The Tether price displayed on cryptocurrency exchange Kraken's website.

Tiffany Hagler | Bloomberg via Getty Images

Tether is the third-biggest cryptocurrency in the world by market value. And it's got some economists including an official at the U.S. Federal Reserve worried.

Last month, Boston Fed President Eric Rosengren raised the alarm about tether, calling it a potential financial stability risk. Meanwhile, some investors believe a loss of confidence in tether could be crypto's "black swan," an unpredictable event that would severely impact the market.

The issues surrounding tether hold significant implications for the nascent cryptocurrency world. And economists increasingly fear that it could also impact markets beyond digital currencies. Here's what you need to know:

Chances are you've heard a thing or two about bitcoin. But what about tether?

Like bitcoin, tether is a cryptocurrency. In fact, it's the world's third-biggest digital coin by market value. But it's very different from bitcoin and other virtual currencies.

Tether is what's known as a stablecoin. These are digital currencies that are tied to real-world assets the U.S. dollar, for example to maintain a stable value, unlike most cryptocurrencies which are known to be volatile. Bitcoin, for example, rose to an all-time high of nearly $65,000 in April and has since almost halved in value.

Tether was designed to be pegged to the dollar. While other cryptocurrencies often fluctuate in value, tether's price is usually equivalent to $1. This isn't always the case though, and wobbles in the value of tether have spooked investors in the past.

Crypto traders often use tether to buy cryptocurrencies, as an alternative to the greenback. This essentially provides them with a way to seek safety in a more stable asset during times of sharp volatility in the crypto market.

However, crypto isn't regulated, and many banks avoid doing business with digital currency exchanges due to the level of risk involved. That's where stablecoins tend to come in.

Some investors and economists are worried tether's issuer doesn't have enough dollar reserves to justify its dollar peg.

In May, Tether broke down the reserves for its stablecoin. The firm revealed that only a fraction of its holdings 2.9%, to be exact were in cash, while the vast majority was in commercial paper, a form of unsecured, short-term debt.

That would place Tether in the top 10 biggest holders of commercial paper in the world, according to JPMorgan. Tether has been compared to traditional money-market funds but without any regulation.

With more than $60 billion worth of tokens in circulation, Tether has more deposits than that of many U.S. banks.

There have long been concerns about whether tether is being used to manipulate bitcoin prices, with one study claiming the token was used to prop up bitcoin during key price declines in its monster 2017 rally.

Earlier this year, the New York attorney general's office reached a settlement with Tether and Bitfinex, an affiliated digital currency exchange.

The state's top law enforcement official had accused the firms of moving hundreds of millions of dollars to cover up $850 million of losses.

Tether and Bitfinex agreed to pay $18.5 million in the settlement and were barred from operating in New York state, however the companies didn't admit to any wrongdoing.

Analysts at JPMorgan have previously warned that a sudden loss of confidence in tether could result in a "severe liquidity shock to the broader cryptocurrency market."

But there are also concerns that a sudden increase of tether withdrawals could lead to a potential market contagion, affecting assets beyond crypto.

In June, Rosengren mentioned tether and other stablecoins as one of several potential risks to financial stability.

"These stablecoins are becoming more popular," he said during a presentation.

"A future crisis could easily be triggered as these become a more important sector of the financial market, unless we start regulating them and making sure that there's actually a lot more stable stability to what's being marketed to the general public as a stablecoin," Rosengren added.

Last week, Fitch Ratings warned a sudden mass redemption of tether tokens could destabilize short-term credit markets.

"Fewer risks are posed by coins that are fully backed by safe, highly liquid assets, although authorities may still be concerned if the footprint is potentially global or systemic," the U.S. credit rating agency said.

"Whereas stablecoins that use fractional reserves or adopt higher-risk asset allocation may face a greater run risk."

Tether isn't the only stablecoin out there, but it's by far the biggest and most popular one. Others include USD Coin and Binance USD.

Continued here:
Why tether, the worlds third-biggest cryptocurrency, has got economists worried - CNBC

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