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The real risk of Facebook’s Libra coin is crooked developers – TechCrunch

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Everyone’s worried about Mark Zuckerberg controlling the next currency, but I’m more concerned about a crypto Cambridge Analytica.

Today Facebook announced Libra, its forthcoming stablecoin designed to let you shop and send money overseas with almost zero transaction fees. Immediately, critics started harping about the dangers of centralizing control of tomorrow’s money in the hands of a company with a poor track record of privacy and security.

Facebook anticipated this, though, and created a subsidiary called Calibra to run its crypto dealings and keep all transaction data separate from your social data. Facebook shares control of Libra with 27 other Libra Association founding members, and as many as 100 total when the token launches in the first half of 2020. Each member gets just one vote on the Libra council, so Facebook can’t hijack the token’s governance even though it invented it.

With privacy fears and centralized control issues at least somewhat addressed, there’s always the issue of security. Facebook naturally has a huge target on its back for hackers. Not just because Libra could hold so much value to steal, but because plenty of trolls would get off on screwing up Facebook’s currency. That’s why Facebook open-sourced the Libra Blockchain and is offering a prototype in a pre-launch testnet. This developer beta plus a bug bounty program run in partnership with HackerOne is meant to surface all the flaws and vulnerabilities before Libra goes live with real money connected.

Yet that leaves one giant vector for abuse of Libra: the developer platform.

“Essential to the spirit of Libra . . . the Libra Blockchain will be open to everyone: any consumer, developer, or business can use the Libra network, build products on top of it, and add value through their services. Open access ensures low barriers to entry and innovation and encourages healthy competition that benefits consumers,” Facebook explained in its white paper and Libra launch documents. It’s even building a whole coding language called Move for making Libra apps.

Apparently Facebook has already forgotten how allowing anyone to build on the Facebook app platform and its low barriers to “innovation” are exactly what opened the door for Cambridge Analytica to hijack 87 million people’s personal data and use it for political ad targeting.

But in this case, it won’t be users’ interests and birthdays that get grabbed. It could be hundreds or thousands of dollars’ worth of Libra currency that’s stolen. A shady developer could build a wallet that just cleans out a user’s account or funnels their coins to the wrong recipient, mines their purchase history for marketing data or uses them to launder money. Digital risks become a lot less abstract when real-world assets are at stake.

In the wake of the Cambridge Analytica scandal, Facebook raced to lock down its app platform, restrict APIs, more heavily vet new developers and audit ones that look shady. So you’d imagine the Libra Association would be planning to thoroughly scrutinize any developer trying to build a Libra wallet, exchange or other related app, right? “There are no plans for the Libra Association to take a role in actively vetting [developers],” Calibra’s head of product Kevin Weil surprisingly told me. “The minute that you start limiting it is the minute you start walking back to the system you have today with a closed ecosystem and a smaller number of competitors, and you start to see fees rise.”

That translates to “the minute we start responsibly verifying Libra app developers, things start to get expensive, complicated or agitating to cryptocurrency purists. That might hurt growth and adoption.” You know what will hurt growth of Libra a lot worse? A sob story about some migrant family or a small business getting all their Libra stolen. And that blame is going to land squarely on Facebook, not some amorphous Libra Association.

Image via Getty Images / alashi

Inevitably, some unsavvy users won’t understand the difference between Facebook’s own wallet app Calibra and any other app built for the currency. “Libra is Facebook’s cryptocurrency. They wouldn’t let me get robbed,” some will surely say. And on Calibra they’d be right. It’s a custodial wallet that will refund you if your Libra are stolen and it offers 24/7 customer support via chat to help you regain access to your account.

Yet the Libra Blockchain itself is irreversible. Outside of custodial wallets like Calibra, there’s no getting your stolen or mis-sent money back. There’s likely no customer support. And there are plenty of crooked crypto developers happy to prey on the inexperienced. Indeed, $1.7 billion in cryptocurrency was stolen last year alone, according to CypherTrace via CNBC. “As with anything, there’s fraud and there are scams in the existing financial ecosystem today . . .  that’s going to be true of Libra too. There’s nothing special or magical that prevents that,” says Weil, who concluded “I think those pros massively outweigh the cons.”

Until now, the blockchain world was mostly inhabited by technologists, except for when skyrocketing values convinced average citizens to invest in Bitcoin just before prices crashed. Now Facebook wants to bring its family of apps’ 2.7 billion users into the world of cryptocurrency. That’s deeply worrisome.

Facebook founder and CEO Mark Zuckerberg arrives to testify during a Senate Commerce, Science and Transportation Committee and Senate Judiciary Committee joint hearing about Facebook on Capitol Hill in Washington, DC, April 10, 2018. (Photo: SAUL LOEB/AFP/Getty Images)

Regulators are already bristling, but perhaps for the wrong reasons. Democrat Senator Sherrod Brown tweeted that “We cannot allow Facebook to run a risky new cryptocurrency out of a Swiss bank account without oversight.” And French Finance Minister Bruno Le Maire told Europe 1 radio that Libra can’t be allowed to “become a sovereign currency.”

Most harshly, Rep. Maxine Waters issued a statement saying, “Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action.”

Yet Facebook has just one vote in controlling the currency, and the Libra Association preempted these criticisms, writing, “We welcome public inquiry and accountability. We are committed to a dialogue with regulators and policymakers. We share policymakers’ interest in the ongoing stability of national currencies.”

That’s why as lawmakers confer about how to regulate Libra, I hope they remember what triggered the last round of Facebook execs having to appear before Congress and Parliament. A totally open, unvetted Libra developer platform in the name of “innovation” over safety is a ticking time bomb. Governments should insist the Libra Association thoroughly audit developers and maintain the power to ban bad actors. In this strange new crypto world, the public can’t be expected to perfectly protect itself from Cambridge Analytica 2.$.

Get up to speed on Facebook’s Libra with this handy guide:



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TikTok introduces a strike system for violations, tests a feature to “refresh” the For You feed • TechCrunch

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TikTok today is announcing several changes to its service, including what it claims will be increased enforcement against bad actors as well as tests of new user-facing tools that will force a refresh of the app’s main algorithmic feed, known as the For You feed. The company said the changes are focused on keeping the platform both safe and entertaining for its users and creators alike.

While all major social media companies have content guidelines, their enforcement varies. As is often the case, people who violate the rules and are subject to takedowns of their content or bans, don’t always learn from their mistakes — they just become repeat violators. Today, TikTok’s enforcement system includes a variety of penalties, like temporary bans on posting or commenting, designed to reduce harmful content on the platform.

However, admits TikTok’s Global Head of Product Policy, Julie de Bailliencourt, in an announcement, creators complain that the current system can be confusing to navigate — especially if they don’t typically break TikTok’s rules or have unknowingly violated policy, and aren’t sure why they’ve been penalized. What’s more, this system is not efficient at deterring repeat violators, the exec explained

“Repeat violators tend to follow a pattern – our analysis has found that almost 90% violate using the same feature consistently, and over 75% violate the same policy category repeatedly,” de Bailliencourt wrote.

As a result, TikTok will move instead to a strike system, similar to YouTube. In all but the most severe cases, creators will accrue strikes as their content is removed. If they then reach a threshold of strikes within either a product feature (like comments or TikTok LIVE), or policy (like bullying or harassment), they will be permanently banned. The company said the threshold will vary depending on the violation and its potential to harm community members. It said, for instance, there may be a lower threshold for violating hateful content policies than there would be for posting low-harm spam.

TikTok will still issue permanent bans for severe violations, like videos that are “promoting or threatening violence, showing or facilitating child sexual abuse material (CSAM), or showing real-world violence or torture,” the post said.

The accumulated strikes will expire from an account’s record after 90 days, but accounts that “accrue a high number of cumulative strikes across policies and features” will be permanently banned. TikTok did not detail what a “high number” would be, nor did it share more information about what the thresholds are in the various areas. That could potentially cause more confusion among creators as they try to reverse engineer the system based on which accounts received strikes and why.

Creators will soon be able to track their own strikes and their account’s standing in the app, TikTok said, through an update to the Safety Center for creators. Here, they can view their own status and the status of the reports they’ve made on other videos or accounts. They’ll also be able to appeal strikes from this Safety Center if they feel they were given out in error. If the creator is close to a permanent ban, TikTok will notify them.

Related to this, the company said it will also begin to test a new feature in select markets that will inform creators which videos of theirs have been marked as ineligible for recommendation to users’ For You feeds, and why.

For end users, however, another new test may be more interesting.

Soon, TikTok will allow some users to tap a new “Refresh” button to receive an updated set of For You feed recommendations. Though TikTok’s feed is highly personalized and fairly addictive, many complain the content becomes stale as it doesn’t add enough variety after some time. With the new refresh button, which will be available in account settings, users will be able to force the app to bring “new, diversified content not based on previous activity or interactions” to their For You feed.

After hitting the button, users will then begin to see content that’s based on their new interactions, a TikTok spokesperson told TechCrunch. In addition to providing a refreshed feed, the company noted that the feature could serve as a way to support potentially vulnerable users who want to distance themselves from their current content experience.

The changes to TikTok’s policies and product come on the heels of increased concern over the app’s ties to China and the risks it poses. Across the U.S., TikTok has been banned on government devices after executive orders from governors prohibited the app. Several universities have banned the app on their Wi-Fi networks as well. And the Biden administration banned TikTok from government devices in a bill signed at the end of December. In response, TikTok has been taking meetings with officials, think tanks, and public interest groups in Washington, The New York Times reported, and this week invited media to tour its Transparency and Accountability Center in L.A.

Amid the increasing calls for a nationwide ban in the U.S., TikTok has been working to convince the public of its platform safety and rolling out new transparency tools that inform users why videos were recommended or allow them to filter out specific content. However, with every new announcement, there comes a bit of bad press, too. For instance, it was revealed last month the company had a secret heating button to make videos go viral, and just before that, Forbes reported TikTok had spied on its journalists. These reveals have tarnished the company’s image further at a time when it’s trying to increase trust.

TikTok says the refresh button will roll out in the “coming days” while the policy update is currently rolling out globally and users will be notified as it’s available to them.

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Roblox to host a free virtual Super Bowl concert featuring Saweetie • TechCrunch

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Hip-hop artist Saweetie is performing exclusively in Roblox for the NFL’s Super Bowl LVII pregame on February 10, the National Football League announced today.

The virtual concert will take place at 7:00 pm ET in Warner Music Group’s Rhythm City, a new destination on Roblox that was announced earlier this week. Rhythm City is set to launch on February 4 and offers mini-games and social roleplaying experiences like becoming a musician and owning a house and car.

The NFL claims that Saweetie will give a “family-friendly,” fully motion-captured performance and sing her hit songs like “Tap-In.” The concert will re-air every hour until Sunday, February 12.

Fans that virtually attend the Saweetie Super Bowl Concert can also get digital items on the Roblox marketplace or win items by finishing challenges. The digital collection includes wearable hairstyles, hats, boots, headphones, and sweatsuits, which are based on Saweetie’s merchandise and her album looks.

“I’m really excited to bring this iconic moment to the metaverse and share my music with a whole new audience in such a unique way! As an artist, innovator, and football fan, to be able to perform during Super Bowl LVII weekend in this new world – Rhythm City on Roblox – is something I never imagined that I would be involved in. I am very grateful and happy about this opportunity,” Saweetie said in a statement.

Image Credits: Roblox/NFL

The NFL is also launching Super NFL Tycoon within Roblox. The metaverse experience allows users to pretend that they’re NFL team owners, draft a team, and build a stadium. Super NFL Tycoon will launch on February 4 to coincide with the virtual Super Bowl concert. Users can move between Super NFL Tycoon and Rhythm City through a designated portal.

Interestingly, the experience–which is presented by the global financial technology platform Intuit—is also an attempt to teach younger users “important financial concepts in a fun and engaging manner,” said Lara Balazs, Intuit’s Chief Marketing Officer and General Manager of Strategic Partner Group. So, while users fantasize about owning an NFL team, they can also learn how to manage cash flow, payroll, taxes, and customer acquisition (because that’s supposed to be fun somehow).

The concert, Super NFL Tycoon, and Rhythm City are also developed in partnership with Gamefam, a gaming company across metaverse platforms.

“Bringing a cultural moment like the Super Bowl to the metaverse with such innovative partners marks a shift in how brands are coming together to create the next generation of metaverse gaming experiences,” said Ricardo Briceno, Chief Business Officer of Gamefam.

This is the second year in a row that NFL and Roblox are offering the NFL Tycoon experience. For the 2022 Super Bowl, Roblox users could attend an interactive event called “Destruction House,” inspired by the Super Bowl LVI commercial. Also, in 2021, Roblox launched a virtual NFL storefront, giving users NFL-themed digital items to dress up their Roblox avatars.

The NFL’s foray into the metaverse points how the league tries to cater to a younger demographic.

“Working with Roblox has enabled us to create interactive shared experiences and with the virtual concert and Super NFL Tycoon, we will unlock deeper fan engagement,” said Ed Kiang, VP of Video Gaming at the NFL.

Roblox reported that its third quarter saw the fastest year-over-year growth in daily active users that range from 17 to 24 years old, which saw an increase of 41%. Roblox’s daily active users that are older than 13 years old grew by 34% year-over-year and accounted for 54% of all daily active users.

The streaming rights deal with Amazon has proven to attract a younger audience for the NFL. Amazon reported that Thursday Night Football (TNF) on Prime Video delivered an audience eight years younger than last year’s average TNF audience. The NFL also recently struck a deal with YouTube for the Sunday Ticket.

Super Bowl LVII will take place next Sunday, February 12, with the Kansas City Chiefs playing against the Philadelphia Eagles.

In September, Apple Music announced it is the official sponsor of the Super Bowl Halftime Show.

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Netflix to include more EVs in its TV shows and movies as part of new partnership with GM • TechCrunch

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Netflix and General Motors announced today that the streaming service will join the automaker’s “Everybody In” campaign that aims to accelerate mass adoption of electric vehicles. As part of the partnership, Netflix says it will increase the presence of EVs in Netflix-produced shows and films, where relevant over the course of the next year, while also taking steps to enable more sustainable productions.

To kick off the new alliance, the two companies will air a new commercial during the Super Bowl on February 12 that will see Will Ferrell enter the world of some of Netflix’s popular shows and films, including “Army of the Dead” andSquid Game,” in various GM EVs.  

The automaker’s EVs will be also seen in select Netflix shows and films, including “Love Is Blind,” “Queer Eye” and “Unstable,” which will feature the Chevrolet Bolt EUV, GMC HUMMER EV Pickup and Cadillac LYRIQ, respectively.

A spokesperson for GM told TechCrunch that the company is not paying Netflix for placement of its vehicles in the streaming service’s content. While GM is a partner on Netflix’s ad-supported tier, the company said that the strategic alliance between the two companies is separate from any advertising deal. The goal of the alliance is to expose people to EVs in a natural way.

GM says the two companies don’t have an end date in mind for the alliance, and that the automaker is looking forward to working with Netflix as it builds up its advertising business. As for the Super Bowl ad, GM says it’s unclear if the two will partner on another similar ad in the future.

The automaker says it will educate show runners about EVs so that they can find a way to integrate them naturally into storylines in a way that doesn’t make them feel out of place when they appear in TV shows and movies.

Netflix has been incorporating EVs into the TV shows and movies that it produces over the past year. The streaming service included EVs from Hyundai and Audi in its content, along with EVs from GM, as well. Now, Netflix will have access to even more EVs as part of its new alliance with GM.

“Entertainment has a huge impact on culture. We want to make EVs famous on streaming, small and silver screens to build an EV culture through storytelling that incorporates the experiences of driving and owning an EV,” said GM Global Chief Marketing Officer Deborah Wahl in a press release. “Netflix is a great partner because of the company’s compelling storytelling, commitment to sustainability and track record of sparking conversations that shape cultural trends. We are united in creating a better, more sustainable future for our world as we bring everybody in on EVs.”

Netflix says it’s also planning to become more sustainable behind the camera within its productions by optimizing energy use, then electrifying it, and decarbonizing the rest.

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