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Meta AI Chief Taunts OpenAI Amid Equity Allegations

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6 months ago

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Yann LeCun, Chief AI Scientist at Meta, recently took to social media to mock the equity policies of competitor OpenAI.

The comment reveals existing debates in the tech industry regarding company policies toward employees’ stakes and non-disclosure agreements.

Meta’s Chief AI Scientist Comments on OpenAI’s Controversy

Yann LeCun, in his sarcastic tweet, hinted at employment at ClosedAI, which, as is clear from the name that is a clear play on OpenAI, is just too good to be true and might make you a billionaire but is in fact, unattainable. He exaggerating the company’s value to “42 sextillionnollars” and “42 octillionnollars” to make the audience realize how unrealistic it all is.

This critique of LeCun also mentioned some of the highly prescriptive and particularly onerous measures included restrictions of rights of employees, vesting clawback provisions for shares, non-disclosure, and non-disparagement provisions that apply if the employee departs or speaks out.

This commentary comes under the backdrop of revelations that OpenAI has suffered criticism over its employment agreements. More specifically, it has been stated that these contracts contained provisions that may have limited the freedom of employees to dispose of the equity unless they refrained from speaking ill of the company. This has led to controversy regarding the legal and moral permissibility of such practices being employed.

Response to Contract Controversies

Following investigative journalism and subsequent public scrutiny, OpenAI made moves to address these concerns. These policies forced OpenAI’s CEO Sam Altman and other managers to answer difficult questions about these policies during a meeting with the employees.

They also assured that the sections that were problematic in the contracts have been eliminated and most of the ex-employees cannot be restricted by nondisparagement clauses anymore. This change was made as part of a series of alterations thaMeta AI Chief Taunts OpenAI t Altman acknowledged was a genuinely embarrassing policy change.

In response to the criticism, OpenAI published a statement explaining that it always allowed former employees to sell their shares at the market price regardless of their status or affiliation and planned to do the same in the future.

However, many, including former employee Jacob Hilton, remain skeptical about the company’s commitment to transparency and fairness in handling the employee equity.

Read Also: Ethereum ETFs May Propel ETH to Record Highs, Says Bitwise CIO

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Kelvin is a distinguished writer specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive analysis and insightful content, he has an adept command of English and excels at thorough research and timely delivery.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Lawyer Predicts Two Paths To Settlement After Donald Trump Win

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2 hours ago

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November 7, 2024

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SEC v Ripple: The recent win of Donald Trump in the 2024 US presidential election has brought back hope to the cryptocurrency enthusiasts especially on the matter of the ongoing SEC v Ripple lawsuit.

Legal experts and Ripple supporters are speculating that the Donald Trump administration could bring positive changes to the crypto space which could help the company to reach a settlement faster in the ongoing Ripple case.

Potential Settlement Scenarios for SEC v Ripple Case

Fred Rispoli, a lawyer who has been monitoring the SEC v Ripple case has suggested that there are two likely outcomes for the case. According to Rispoli, shifts at the Securities and Exchange Commission that could occur as soon as March 2025 may influence the outcome of the Ripple trial. The first scenario will be the current US SEC leadership, under the chairmanship of Gary Gensler, deciding to act before a new leadership takes over. 

According to Rispoli, Gensler’s team may wish to settle the case but keep penalties such as the $125 million fine in place as a means of exercising control over the market.

The second scenario that Rispoli sees is more beneficial for Ripple. The new leadership at the Securities and Exchange Commission may cause the agency to reconsider the case and less the penalties on Ripple or even dismiss some of the charges. According to Rispoli, the current administration of Trump may view the lawsuit as an adverse event for the US crypto industry and may want to settle the case in a way that would be beneficial to Ripple, such as excluding the current sales of XRP from being deemed securities.

Ripple CEO Garlinghouse Responds to Trump Win

Ripple CEO Brad Garlinghouse has spoken about the influence that Trump’s victory may have on the regulation of the cryptocurrency industry after “a frustrating journey”. In a statement, Garlinghouse remained hopeful, suggesting that the years of what he has called the SEC’s “interference” in the digital currency sector, could be giving way to a change in regulatory policy that is potentially more favorable. 

Brad Garlinghouse, though not directly speaking about the possibility of the lawsuit being settled, pointed out the endurance of the XRP community and noted that “the tide is turning” in their favor.

Garlinghouse’s comments come in the wake of recent court rulings ordering the SEC to file its opening brief for its appeal in the Ripple case on or before January 15, 2025. If the SEC does not meet this deadline, the appeals could be thrown out, which might limit the Securities and Exchange Commission’s actions as new management comes in.

Donald Trump Administration’s Approach to the SEC

The Trump transition team is reportedly considering candidates for the Securities and Exchange Commission chair role, with names such as Dan Gallagher and Paul Atkins, both former SEC commissioners, being mentioned. 

Gallagher, currently Robinhood’s Chief Legal Officer, is viewed favorably by many in the crypto community. 

According to Reuters, Trump’s team has also indicated intentions to reverse what they see as regulatory overreach by Gary Gensler’s Securities and Exchange Commission, which has aggressively pursued enforcement actions against crypto companies.

XRP Price To $1 After SEC v Ripple End?

The market has responded positively to Trump’s election and the prospect of a resolution in the Ripple case. XRP, Ripple’s digital asset, recently saw a price surge, reaching its highest level since October. With XRP price currently trading above $0.55, some analysts believe the asset could continue its upward trend, potentially nearing the $1 mark if a settlement appears imminent.

Concurrently, Donald Trump’s administration has already sparked discussion about potential crypto-friendly policies, including the approval of an XRP ETF. 

Although the US SEC has previously resisted crypto ETFs, a Republican-led Securities and Exchange Commission could be more open to approving new financial products tied to digital assets, especially those like XRP and Solana following Bitcoin and Ethereum ETF’s earlier approval.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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US Federal Reserve Cuts Interest Rate By 25 Basis Point

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6 hours ago

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November 7, 2024

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The US Federal Reserve announced a 25 basis point (bps) rate cut following its November FOMC meeting. This development is undoubtedly significant, considering the impact it could have on the Bitcoin price and broader crypto market.

US Federal Reserve Announces 25 Bps Rate Cut

In a press release, the US Fed announced its decision to cut interest rates by 25 bps, just about two months after it cut them by 50 bps at its September FOMC meeting. This move from the US Central Bank provides a bullish outlook for the Bitcoin price, which is already hitting new highs.

Interstingly, similar to the US Federal Reserve’s decision, the Bank of England (BOE) announced a 25 bps rate cut earlier in the day. This decision from both central banks will likely open up a liquidity cycle, causing more money to flow into risk assets like Bitcoin and other cryptocurrencies.

The crypto community will look forward to US Federal Reserve Chair Jerome Powell’s speech to see how dovish the Fed is. Positive remarks from him would suggest that the Fed could still cut interest rates at its December FOMC meeting.

In the press release, the US Federal Reserve stated that economic activity has continued to expand at a solid pace. They remarked that since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low. They added that inflation has progressed toward their 2% goal.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Polymarket Faces French Ban After Massive Bets On US Election Results

Published

24 hours ago

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November 7, 2024

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Polymarket, a crypto-based prediction market, is likely to be prohibited by France’s gambling regulator, the ANJ, after a huge amount of bets were placed on the 2024 U.S. presidential election. Since the global audience engaged in prediction platforms, Polymarket experienced a record jump, with $450 million expected to be distributed to users following the victory of Donald Trump.

This increase of betting volume and large stakes has become a matter of concern for the French regulator because the platform offers unlicensed gambling services.

$450 Million in Payouts Expected After U.S. Election Bets

Prediction markets, which are expected to increase their payout to election bettors to around $450m following Donald Trump’s projected win, are attracting increasing attention. 

Although conventional polls pointed to a closer contest, prediction markets such as Polymarket and Kalshi recorded a steep rise in Trump’s chances in the last few days, indicating a strong divergence with poll-based expectations.

Among the active users of Polymarket, a French trader called “Theo” made a $26 million bet on Trump’s win and won $49 million. This big bet made Polymarket popular, as the French authorities paid attention to the platform and its popularity among French residents, which led to concerns about the compliance of the platform with French gambling legislation.

France’s ANJ Considers Blocking Access to Polymarket

The ANJ has claimed that Polymarket is involved in gambling which is only allowed in France by licensed operators. According to local media, the regulator has the power to ban access to unlicensed gambling sites and is expected to restrict access to Polymarket soon. 

An ANJ insider said: “Polymarket is just betting on something that is completely uncertain, which is exactly what gambling is.”

If put in place, the ban would prevent the usage of the application in France, despite the fact that users can still try to avoid the restriction by connecting to VPN. The ANJ could also try to influence media outlets and directories to stop advertising or linking to Polymarket and, thus, limit its audiences even more.

Regulatory Concerns Over Market Manipulation

The high level of activity on Polymarket has led to speculations that the platform may be used for market manipulation. Two blockchain analysis firms, Chaos Labs and Inca Digital, recently revealed that there was potential wash trading within Polymarket’s U.S. presidential betting market where the same assets are bought and sold to simply create a fake market. This type of trading is rather manipulative and can lead to the distortion of signals on the market and mislead other participants.

The US Commodity Futures Trading Commission also has concerns about prediction markets and put forward a rule in May aiming at stricter regulation of such markets due to the potential for manipulation.

Although no final decision has been reached, regulatory actions could impact Polymarket’s ability to operate freely in other markets, including the U.S.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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