Reddit's NFT market is alive and well.

NFT owners outnumber OpenSea on Reddit.

Reddit NFTs flip in OpenSea in days:

Fast-selling.

NFT sales will make Reddit's current communities more engaged.

I don't think NFTs will affect existing groups, but they will build hype for people to acquire them.

The first season of Collectibles is unique, but many missed the first season.

Second-season NFTs are less likely to be sold for a higher price than first-season ones.

If you use Reddit, it's fun to own NFTs.

Recently, I saw an interesting social media post. In an entrepreneurship forum. A blogger asked for help because he/she couldn't find customers. I now suspect that the writer’s occupation is being disrupted by A.I.

Introduction

Artificial Intelligence (A.I.) has been a hot topic since the 1950s. With recent advances in machine learning, A.I. will touch almost every aspect of our lives. This article will discuss A.I. technology and its social and economic implications.

What's AI?

A computer program or machine with A.I. can think and learn. In general, it's a way to make a computer smart. Able to understand and execute complex tasks. Machine learning, NLP, and robotics are common types of A.I.

AI's global impact

AI will change the world, but probably faster than you think. A.I. already affects our daily lives. It improves our decision-making, efficiency, and productivity.

A.I. is transforming our lives and the global economy. It will create new business and job opportunities but eliminate others. Affected workers may face financial hardship.

AI examples:

OpenAI's GPT-3 text-generation

Developers can train, deploy, and manage models on GPT-3. It handles data preparation, model training, deployment, and inference for machine learning workloads. GPT-3 is easy to use for both experienced and new data scientists.

My team conducted an experiment. We needed to generate some blog posts for a website. We hired a blogger on Upwork. OpenAI created a blog post. The A.I.-generated blog post was of higher quality and lower cost.

MidjourneyAI's Art Contests

AI already affects artists. Artists use A.I. to create realistic 3D images and videos for digital art. A.I. is also used to generate new art ideas and methods.

MidjourneyAI and GigapixelAI won a contest last month. It's AI. created a beautiful piece of art that captured the contest's spirit. AI triumphs. It could open future doors.

After the art contest win, I registered to try out these new image generating A.I.s. In the MidjourneyAI chat forum, I noticed an artist's plea. The artist begged others to stop flooding RedBubble with AI-generated art.

Shutterstock and Getty Images have halted user uploads. AI-generated images flooded online marketplaces.

Imagining Videos with Meta

Meta released Make-a-Video this week. It's an A.I. app that creates videos from text. What you type creates a video.

This technology will impact TV, movies, and video games greatly. Imagine a movie or game that's personalized to your tastes. It's closer than you think.

Uses and Abuses of Deepfakes

Deepfake videos are computer-generated images of people. AI creates realistic images and videos of people.

Deepfakes are entertaining but have social implications. Porn introduced deepfakes in 2017. People put famous faces on porn actors and actresses without permission.

Soon, deepfakes were used to show dead actors/actresses or make them look younger. Carrie Fischer was included in films after her death using deepfake technology.

Deepfakes can be used to create fake news or manipulate public opinion, according to an AI.

Voices for Darth Vader and Iceman

James Earl Jones, who voiced Darth Vader, sold his voice rights this week. Aged actor won't be in those movies. Respeecher will use AI to mimic Jones's voice. This technology could change the entertainment industry. One actor can now voice many characters.

AI can generate realistic voice audio from text. Top Gun 2 actor Val Kilmer can't speak for medical reasons. Sonantic created Kilmer's voice from the movie script. This entertaining technology has social implications. It blurs authentic recordings and fake media.

Medical A.I. fights viruses

A team of Chinese scientists used machine learning to predict effective antiviral drugs last year. They started with a large dataset of virus-drug interactions. Researchers combined that with medication and virus information. Finally, they used machine learning to predict effective anti-virus medicines. This technology could solve medical problems.

AI ideas AI-generated Itself

OpenAI's GPT-3 predicted future A.I. uses. Here's what it told me:

AI will affect the economy. Businesses can operate more efficiently and reinvest resources with A.I.-enabled automation. AI can automate customer service tasks, reducing costs and improving satisfaction.

A.I. makes better pricing, inventory, and marketing decisions. AI automates tasks and makes decisions. A.I.-powered robots could help the elderly or disabled. Self-driving cars could reduce accidents.

A.I. predictive analytics can predict stock market or consumer behavior trends and patterns. A.I. also personalizes recommendations. sways. A.I. recommends products and movies. AI can generate new ideas based on data analysis.

Conclusion

A.I. will change business as it becomes more common. It will change how we live and work by creating growth and prosperity.

Exciting times,  but also one which should give us all pause. Technology can be good or evil. We must use new technologies ethically, fairly, and honestly.

“The author generated some sentences in this text in part with GPT-3, OpenAI’s large-scale language-generation model. Upon generating draft language, the author reviewed, edited, and revised the language to their own liking and takes ultimate responsibility for the content of this publication. The text of this post was further edited using HemingWayApp. Many of the images used were generated using A.I. as described in the captions.”

Some AI-generated artworks sell for enormous sums of money.

But can you sell AI-Generated Artwork?

Simple answer: yes.

However, not all AI services enable allow usage and redistribution of images.

Let's check some of my favorite AI text-to-image generators:

• Dall-E2 by OpenAI

• MidJourney

• Dream by Wombo

Dall-E2 by OpenAI

The AI art generator Dall-E2 is powerful. Since it’s still in beta, you can join the waitlist here.

OpenAI DOES NOT allow the use and redistribution of any image for commercial purposes.

Here's the policy as of April 6, 2022.

Here are some images from Dall-E2’s webpage to show its art quality.

Several Reddit users reported receiving pricing surveys from OpenAI.

This suggests the company may bring out a subscription-based tier and a commercial license to sell images soon.

MidJourney

I like Midjourney's art generator. It makes great AI images. Here are some samples:

Standard Licenses are available for $10 per month.

Standard License allows you to use, copy, modify, merge, publish, distribute, and/or sell copies of the images, except for blockchain technologies.

If you utilize or distribute the Assets using blockchain technology, you must pay MidJourney 20% of revenue above $20,000 a month or engage in an alternative agreement.

Here's their copyright and trademark page.

Dream by Wombo

Dream is one of the first public AI art generators.

This AI program is free, easy to use, and Wombo gives a royalty-free license to copy or share artworks.

Users own all artworks generated by the tool. Including all related copyrights or intellectual property rights.

Here’s Wombos' intellectual property policy.

Final Reflections

AI is creating a new sort of art that's selling well. It’s becoming popular and valued, despite some skepticism.

Now that you know MidJourney and Wombo let you sell AI-generated art, you need to locate buyers. There are several ways to achieve this, but that’s for another story.

I read 1k+ page 3AC liquidation documentation so you don't have to. Also sharing revised Celsius recovery plans.

3AC's liquidation documents:

Someone disclosed 3AC liquidation records in the BVI courts recently. I'll discuss the leak's timeline and other highlights.

Three Arrows Capital began trading traditional currencies in emerging markets in 2012. They switched to equities and crypto, then purely crypto in 2018.

By 2020, the firm had $703mm in net assets and $1.8bn in loans (these guys really like debt).

The firm's net assets under control reached $3bn in April 2022, according to the filings. 3AC had $600mm of LUNA/UST exposure before May 9th 2022, which put them over.

LUNA and UST go to zero quickly (I wrote about the mechanics of the blowup here). Kyle Davies, 3AC co-founder, told Blockchain.com on May 13 that they have $2.4bn in assets and $2.3bn NAV vs. $2bn in borrowings. As BTC and ETH plunged 33% and 50%, the company became insolvent by mid-2022.

3AC sent $32mm to Tai Ping Shen, a Cayman Islands business owned by Su Zhu and Davies' partner, Kelly Kaili Chen (who knows what is going on here).

3AC had borrowed over $3.5bn in notional principle, with Genesis ($2.4bn) and Voyager ($650mm) having the most exposure.

Genesis demanded $355mm in further collateral in June.

Deribit (another 3AC investment) called for $80 million in mid-June.

Even in mid-June, the corporation was trying to borrow more money to stay afloat. They approached Genesis for another $125mm loan (to pay another lender) and HODLnauts for BTC & ETH loans.

Pretty crazy. 3AC founders used borrowed money to buy a $50 million boat, according to the leak.

Su requesting for $5m + Chen Kaili Kelly asserting they loaned $65m unsecured to 3AC are identified as creditors.

Celsius:

This bankruptcy presentation shows the Celsius breakdown from March to July 14, 2022. From $22bn to $4bn, crypto assets plummeted from $14.6bn to $1.8bn (ouch). $16.5bn in user liabilities dropped to $4.72bn.

In my recent post, I examined if "forced selling" is over, with Celsius' crypto assets being a major overhang. In this presentation, it looks that Chapter 11 will provide clients the opportunity to accept cash at a discount or remain long crypto. Provided that a fresh source of money is unlikely to enter the Celsius situation, cash at a discount or crypto given to customers will likely remain a near-term market risk - cash at a discount will likely come from selling crypto assets, while customers who receive crypto could sell at any time. I'll share any Celsius updates I find.

Conclusion

Only Celsius and the Mt Gox BTC unlock remain as forced selling catalysts. While everything went through a "relief" pump, with ETH up 75% from the bottom and numerous alts multiples higher, there are still macro dangers to equities + risk assets. There's a lot of wealth waiting to be deployed in crypto ($153bn in stables), but fund managers are risk apprehensive (lower than 2008 levels).

We're hopefully over crypto's "bottom," with peak anxiety and forced selling behind us, but we may chop around.

To see the full article, click here.

The Federal Funds Rate (FFR) is the target interest rate set by the Federal Reserve System (Fed)'s policy-making body (FOMC). This target is the rate at which the Fed suggests commercial banks borrow and lend their excess reserves overnight to each other.

The FOMC meets 8 times a year to set the target FFR. This is supposed to promote economic growth. The overnight lending market sets the actual rate based on commercial banks' short-term reserves. If the market strays too far, the Fed intervenes.

Banks must keep a certain percentage of their deposits in a Federal Reserve account. A bank's reserve requirement is a percentage of its total deposits. End-of-day bank account balances averaged over two-week reserve maintenance periods are used to determine reserve requirements.

If a bank expects to have end-of-day balances above what's needed, it can lend the excess to another institution.

The FOMC adjusts interest rates based on economic indicators that show inflation, recession, or other issues that affect economic growth. Core inflation and durable goods orders are indicators.

In response to economic conditions, the FFR target has changed over time. In the early 1980s, inflation pushed it to 20%. During the Great Recession of 2007-2009, the rate was slashed to 0.15 percent to encourage growth.

Inflation picked up in May 2022 despite earlier rate hikes, prompting today's 0.75 percent point increase. The largest increase since 1994. It might rise to around 3.375% this year and 3.1% by the end of 2024.