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UKRAINE USES SCIENCE FICTION TECHNOLOGY TO NEUTRALIZE RUSSIA’S NASTIEST MINE

Posted on July 26, 2024 by Ken Pierce

The Ohhota ("Hunting") seismic sensor (left) triggers up to five antipersonnel
mines in sequence

Ukrainian MoD

Ukrainian engineers have found a smart solution to one of Russia’s nastiest
weapons. The NVU Okhota ("Hunting") antipersonnel mine is meant to be impossible
to remove, with a sophisticated sensor to detect and injure or kill engineers
long before they find it. But a gadget dropped from a drone can defang this
lethal device from a safe distance.

The Hunting series was originally developed back in the 1970s to make minefields
deadlier. Sappers were getting better at detecting and removing or destroying
mines, so a new weapon was needed to disrupt attempts at tackling a minefield.

The Hunting system consists of up to five standard anti-personnel mines and a
special sensing device to control them. The usual type are OZM-72 “Frog” jumping
mines, which are normally actuated by a tripwire; when triggered the Frog throws
a grenade into the air which detonates at waist height, throwing shrapnel with a
lethal radius of 25 meters/ 82 feel. Hunting can also be rigged with MON-50
claymore-type directional mines or the POMZ-2 mine-on-a-stick.



Russian OZM 'Frog' bouncing mines which throw a grenade into the air when
activated

Wikimedia commons



Hunting’s nerve center is a 10-pound seismic sensor the size of a lunchbox which
detects ground vibrations over a wide area. The sensor detects and roughly
locates human footsteps from 90 meters/300 feet away. It can spot anyone
approaching the minefield long before they are aware it is there.

When the targets are in range, Hunting selects the nearest mine and triggers it.

Then comes the nasty bit.

“We used to explain it to soldiers simply: 'This mine blows up five times’,” as
one Russian site puts it. “As the first soldiers are injured, their comrades and
medics will believe it to be a normal mine detonation and rush to their defense,
triggering the second mine. Attempts by the wounded to crawl away into safety
will trigger a third mine.”

They note that the air-bursting OZM-72 will injure both people standing upright
and those on the ground trying to crawl. Having Hunting linked to five mines
ensures that multiple rescue attempts can be hit and there will be few if any
survivors.

Hunting is claimed to reliably identifies moving humans, whether they are
running, walking, crawling, or skiing, and distinguish them from animals and
vehicles in all weather conditions, with an error rate of just 0.4% . It can be
calibrated to adjust to particular terrain types such as soft or rocky ground.

The later version of Hunting also has a timer mechanism which activates and
deactivates it at set times of day, giving a safe window for patrols to pass
through – if they have enough confidence in it.


GODDESS OF HUNTING

Russian military blogger “Combat Engineer” who has a Telegram channel with
58,000 subscribers concentrating on bomb disposal and unexploded munitions,
noted earlier this month that the Ukrainians have come up with an answer to
Hunting. It is a metal cylinder with a spike, dropped from a drone.

The device has the name ‘ARTEMIDA’ on the side. This is the Ukrainian name for
the Greek Artemis – the goddess of hunting.



Ukraine's Artemida seismic similar imitated the vibrations of footsteps

Combat Engineer via X/Twitter

According to Combat Engineer, Artemida emits a series of pulses which imitate
human footsteps. This seismic simulator fools Hunting’s sensor into firing off
all its mines harmlessly, disarming it. Artemida does not appear on Ukrainian
sites; all we know is what Combat Engineer reports.



A model of the Thumper sandworm-calling device described in Dune

Sketchlab

It is a neat idea, although similar concepts have been proposed before. There is
an obvious similarity with the Thumper in Frank Herbert’s 1965 SF novel Dune
which is also stuck in the ground to imitate the vibrations of human footfalls.
The thumper is a lure for carnivorous sandworms though, rather than
antipersonnel mines.

Artemida relies on knowing or suspecting the location of a Hunting minefield,
but the whole point is that it attacks before anyone gets close enough to see
it. However, Ukraine now operates various drone-based mine detection systems to
fly over an area and spot mines without the risk of human-based mine detection.
These include one project developed by 17-year old Igor Klymenko in 2022, the
Safe Pro AI system which uses a machine vision system to detect mines, the
Brave1 ST1 which uses a metal detector and a drone from Polish charity POSTUP
also based on metal detection. Such systems give a good chance of spotting mines
without walking into them.


MOVE AND COUNTER MOVE

As mentioned, the original Hunting was developed in the 70s and there have been
a number of upgrades. These do not yet seem to have reached the level of
sophistication of the POM-3, a Russian air-dropped antipersonnel mine with a
seismic sensor with a processor.



The POM-3 mine has a seismic sensor so smart it can allegedly tell soldiers from
civilians

Russian MoD

According to the makers, the POM-3 uses AI and is so advanced that it can not
only distinguish humans from animals and other vibration sources, it can tell
the difference between soldiers’ and civilians’ footsteps. Western experts do
not take these claims seriously, but it would be relatively straightforward to
use machine learning to help a seismic sensor detect footsteps reliably, and
presumably to filter out fakes like Artemida.

However, it would be equally simple to use the same machine learning to ensure
that Artemida produced imitation footsteps matching natural ones as closely as
possible. An AI-enabled Artemida might also be able to vary its output, trying
out various patterns until it picked up the answering thump of a mine
detonation.

Future weapons will be increasingly sophisticated in their ability to detect
targets. Equally sophisticated, in fact science-fictional, methods may be needed
to fool them.

Posted in Default


THE DANGER OF POLITICIANS ARROGATING POWER OVER BUSINESS TO THEMSELVES

Posted on July 25, 2024 by Ken Pierce

The Association of American Railroads reports that the first inter-city railroad
was the 13-mile Baltimore and Ohio, finished in 1830. Notable about the
completion of this then technological marvel, it proved a magnet for investment
meant to capitalize on what was set to transform work and living standards.

The result was that by 1850, there was 9,000 miles worth of railroad in the U.S.
It's all a reminder of what’s still true today: if a business idea has
potential, or if the evolution of a business has potential, investors seeking to
create the future in return for a return, will find it.

This is worth thinking about now as railroad companies that were the Googles,
Apples and Amazons of the 19th century aim to prosper in the 21st. As evidenced
by their ongoing existence, the railroad companies have shareholders (including
Warren Buffett) who think they have a powerful and prosperous role to play near
two hundred years after they first wowed Americans.

That’s why it’s so puzzling that Republican Rep. Troy Nehls is so aggressively
promoting The Railway Safety Enhancement Act (RSEA). Billed as legislation meant
to enhance – yes – railway safety, it’s easy to see from the title of the
legislation alone that it’s superfluous. Really, what railway would ever be
purposefully lax on safety to begin with? Think of the costs associated with a
failure to maintain safe operating conditions, not to mention how readily
investors like Buffett would exit the sector if management were turning a blind
to measures necessary to protect railway employees and customers alike.

In reality, the RSEA is yet another power grab from Washington where
politicians, aiming to please unions, are imposing all sorts of demands on
railroad companies in relation to crew size, train length, and even how fast the
trains can travel. Translated for readers, Nehls et al are legislating huge
operating-cost increases for railroads. Which means railway shareholders will
suffer lower returns so that politicians and unions can arrogate to themselves
more muscular operating power over private businesses.



About politicians legislating how businesses operate, including Republican
politicians, please stop and think about this vis-à-vis intrepid investors like
Buffett. It can’t be stressed enough that they’re risking precious capital on
the ongoing ability of railroads to prosper, only for politicians and unions
lacking proverbial “skin” or operating experience to step in and demand costly
changes. Might these governmental demands cause investors to rethink their
capital commitments? Hopefully the question answers itself.

The reality is that government intervention in commerce has a lousy track record
when it comes to returns. Conversely, Warren Buffett has a very good record of
placing capital with the right businesses.

The problem now is that politicians and unions are using political force to
raise the cost of investing in a business sector aiming to thrive in the 21st
century as it did in the 19th. Which raises a simple question about whether
shareholders, employees and customers of railroads would prefer Buffett’s
oversight, or that of Nehls and friends? Hopefully this question really answers
itself.

Posted in Default


BUSINESS OPTIONS FOR BUSINESS OWNERS

Posted on July 25, 2024 by Ken Pierce

As a business owner, whether you are just starting out or have been in the game
for a while, it’s essential to explore all the different avenues available to
you in order to grow and expand your business. There are a variety of businesses
that cater specifically to helping other businesses succeed, and it’s important
to know what options are out there so you can make informed decisions for your
own company. In this post, we will explore some of the most popular business
options for business owners.


BUSINESS CONSULTING

Business consulting is a great option for business owners who are looking for
expert advice and guidance on how to improve their operations. Business
consultants can help you identify areas of improvement, develop strategic plans,
and provide valuable insights on how to grow your business. Whether you’re
struggling with marketing, sales, or finances, a business consultant can help
you find solutions to your challenges.


DIGITAL MARKETING AGENCY

In today’s digital age, having a strong online presence is crucial for any
business. A digital marketing agency can help you navigate the complex world of
online marketing, from social media management to search engine optimization. By
working with a digital marketing agency, you can increase your company’s
visibility and attract new customers through targeted digital campaigns.


ACCOUNTING FIRM

Keeping track of your finances is an integral part of running a successful
business. An accounting firm can help you with financial planning, budgeting,
tax preparation, and more. By outsourcing your accounting needs to a reputable
firm, you can ensure that your books are in order and that you are maximizing
your profits.


HUMAN RESOURCES SERVICES

Managing employees can be a challenging task, especially as your business grows.
Human resources services can help you with hiring, training, performance
management, and more. By outsourcing your HR needs to a professional firm, you
can focus on growing your business while ensuring that your employees are taken
care of.


BUSINESS COACHING

Sometimes, all you need is a little guidance and motivation to take your
business to the next level. A business coach can provide you with personalized
support and advice on how to overcome obstacles and achieve your goals. Whether
you’re looking to improve your leadership skills, increase sales, or streamline
your operations, a business coach can help you get there.


CONCLUSION

As a business owner, there are countless business options available to help you
succeed. Whether you need expert advice, digital marketing services, accounting
assistance, HR support, or coaching, there is a business out there that can
cater to your specific needs. By exploring these different options and finding
the right fit for your company, you can take your business to new heights and
achieve the success you’ve always dreamed of.

Posted in Default


IRS REVEALS WHAT IT LOOKS FOR IN STOCK OPTION AUDITS

Posted on July 25, 2024 by Ken Pierce

Nobody wants an audit from the IRS, but you can prepare by understanding what
its agents look for.

getty

The IRS recently surprised tax experts by issuing a new version of its stock
compensation auditing guide, which had not been updated since 2015. Developed as
an internal manual for IRS employees, it also offers businesses a helpful window
into what IRS agents examine in audits related to all types of equity
compensation.

Depending on what IRS examiners find, an audit of a company can lead to
individual audits, and maybe even amended personal tax returns, for its
executives and employees. It’s a heads-up on stock options, restricted stock,
restricted stock units (RSUs), stock appreciation rights (SARs), phantom stock,
and employee stock purchase plans (ESPPs) for anyone who has these benefits or
advises clients with them. Professionals and taxpayers alike can thus benefit
from reviewing the guide to avoid pitfalls and tax situations that could trigger
a dreaded IRS audit—the worst of which has been vividly described by tax
attorneys as “an autopsy without the benefit of death.”

The IRS manual is called the Equity (Stock) – Based Compensation Audit Technique
Guide. It gives IRS examiners a roadmap for audit scrutiny into when income
should have been recognized, reported, and subjected to withholding, along with
the related records, documents, and terms to review. In some ways, it also
provides a brief general review and summary of equity comp taxation and IRS
interpretations of the Internal Revenue Code (IRC).

As someone who takes pride in the clear plain-English explanations of tax rules
offered on myStockOptions.com, I could quibble with the IRS-speak and some
inaccurate interpretations of the IRC in the audit guide. However, for now, let
me simply highlight some issues the guide instructs IRS examiners to focus on in
their search for tax errors:



 * Loans to exercise options to ensure that they are recourse loans (i.e. you
   personally pay should you default) and whether they were forgiven/canceled or
   reduced.
 * Qualifying and disqualifying dispositions for incentive stock options (ISOs)
   and tax-qualified ESPPs. These are shares from ISO exercises or ESPP
   purchases that were sold either before or after the statutory holding periods
   of two years from grant and one year from exercise/purchase that provide the
   best tax treatment.
 * Annual limits on the size of ISO grants (only $100,000 can be vesting/first
   exercisable in one year) and ESPP purchases ($25,000 annual limit). While
   your company probably has a stock plan administration program to help it
   adhere to these limits (which are not adjusted for inflation), company
   mistakes can change your tax treatment by turning your ISO grant and ESPP
   into nonqualified stock options.
 * Restrictions on transferred stock that create a substantial risk of
   forfeiture (SRF) which needs to lapse before taxes apply. The SRF concept is
   standard, for example, with most grants of restricted stock or RSUs, which
   must vest before you recognize taxable income and could be forfeited if you
   were to leave the company before the vesting date. A stock buyback right for
   your company at job termination is not seen by the audit guide as an SRF that
   postpones income recognition, as it defines those as “non-lapse
   restrictions.”
 * Transfer of stock options to related persons, which makes them a “listed
   transaction” and could be an abusive tax shelter.
 * Company reporting requirements for your ISO exercises (on Form 3921) and ESPP
   purchases (on Form 3922).
 * Form W-2 reporting, including special reporting and codes for nonqualified
   stock options and other grants.
 * Appropriate amounts and timely deposits of withholding for federal income
   tax, FICA (Social Security and Medicare), and FUTA.
 * Timely IRC Section 83(b) elections for the early-exercise stock options used
   by private companies. Also for startups, whether any elections were made
   under IRC Section 83(i) to defer income.


IRS COLLECTION EFFORTS HAVE INTENSIFIED, INCLUDING AUDITS

The updated audit guide also reflects the ways in which the IRS directs more
audit attention toward higher-income taxpayers. The IRS has intensified its
efforts in that area during recent years.

In 2023, the IRS announced a special focus on ensuring that large corporations
and rich individual taxpayers pay taxes owed. In particular, the IRS said it is
“ramping up efforts” to pursue high-income, high-wealth individuals who have not
paid their taxes. The agency is concentrating in particular on roughly 1,600 US
taxpayers with more than $1 million in annual income and over $250,000 in
federal tax debt. Simultaneously, the IRS reassured middle-class taxpayers that
audit rates would not increase for yearly incomes of under $400,000.

The initiative to collect past-due taxes from delinquent millionaires has paid
off significantly. In early 2024, the IRS revealed that it had recovered more
than $482 million in previously unpaid taxes. Just this month, the IRS reported
that it had collected over $1 billion in past-due taxes from the target group.
The agency stated that the revenue to that point represented payments from over
1,200 of the 1,600 targeted millionaires.

These efforts are funded by the $80 billion in additional multi-year funding
that the IRS received under the 2022 Inflation Reduction Act. The agency wants
to reduce the embarrassingly wide $688 billion gap between estimates of the
amount of tax owed each year and the amount that is voluntarily paid.


LIKELIHOOD OF GETTING AUDITED: DATA ON IRS AUDIT ACTIVITY

In general, the more you make, the more likely you are to be audited by the IRS.
Sudden income spikes, such as income from a stock option exercise or the vesting
of RSUs, are a red flag that can trigger an audit.

The IRS periodically publishes information about its general audit activity. The
latest update, the 2023 IRS Data Book, covers the IRS fiscal year from October
1, 2022, through September 30, 2023. It reveals the following facts:

 * Over the decade preceding 2023, the IRS examined tax returns filed by 8.7% of
   taxpayers with income of more than $10 million; 3.1% of taxpayers with income
   of $5–10 million; and 1.6% of those with income of $1–5 million.
 * In 2023, the IRS completed 582,944 tax-return audits, resulting in nearly $32
   billion of extra tax revenue.
 * Most audits in 2023 (77.3%) were conducted via correspondence; 22.7% were
   conducted “in the field.”

Increasingly, IRS computers automatically check tax-return accuracy. The
Automated Underreporter Program compares income in tax returns with IRS data.
When the computers find a discrepancy, they automatically issue a notice
(CP-2000) requesting an explanation.

For example, when you immediately sell all shares acquired from a vesting of
restricted stock or exercise of stock options, you may think you do not have
taxable income beyond the ordinary income reported on your W-2, as there was no
capital gain upon the stock sale. However, even in this situation, you must
report the stock sale on IRS Form 8949 and Schedule D of your Form 1040 tax
return, as the IRS still receives Form 1099-B from your brokerage firm to report
the sale. If the sale is not also reported on your IRS forms, the IRS will send
you a CP-2000 notice looking for you to pay taxes on the full amount of the sale
proceeds!


ADDITIONAL TAX RESOURCES

For additional tax resources on all types of equity compensation and ESPPs,
including tax return reporting, see the Tax Center on myStockOptions.com.

Posted in Default


THE US ECONOMY GREW WAY FASTER THAN EXPECTED THIS SPRING

Posted on July 25, 2024 by Ken Pierce

A new Bureau of Economic Analysis report said the advance estimate for US GDP
growth in the second quarter was 2.8% at an annualized rate.

That's way more than the 2.0% forecast noted on Investing.com and the 1.4%
growth in the first quarter.

"This is a perfect report for the Fed, growth during the first half of the year
is not too hot, inflation continues to cool and the elusive soft landing
scenario looks within reach," Olu Sonola, head of US economic research at Fitch
Ratings, said in written commentary shared with Business Insider.

"Compared to the first quarter, the acceleration in real GDP in the second
quarter primarily reflected an upturn in private inventory investment and an
acceleration in consumer spending," the news release from the Bureau of Economic
Analysis published on Thursday said. "These movements were partly offset by a
downturn in residential fixed investment."

Residential fixed investment declined at a 1.4% seasonally-adjusted annualized
rate in the second quarter after a massive 16.0% increase in the year's first
quarter. Nonresidential fixed investment soared 5.2% in the second quarter after
a 4.4% increase in the first quarter.

Personal consumption expenditures rose 2.3% in the second quarter, following the
1.5% rise in the first quarter. Goods surged 2.5% after a decline of 2.3% in the
first quarter, and services increased 2.2% in the second quarter after a 3.3%
increase in the first.



The news release listed healthcare, housing and utilities, and recreation
services as the "leading contributors" to the increase in consumer spending on
services. Consumer spending on goods also rose, with "furnishings and durable
household equipment" as one of the leading contributors.

"Imports, which are a subtraction in the calculation of GDP, increased," the
news release said.

Other data shows a US economy cooling into a "soft landing" with tamer inflation
and a slower job market. Inflation and wage growth have slowed. The 30-year
fixed-rate mortgage has dropped but continues to be above 6%. The unemployment
rate is up from its historic low, layoffs and discharges generally remain low,
and the leisure and hospitality sector is seeing weak monthly job growth. Mark
Zandi, Moody's Analytics chief economist, noted in written commentary that the
number of jobs created a month is "not enough to absorb everyone entering the
job market."

"Much of this economic slowdown is by design," Zandi said in commentary before
the GDP data was published. "The intent of the Federal Reserve's aggressive
hikes in the federal funds rate in 2022 and the first half of 2023, and the high
funds rate that has prevailed since—the Fed's higher for longer strategy—has
been to weigh on aggregate demand, cool off the hot job market, and allow wage
and price pressures to ease."

The Federal Open Market Committee will meet at the end of July, and a rate cut
is not anticipated to be announced. Economists who recently talked to Business
Insider explained why they, however, believe it's time for rate cuts.

"Right now, the Federal Reserve with keeping interest rates high is putting
pressure on the economy, is making it harder for consumers to buy," Claudia
Sahm, chief economist at New Century Advisors and former Fed economist, told BI.
"They have to take out credit. It's making it harder for businesses to invest."

Posted in Default


U.S. ECONOMY GREW AT 2.8% RATE IN LATEST QUARTER

Posted on July 25, 2024 by Ken Pierce

Economic growth picked up more than expected in the spring, as cooling inflation
and a strong labor market allowed consumers to keep spending even as high
interest rates weighed on their finances.

Gross domestic product, adjusted for inflation, increased at a 2.8 percent
annual rate in the second quarter, the Commerce Department said on Thursday.
That was faster than both the 1.4 percent rate recorded in the first quarter,
but down from the unexpectedly strong growth in the second half of last year.

Consumer spending, the backbone of the U.S. economy, rose at a 2.3 percent
annual rate in the second quarter — a solid pace, albeit much slower than in
2021, when businesses were reopening after pandemic-induced closings. Inflation,
which picked up unexpectedly at the start of the year, eased in the second
quarter.

The data is preliminary and will be revised at least twice.

Taken together, the data suggested that the economy remains on track for a rare
“soft landing,” in which inflation cools without triggering a recession. That is
something few forecasters considered likely when the Federal Reserve began
raising interest rates to combat inflation two years ago.



“The economy is in a transition, but it’s in a good place,” said Ryan Sweet,
chief U.S. economist at Oxford Economics. “The economy is slowing from very
strong growth in the second half of last year. We’re just settling down into
something that’s a little more sustainable.”

The second-quarter growth figures were lifted by businesses’ rebuilding
inventories, a volatile component that often swings wildly from one quarter to
the next. But measures of underlying demand in the economy were also strong.
Businesses invested more in equipment and software, and consumers spent more on
both goods and services. Exports and imports both rose.

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Posted in Default


ETHEREUM ON THE BRINK OF MARKET TRANSFORMATION AS ETFS GET GREEN LIGHT

Posted on July 25, 2024 by Ken Pierce

Ethereum ETF gets green light.

getty

Anticipation regarding the recent launch of nine U.S. Securities Exchange
Commission (SEC) approved Ethereum Exchange-Traded Funds (ETF) has been
extremely palpable. The SEC decision impacts Ethereum in a big way, potentially
reshaping its market dynamics and the broader adoption of the digital asset.

The SEC has given its approval to eight asset managers including VanEck,
Grayscale (2 funds), Bitwise, iShares, Invesco, Fidelity, 21Shares, and Franklin
Templeton, all who submitted applications to the regulatory body from Q4 2023 to
earlier this year.



Spot ETH ETF participants in the U.S. CCDATA

CCDATA

The implications of an ETH ETF extend far beyond mere regulatory compliance.
According to BlackRock’s head of digital assets, Robert Mitchnick, with the
iShares Ethereum Trust ETF (ETHA) now trading on Nasdaq, the offering will
likely follow in the footsteps of the company’s recently released Bitcoin ETF,
the fastest growth of an ETF launch in the history of ETFs.



Adds Mitchnick, “The launch of ETHA follows the iShares Bitcoin Trust, whose
historic ascent to more than $20 billion in assets under management in its first
six months reflects the substantial demand from investors to be able to access
this asset class within the convenience of an exchange-traded product. “

Several analysts from across crypto and traditional finance, including Paul
Barron, Samara Cohen and Jonathan Burton, have echoed this view and noted that
these ETFs could attract billions of dollars in inflows within months of their
listing, driving ETH's spot price along the way.

According to Tom Ngo, ceo of Ethereum Layer 2 roll-up platform Metis, the
approval of Ethereum ETFs represents a pivotal moment for the entire blockchain
ecosystem.

Says Ngo, “The development not only increases Ethereum's accessibility to
institutional investors but also validates its role as the backbone of the
burgeoning decentralized finance (DeFi) economy and the real world asset
tokenization (RWA) market."

Zac Cheah, ceo and co-founder of Pundi X, a retail platform featuring a
blockchain-based POS solution, sees the ETFs potentially bridging the gap
between two disparate worlds and allowing investors from across the board to
enter the realm of crypto with utmost confidence.

“This could be the catalyst that propels Ethereum into mainstream financial
conversations and investment portfolios," cites Cheah.


MARKET READINESS FOR INSTITUTIONAL ADOPTION

The price of ETH is up 42.6 percent over the past six months, though has fallen
five percent since the listings on July 23rd. Since the start of the year, the
total number of staked ETH surged to near all-time highs, with over 33.3 million
ETH, approximately 27.7 percent of the asset’s existing supply pool, currently
staked.



Total Ethereum Staked CRYPTOQUANT

CRYPTOQUANT

The SEC has banned funds from allowing investors who stake ETH. Staking is the
funding mechanism for DLT protocols that underpin Web3 and is in regulators line
of fire. New transactions are added to DLT networks through Proof-of-take
(‘PoS’) consensus mechanisms, allowing users who stake tokens that they buy to
earn rewards in return.

CK Zheng, the chief investment officer at ZX Squared Capital, notes, "The
introduction of Ethereum ETFs will likely catalyze a new phase of institutional
adoption. We anticipate this will not only drive price appreciation but also
foster innovation and development within the Ethereum network, solidifying its
position as a cornerstone of the digital asset space."

Institutional interest in Ethereum is growing. The potential market impact of
Ethereum ETFs is substantial. Analysts, including Bitwise chief information
officer Matthew Hougan, project that ETH ETFs could attract up to $15 billion in
net inflows by the end of 2025.

Such a massive influx of capital, coupled with Ethereum's unique market
characteristics, could lead to significant price appreciation not only for ETH
but also for several projects built atop its associated network.

On the first day of the ETFs going live, the nine offerings cumulatively
witnessed inflows amounting to $106.8 million, with the iShares Ethereum Trust
ETF (ETHA) and the Bitwise Ethereum ETF (ETHW) netting $266.5 million and $204
million respectively.



Spot Ethereum in/out flows on Day 1 CCDATA

CCDATA

The total ETH inflow was just 17 percent compared to the launch of Bitcoin ETFs,
with trading volumes at $1.12 billion versus bitcoin's $4.5 billion with
analysts pointing at the the larger-than-expected outflows from the Grayscale
Ethereum Trust (ETHE). The Grayscale Bitcoin Trust (GBTC) has seen over $17
billion of outflows since the launch of the BTC ETFs from investors seeking
other funds with lower charges.

On the continued success of Ethereum in the near to mid-term, A. Rafay Gadit,
co-founder of Zignaly believes that the freshly released ETFs could be a
game-changer for both retail and institutional investors.

“It will provide a regulated avenue for exposure to one of the most innovative
blockchain platforms in the world today, thereby driving unlocking new use cases
for Ethereum's already strong technological base," says Gadit.


ALL GO FOR DIGITAL ASSETS

The general outlook for Ethereum ETFs and their continued impact on the digital
assets landscape looks positive. The SEC's approach to crypto regulation is one
of extreme caution and with staking clearly in the sights of global regulators,
the industry is proceeding with caution.

Due to the volatile nature of cryptoassets, they are not for everyone, and
require investment and market experience, just as trading highly volatile
commodities and energy assets do, like oil, natural gas, copper, nickel, wheat,
and coffee. Volatility is where experienced traders make money.

Most investors with the help of their research and or advisors will work out if
crypoassets are something they should be investing in – let the people decide.

With this year's approval of both the BTC and ETH ETFs, the overall sentiment
remains positive, and the approvals signal to investors that it is "safe to go
back into the water." This will drive greater adoption of digital assets across
all investor segments.

The opportunities far outweigh the challenges and the ETF approvals mark the
dawn of a new era for investing in native cryptographic assets, one where for
investors, the gap between accessing TradFi assets and cryptoassets is
narrowing.

Posted in Default


SEVEN MULTICULTURAL MARKETING KPIS EVERY CMO SHOULD TRACK

Posted on July 25, 2024 by Ken Pierce
getty

Over the years, the paradigm of multicultural marketing in America has shifted
from debating the business opportunity associated with demographic changes in
this country to discussing how to effectively implement programs to reach
diverse segments and how to measure them properly.

In my conversations with CMOs, one common topic is the search for a set of key
performance indicators (KPIs) that could guide corporations in managing their
multicultural marketing programs.

While this is not an easy task and varies according to the industry, in my
experience working with more than a hundred brands, I have noticed a few common
indicators.

These KPIs should be included in a regular (weekly/monthly/quarterly)
multicultural performance dashboard and can serve as a support tool for
strategic planning and resource allocation discussions.

1 – Sales



Sales measurement can vary depending on the type of business. For instance, when
it comes to retail, the best practice is to flag stores with a high probability
of sales to diverse consumers based on the Census' zip code population density
of priority segments (Hispanic, Black, Asian/Pacific Islander, or the sum of
all).

In this case, marketers would designate stores with a significantly higher local
zip code population than the country's average as highly diverse locations and
track their performance separately. For example, Hispanic locations may be those
where the zip code data shows a population density is higher than the national
average of 20% as “Hispanic Stores.”

To be clear, this approach has obvious limitations, and it should be treated as
a proxy rather than as a perfect sales tracker. For instance, people living in
that zip code are different from people shopping in that zip code.

Despite its limitations, the population density approach to designating stores
has many more advantages than disadvantages. Over time, it creates a solid
comparison basis that can significantly support marketers in their analytical
processes. Moreover, this approach also allows for further analysis of store
format and sub-channels or key accounts analysis, with a very low cost of
implementation since Census data on ethnicity by zip code is public.

For service companies without physical stores, the industry's benchmark is still
the proxy of first name / last name combined with zip codes, which is
information that is typically purchased from private databases. These databases
tend to flag customers or prospects in the marketer's database with a high
probability of being Hispanic or Asian, ethnicities that tend to have unique
name/last name formats.

This approach also has a few limitations, such as excluding Latinos without a
traditional Latino last name (like me, for instance). However, this methodology
has an approximately 90% + accuracy rate.

I always advocate that marketers take these proxy methodologies directionally,
but if your company can get proxy sales data using one of the approaches above
(or some other methodology), you can start assessing the percentage of current
sales coming from diverse segments. Despite being directional, this is an
important KPI because it can indicate how close you may be to fair share. It may
also shed light on the percentage of growth coming from diverse segments,
ultimately shaping overall strategy creation and resource allocation.

2- Market Share

Your market share may vary by ethnic segment. This variation may have several
reasons, including perceptions of product/service quality, awareness, value
perceptions, distribution footprint, and more. Unfortunately, most marketers
assume their market share is similar across diverse segments, a belief that may
cause some to miss growth opportunities.

I like using market share comparison for different ethnic segments in
performance dashboards since it indicates the relative strength of the
brand/service, mainly when you compare one segment vs. the total market share.
It allows you to assess fair share, i.e., how close or far to the total share
your segment is, and by calculating that share gap, you can estimate the size of
a sales surplus or deficit. This is vital information when assessing investment
levels per segment and overall resource allocation.

3- Household Penetration

A very popular KPI among CPG brands, household penetration can vary
significantly between diverse segments. Generally, this KPI is calculated by
assessing the number of households that have purchased a product or service over
a given period (for instance, thirty days, six months, or one year).

Comparing household penetration by diverse segments can also yield exciting
insights that benefit a business and may yield hypotheses around product or
category usage. If the penetration of a product or service is significantly low
for a specific diverse segment, a marketer should analyze the drivers of this
gap in depth and assess whether it's worth the investment to close the
penetration gap.

Most of the time, market share and penetration analyses are conducted together.
For instance, I love working with my clients on 2×2 matrices where each KPI is
on an axis, creating four performance quadrants.

4 – Product/Service Usage

How is your product/service used? What's the frequency of usage? What price tier
or SKU is used? What kind of bundle service does your customer have? What
add-ons to the service does an individual or household have?

All these questions and many more should be considered in a side-by-side
comparison between diverse segments. An in-depth understanding of how diverse
segments consume your product/service can spark new ideas for a marketer's
innovation pipeline, including new usages, partnerships, occasions, and more.

5 – Revenue Per User / Average Ticket

Assuming marketers can access most of the KPIs mentioned above, they can also
start segmenting financial performance per ethnic group, including monthly
revenue or average ticket, cost per acquisition, profitability, etc.

For example, when I worked at a Telecom, we assessed the Average Revenue Per
User (ARPU) for Hispanic and non-Hispanic customers and found that Hispanics'
ARPU was significantly higher than non-Hispanics'.

That information, combined with the average churn rate by ethnic group, allowed
us to estimate a customer profitability profile which supported marketing budget
allocation. For example, customers with significantly higher ARPU may enable
higher costs per acquisition or investments in retention tools.

6 – Brand and Advertising Awareness

Brands must understand the variances of these two well-known KPIs to manage a
marketing communications strategy.

Unfortunately, most clients don't invest in a robust sample size to have this
information at hand which may underestimate gaps in awareness, in particular for
segments like Hispanic and Asian American consumers that still comprise a
sizable number of immigrants.

One common mistake marketers make is assuming that all consumers and segments
have the same level of brand awareness of your brand or service, and even if
they have, a second common mistake is to confuse brand recognition with the
existence of a deeper set of positive brand associations and perceptions.

7 – "A Brand for People Like Me"

This is one of my favorite KPIs for multicultural marketing and one that is
often ignored by marketers. If the premise of multicultural marketing is to
connect with consumers authentically and relevantly, this KPI is one of the best
tools to assess how much progress a brand is making. One-size-fits-all
communication platforms or generic ideas that can be applied to all consumers
without distinction tend to fail at this KPI.

In sum, there’s no one-size-fits-all KPI to measure multicultural marketing
impact, but understanding and acting upon these metrics will ultimately empower
brands to create more authentic, inclusive, and impactful marketing campaigns
that resonate with all consumers. As the market evolves, staying attuned to
these KPIs will help guide strategic decision-making and ensure that companies
remain competitive and relevant in a multicultural landscape.

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STUDY SHOWS BUSINESSES NEED MORE CREATIVITY: HERE’S HOW

Posted on July 24, 2024 by Ken Pierce

Creativity is more important than ever for businesses to thrive. Leaders can use
the three Cs of … [+] creativity to help teams increase innovative thinking.

getty

Creativity is the currency of business today. Too often people think of
creativity as something assigned to the “creatives” in design or marketing, yet
every employee at every level can make a more substantial contribution by
bringing innovative thinking to work every day.

A study out today from Harvard Business Review analytic services and Canva, a
visual communication platform, illustrates the disconnect between the importance
of creativity and what some organizations are doing to support it.

The survey of more than 500 members of the HBR audience categorized
organizations as “leaders,” “followers” and “laggards” based on responses about
how successful their organizations support creativity.

Some businesses have work to do. For example:

 * Most respondents (91%) agree that creative thinking is a key attribute for
   employees, yet 58% of laggard organizations say their companies don’t reward
   creative pursuits.
 * Ninety-four percent agree that a creative leader increases creativity of the
   team, but 72% of laggard organizations say leadership is not engaged enough
   in supporting creativity.



Of course tech platforms can enhance collaboration, visual communication and
data visualization to help boost creativity. But to foster creativity, leaders
must understand its importance and make it a priority.

Here are three essentials that help organizations foster better creativity in
their employees across all levels:


COMMITMENT

Creativity is the engine that drives innovation, and organizational leaders much
prioritize the importance of fostering this mindset across all levels of the
organization. Recognizing and rewarding fresh ideas and a new approach to the
work with help employees understand their contribution.


CAPACITY

It’s no secret that workers feel squeezed to increase their output with fewer
and fewer resources. A strong look at what an organization can eliminate to
bring better focus on top priorities will help free up time to cultivate
innovative solutions. Individuals can also prioritize fueling their creative
juices.


CURIOSITY

The spirit of exploration and the desire to learn new things fuels creative
thinking. Leaders should encourage teams to ask questions, challenge assumptions
and seek out diverse perspectives to spark innovative ideas.

Together, commitment, capacity, and curiosity form a powerful trio for fostering
creativity within teams.

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OVERVIEW OF BUSINESSES FOR BUSINESS OWNERS

Posted on July 24, 2024 by Ken Pierce

As a business owner, navigating the world of entrepreneurship can be both
exciting and daunting. There are many different types of businesses to consider,
each with its own set of challenges and opportunities. In this blog post, we
will explore various business models and industries that entrepreneurs can
explore to help them make informed decisions about their ventures.


UNDERSTANDING THE BUSINESS LANDSCAPE

Before diving into specific business ideas, it is essential to have a solid
understanding of the business landscape. This includes understanding market
trends, consumer behavior, competition, and regulatory requirements. Conducting
thorough market research and analysis can help you identify gaps in the market
and opportunities for growth.

Furthermore, understanding the financial aspects of running a business is
crucial. This includes creating a detailed business plan, budgeting,
forecasting, and managing cash flow. Having a sound financial strategy in place
can help business owners make informed decisions and navigate challenges
effectively.


TYPES OF BUSINESSES FOR BUSINESS OWNERS

 1. Service-Based Businesses: Service-based businesses provide intangible
    products or services to customers. Examples include consulting firms,
    marketing agencies, and cleaning services. Service-based businesses
    typically have lower overhead costs compared to product-based businesses,
    making them an attractive option for entrepreneurs looking to start a
    business on a smaller budget.

 2. Retail Businesses: Retail businesses sell physical products to customers
    through brick-and-mortar stores, e-commerce websites, or a combination of
    both. Retail businesses can include clothing stores, electronics shops, and
    specialty boutiques. Entrepreneurs in the retail industry must consider
    factors such as inventory management, pricing strategies, and customer
    experience to succeed.

 3. E-commerce Businesses: E-commerce businesses sell products or services
    online through websites, mobile apps, or online marketplaces. E-commerce
    businesses can range from dropshipping ventures to bespoke product shops.
    With the rise of online shopping, e-commerce businesses have become
    increasingly popular among entrepreneurs looking to reach a global audience
    and scale their operations quickly.

 4. Franchise Businesses: Franchise businesses allow entrepreneurs to operate
    under an established brand with a proven business model. Franchise
    opportunities exist in various industries, including fast food, retail, and
    fitness. Franchise businesses provide entrepreneurs with the support and
    resources of a larger corporation while allowing them to maintain some level
    of independence.

 5. Manufacturing Businesses: Manufacturing businesses produce physical products
    through industrial processes, such as assembly lines or custom fabrication.
    Manufacturing businesses can range from small-scale operations to large
    factories producing goods at scale. Entrepreneurs in the manufacturing
    industry must consider factors such as supply chain management, production
    efficiency, and quality control.


CONCLUSION

Choosing the right type of business for your entrepreneurial venture is a
crucial decision that can impact your success and longevity in the market. By
understanding the different types of businesses available, conducting thorough
market research, and developing a sound financial strategy, business owners can
increase their chances of building a successful and sustainable business.

Ultimately, the best business for you will depend on your interests, skills,
resources, and market demand. Whether you choose to start a service-based
business, retail business, e-commerce venture, franchise, or manufacturing
operation, it is essential to approach your entrepreneurial journey with
clarity, determination, and adaptability. With the right mindset and
preparation, you can turn your business dreams into a reality and achieve
long-term success in the competitive business landscape.

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