Dear Reader,
Thanks to everyone who showed up last night to my Outlier Investments Summit. This “glitch” in the stock market is something I want to put on every investor’s radar.
That’s because this “glitch” can predict when specific stocks are about to rise… So you can get in early.
And last night, I revealed exactly how it works…
Wall Street has used this anomaly to profit – while leaving Main Street in the dark – for far too long. It’s time for regular investors to have a chance to profit from this “glitch.”
If you weren’t able to attend last night, you can find a replay of the event here. I’ve only convinced my publisher to leave this up for a few days, so please don’t miss out.
We have profiled several major cybersecurity breaches in The Bleeding Edge recently. The level and sophistication of cybercrime are unlike anything I’ve seen before.
We had the SolarWinds attack, the Microsoft Exchange server breach, the Colonial Pipeline hack, the attack on the meatpacking industry, and the LinkedIn data breach. These were all major events that impacted countless companies, institutions, and people.
But the latest cybersecurity discovery just trumped them all.
Thanks to a fearless security researcher at Amnesty International, we now know that a technology firm based in Israel called NSO Group has just unleashed the most devious spyware the world has ever seen. It’s called “Pegasus.” And it is by far the most powerful spyware ever developed.
Pegasus spyware can be installed via a “zero-click” mechanism. Any organization that controls the spyware can secretly “send” it to any Android or iOS-based smartphone. Unlike most schemes to date, we don’t have to click on a bad link or open an infected file for our phone to be breached.
From there, the spyware becomes a 24-7 surveillance device on smartphones. It can copy text messages, record phone calls, and steal any pictures or documents on the phone. Even worse, it can secretly take videos using the phone’s camera or “listen in” using the microphone.
In other words, Pegasus spyware can access every piece of communication or information on any smartphone in the world.
What’s more, it can track location data. That means it knows where the person has been when they were there, and who they were with. There’s never been a more pervasive tool for human surveillance.
This begs the question – what is NSO Group’s motivation here?
Well, it’s a software company. NSO Group didn’t create Pegasus software for its own nefarious purposes. It sells the software to governments and other organizations around the world.
The problem is, this software is far too powerful to put in the hands of any government or private organization. Once the genie is out of the bottle, there’s no way to get it back in.
So what can we do to protect ourselves?
Unfortunately, the only way to be completely safe is to ditch our smartphones and go back to an old flip phone or potentially a “burner” phone. Of course, that’s easier said than done. Most of us depend on our smartphones for productivity and essential tasks.
There is a little bit of good news for those of us who aren’t willing to part with our smartphones. Security researchers believe the most recent versions of Pegasus spyware are stored in the phone’s volatile memory. This memory is cleared every time the phone is powered off.
So we should all get in the habit of powering our phones off at least once per day. Maybe more if we have especially sensitive information on our devices. A full off/on restart of our phone will clear out the spyware by deleting it from memory.
Looking at the big picture, we don’t yet know what the fallout from this frightening spyware will be. But I suspect we’ll hear about some major cybersecurity breaches very soon. That said, it is very difficult to detect the presence of Pegasus, which means that most security breaches will go undiscovered.
This is very scary spyware. Now that we know of its presence, hopefully Google, Apple, and perhaps others will find a way to stop its zero-click attacks.
Big news from gaming giant Epic Games.
The company just acquired augmented reality (AR)/virtual reality (VR) startup Sketchfab for an undisclosed amount.
With this move, Epic is setting itself up to be one of the premier players in the “metaverse.”
As a reminder, Epic Games is one of the most valuable private companies in the world. It’s the creator of the hit game Fortnite as well as the Unreal gaming engine. Epic is also the company that’s challenging both Apple and Google on their app store practices.
And make no mistake about it, Epic just launched a preemptive strike against Apple with this acquisition.
Sketchfab’s claim to fame is its content platform. On it, developers can upload, view, and purchase 3D content that can be used to develop new games. In fact, there are more than four million pieces of 3D content available for sale on Sketchfab’s platform right now.
This fills a critical demand in the gaming industry. It allows game makers to purchase pre-designed content so they don’t have to create everything from scratch. That greatly accelerates the development process.
And here’s the key – Sketchfab’s content is compatible with AR and VR technology. It can be used to create virtual worlds – the metaverse. That’s the future of gaming.
So Epic is putting itself in a prime position to create a vast array of AR and VR worlds within which consumers can play games, hang out and socialize, engage in commerce, and even work.
That’s why I absolutely love this move by Epic Games.
And as we discussed back in April, Epic Games is gearing up to go public. I predict that will happen within the next 12 months. That’s something we need to keep on our radar.
Epic Games would make a fantastic investment target at the right valuation.
Cryptocurrency exchange FTX just closed on a massive $900 million Series B funding round. This is the largest venture capital (VC) raise for a blockchain company in history.
FTX is now the fourth-largest cryptocurrency exchange in the world in terms of trading volume. And it is especially known for its derivative offerings. These are options and futures contracts for cryptocurrencies. They enable traders to both hedge their long positions as well as make leveraged speculations – both to the upside and the downside.
That said, FTX’s core platform is sadly not available to U.S. investors due to regulatory constraints. The company is only permitted to offer a watered-down version of its platform in the United States.
As for its big $900 million raise, FTX has a bold idea. It plans to use some of the funds to launch a white-label offering of its platform. This means that FTX will allow other companies to take its platform, put their own branding on it, and make it available to investors as if it were their own.
We may ask – why would FTX let another company take credit for its platform? And the answer is simple.
It is the fastest way to spread adoption.
Think about it – traditional investors aren’t as likely to trust an upstart blockchain company like FTX yet. Both the company and the industry are too new for many to feel comfortable with.
But what if it were, say, Morgan Stanley offering clients access to the exact same platform under its own brand? From the investor’s perspective, it would look like Morgan Stanley was running the show. They would not know that FTX was behind the curtain.
So white label launches are used in situations like this where a company hasn’t yet built trust with the mass market. That’s why this is a great move by FTX.
If it is successful, this white label offering could make FTX critical to the core infrastructure of the entire digital asset industry. This kind of enterprise-focused business strategy could result in a dramatic increase in trading volume and liquidity on FTX, which is good for both FTX and FTX’s customers.
It may also help FTX in getting regulatory approvals in the U.S. for making its services available to normal investors.
Regards,
Jeff Brown
Editor, The Bleeding Edge
Like what you’re reading? Send your thoughts to feedback@brownstoneresearch.com.
The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.
The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.
