Connect with us

Published

on

Iranians protest to demand justice and highlight the death of Mahsa Amini, who was arrested by morality police and subsequently died in hospital in Tehran under suspicious circumstances.

Mike Kemp | In Pictures via Getty Images

Iranians are turning to virtual private networks to bypass widespread internet disruptions as the government tries to conceal its crackdown on mass protests.

Outages first started hitting Iran’s telecommunications networks on Sept 19., according to data from internet monitoring companies Cloudflare and NetBlocks, and have been ongoing for the last two and a half weeks.

Internet monitoring groups and digital rights activists say they’re seeing “curfew-style” network disruptions every day, with access being throttled from around 4 p.m. local time until well into the night.

Tehran blocked access to WhatsApp and Instagram, two of the last remaining uncensored social media services in Iran. Twitter, Facebook, YouTube and several other platforms have been banned for years.

As a result, Iranians have flocked to VPNs, services that encrypt and reroute their traffic to a remote server elsewhere in the world to conceal their online activity. This has allowed them to restore connections to restricted websites and apps.

On Sept. 22, a day after WhatsApp and Instagram were banned, demand for VPN services skyrocketed 2,164% compared to the 28 days prior, according to figures from Top10VPN, a VPN reviews and research site.

Iran shuts down the internet as government cracks down on protests

By Sept. 26, demand peaked at 3,082% above average, and it has continued to remain high since, at 1,991% above normal levels, Top10VPN said.

“Social media plays a crucial role in protests all around the world,” Simon Migliano, head of research at Top10VPN, told CNBC. “It allows protesters to organize and ensure the authorities can’t control the narrative and suppress evidence of human rights abuses.”

“The Iranian authorities’ decision to block access to these platforms as the protests erupted has caused demand for VPNs to skyrocket,” he added.

Demand is much higher than during the uprisings of 2019, which were triggered by rising fuel prices and led to a near-total internet blackout for 12 days. Back then, peak demand was only around 164% higher than usual, according to Migliano.

Nationwide protests over Iran’s strict Islamic dress code began on Sept. 16 following the death of Mahsa Amini, a 22-year-old woman. Amini died under suspicious circumstances after being detained — and allegedly struck — by Iran’s so-called “morality police” for wearing her hijab too loosely. Iranian authorities denied any wrongdoing and claimed Amini died of a heart attack.

At least 154 people have been killed in the protests, including children, according to the nongovernmental group Iran Human Rights. The government has reported 41 deaths. Tehran has sought to prevent the sharing of images of its crackdown and hamper communication aimed at organizing further demonstrations.

The Iranian Foreign Ministry did not immediately respond to a CNBC request for comment.

Why VPNs are popular in Iran

VPNs are a common way for people under regimes with strict internet controls to access blocked services. In China, for instance, they’re often used as a workaround to restrictions on Western platforms blocked by Beijing, including Google, Facebook and Twitter. Homegrown platforms like Tencent’s WeChat are extremely limited in terms of what can be said by users.

Russia saw a similar rise in demand for VPNs in March after Moscow tightened internet curbs following the invasion of Ukraine.

Swiss startup Proton said it saw daily signups to its VPN service balloon as much as 5,000% at the peak of the Iran protests compared to average levels. Proton is best known as the creator of ProtonMail, a popular privacy-focused email service.

“Since the killing of Mahsa Amini, we have seen a huge uptick in demand for Proton VPN,” Proton CEO and founder Andy Yen told CNBC. “Even prior to that, though, VPN usage is high in Iran due to censorship and fears of surveillance.”

“Historically, we have seen internet crackdowns during periods of unrest in Iran which lead to a rise in VPN usage.”

The most popular VPN services during the protests in Iran have been Lantern, Mullvad and Psiphon, according to Top10VPN, with ExpressVPN also seeing big increases. Some VPNs are free to use, while others require a monthly subscription.

Not a silver bullet

The use of VPNs in tightly restricted countries like Iran hasn’t been without its challenges.

“It is fairly easy for regimes to block the IP addresses of the VPN servers as they can be found quite easily,” said Deryck Mitchelson, field chief information security officer for the EMEA region at Check Point Software.

“For that reason you will find that open VPNs are only available for a short duration before they are identified and blocked.”

Periodic internet outages in Iran have “continued daily in a curfew-style rolling manner,” said NetBlocks, in a blog post. The disruption “affects connectivity at the network layer,” NetBlocks said, meaning they’re not  easily solved through the use of VPNs. 

Mahsa Alimardani, a researcher at free speech campaign group Article 19, said a contact she’s been communicating with in Iran showed his network failing to connect to Google, despite having installed a VPN.

“This is new refined deep packet inspection technology that they’ve developed to make the network extremely unreliable,” she said. Such technology allows internet service providers and governments to monitor and block data on a network.

Authorities are being much more aggressive in seeking to thwart new VPN connections, she added.

Yen said Proton has “anti-censorship technologies” built into its VPN software to “ensure connectivity even under challenging network conditions.”

VPNs aren’t the only techniques citizens can use to circumvent internet censorship. Volunteers are setting up so-called Snowflake proxy servers, or “proxies,” on their browsers to allow Iranians access to Tor — software that routes traffic through a “relay” network around the world to obfuscate their activity.

“As well as VPNs, Iranians have also been downloading Tor in significantly greater numbers than usual,” said Yen.

Meanwhile, encrypted messaging app Signal compiled a guide on how Iranians can use proxies to bypass censorship and access the Signal app, which was blocked in Iran last year. Proxies serve a similar purpose as Tor, tunneling traffic through a community of computers to help users in countries where online access is restricted preserve anonymity.

Continue Reading

Technology

Ether and related stocks gain amid the latest crypto craze: Tokenization

Published

on

By

Ether and related stocks gain amid the latest crypto craze: Tokenization

A representation of cryptocurrency Ethereum is placed on a PC motherboard in this illustration taken on June 16, 2023.

Dado Ruvic | Reuters

Stocks tied to the price of ether, better known as ETH, were higher on Wednesday, reflecting renewed enthusiasm for the crypto asset amid a surge of interest in stablecoins and tokenization.

BitMine Immersion Technologies, a bitcoin miner that announced plans this week to make ETH its primary treasury reserve asset, jumped about 20%. It’s gained more than 1,000% since the announcement. Betting platform SharpLink Gaming, which has also initiated an ETH treasury strategy, added more than 11%. Bit Digital, which last week exited bitcoin mining to focus on its ETH treasury and staking plans, jumped more than 6%.

“We’re finally at the point where real use cases are emerging, and stablecoins have been the first version of that at scale but they’re going to open the door to a much bigger story around tokenizing other assets and using digital assets in new ways,” Devin Ryan, head of financial technology research at Citizens.

On Tuesday, as bitcoin ETFs snapped a 15-day streak of inflows, ether ETFs saw $40 million in inflows led by BlackRock’s iShares Ethereum Trust. ETH ETFs came back to life in June after much concern that they were becoming zombie funds.

The price of the coin itself was last higher by 5%, according to Coin Metrics, though it’s still down 24% this year.

Ethereum has been struggling with an identity crisis fueled by uncertainty about the network’s value proposition, weaker revenue since its last big technical upgrade and increasing competition from Solana. Market volatility, driven by geopolitical uncertainty this year, has not helped.

The Ethereum network’s smart contracts capability makes it a prominent platform for the tokenization of traditional assets, which includes U.S. dollar-pegged stablecoins. Fundstrat’s Tom Lee this week called Ethereum “the backbone and architecture” of stablecoins. Both Tether (USDT) and Circle‘s USD Coin (USDC) are issued on the network.

Fundstrat's Tom Lee on being named chairman of BitMine Immersion Technologies

BlackRock’s tokenized money market fund (known as BUIDL, which stands for USD Institutional Digital Liquidity Fund) also launched on Ethereum last year before expanding to other blockchain networks.

Tokenization is the process of issuing digital representations on a blockchain network of publicly traded securities, real world assets or any other form of value. Holders of tokenized assets don’t have outright ownership of the assets themselves.

The latest wave of interest in ETH-related assets follows an announcement by Robinhood this week that it will enable trading of tokenized U.S. stocks and ETFs across Europe, after a groundswell of interest in stablecoins throughout June following Circle’s IPO and the Senate passage of its proposed stablecoin bill, the GENIUS Act.

Ether, which turns 10 years old at the end of July, is sitting about 75% off its all-time high.

Don’t miss these cryptocurrency insights from CNBC Pro:

Continue Reading

Technology

China’s Honor launches new challenge to Samsung with thin foldable smartphone and a big battery

Published

on

By

China's Honor launches new challenge to Samsung with thin foldable smartphone and a big battery

Honor launched the Honor Magic V5 on Wednesday July 2, as it looks to challenge Samsung in the foldable space.

Honor

Honor on Wednesday touted the slimness and battery capacity of its newly launched thin foldable phone, as it lays down a fresh challenge to market leader Samsung.

The Honor Magic V5 goes will initially go on sale in China, but the Chinese tech firm will likely bring the device to international markets later this year.

The company, which spun off from Chinese tech giant Huawei in 2020, is looking to stand out from rivals with key features of the Magic V5, like artificial intelligence, battery and size.

Honor said the Magic V5 is 8.8 mm to 9mm when folded, depending on the color choice. The phone’s predecessor, the Magic V3 — Honor skipped the Magic V4 name — was 9.2 mm when folded. Honor said the Magic V5 weighs 217 grams to 222 grams, again, depending on the color model. The previous version was 226 grams.

In China, Honor will launch a special 1 terabyte storage size version of the Magic V5, which it says will have a battery capacity of more than 6000 milliampere-hour — among the highest for foldable phones.

Honor has tried hard to tout these features, as competition in foldables ramps up, even as these types of devices have a very small share of the overall smartphone market.

Honor vs. Samsung

Foldables represented less than 2% of the overall smartphone market in 2024, according to International Data Corporation. Samsung was the biggest player with 34% market share followed by Huawei with just under 24%, IDC added. Honor took the fourth spot with a nearly 11% share.

Honor is looking to get a head start on Samsung, which has its own foldable launch next week on July 9.

Francisco Jeronimo, a vice president at the International Data Corporation, said the Magic V5 is a strong offering from Honor.

“This is the dream foldable smartphone that any user who is interested in this category will think of,” Jeronimo told CNBC, pointing to features such as the battery.

“This phone continues to push the bar forward, and it will challenge Samsung as they are about to launch their seventh generation of foldable phones,” he added.

The thinness of a foldable phone has become a battleground for smartphone makers to appeal to consumers who want the large screen size the device has to offer without extra weight.

At its event next week, Samsung is expected to release a foldable that is thinner than its predecessor and could come close to challenging Honor’s offering by way of size, analysts said. If that happens, then Honor will be facing more competition, especially against Samsung, which has a bigger global footprint.

“The biggest challenge for Honor is the brand equity and distribution reach vs Samsung, where the Korean vendor has the edge,” Neil Shah, co-founder of Counterpoint Research, told CNBC.

Honor’s push into international markets beyond China is still fairly young, with the company looking to build up its brand.

“Further, if Samsung catches up with a thinner form-factor in upcoming iterations, as it has been the real pioneer in foldables with its vertical integration expertise from displays to batteries, the differentiating factor might narrow for Honor,” Shah added.

Vertical integration refers to when a company owns several parts of a product’s supply chain. Samsung has a display and battery business which provides the components for its foldables.

Honor talks up AI

Smartphone players, including Honor, have also looked to stand out via the AI features available on their device.

In March, Honor pledged a $10 billion investment in AI over the next five years, with part of that going toward the development of next-generation agents that are seen as more advanced personal assistants.

Honor said its AI assistant Yoyo can interact with other AI models, such as those created by DeepSeek and Alibaba in China, to create presentation decks.

The company also flagged its AI agent can hail a taxi ride across multiple apps in China, automatically accepting the quickest ride to arrive? and cancelling the rest.

Continue Reading

Technology

AI virtual personality YouTubers, or ‘VTubers,’ are earning millions

Published

on

By

AI virtual personality YouTubers, or ‘VTubers,’ are earning millions

One of the most popular gaming YouTubers is named Bloo, and has bright blue wavy hair and dark blue eyes. But he isn’t a human — he’s a fully virtual personality powered by artificial intelligence.

“I’m here to keep my millions of viewers worldwide entertained and coming back for more,” said Bloo in an interview with CNBC. “I’m all about good vibes and engaging content. I’m built by humans, but boosted by AI.”

Bloo is a virtual YouTuber, or VTuber, who has built a massive following of 2.5 million subscribers and more than 700 million views through videos of him playing popular games like Grand Theft Auto, Roblox and Minecraft. VTubers first gained traction in Japan in the 2010s. Now, advances in AI are making it easier than ever to create VTubers, fueling a new wave of virtual creators on YouTube.

The virtual character – whose bright colors and 3D physique look like something out of a Pixar film or the video game Fortnite – was created by Jordi van den Bussche, a long time YouTuber also known as kwebbelkop. Van den Bussche created Bloo after finding himself unable to keep up with the demands of content creation. The work no longer matched the output.

“Turns out, the flaw in this equation is the human, so we need to somehow remove the human,” said van den Bussche, a 29-year old from Amsterdam, in an interview. “The only logical way was to replace the human with either a photorealistic person or a cartoon. The VTuber was the only option, and that’s where Bloo came from.”

Jordi Van Den Bussche, YouTuber known as Kwebbelkop.

Courtesy: Jordi Van Den Bussche

Bloo has already generated more than seven figures in revenue, according to van den Bussche. Many VTubers like Bloo are “puppeteered,” meaning a human controls the character’s voice and movements in real time using motion capture or face-tracking technology. Everything else, from video thumbnails to voice dubbing in other languages, is handled by AI technology from ElevenLabs, OpenAI’s ChatGPT, Google’s Gemini and Anthropic’s Claude. Van den Bussche’s long-term goal is for Bloo’s entire personality and content creation process to be run by AI.

Van den Bussche has already tested fully AI-generated videos on Bloo’s channel, but says the results have not yet been promising. The content doesn’t perform as well because the AI still lacks the intuition and creative instincts of a human, he said. 

“When AI can do it better, faster or cheaper than humans, that’s when we’ll start using it permanently,” van den Bussche said.

The technology might not be far away.

Startup Hedra offers a product that uses AI technology to generate videos that are up to five minutes long. It raised $32 million in a funding round in May led by Andreessen Horowitz’s Infrastructure fund.

Hedra’s product, Character-3, allows users to create AI-generated characters for videos and can add dialogue and other characteristics. CEO Michael Lingelbach told CNBC Hedra is working on a product that will allow users to create self-sustaining, fully-automated characters.

Hedra’s product Character-3 allows users to make figures powered by AI that can be animated in real-time.

Hedra

“We’re doing a lot of research accelerating models like Character-3 to real time, and that’s going to be a really good fit for VTubers,” Lingelbach said. 

Character-3’s technology is already being used by a growing number of creators who are experimenting with new formats, and many of their projects are going viral. One of those is comedian Jon Lajoie’s Talking Baby Podcast, which features a hyper-realistic animated baby talking into a microphone. Another is Milla Sofia, a virtual singer and artist whose AI-generated music videos attract thousands of views. 

Talking Baby Podcast

Source: Instagram | Talking Baby Podcast

These creators are using Character-3 to produce content that stands out on social media, helping them reach wide audiences without the cost and complexity of traditional production.

AI-generated video is a rapidly evolving technology that is reshaping how content is made and shared online, making it easier than ever to produce high-quality video without cameras, actors or editing software. In May, Google announced Veo 3, a tool that creates AI-generated videos with audio.

Google said it uses a subset of YouTube content to train Veo 3, CNBC reported in June. While many creators said they were unaware of the training, experts said it has the potential to create an intellectual property crisis on the platform.

Faceless AI YouTubers

Creators are increasingly finding profitable ways to capitalize on the generative AI technology ushered in by the launch of OpenAI’s ChatGPT in late 2022.

One growing trend is the rise of faceless AI channels. These are run by creators who use these tools to produce videos with artificially generated images and voiceover that can sometimes earn thousands of dollars a month without them ever appearing on camera.

“My goal is to scale up to 50 channels, though it’s getting harder because of how YouTube handles new channels and trust scores,” said GoldenHand, a Spain-based creator who declined to share his real name.

Working with a small team, GoldenHand said he publishes up to 80 videos per day across his network of channels. Some maintain a steady few thousand views per video while others might suddenly go viral and rack up millions of views, mostly to an audience of those over the age of 65.

GoldenHand said his content is audio-driven storytelling. He describes his YouTube videos as audiobooks that are paired with AI-generated images and subtitles. Everything after the initial idea is created entirely by AI.

He recently launched a new platform, TubeChef, which gives creators access to his system to automatically generate faceless AI videos starting at $18 a month.

“People think using AI means you’re less creative, but I feel more creative than ever,” he said. “Coming up with 60 to 80 viral video ideas a day is no joke. The ideation is where all the effort goes now.”

AI Slop

As AI-generated content becomes more common online, concerns about its impact are growing. Some users worry about the spread of misinformation, especially as it becomes easier to generate convincing but entirely AI-fabricated videos.

“Even if the content is informative and someone might find it entertaining or useful, I feel we are moving into a time where … you do not have a way to understand what is human made and what is not,” said Henry Ajder, founder of Latent Space Advisory, which helps business navigate the AI landscape.

Others are frustrated by the sheer volume of low-effort, AI content flooding their feeds. This kind of material is often referred to as “AI slop,” low-quality, randomly generated content made using artificial intelligence. 

Google DeepMind Veo 3.

Courtesy: Google DeepMind

“The age of slop is inevitable,” said Ajder, who is also an AI policy advisor at Meta, which owns Facebook and Instagram. “I’m not sure what we do about it.”

While it’s not new, the surge in this type of content has led to growing criticism from users who say it’s harder to find meaningful or original material, particularly on apps like TikTok, YouTube and Instagram.

“I am actually so tired of AI slop,” said one user on X. “AI images are everywhere now. There is no creativity and no effort in anything relating to art, video, or writing when using AI. It’s disappointing.”

However, the creators of this AI content tell CNBC that it comes down to supply and demand. As the AI-generated content continues to get clicks, there’s no reason to stop creating more of it, said Noah Morris, a creator with 18 faceless YouTube channels.

Some argue that AI videos still have inherent artistic value, and though it’s become much easier to create, slop-like content has always existed on the internet, Lingelbach said.

“There’s never been a barrier to people making uninteresting content,” he said. “Now there’s just more opportunity to create different kinds of uninteresting content, but also more kinds of really interesting content too.”

Continue Reading

Trending