Connect with us

Published

on

During a period of hyperinflation in 2013, “my Venezuelan mother asked me to send money to Caracas, the country’s capital,” Hervé Larren recalls. However, bank transfers were not possible between the two countries. 

Busy with work in New York, he told a friend that he planned to fly to Caracas — carrying cash for his mother — and return the same day. “Why don’t you just send Bitcoin?” his friend asked, which quickly led to a change of plans as Larren made his first Bitcoin transfer.

“My first crypto transaction, in 2013, was to wire Bitcoin from the U.S. to Venezuela. Due to the economic collapse, there was no functioning banking system between these two countries.”

Switching from a career with luxury goods company LVMH Moët Hennessy Louis Vuitton, Larren co-founded a large-scale crypto mining operation and worked with Grayscale to bring crypto assets to old-school investors. He later became a key adviser to ApeCoin and the first person to bid a million dollars for a nonfungible token.

From old to new

“We were reporting to Nicolas Sarkozy, and he was coming to our meetings,” Larren recalls of his time as the head of a high school student council in Neuilly-sur-Seine, the wealthiest old-money suburb of Paris, where he grew up. 

Sarkozy served as the local mayor for 20 years before becoming the president of France. Larren’s mother — from Venezuela — was a TV host and the first Latina model signed by the L’Oreal cosmetics brand. His French father imported wine to Canada,  where a third of the population is French-speaking.

In the late 90s, Larren began undergraduate business studies at Montreal’s Concordia University. In 2019, Concordia labeled him “The Blockchain Maven” as part of a “50 Under 50” alumni distinction. Upon graduation, he got a job at Moët Hennessy’s New York office, where he worked on brand development of the firm’s Hennessy cognac brand in the United States.

Larren worked on his MBA at Columbia University part time while at LVMH, graduating in 2010 and entering the venture capital world with Peak Ventures, which “was involved in tech companies including Twitter.” It was Larren’s first experience in the technology sector, which he describes as very different from the old-world, intergenerational luxury goods industry.

Larren quickly moved to accept Bitcoin at an e-commerce business he was involved with, a company that helped charities raise money by partnering with celebrities. In 2015, he formed crypto mining firm Global Crypto Ventures, which grew into an operation of nearly 3,000 machines composed primarily of Bitmain Antminer S9 miners in Las Vegas and Texas, where “the cost of infrastructure and electricity was cheaper.” 

Larren at his mining facility. (Hervé Larren)

Grayscale Digital Large Cap Fund 

While speaking at the 2017 World Technology Forum in New York, Larren met Digital Currency Group CEO Barry Silbert, who was talking right after him about the Grayscale Bitcoin Trust, through which retail investors could get exposure to Bitcoin through their brokerage. He was also working on a new investment vehicle called Grayscale Digital Large Cap Fund (GDLC), which represented a weighted portfolio of cryptocurrencies, including Ether, MATIC, ADA and SOL, in addition to Bitcoin. 

As a publicly traded investment instrument, it would require approval by the Securities and Exchange Commission. One relevant matter would be to ensure that the fund could buy its digital assets from a trusted source, preferably from within the United States. Larren’s mining firm was an ideal source, and having a ready buyer for mining proceeds made business smoother.

This opportunity represented Larren’s first foray into crypto beyond Bitcoin, and it “attracted me to a new space.”



Working with the SEC was no easy task, Larren recalls. “It was a nerve-racking process. Though the company was very confident about getting approval, there was a lot of uncertainty because no such investment trust had been approved previously.”

However, the GDLC was approved, expanding the potential pool of crypto investors. Though many in the industry continue to preach the “not your keys, not your coins” mantra, Larren argues that just as with stocks, owning Bitcoin and other crypto assets through a financial instrument instead of on an exchange or cold-storage device is preferable for most of the public.

There is less risk of being hacked or losing access to keys, and regulated funds must meet stringent security policies and often carry insurance. He also notes that they are easier to manage on a portfolio basis, particularly regarding taxation and being more straightforward for accountants to understand.

Will BlackRock’s Bitcoin ETF be approved?

These advantages make it easy to see why heavyweights of the financial industry see an opportunity in offering Bitcoin investment vehicles accessible to retail investors. One of these is BlackRock, which recently applied to launch a Bitcoin spot exchange-traded fund in the United States.

“BlackRock offers the credibility to convince the SEC that the Bitcoin market can be operated safely and has much to offer investors,” Larren says optimistically. He expects that with BlackRock’s track record of 575 approved ETFs versus one denial, it will soon come online, with similar products expected in other markets.

“I think it would lead to an automatic rise in Bitcoin’s price. I think many people are on the sidelines waiting for clarity, and that’s a step in Bitcoin’s institutional adoption.”

“For a very long time, Grayscale had a premium on its shares” compared with the price of Bitcoin, Larren notes, explaining that the security, certainty and convenience meant that more conservative investors were historically willing to pay more per BTC. BlackRock’s ETF is unlikely to hold a large premium, which would serve to make the market more efficient.

All roads in Decentraland lead to Beeple

Larren first heard about the metaverse through Decentraland’s initial coin offering in August 2017. “They were selling 90,000 pieces of NFT land in the metaverse,” he recalls, adding that he felt a proximity to the project’s Argentine founders due to South America’s shared currency issues. “My first NFT purchase was actually buying my name in the metaverse,” he says, recalling how he spent 100 MANA to name his avatar.

He was also given a piece of land on which to build the Airvey art gallery, where Larren placed various NFTs for sale. When Christie’s announced it would auction Beeple’s “Everydays” piece in its first-ever NFT auction in March 2021 — a story previously covered by Magazine — the auction house contacted the Airvey gallery to invite bids.

“I wanted to be the first person in the world who bid seven figures on an NFT.”

“Well that escalated quickly” was Beeple’s only comment when Larren’s bid for $1 million came through, representing the first volley in a bidding battle that would see an anonymous buyer later revealed as Vignesh Sundaresan, also known as Metakovan, beat Tron founder Justin Sun with a record-setting bid of $69 million.

Beeple posted his reaction to the $1 million bid on Instagram.

Bored Apes design ApeCoin

With a newfound passion for NFTs, Larren joined Horizen Labs in 2021, months before the firm began discussions with Yuga Labs, a small company where four founders were working on an NFT project involving monkeys.

Yuga contracted Horizen Labs to create ApeCoin, a large allocation of which was distributed to holders of Yuga’s NFT collections — including Bored Ape Yacht Club, Mutant Ape Yacht Club and Bored Ape Kennel Club — via massive airdrop. 

“We did everything from the white paper, tokenomics, to listing on exchanges. In less than 20 minutes, it became an $8 billion project,” Larren says, referring to the token’s undiluted market cap, now about $2 billion. In addition to the launch, Larren notes that Horizen Labs designed the token’s staking mechanism, which will see “100 million tokens distributed to the community over three years.

As Gucci and TAG Heuer began accepting ApeCoin as a form of payment, Larren’s luxury contacts came calling back.

“I spent a week with Chanel’s team at a castle in the English countryside, educating them on all aspects of Web3,” including MetaMask and NFT drops. Larren observes that as he moved from “the most successful physical goods company, LVMH, to the most successful digital goods company, Yuga Labs, the thought process was the same.”

Read also


Features

Tiffany Fong flames Celsius, FTX and NY Post: Hall of Flame


Features

All rise for the robot judge: AI and blockchain could transform the courtroom

He describes metaverse real estate and PFPs, which include Yuga’s famous monkey pictures, as fitting into a broad category of “consumer NFTs” that are purchased by individuals in a way not dissimilar to luxury goods. Indeed, he notes that many of LVMH founder Bernard Arnault’s children — heirs of the world’s second-richest man — are actively dabbling in them.

Larren overlooking the Horizen Labs office floor in Milan. (Elias Ahonen)

“People want to feel that they are part of an exclusive community with like-minded individuals,” he explains, relating the concept sold in luxury boutiques and exclusive events the world over. In the case of Yuga’s NFTs, he argues that “there is value for many people in being members of a group that shares similar cultural references, whether it being digital or at concerts,” referring to events like ApeFest, the next of which will take place in Hong Kong in November.

Can an ape JPG really be a blue-chip NFT?

NFTs that gain mass appeal as recognizable status symbols are often labeled as “blue chip” among the NFT community, a nod to a term typically referring to reliable stocks and originally derived from poker, where blue chips are traditionally the most valuable. 

“It’s a brand-building element as recognition of industry and buyers. Supply is far less than demand, and there is a strong fan and collector base. In traditional art, Picasso and Jean-Michel Basquiat are blue chips,” he explains, noting that Bored Apes and CryptoPunks hold such a position within the PFP hierarchy.

“The price is a result of the value that has been created. When you go to a Louis Vuitton store, the price is nowhere to be seen.”

“Holding a BAYC can make sense because you can stake it to earn tokens, and it can act as a financial instrument because you can borrow against it,” he notes, naturally enough, considering his company designed the staking mechanism. 

Larren poses in Milan with images of NFTs, including a Bored Ape and an Otherside land plot. (Elias Ahonen)

“There are blue chips in other categories as well, such as metaverse land,” he adds, cautioning that its value, “like traditional real estate, will depend on the income generated with it.” 

This is because, in his opinion, people will not remain interested in vast spaces of empty metaverse land but rather in spaces that are built up and useful, like his art gallery. “Traditional real estate involves buildings — the same will be true of metaverse land.”

Where might we look for the next crop of blue chips?

“I’m now passionate about building on top of Bitcoin with BRC-20s and Ordinals,” Larren explains, hinting that something big is in the works. For him, the coming metaverse is a place and time “when your digital life is more important than your physical life and where digital image matters more than physical image.” In this new environment, he believes that the Bitcoin chain, with its newfound capability to host NFTs, will hold a key position as a central pillar.

“In Web3, you need to anticipate how consumer taste will evolve and what the market will want in the next six months.”

Elias Ahonen author at Cointelegraph Magazine

Elias Ahonen

Elias Ahonen is a Finnish-Canadian author based in Dubai who has worked around the world operating a small blockchain consultancy after buying his first Bitcoins in 2013. His book ‘Blockland’ (link below) tells the story of the industry. He holds an MA in International & Comparative Law whose thesis deals with NFT & metaverse regulation.

Continue Reading

Politics

Sir Ed Davey brands Elon Musk a criminal and calls for his arrest for ‘allowing online harm to children’

Published

on

By

Sir Ed Davey brands Elon Musk a criminal and calls for his arrest for 'allowing online harm to children'

Sir Ed Davey has branded Elon Musk a criminal and called for him to be prosecuted for “allowing online harm to children” on his social media platform X.

The Lib Dem leader told Sky News’ Sunday Morning with Trevor Phillips the billionaire owner of X, formerly Twitter, is “inciting violence” and his social media platform is actively failing to protect children.

Sir Ed, speaking from the Lib Dem conference in Bournemouth, said Mr Musk could be prosecuted under the Online Safety Act, under which social media companies have a legal duty to protect children from harmful content and their directors are liable for criminal prosecution for breaching it.

Elon Musk. Pic: Reuters
Image:
Elon Musk. Pic: Reuters

Asked if he is calling Mr Musk a criminal, Sir Ed did not miss a beat as he said: “Yes.

“Not just because of the awful things he’s done in inciting violence, and, for example, he says a civil war in our country is inevitable, that our democratically elected government should be overthrown.

“They were bad enough. But on his platform, they’re examples of adverse, pushing people on self-harm, on grooming, even selling videos showing paedophile acts, of child sex abuse acts and I think he should be held to account for them, him personally and his business.

“Ofcom now has the powers under the Online Safety Act.”

More on Elon Musk

He said if Mr Musk comes to the UK, he should be arrested.

Read more:
Lib Dems toughen up immigration rhetoric

Please use Chrome browser for a more accessible video player

Sir Ed Davey enters conference with marching band

Mr Musk was accused of inciting violence during a march organised by Tommy Robinson in London last week.

He told the protest via video link: “This is a message to the reasonable centre, the people who ordinarily wouldn’t get involved in politics, who just want to live their lives. They don’t want that, they’re quiet, they just go about their business.

“My message is to them: if this continues, that violence is going to come to you, you will have no choice. You’re in a fundamental situation here.

“Whether you choose violence or not, violence is coming to you. You either fight back or you die, that’s the truth, I think.”

Sir Ed Davey said Elon Musk should be arrested
Image:
Sir Ed Davey said Elon Musk should be arrested

Sir Ed said it is “shocking” that Mr Musk removed some of X’s child safety teams when he took over Twitter in 2022 and accused him of just being “interested in his bank account”.

“I’m interested in the safety of our children, and it is quite wrong that his business puts on these adverts,” said the Lib Dem leader.

“It’s disgusting and I hope everybody will agree with me and the Liberal Democrats that we should take really strong action against him.”

After Mr Musk acquired Twitter, many of its child safety staff were laid off or resigned, and the platform’s trust and safety council was disbanded.

Child protection experts have accused Mr Musk of leading a “race to the bottom on safety”.

Elon Musk with Donald Trump in the Oval Office. Pic: AP
Image:
Elon Musk with Donald Trump in the Oval Office. Pic: AP

Ofcom, the UK’s independent media regulator, which has the power to prosecute directors of social media platforms under the Online Safety Act, has launched an investigation into X’s handling of child sexual abuse content.

This is not the first time Sir Ed has hit out at the world’s richest man, as he called for the US ambassador to be summoned in February “to ask why an incoming US official is suggesting the UK government should be overthrown”.

Mr Musk reacted by calling Sir Ed a “snivelling cretin”.

Sir Ed is expected to reiterate his call for Mr Musk’s arrest at his conference speech on Tuesday.

Pic: Reuters
Image:
Pic: Reuters

He will accuse Mr Musk of being motivated by “his own ego, power and wealth, rather than the rights and freedoms of the British people”.

The Lib Dems will also table a parliamentary motion summoning Mr Musk to the House of Commons “to be reprimanded for his actions”.

Sky News has approached X and Elon Musk for comment, but as of publication has received no response.

X maintains it has “zero tolerance for child sexual abuse material” and claims tackling those who exploit children is a “top priority”.

Continue Reading

Politics

Sir Keir Starmer set to announce formal recognition of Palestine as a state

Published

on

By

Starmer to announce formal recognition of Palestine as a state

The UK will formally recognise Palestine as a state, it is understood.

Sir Keir Starmer is expected to make the announcement today after he said in July that the government would make the move unless Israel met certain conditions.

The prime minister had called on Benjamin Netanyahu’s government to take substantive steps to end the “appalling situation in Gaza“, agree to a ceasefire, commit to a long-term sustainable peace, allow the UN to restart the supply of aid, and not annex the West Bank.

The Israeli foreign ministry furiously rejected his statement, with Mr Netanyahu claiming that “Starmer rewards Hamas‘s monstrous terrorism and punishes its victims”.

Please use Chrome browser for a more accessible video player

Could recognition of Palestine change the West Bank?

Ilay David, brother of Hamas hostage Evyatar David, who was seen emaciated in a video last month, said giving recognition was “like saying to Hamas: ‘It is OK, you can keep starving the hostages, you can keep using them as human shields.’

“This kind of recognition gives Hamas power to be stubborn in negotiations. That is the last thing we need right now.”

There has been no ceasefire, and the situation in Gaza has deteriorated, with a declaration of a famine in Gaza City and the expansion of Israeli military operations.

Israel has launched a major ground offensive to seize all of Gaza City and destroy Hamas in an operation which has prompted widespread condemnation, with UK Foreign Secretary Yvette Cooper calling it “utterly reckless and appalling”.

More on Gaza

Please use Chrome browser for a more accessible video player

What changed in UK’s Gaza policy?

Earlier this month, a UN commission of inquiry concluded that Israel has committed genocide against Palestinians in Gaza. Israel said the claim was “distorted and false”.

The UK will join 147 of the 193 members of the UN who recognise Palestine ahead of the UN General Assembly in New York on Monday.

Other nations, including France, Australia and Canada, have said they plan to take the same step at the UN gathering as part of a broad international effort to put pressure on Israel.

And the Muslim Council of Britain welcomed the prime minister’s move, but urged that recognition must also come with “tangible action”.

During a joint news conference with the prime minister at Chequers on Thursday, Donald Trump said he disagreed with recognition, and US politicians have urged the UK and other allies to reverse their stance.

Sir Keir Starmer is expected to formally announce the move on Sunday. Pic: PA
Image:
Sir Keir Starmer is expected to formally announce the move on Sunday. Pic: PA

Sky News understands that Israel is considering options in response to the UK’s decision, but the strength of that reaction is still under consideration.

Read more:
Palestinian minister says UK recognition of state would be ‘courageous step’
What does recognising a Palestinian state mean?
Gaza could be ‘real estate bonanza’, Israeli minister says

Family members of some of the 48 hostages still in captivity, after Hamas and other militant groups stormed into Israel on 7 October 2023, have written an open letter to Sir Keir, condemning the move.

Please use Chrome browser for a more accessible video player

Israel ramps up attacks on Gaza City

“Hamas has already celebrated the UK’s decision as a victory and reneged on a ceasefire deal,” they said.

“We write to you with a simple plea – do not take this step until our loved ones are home and in our arms.”

Meanwhile shadow foreign secretary Dame Priti Patel accused the prime minister of “capitulating” to his backbenchers to shore up his leadership.

“With the terrorist organisation Hamas still holding hostages in barbaric conditions and glorifying acts of terror, Starmer is sending a dangerous message, where violence and extremism are tolerated and rewarded,” she said.

The UK government is understood to be looking at further sanctions on Hamas, and has demanded the group release all hostages, agree to an immediate ceasefire, accept it will have no role in governing Gaza, and commit to disarmament.

Continue Reading

Politics

Peers back assisted dying bill – but battles lie ahead

Published

on

By

Peers back assisted dying bill - but battles lie ahead

The controversial assisted dying bill is still very much alive, having received a second reading in the House of Lords without a vote.

But that doesn’t tell the whole story. Day two of debate on the bill in the Lords was just as passionate and emotional as the first, a week earlier.

And now comes the hard part for supporters of Labour MP Kim Leadbeater’s Terminally Ill Adults (End of Life) Bill, as opponents attempt to make major changes in the months ahead.

The Lords’ chamber was again packed for the debate, which this time began at 10am and lasted nearly six hours. In all, during 13 hours of debate over two days, nearly 200 peers spoke.

According to one estimate, over both days of the debate only around 50 peers spoke in favour of the bill and considerably more than 100 against, with only a handful neutral.

The bill proposes allowing terminally ill adults in England and Wales with fewer than six months to live to apply for an assisted death. Scotland’s parliament has already passed a similar law.

Pro-assisted dying campaigners outside parliament earlier this month. Pic: PA
Image:
Pro-assisted dying campaigners outside parliament earlier this month. Pic: PA

In a safeguard introduced in the Commons, an application would have to be approved by two doctors and a panel featuring a social worker, senior lawyer and psychiatrist.

The bill’s sponsor in the Lords, Charlie Falconer, said while peers have “a job of work to do”, elected MPs in the Commons should have the final decision on the bill, not unelected peers.

One of the most contentious moments in the first day of debate last Friday was a powerful speech by former Tory prime minister Theresa May, who said the legislation was a “licence to kill” bill.

That claim prompted angry attacks on the former PM when the debate resumed from Labour peers, who said it had left them dismayed and caused distress to many terminally ill people.

The former PM, daughter of a church of England vicar, had claimed in her speech that the proposed law was an “assisted suicide bill” and “effectively says suicide is OK”.

But opening the second day’s debate, Baroness Thornton, a lay preacher and health minister in Tony Blair’s government, said: “People have written to me in the last week, very distressed.

“They say things such as: ‘We are not suicidal – we want to live – but we are dying, and we do not have the choice or ability to change that. Assisted dying is not suicide’.”

Throughout the criticism of her strong opposition to the bill, the former PM sat rooted to her seat, not reacting visibly but looking furious as her critics attacked her.

Please use Chrome browser for a more accessible video player

Assisted Dying: Reflections at the end of life

There was opposition to the bill, too, from grandees of the Thatcher and Major cabinets. Lord Deben, formerly John Gummer and an ex-member of the Church of England synod, said the bill “empowers the state to kill”.

And Lord Chris Patten, former Tory chairman, Hong Kong governor and Oxford University chancellor, said it was an “unholy legislative mess” and could lead to death becoming the “default solution to perceived suffering”.

Read more:
Paralympian targeted with abuse for opposing assisted dying bill
The assisted dying debate has been politics – but not as we know it

Day two of the debate also saw an unholy clash between Church of England bishops past and present, with former Archbishop of Canterbury George Carey claiming opponents led by Archbishop of York Stephen Cottrell were out of touch with public opinion.

While a large group of bishops sat in their full robes on their benches, Lord Carey suggested both the Church and the Lords would “risk our legitimacy by claiming that we know better than both the public” and the Commons.

“Do we really want to stand in the way of this bill?” he challenged peers. “It will pass, whether in this session or the next. It has commanding support from the British public and passed the elected House after an unprecedented period of scrutiny.”

But Archbishop Cottrell hit back, declaring he was confident he represented “views held by many, not just Christian leaders, but faith leaders across our nation in whom I’ve been in discussion and written to me”.

And he said the bill was wrong “because it ruptures relationships” and would “turbocharge” the agonising choices facing poor and vulnerable people.

A campaigner in opposition of the bill. Pic: PA
Image:
A campaigner in opposition of the bill. Pic: PA

One of the most powerful speeches came from former Tory MP Craig Mackinlay, awarded a peerage by Rishi Sunak after a dramatic Commons comeback after losing his arms and legs after a bout of sepsis.

He shocked peers by revealing that in Belgium, terminally ill children as young as nine had been euthanised. “I’m concerned we want to embed an option for death in the NHS when its modus operandi should be for life,” he said.

And appearing via video link, a self-confessed “severely disabled” Tory peer, Kevin Shinkwin, was listened to in a stunned silence as he said the legislation amounted to the “stuff of nightmares”.

He said it would give the state “a licence to kill the wrong type of people”, adding: “I’m the wrong type. This bill effectively puts a price on my head.”

Please use Chrome browser for a more accessible video player

Assisted Dying vote: Both sides react

After the debate, Labour peer and former MP Baroness Luciana Berger, an opponent of the bill, claimed a victory after peers accepted her proposal to introduce a special committee to examine the bill and report by 7 November.

“The introduction of a select committee is a victory for those of us that want proper scrutiny of how these new laws would work, the massive changes they could make to the NHS and how we treat people at the end of their lives,” she told Sky News.

“It’s essential that as we look at these new laws we get a chance to hear from those government ministers and professionals that would be in charge of creating and running any new assisted dying system.”

After the select committee reports, at least four sitting Fridays in the Lords have been set aside for all peers – a Committee of the whole house – to debate the bill and propose amendments.

Report stage and third reading will follow early next year, then the bill goes back to the Commons for debate on any Lords amendments. There’s then every chance of parliamentary ping pong between the two Houses.

Kim Leadbeater’s bill may have cleared an important hurdle in the Lords. But there’s still a long way to go – and no doubt a fierce battle ahead – before it becomes law.

Continue Reading

Trending