Bad sports

This past weekend saw the culmination of two major sporting events – the Wimbledon Championships and the FIFA World Cup. Both tournaments featured some amazing matches and some outstanding results. They also were largely free of the player tantrums and unprofessional conduct that often besmirch these occasions. In fact, the number of red cards issued at Russia 2018 was the fewest for 40 years. At the risk of ruffling a few feathers, it feels such a shame that much of Australian professional sport appears to be out of step with this broader mood.

Australian sporting prowess is something of a national (if not economic) obsession. After every Olympics, there is a post mortem on how many (or few) gold medals Australia wins compared to the amount of tax payer money invested in elite athletes. (It is sometimes said that the job of Prime Minister competes for importance with that of captaining the Australian cricket team.)

Sadly, the desire to win at any cost, or to do whatever it takes to succeed, has had some serious and negative consequences in recent times. Whether it’s the Australian cricket team (playing the game their way – by “headbutting the line”…), certain Australian tennis players (competing only when and if it suits them), or the national basketball team (taking matters into their own hands….), there is an uncomfortable sense of entitlement among some sports professionals.

In the wake of the Test Match ball tampering incident, there was a considerable amount of Schadenfreude – as if the Australian cricket team had got their comeuppance. If the history of on-field sledging and the boorishness of their coach had not been enough to tarnish the reputation of the national side, “tampergate” was the final straw.

My own first exposure to a key part of Australian sporting culture was age 10. I had recently moved here from the UK, and the English cricket team had just won the Ashes, the first time for many years (a familiar pattern for their long-suffering supporters). Such was the impact of this apparent shock to the Australian psyche that at school, I was called a “Pommy bastard”. The irony is that up until that point, I had no interest in the Ashes – thereafter, I resolved to support England ….and any team playing Australia.

Next week: MoMA comes to Melbourne

 

 

 

Blockchain and Crypto Updates

Courtesy of Techemy and Brave New Coin, I’ve just been on another whistle-stop global tour: 5 cities, 4 countries, 3 continents in two and a half weeks….. Along the way, I caught up on some of the latest market and regulatory developments in Blockchain and cryptocurrency.

Giant billboard in Tokyo’s Ginza district

First, there was no hiding the fact that the past six-month “correction” in crypto markets has had an impact on trading volumes, investor appetite and institutional enthusiasm – as well as generating some regulatory noises. More on the latter below. At the same time, many of the first wave of Blockchain projects that attracted funding over the past 4 years are still at the development or test net stage, or only just launching their MVPs. Hence some investor caution on new token issuance.

Second, there are probably far too many Blockchain and crypto conferences – or rather, volume is diluting the quality of content, meaning too many sub-par events. There is no shortage of interesting topics and informed speakers, but the format and delivery of so many panel discussions and plenary sessions end up sounding tired and lacklustre.

Third, expect a crypto-backed ETF to be listed on a major exchange very soon. I even think it will come out of Europe, rather than the US, but that’s just a personal view. Such a product is going to help with investor diversification and will eventually enable retail investors to get exposure to this new asset class, even within their personal pension plans, without the same level of risk and volatility than direct holdings or spot trading.

Fourth, institutional investors are still looking for institutional products and services: proper custody solutions, robust benchmarks, hedging instruments, portfolio tools and risk analytics. One challenge is that the market is still trying to define crypto fundamentals – the sorts of analysis we take for granted in other asset classes (earnings per share, p/e ratio, yields, Sharp ratio, credit risk, etc.).

Fifth, Japan feels like a case of “two steps forward, one step back”. Just over a year ago, cryptocurrencies were formally recognised as a legal form of payment. Then in late 2017, the FSA issued the first batch of crypto licenses to qualifying exchanges. Japan continues to represent a significant portion of crypto trading (partly a legacy of retail FX trading, partly a result of regulatory restriction in other markets). But yet another exchange hack earlier this year prompted the regulator to put the industry on notice to smarten up, or face the consequences. Exchanges are subject to monthly monitoring, and the self-regulating industry body is undergoing a few changes. Plus, exchanges are no longer able to list privacy coins.

Finally, with the lack of legal clarity or regulatory detail around initial coin offerings (aside from blanket statements that “all ICOs are securities until proven otherwise”), there is still a lot of regulatory arbitrage. Certain jurisdictions are actively attracting new issuance projects to their shores, and positioning themselves as being “ICO friendly”. Ironically, even though the SEC in the USA has been particularly vocal about ICOs that may actually be deemed securities, it has not defined what constitutes a utility token (or made any announcement on the new category of security tokens). However, there have been some recent announcements out of the SEC suggesting that neither Ethereum nor Bitcoin are in fact securities. More interestingly, the State of Wyoming is looking to make Blockchain and associated crypto assets a major pillar of its economy.

NOTE: The comments above are made in a purely personal capacity, and do not purport to represent the views of Techemy or Brave New Coin, their clients or any other organisation I work with. These comments are intended as opinion only and should not be construed as financial advice.

Next week: Bad sports

Singles Going Steady

This week’s installment is the final in the current music trilogy – this time, a tribute to the humble 7″ vinyl record. Not only did the 1950s spawn rock’n’roll and teenage rebellion, it also gave us the 7″ 45rpm vinyl record. In his book, “iPod, Therefore I Am”, Dylan Jones mentions that the choice of size and speed for the vinyl single was an engineering calculation designed to  deliver the maximum audio fidelity.

60 years later, new music is still being released in this format, despite the decline in sales since its 1980s heyday. The 7″ single is the preferred format for many new bands who want to release their first record, such is its iconic status.

The 7″ single is a succinct statement, and a self-contained work of art that can act both as a statement of intent by a new artist, and as a key “out-of-series” release by mainstream or established artists. Not only that, the b-side allowed artists an opportunity for even further experimentation.

The accompanying record sleeves have also inspired artists to create memorable images and designs to wrap around these vinyl artifacts. In recent years, artists such as Yoko Ono and Sir Peter Blake have contributed works to an annual charity project.

The first 7″ record I can remember being aware of was “Telstar” by The Tornados, part of the record collection we had at home in the 1960s. Then it was probably a trio of Beatles releases, “Penny Lane/Strawberry Fields”, “Hello Goodbye/I Am The Walrus” and “Hey Jude/Revolution” that got constantly played on the old dansette. Next up, David Bowie’s run of 70s singles. Then punk and new wave came along, and revitalised the format. (For reference, take Wire’s first six singles for the Harvest label, or the late 70s singles output from artists like The Clash, The Jam, The Buzzcocks and Elvis Costello.)

In the 1960s and 1970s, record labels could take a punt on new artists by putting out relatively cheap 7″ records, knowing that maybe only 5% would become successful. This in turn inspired independent labels, and even fostered self-released records under a DIY ethos that continues today with Bandcamp and other artist-controlled platforms.

The most valuable 7″ record in my personal collection is probably The Game’s “Addicted Man/Help Me Mummy’s Gone”, its rarity due to the fact it was withdrawn before it was officially released. A friend bought it in an op shop for 15p, as a joke birthday present. Probably the best 15p investment ever….

Next week: Blockchain and Crypto Updates

 

 

 

The Soundtracks of My Life…

This week’s musical interlude (#2 of 3) takes its cue from the world of film soundtracks. The first soundtrack album that made an impression on me was “Chariots of the Gods”, from 1972. It revealed that music can be mysterious, melodic and moody. It comprised elements of exotica, jazz, music concrete, electronic, muzak. It also started my life-long interest in this particular art form.

Image sourced from Discogs

The following list represents a selection of my favourite soundtracks (in no particular order):

Chariots of the Gods (Peter Thomas Sound Orchestra)

A Clockwork Orange (Wendy Carlos)

Morvern Callar (Various)

Get Carter (Roy Budd)

Le Samourai (François De Roubaix)

Le Mepris (Georges Delerue)

Ascenseur Pour L’Échafaud (Miles Davis)

Heat (Various)

The Insider (Various)

Somersault (Decoder Ring)

Mysterious Skin (Harold Budd & Robin Guthrie)

Virgin Suicides (Various)

Lost in Translation (Various)

The Piano (Michael Nyman)

The End of the Affair (Michael Nyman)

The Draughtsman’s Contract (Michael Nyman)

In The Mood For Love (Various)

Code 46 (The Free Association)

2046 (Various)

Death in Venice (Various)

Broken Flowers (Various)

The Limits of Control (Various)

Only Lovers Left Alive (Jozef Van Wissem /  SQÜRL)

Inner Space (Sven Libaek)

Next week: Singles Going Steady