Bad Sports

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The Paris Olympics have just ended, and overall we can say that sport was the winner – although there were the usual political spats, doping allegations, faux outrage, athlete arrests and typical media hyperbole.

Speaking of the latter, I can’t believe that the following headline appeared in a serious newspaper:

Civil war bubbling in Paris as Ariarne Titmus and Mollie O’Callaghan clash in Olympic 200m

“Civil war”? Really? Quite apart from the implied hysteria, is this a responsible use of language in today’s turbulent and highly charged political environment? And after all, it’s JUST a sporting contest, between a couple of athletes who have chosen to pursue a career in sport – it’s not like a life and death situation! Plus there were a few other swimmers competing in the final – but you might be forgiven for thinking it was a two horse race.

Of course, Australians are fanatical about sport, so perhaps this kind of OTT reporting is what we have become used to. Actually, let me clarify. The Australian public has become addicted to watching professional team sports on TV, and gambling on the outcomes. But there are so many paradoxes about this sporting obsession.

First, the two main sporting codes that dominate domestic media coverage, sponsorship dollars and betting apps are the AFL and NRL. Despite what these big businesses would like to believe, neither of these competitions is national, as defined by geographic team representation. No teams from Northern Territory or Tasmania in either league, and none from Western Australia or South Australia in the NRL (and only one from Victoria – which to many people, is the bastion of Australian sport, being the home of the MCG!). As for the travesty of a national Rugby Union competition, let’s not go there…

Second, despite all the attention that the AFL and NRL command, Association Football (aka soccer) is the largest by player participation. Which should not be too surprising given soccer’s global reach and appeal.

Third, there are more people involved with individual rather than team sports. Recreational walking, fitness/gym, athletics, swimming, yoga and golf have higher participation rates. Again, not surprising, as most people drop out of team sports once they leave school. (This may also explain the recent surge in gyms and fitness centres in Australia.)

Fourth, despite being a sport-obsessed nation, Australia has a high percentage of children who are overweight or obese. So rather than pouring public money into a new Tasmanian sports stadium, or failed bids to host the Commonwealth Games (and who knows how many billions the 2032 Brisbane Olympics will eventually cost?), perhaps our State and Federal governments should look at how they can fund greater participation rates, especially among children and teenagers, and make existing sporting facilities more accessible to the wider population.

Finally, as a long-suffering supporter of England in cricket, rugby union and soccer, I can sometimes admire (albeit grudgingly) the difference between English and Australian fans – the former hope their teams will do well, whereas the latter expect (nay, demand!) nothing short of a win. But this obsession with winning comes with a price – sandpaper, anyone? It can also be unhealthy – I was living in Sydney when Australia last hosted the Olympic Games, in 2000. It was a fantastic time to be in the city, and the locals put on a great show. But as I walked away from watching the closing ceremony fireworks over the harbour, one young Aussie supporter was loudly declaring that “we won the Olympics”. I think he was under the misapprehension that Australia topped the medal table (they were fourth) or that it was “Australia vs the World”, not quite in the Olympic spirit!

Next week: Notes from Hong Kong

 

A postscript on AI

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AI tools and related search engines should know when a factual reference is incorrect, or indeed whether an individual (especially someone notable) is living or dead. In an interesting postscript to my recent series on AI, I came across this article – written by someone whom Google declared is no longer with us.

Glaring errors like these demand that tech companies (as well as publishers and media outlets who increasingly rely on these tools) take more seriously the individual’s right of reply, the right to correct or amend the record, as well as the right to privacy and to be forgotten on the internet.

As I commented in my series of articles, AI tools such as ChatGPT (and, it seems, Google Search) can easily conflate separate facts into false statements. Another reason to be on our guard as we embrace (and rely on) these new applications.

Next week: Bad Sports

 

 

Album Celebrations

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When the first 12″ vinyl record was issued in 1948, did any record labels expect that this format would still be in use nearly 80 years later? The death of the 33rpm disc has been predicted many times, based on industry events and cultural trends that were expected to render vinyl albums obsolete. Music cassettes, CDs, MiniDiscs, mp3s, 7″ 45rpm singles, home-taping, downloads and streaming were all seen as existential threats to albums. Yet, despite reaching near extinction in the 1990s, vinyl albums (both new releases and back catalogue) are currently enjoying something of a revival.

This resurgence of interest in albums can be attributed to several factors: baby boomers reliving their youth; Gen X/Y/Z watching shows like “Stranger Things”; the box set, reissue and collector market; retro fashion trends; and a desire for all things analogue, tactile and physical (in contrast to the vapidity of streaming…).

Streaming has definitely changed the way many people listen to music, to the extent that albums have become deconstructed and fragmented thanks to shuffle, algorithms, recommender engines, playlists and a focus on one-off songs and collaborations by today’s popular artists. By contrast, most albums represent a considered and coherent piece of work: a selection of tracks designed and sequenced to be heard in a specific order, reflecting the artist’s creative intention or narrative structure. Streaming means that the artist’s work is being intermediated in a way that was not intended. You wouldn’t expect a novel, play or film to be presented in any old order – the author/playwright/director expects us to view the work as they planned. (OK, so there are some notable examples that challenge this convention, such as B.S.Johnson’s novel, “The Unfortunates” or the recent “Eno” documentary.)

Thankfully, classic albums are now being celebrated for their longevity, with significant anniversaries of an album’s release warranting deluxe reissues and live tours. This past weekend I went to two such events. The first was a concert by Black Cab, marking 10 years since the release of their album “Games Of The XXI Olympiad”. Appropriately, the show was the same day as the opening of the Paris Olympics, and the band started with a brief version of “Fanfare for the Common Man”. The second was part of the 30th anniversary tour for “Dream it Down”, the third album by the Underground Lovers. As well as getting most of the original band members together, the concert also featured Amanda Brown, formerly of The Go-Betweens, and who played on the album itself. (Also on stage was original percussionist, Derek Yuen – whose day job is designing shoes for the Australian Olympic team…)

It’s hard to imagine we will be celebrating the date when an artist first dropped a stream on Spotify….!

[This year also marks the 40th anniversary of the release of “Pink Frost”, the break-through single by The Chills, New Zealand’s finest musical export. So it was sad to read of the recent passing of their founder, Martin Phillipps. The Chills were one of many Antipodean bands that always seemed to be playing in London in the late 1980s, often to much larger audiences than they enjoyed at home. Their classic early singles and EPs are once again available on vinyl. Do yourself a favour, as someone once said!]

Next week: A postscript on AI

 

 

 

 

 

RWAs and the next phase of tokenisation

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In the blockchain and digital asset communities, there are currently three key topics that dominate the industry headlines. In the short term, the spot Ethereum ETFs are finally due to launch in the USA this week. Then there is the perennial long-term price prediction for Bitcoin. In between, much of the debate is about the future of asset tokenisation, specifically for real-world assets (RWAs). Add to the mix the cat and mouse game of regulatory oversight/overreach and the rapid growth of fiat-backed stablecoins, and there you have all the elements of the crypto narrative for the foreseeable future.

The general view is that tokenising traditional assets such as real estate, equities, bonds, commodities, stud fees, art and intellectual property, and issuing them as digital tokens on a blockchain has several benefits. Tokenisation should reduce origination and transaction costs (fewer intermediaries, cheaper technology); reduce settlement times (instant, compared to T+1, T+2, T+3 days in legacy markets); democratize access to assets (using fractionalisation) that were previously available only to wholesale investors; and give rise to further innovation. For example, imagine hybrid tokens that comprise equity ownership; a right to a share of revenue streams; and membership discounts. Think of a tokenised toll road, or a sports stadium, or an art work that gets hired out to galleries and is licensed for merchandising purposes.

There are still quite a few issues to iron out, such as: the technology standards and smart contract designs that will originate, issue, distribute, track, cryptographically secure and transfer the digital tokens, both on native blockchains and across multiple networks; the role of traditional players (brokers, underwriters, custodians, trustees, transfer agents, payment agents, and share registries), and whether they are needed at all once assets are secured on-chain; and verification, certification and chain of ownership (given that an asset expressed as a digital token is very similar to a bearer bond – my private keys, my asset).

Last week, Upside in Melbourne hosted a panel discussion entitled: “Tokenise This! Unlocking the Value of Real World Asset Tokenisation”. The speakers were:

Richard Schroder, Head of Digital Asset Services, ANZ Bank

Lisa Wade, CEO, DigitalX

Andrew Sallabanks, Head of Strategy and Operations, CloudTech Group

Alan Burt, Executive Chairman, Redbelly Network

Shane Verner, A/NZ Sales Director, Fireblocks

Each of these firms has been working on a number of tokenisation projects such as stablecoins, real estate, government bonds, credit portfolios, fund of funds, and even stud fees. The key message was “faster, cheaper” is not good enough – RWA tokenisation solutions must offer something that is much better than traditional processes, and does not add friction (if anything, it should reduce current friction).

There were frequent references to fiat-backed stablecoins. In some ways, the tokenisation of real estate, bonds and equities is an extension of the tokenisation of money (as illustrated by stablecoins). However, there was no specific mention for the role of stablecoins in RWA tokensiation, for example, as on/off ramps, and as settlement instruments for the pricing, transfer and valuation of RWAs.

From an Australian perspective, the prospect of regulation (particularly for custody, crypto exchanges and brokers, and payment platforms that use stable coins) looms large. Generally, this was welcomed, to provide clarity and certainty. But without some specific provisions for crypto platforms and digital assets, if everything is brought under the existing ASIC/AFSL regime it will exclude many startups and smaller providers due to exorbitant capital adequacy and insurances etc.

Finally, despite the nature of the organisations they work for, all of the panelists agreed that “cryptographic trust is better than institutional trust”.

The potential for tokenising traditional assets has been around for several years. And while it is still relatively early in its evolution, the few listing and trading platforms for tokenised assets that have already launched have struggled to gain traction. They have few listings, limited liquidity, and minimal secondary trading – so, lack market depth. It feels that while the market opportunity may be huge (and the enabling technology is already here), there needs to be a more compelling reason to adopt tokenisation. Hopefully, that will emerge soon.

Next week: Album Celebrations