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fiercynn · 6 months

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on ao3's current fundraiser

apparently it’s time for ao3’s biannual donation drive, which means it’s time for me to remind you all, that regardless of how much you love ao3, you shouldn’t donate to them because they HAVE TOO MUCH MONEY AND NO IDEA WHAT TO DO WITH IT.

we’ve known for years that ao3 – or, more specifically, the organization for transformative works (@transformativeworks on tumblr), or otw, who runs ao3 and other fandom projects – has a lot of money in their “reserves” that they had no plans for. but in 2023, @manogirl and i did some research on this, and now, after looking at their more recent financial statements, i’ve determined that at the beginning of 2024, they had almost $2.8 MILLION US DOLLARS IN SURPLUS.

our full post last year goes over the principles of how we determined this, even though the numbers are for 2023, but the key points still stand (with the updated numbers):

when we say “surplus”, we are not including money that they estimate they need to spend in 2024 for their regular expenses. just the extra that they have no plan for

yes, nonprofits do need to keep some money in reserves for emergencies; typically, nonprofits registered in the u.s. tend to keep enough to cover between six months and two years of their regular operating expenses (meaning, the rough amount they need each month to keep their services going). $2.8 million USD is enough to keep otw running for almost FIVE YEARS WITHOUT NEW DONATIONS

they always overshoot their fundraisers: as i’m posting this, they’ve already raised $104,751.62 USD from their current donation drive, which is over double what they’ve asked for! on day two of the fundraiser!!

no, we are not trying to claim they are embezzling this money or that it is a scam. we believe they are just super incompetent with their money. case in point: that surplus that they have? only earned them $146 USD in interest in 2022, because only about $10,000 USD of their money invested in an interest-bearing account. that’s the interest they earn off of MILLIONS. at the very least they should be using this extra money to generate new revenue – which would also help with their long-term financial security – but they can’t even do that

no, they do not need this money to use if they are sued. you can read more about this in the full post, but essentially, they get most of their legal services donated, and they have not, themselves, said this money is for that purpose

i'm not going to go through my process for determining the updated 2024 numbers because i want to get this post out quickly, and otw actually had not updated the sources i needed to get these numbers until the last couple days (seriously, i've been checking), but you can easily recreate the process that @manogirl and i outlined last year with these documents:

otw’s 2022 audited financial statement, to determine how much money they had at the end of 2022

otw’s 2024 budget spreadsheet, to determine their net income in 2023 and how much they transferred to and from reserves at the beginning of 2024

otw’s 2022 form 990 (also available on propublica), which is a tax document, and shows how much interest they earned in 2022 (search “interest” and you’ll find it in several places)

also, otw has not been accountable to answering questions about their surplus. typically, they hold a public meeting with their finance committee every year in september or october so people can ask questions directly to their treasurer and other committee members; as you can imagine, after doing this deep dive last summer, i was looking forward to getting some answers at that meeting!

but they cancelled that meeting in 2023, and instead asked people to write to the finance committee through their contact us form online. fun fact: i wrote a one-line message to the finance committee on may 11, 2023 through that form, when @manogirl and i were doing this research, asking them for clarification on how much they have in their reserves. i have still not received a response.

so yeah. please spend your money on people who actually need it, like on mutual aid requests! anyone who wants to share their mutual aid requests, please do so in the replies and i’ll share them out – i didn’t want to link directly to individual requests without permission in case this leads to anyone getting harassed, but i would love to share your requests. to start with, here's operation olive branch and their ongoing spreadsheet sharing palestinian folks who need money to escape genocide.

oh, and if you want to write to otw and tell them why you are not donating, i'm not sure it’ll get any results, but it can’t hurt lol. here's their contact us form – just don’t expect a response! ¯\_(ツ)_/¯

#ao3 #otw #archive of our own #organization for transformative works #ao3 is not your savior #and they don't need your money #otw finances

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parkisolution · 2 years

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Know About IT Infrastructure Services and Management

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#Finance and Accounting Services #Digital Marketing Company in US #Legal Process Outsourcing Services

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mostlysignssomeportents · 2 months

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The largest campaign finance violation in US history

I'm coming to DEFCON! On Aug 9, I'm emceeing the EFF POKER TOURNAMENT (noon at the Horseshoe Poker Room), and appearing on the BRICKED AND ABANDONED panel (5PM, LVCC - L1 - HW1–11–01). On Aug 10, I'm giving a keynote called "DISENSHITTIFY OR DIE! How hackers can seize the means of computation and build a new, good internet that is hardened against our asshole bosses' insatiable horniness for enshittification" (noon, LVCC - L1 - HW1–11–01).

Earlier this month, some of the richest men in Silicon Valley, led by Marc Andreesen and Ben Horowitz (the billionaire VCs behind Andreesen-Horowitz) announced that they would be backing Trump with endorsements and millions of dollars:

https://www.forbes.com/sites/dereksaul/2024/07/16/trump-lands-more-big-tech-backers-billionaire-venture-capitalist-andreessen-joins-wave-supporting-former-president/

Predictably, this drew a lot of ire, which Andreesen tried to diffuse by insisting that his support "doesn’t have anything to do with the big issues that people care about":

https://www.theverge.com/2024/7/24/24204706/marc-andreessen-ben-horowitz-a16z-trump-donations

In other words, the billionaires backing Trump weren't doing so because they supported the racism, the national abortion ban, the attacks on core human rights, etc. Those were merely tradeoffs that they were willing to make to get the parts of the Trump program they do support: more tax-cuts for the ultra-rich, and, of course, free rein to defraud normies with cryptocurrency Ponzi schemes.

Crypto isn't "money" – it is far too volatile to be a store of value, a unit of account, or a medium of exchange. You'd have to be nuts to get a crypto mortgage when all it takes is Elon Musk tweeting a couple emoji to make your monthly mortgage payment double.

A thing becomes moneylike when it can be used to pay off a bill for something you either must pay for, or strongly desire to pay for. The US dollar's moneylike property comes from the fact that hundreds of millions of people need dollars to pay off the IRS and their state tax bills, which means that they will trade labor and goods for dollars. Even people who don't pay US taxes will accept dollars, because they know they can use them to buy things from people who do have a nondiscretionary bill that can only be paid in dollars.

Dollars are also valuable because there are many important commodities that can only – or primarily – be purchased with them, like much of the world's oil supply. The fact that anyone who wants to buy oil has a strong need for dollars makes dollars valuable, because they will sell labor and goods to get dollars, not because they need dollars, but because they need oil.

There's almost nothing that can only be purchased with crypto. You can procure illegal goods and services in the mistaken belief that this transaction will be durably anonymous, and you can pay off ransomware creeps who have hijacked your personal files or all of your business's data:

https://locusmag.com/2022/09/cory-doctorow-moneylike/

Web3 was sold as a way to make the web more "decentralized," but it's best understood as an effort to make it impossible to use the web without paying crypto every time you click your mouse. If people need crypto to use the internet, then crypto whales will finally have a source of durable liquidity for the tokens they've hoarded:

https://pluralistic.net/2022/09/16/nondiscretionary-liabilities/#quatloos

The Web3 bubble was almost entirely down to the vast hype machine mobilized by Andreesen-Horowitz, who bet billions of dollars on the idea and almost single-handedly created the illusion of demand for crypto. For example, they arranged a $100m bribe to Kickstarter shareholders in exchange for Kickstarter pretending to integrate "blockchain" into its crowdfunding platform:

https://finance.yahoo.com/news/untold-story-kickstarter-crypto-hail-120000205.html

Kickstarter never ended up using the blockchain technology, because it was useless. Their shareholders just pocketed the $100m while the company weathered the waves of scorn from savvy tech users who understood that this was all a shuck.

Look hard enough at any crypto "success" and you'll discover a comparable scam. Remember NFTs, and the eye-popping sums that seemingly "everyone" was willing to pay for ugly JPEGs? That whole market was shot through with "wash-trading" – where you sell your asset to yourself and pretend that it was bought by a third party. It's a cheap – and illegal – way to convince people that something worthless is actually very valuable:

https://mailchi.mp/brianlivingston.com/034-2#free1

Even the books about crypto are scams. Chris Dixon's "bestseller" about the power of crypto, Read Write Own, got on the bestseller list through the publishing equivalent of wash-trading, where VCs with large investments in crypto bought up thousands of copies and shoved them on indifferent employees or just warehoused them:

https://pluralistic.net/2024/02/15/your-new-first-name/#that-dagger-tho

The fact that crypto trades were mostly the same bunch of grifters buying shitcoins from each other, while spending big on Superbowl ads, bribes to Kickstarter shareholders, and bulk-buys of mediocre business-books was bound to come out someday. In the meantime, though, the system worked: it convinced normies to gamble their life's savings on crypto, which they promptly lost (if you can't spot the sucker at the table, you're the sucker).

There's a name for this: it's called a "bezzle." John Kenneth Galbraith defined a "bezzle" as "the magic interval when a confidence trickster knows he has the money he has appropriated but the victim does not yet understand that he has lost it." All bezzles collapse eventually, but until they do, everyone feels better off. You think you're rich because you just bought a bunch of shitcoins after Matt Damon told you that "fortune favors the brave." Damon feels rich because he got a ton of cash to rope you into the con. Crypto.com feels rich because you took a bunch of your perfectly cromulent "fiat money" that can be used to buy anything and traded it in for shitcoins that can be used to buy nothing:

https://theintercept.com/2022/10/26/matt-damon-crypto-commercial/

Andreesen-Horowitz were masters of the bezzle. For them, the Web3 bet on an internet that you'd have to buy their shitcoins to use was always Plan B. Plan A was much more straightforward: they would back crypto companies and take part of their equity in huge quantities of shitcoins that they could sell to "unqualified investors" (normies) in an "initial coin offering." Normally, this would be illegal: a company can't offer stock to the general public until it's been through an SEC vetting process and "gone public" through an IPO. But (Andreesen-Horowitz argued) their companies' "initial coin offerings" existed in an unregulated grey zone where they could be traded for the life's savings of mom-and-pop investors who thought crypto was real because they heard that Kickstarter had adopted it, and there was a bestselling book about it, and Larry David and Matt Damon and Spike Lee told them it was the next big thing.

Crypto isn't so much a financial innovation as it is a financial obfuscation. "Fintech" is just a cynical synonym for "unregulated bank." Cryptocurrency enjoys a "byzantine premium" – that is, it's so larded with baffling technical nonsense that no one understands how it works, and they assume that anything they don't understand is probably incredibly sophisticated and great ("a pile of shit this big must have pony under it somewhere"):

https://pluralistic.net/2022/03/13/the-byzantine-premium/

There are two threats to the crypto bezzle: the first is that normies will wise up to the scam, and the second is that the government will put a stop to it. These are correlated risks: if the government treats crypto as a security (or worse, a scam), that will put severe limits on how shitcoins can be marketed to normies, which will staunch the influx of real money, so the sole liquidity will come from ransomware payments and transactions with tragically overconfident hitmen and drug dealers who think the blockchain is anonymous.

To keep the bezzle going, crypto scammers have spent the past two election cycles flooding both parties with cash. In the 2022 midterms, crypto money bankrolled primary challenges to Democrats by absolute cranks, like the "effective altruist" Carrick Flynn ("effective altruism" is a crypto-affiliated cult closely associated with the infamous scam-artist Sam Bankman-Fried). Sam Bankman-Fried's super PAC, "Protect Our Future," spent $10m on attack-ads against Flynn's primary opponent, the incumbent Andrea Salinas. Salinas trounced Flynn – who was an objectively very bad candidate who stood no chance of winning the general election – but only at the expense of most of the funds she raised from her grassroots, small-dollar donors.

Fighting off SBF's joke candidate meant that Salinas went into the general election with nearly empty coffers, and she barely squeaked out a win against a GOP nightmare candidate Mike Erickson – a millionaire Oxy trafficker, drunk driver, and philanderer who tricked his then-girlfriend by driving her to a fake abortion clinic and telling her that it was a real one:

https://pluralistic.net/2022/10/14/competitors-critics-customers/#billionaire-dilletantes

SBF is in prison, but there's no shortage of crypto millions for this election cycle. According to Molly White's "Follow the Crypto" tracker, crypto-affiliated PACs have raised $185m to influence the 2024 election – more than the entire energy sector:

https://www.followthecrypto.org/

As with everything "crypto," the cryptocurrency election corruption slushfund is a bezzle. The "Stand With Crypto PAC" claims to have the backing of 1.3 million "crypto advocates," and Reuters claims they have 440,000 backers. But 99% of the money claimed by Stand With Crypto was actually donated to "Fairshake" – a different PAC – and 90% of Fairshake's money comes from a handful of corporate donors:

https://www.citationneeded.news/issue-62/

Stand With Crypto – minus the Fairshake money it falsely claimed – has raised $13,690 since April. That money came from just seven donors, four of whom are employed by Coinbase, for whom Stand With Crypto is a stalking horse. Stand With Crypto has an affiliated group (also called "Stand With Crypto" because that is an extremely normal and forthright way to run a nonprofit!), which has raised millions – $1.49m. Of that $1.49m, 90% came from just four donors: three cryptocurrency companies, and the CEO of Coinbase.

There are plenty of crypto dollars for politicians to fight over, but there are virtually no crypto voters. 69-75% of Americans "view crypto negatively or distrust it":

https://www.pewresearch.org/short-reads/2023/04/10/majority-of-americans-arent-confident-in-the-safety-and-reliability-of-cryptocurrency/

When Trump keynotes the Bitcoin 2024 conference and promises to use public funds to buy $1b worth of cryptocoins, he isn't wooing voters, he's wooing dollars:

https://www.wired.com/story/donald-trump-strategic-bitcoin-stockpile-bitcoin-2024/

Wooing dollars, not crypto. Politicians aren't raising funds in crypto, because you can't buy ads or pay campaign staff with shitcoins. Remember: unless Andreesen-Horowitz manages to install Web3 crypto tollbooths all over the internet, the industries that accept crypto are ransomware, and technologically overconfident hit-men and drug-dealers. To win elections, you need dollars, which crypto hustlers get by convincing normies to give them real money in exchange for shitcoins, and they are only funding politicians who will make it easier to do that.

As a political matter, "crypto" is a shorthand for "allowing scammers to steal from working people," which makes it a very Republican issue. As Hamilton Nolan writes, "If the Republicans want to position themselves as the Party of Crypto, let them. It is similar to how they position themselves as The Party of Racism and the Party of Religious Zealots and the Party of Telling Lies about Election Fraud. These things actually reflect poorly on them, the Republicans":

https://www.hamiltonnolan.com/p/crypto-as-a-political-characteristic

But the Democrats – who are riding high on the news that Kamala Harris will be their candidate this fall – have decided that they want some of that crypto money, too. Even as crypto-skeptical Dems like Jamaal Bowman, Cori Bush, Sherrod Brown and Jon Tester see millions from crypto PACs flooding in to support their primary challengers and GOP opponents, a group of Dem politicians are promising to give the crypto industry whatever it wants, if they will only bribe Democratic candidates as well:

https://subscriber.politicopro.com/f/?id=00000190-f475-d94b-a79f-fc77c9400000

Kamala Harris – a genuinely popular candidate who has raised record-shattering sums from small-dollar donors representing millions of Americans – herself has called for a "reset" of the relationship between the crypto sector and the Dems:

https://archive.is/iYd1C

As Luke Goldstein writes in The American Prospect, sucking up to crypto scammers so they stop giving your opponents millions of dollars to run attack ads against you is a strategy with no end – you have to keep sucking up to the scam, otherwise the attack ads come out:

https://prospect.org/politics/2024-07-31-crypto-cash-affecting-democratic-races/

There's a whole menagerie of crypto billionaires behind this year's attempt to buy the American government – Andreesen and Horowitz, of course, but also the Winklevoss twins, and this guy, who says we're in the midst of a "civil war" and "anyone that votes against Trump can die in a fucking fire":

https://twitter.com/molly0xFFF/status/1813952816840597712/photo/1

But the real whale that's backstopping the crypto campaign spending is Coinbase, through its Fairshake crypto PAC. Coinbase has donated $45,500,000 to Fairshake, which is a lot:

https://www.coinbase.com/blog/how-to-get-regulatory-clarity-for-crypto

But $45.5m isn't merely a large campaign contribution: it appears that $25m of that is the largest the largest illegal campaign contribution by a federal contractor in history, "by far," a fact that was sleuthed out by Molly White:

https://www.citationneeded.news/coinbase-campaign-finance-violation/

At issue is the fact that Coinbase is bidding to be a US federal contractor: specifically, they want to manage the crypto wallets that US federal cops keep seizing from crime kingpins. Once Coinbase threw its hat into the federal contracting ring, it disqualified itself from donating to politicians or funding PACs:

Campaign finance law prohibits federal government contractors from making contributions, or promising to make contributions, to political entities including super PACs like Fairshake.

https://www.fec.gov/help-candidates-and-committees/federal-government-contractors/

Previous to this, the largest ever illegal campaign contribution by a federal contractor appears to be Marathon Petroleum Company's 2022 bribe to GOP House and Senate super PACs, a mere $1m, only 4% of Coinbase's bribe.

I'm with Nolan on this one. Let the GOP chase millions from billionaires everyone hates who expect them to promote a scam that everyone mistrusts. The Dems have finally found a candidate that people are excited about, and they're awash in money thanks to small amounts contributed by everyday Americans. As AOC put it:

They've got money, but we've got people. Dollar bills don't vote. People vote.

https://www.popsugar.com/news/alexandria-ocasio-cortez-dnc-headquarters-climate-speech-47986992

Support me this summer on the Clarion Write-A-Thon and help raise money for the Clarion Science Fiction and Fantasy Writers' Workshop!

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2024/07/31/greater-fools/#coinbased

#pluralistic #coinbase #crypto #cryptocurrency #elections #campaign finance #campaign finance violations #crimes #fraud #influence peddling #democrats #moneylike #bubbles #ponzi schemes #bezzles #molly white #hamilton nolan

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performancemartketing · 2 years

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#Financial Statements and Bookkeeping Services #Let us assist you with #• Management Accounts #• Annual Financial Statements #Financial statements assist in the following statutory submissions:#• SARS income tax #• CIPC Annual Returns #• CIDB Upgrade #• Seeking finance at banks and funders #• Financial performance of the company #Our Monthly bookkeeping services offers you peace of mind as we strive for:#• Automated capturing #• Real time allocation #• Efficiency and quality.

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astrosky33 · 10 months

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The Best Career for you: Asteroid Industria

◉ Industria is an asteroid in astrology that can represent the long term career industry you will work in. Based on the readings I’ve done this asteroid is very accurate in predicting your long term career

◉ Asteroid Code: 389 -> How to find asteroids

House Meanings

Asteroid Industria in the 1st house

Your career will be a major part of your identity (more so than others careers would). Your career may change or constantly be testing your outlook/view on life. This career will be something you’re very passionate and ambitious about. You may use lots of mannerisms in this career. It most likely is going to involve your physical body, fighting, beauty, confidence, and/or individuality

Ex: Athlete, Model, Makeup Artist, Fighter

Asteroid Industria in the 2nd house

Your career will be a major source of stability (not just financially but also emotionally) for you in your life and your career may boost your self esteem/self worth. It is going to revolve around material items. It most likely is going to involve either your singing voice, finances, cooking, giving, receiving, and/or material resources

Ex: Singer, Banker, Accountant, Chef, Product Designer

Asteroid Industria in the 3rd house

In your career you will use your voice to spread an important message. You will express many of your ideas to others. It most likely will involve communication, literature, teaching, transportation, influencing, social media, the mind, and/or phones

Ex: Author/Writer, Social Media Influencer, Driver, Teacher

Asteroid Industria in the 4th house

Your career will be in an industry where you’re using lots of emotion toward your work and/or caring for others. It won’t be a job far out of your comfort zone. It likely will involve houses, home related things, food, and/or self-care

Ex: Real Estate Agent, Nurse, Baker, Home Designer

Asteroid Industria in the 5th house

Your career may revolve around you and be in an industry where a lot of spotlight/attention is on you. You’re going to work in an industry where you use your talents. It’s going to be a career you really enjoy and that makes you happy! It likely will involve entertainment, romance, events (such as a festival or concert), children, talents, and/or drama

Ex: Actor, Event Planner, Child Psychiatrist, Talent Agent

Asteroid Industria in the 6th house

Your career will have a set schedule and steady income. In this career industry you’ll constantly be working on self improvement. It likely will involve health, fitness, hygiene, your analytic nature, animals/pets, and/or giving service to others somehow

Ex: Doctor, Nutritionist, Fitness Trainor, Dentist, Vet

Asteroid Industria in the 7th house

Your career will be one that’s based around equality or partnership. You’re going to be working towards harmony or peace in this career. It will likely involve commitment, marriage, attractiveness/attraction, contracts, conflicts, negotiations, and/or equality/sharing

Ex: Wedding Planner, Lawyer, Model, Fashion Designer

Asteroid Industria in the 8th house

Your career will be one that’s based around a lot of transformation, power, or mystery. In this career industry you’ll constantly be working on changing for the better. It will likely involve crime, death, taxes, psychology, surgery, investments, the stock market, business, loans, secrets, your inheritance, reproduction, and/or spiritual transformation

Ex: Detective, Psychologist, Tax Preparer, Surgeon

Asteroid Industria in the 9th house

Your career will be one that helps you grow a lot as a person. In this career industry you will learn a lot more than most people do in their career. It will likely involve travel in general, air travel, exploration, television, media, teaching, higher education (college/uni), religion, beliefs, ideologies, philosophy, interviews, courts, law, cultures, ethics, viewpoints, and/or languages

Ex: College Professor, Pilot, Newscaster, Photographer

Asteroid Industria in the 10th house

You are more likely than others to be very successful when having this placement in your chart. Your career will teach you how to set long term goals for yourself and succeed. It will likely involve being in charge/a boss, business, peoples reputations/images, sense of mission, responsibilities, being famous, and/or status

Ex: Manager (anywhere), Publicist, Movie Director

Asteroid Industria in the 11th house

You’re more likely to gain wealth from your career with this placement since the 11th house represents financial gains -> read more here. Your career will be one that introduces new ideas to the world and may be a more unique career compared to most peoples. It will likely involve technology, film, politics, science, inventions, chaos, sudden change, friendship, groups, desires, manifestations, hopes/wishes, humanitarianism, social networking, clubs, and/or parties

Ex: Engineer, Scientist, Film Producer, Politician

Asteroid Industria in the 12th house

Your career is one that will transform you spiritually. In this career industry you will heal others. It will likely involve spirituality, hypnotism, isolation, music, karma/karmic debts, hidden enemies, the subconscious mind, subconscious memory, sleep, dreams (the ones you have when you sleep), old age/people, mental health, fears, losses, endings, impersonations, closure, self-undoing, bed pleasures, intuition, illusions, and/or the afterlife

Ex: Therapist, Song-Writer, Astrologer, Psychic

➠ [READ] the examples listed aren’t the only possible careers for each house only some, so there can be more interpretations than the ones listed

𝗖𝗔𝗥𝗘𝗘𝗥 𝗥𝗘𝗔𝗗𝗜𝗡𝗚! 𝗜 𝘄𝗶𝗹𝗹 𝗮𝗻𝗮𝗹𝘆𝘇𝗲 𝘆𝗼𝘂𝗿 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝗶𝗮 𝗮𝘀𝘁𝗲𝗿𝗼𝗶𝗱 𝗽𝗲𝗿𝘀𝗼𝗻𝗮 𝗰𝗵𝗮𝗿𝘁 𝗶𝗻 𝘁𝗵𝗶𝘀 𝗿𝗲𝗮𝗱𝗶𝗻𝗴

𝗦𝗨𝗕𝗦𝗖𝗥𝗜𝗕𝗘 𝗧𝗢 𝗠𝗬 𝗣𝗔𝗧𝗥𝗘𝗢𝗡 𝗶𝗳 𝘆𝗼𝘂 𝘄𝗮𝗻𝘁 𝘁𝗼 𝗮𝘀𝗸 𝗺𝗲 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻𝘀 𝗮𝗻𝗱 𝗵𝗮𝘃𝗲 𝗮𝗰𝗰𝗲𝘀𝘀 𝘁𝗼 𝗺𝗼𝗿𝗲 𝗰𝗼𝗻𝘁𝗲𝗻𝘁

𝗠𝗬 𝗠𝗔𝗦𝗧𝗘𝗥𝗟𝗜𝗦𝗧

#astrology #astro community #zodiac #astro placements #astrology tumblr #astro chart #birth chart #asteroid astrology #industria asteroid #industria asteroid persona chart #asteroids #astrology asteroids

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outsourced-accounting-services · 2 months

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#us accounting outsourced #outsourced accounting services #the fino partners #finance #business

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acuvatauditing · 2 years

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patrice-bergerons · 1 year

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Quick FAQ on Tumblr, "Value", and the Proposed Crab Day

Motivation: I see a lot of misinformation circulating on the dash re the proposed crab day and I wanted to offer a simplified and judgement free perspective using core principles of finance.

Q: We keep being told that tumblr's been making nothing but a loss for years, and yet, if it is so unprofitable, then why is no one is shutting the website down? Is it really in need of our money if it's already owned by a multi-billion dollar corporation?

This is in fact not as much of a paradox as it appears to be because "value" in corporate finance terms is a function of present and expected future profits (adjusting for the fact that profits you expect to be earn in the near future are worth a lot more than equivalent profits expected to be earned much later in time).

This means that you can have a company or a product that is currently making a loss (i.e. costing a lot more to run than the income it generates) and it might still be worth some (or a lot of) money as long as you expect it to generate enough profits going forward. Uber for example has been making a loss for years and is still valued at billions of dollars because people think it will eventually generate a lot of profit.

Q: What does all of that mean for tumblr, specifically?

Given how unprofitable tumblr has been historically it's actually a pretty good sign that management has a plan to try and make it profitable because it means they haven't thrown in the towel yet!

But if they fail or if they decide that no matter what they do tumblr will remain unprofitable, then they wouldn't have much business incentive to keep running it. This is why participating in crab day or spending some money on tumblr in general is a good idea, if you can afford it and if tumblr is a service you would like to keep enjoying into the future. And if the answer is no to either of those questions, that's ok too--don't let anyone guilt you on this.

Even more questions-and-answers under the cut! My inbox is also open for any (good faith) questions you might have.

Q: But we all use tumblr religiously--isn't that enough?

Not quite. Tumblr's current state means that the existing userbase is not enough to make the site profitable. For that to change, either the existing userbase needs to become more profitable, or tumblr needs to get a lot more new users--or have a combination of both.

Q: Can crab day really solve all this?

Once again, not quite. A one time cash-injection is not equal to sustainable income, which is what tumblr ultimately needs. This means tumblr will still need to court potential new users and that entails some change to the design and/or the perception of the site. (I love tumblr but guys, if we are real for a second, last time I told my coworkers that, they asked me if I also had a myspace account.)

Q: So why participate then?

Because it will still help. While some change is inevitable and necessary, if we the existing users put our money where our mouth is, it would send a strong signal to management that we value the service they offer and that they should take our preferences into account in designing the site's future also. Also some cash, even if it is a one time deal,

Q: I heard people who came up with the idea are transphobic Christian fundies--do you really want to associate with people like that?

I don't. But who the blogs behind this idea, as people, are has no bearing on the merits of the idea itself.

#crab day #save this hellsite #im gonna say something i never explicitly have #and ask that you rb this if you agree with it #finance is confusing! and the more we get the message across #the better i think #for keeping tumblr around for a long time

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