Google released Gemini 3 on Tuesday, launching its latest AI model with a breakthrough score of 1501 Elo on the LMArena Leaderboard alongside state-of-the-art performance across multiple benchmarks including 91.9% on GPQA Diamond for PhD-level reasoning and 37.5% on Humanity's Last Exam without tool usage. The model is available starting today in the Gemini app, AI Mode in Search for Google AI Pro, Google AI Studio, Vertex AI and the newly launched Google Antigravity agentic development platform. Third-party platforms including Cursor, GitHub, JetBrains, Manus, and Replit are also gaining access.

Separately, Google said AI Overviews now have 2 billion users every month. Gemini app has topped 650 million users per month.

Microsoft has rolled out a new preview build for Windows 11 Insiders in the Dev and Beta Channel this week that introduces a new toggle called 'experimental agentic features' that can be enabled or disabled in the Windows Settings app. From a report: According to Microsoft, this new toggle is designed to "allow agents to use new Windows agentic features." The company says the feature will work with AI-powered apps, which "help you automate everyday tasks -- like organizing files, scheduling meetings, or sending emails -- so you can spend less time on busy work and more time on what matters most. One powerful way apps are implementing AI today is by interacting with your apps and your files, using vision and advanced reasoning to click, type and scroll like a human would."

The setting in the Windows Setting says "When this setting is on, agents can use Windows agentic features." Features such as the recently announced Copilot Actions for Windows feature are going to take advantage of this new experimental agentic feature capability.

Researchers at the University of Vienna extracted phone numbers for 3.5 billion WhatsApp users by systematically checking every possible number through the messaging service's contact discovery feature. The technique yielded profile photos for 57% of those accounts and profile text for 29 percent. The researchers checked roughly 100 million numbers per hour using WhatsApp's browser-based app.

The team warned Meta in April and deleted their data. The company implemented stricter rate-limiting by October to prevent such mass enumeration. Meta called the exposed information "basic publicly available information" and said it found no evidence of malicious exploitation. The vulnerability had been identified before. In 2017, Dutch researcher Loran Kloeze published a blog post detailing the same enumeration technique. Meta responded then that WhatsApp's privacy settings were functioning as designed and denied him a bug bounty reward. The researchers collected 137 million U.S. phone numbers. In India, they found nearly 750 million numbers. They also discovered 2.3 million Chinese numbers and 1.6 million Myanmar numbers, despite WhatsApp being banned in both countries. The researchers analyzed the cryptographic keys and found some accounts used duplicate keys. They speculate this resulted from unauthorized WhatsApp clients rather than a platform flaw.

Every company would be affected if the AI bubble were to burst, the head of Google's parent firm Alphabet has told the BBC. From the report: Speaking exclusively to BBC News, Sundar Pichai said while the growth of artificial intelligence investment had been an "extraordinary moment", there was some "irrationality" in the current AI boom. It comes amid fears in Silicon Valley and beyond of a bubble as the value of AI tech companies has soared in recent months and companies spend big on the burgeoning industry.

Asked whether Google would be immune to the impact of the AI bubble bursting, Mr Pichai said the tech giant could weather that potential storm, but also issued a warning. "I think no company is going to be immune, including us," he said. In a wide-ranging exclusive interview at Google's California headquarters, he also addressed energy needs, slowing down climate targets, UK investment, the accuracy of his AI models, and the effect of the AI revolution on jobs.

An outage at Cloudflare that began moments ago has knocked many popular websites, including ChatGPT and X, according to user reports. Cloudflare says on its website: "Cloudflare is aware of, and investigating an issue which potentially impacts multiple customers. Further detail will be provided as more information becomes available."

Update: In a statement after the outage was resolved, Cloudflare CTO said: Earlier today we failed our customers and the broader Internet when a problem in Cloudflare network impacted large amounts of traffic that rely on us. The sites, businesses, and organizations that rely on Cloudflare depend on us being available and I apologize for the impact that we caused.

Transparency about what happened matters, and we plan to share a breakdown with more details in a few hours. In short, a latent bug in a service underpinning our bot mitigation capability started to crash after a routine configuration change we made. That cascaded into a broad degradation to our network and other services. This was not an attack.

That issue, impact it caused, and time to resolution is unacceptable. Work is already underway to make sure it does not happen again, but I know it caused real pain today. The trust our customers place in us is what we value the most and we are going to do what it takes to earn that back.

Chinese automakers are rapidly expanding across South America, boosted by the new Chinese-built Port of Chancay, aggressive pricing, local partnerships, and growing regional demand. Reuters reports: China has been ramping up sales since the opening last year of the Port of Chancay, north of Lima. The Chinese-built megaport has halved trans-Pacific shipping times just as Chinese manufacturers face rising barriers to entry in the United States and greater trade restrictions in Europe.

BYD, which makes EVs, plug-in hybrids and combustion engine cars, plans to open a fourth dealership in Lima by the end of this year, while Chery and Geely have more than a dozen in total in Peru. Chinese carmakers face a profit-destroying price war at home and a growing surplus of new cars rolling out of Chinese factory lines. Much of this excess is being shipped overseas to the Middle East, Central Asia and Latin America, according to global automotive analyst Felipe Munoz at JATO Dynamics.

The Chinese have "carved out space," across both electric and petrol-powered cars, said Martin Bresciani, president of Chile's automotive business chamber, CAVEM. "The Chinese have already demonstrated that they match global standards in quality." Chinese brands reached 29.6% of all new passenger car sales in Chile in the first quarter of this year. [...] Part of China's success has been partnering with trusted local importers to offer more affordable models tailored to regional tastes, according to seven dealerships Reuters spoke to in Peru, Chile, Uruguay and Argentina.

Even after disabling remote control and officially ending support for early Nest Learning Thermostats, Google is still receiving detailed sensor and activity data from these devices, including temperature changes, motion, and ambient light. The Verge reports: After digging into the backend, security researcher Cody Kociemba found that the first- and second-generation Nest Learning Thermostats are still sending Google information about manual temperature changes, whether a person is present in the room, if sunlight is hitting the device, and more. Kociemba made the discovery while participating in a bounty program created by FULU, a right-to-repair advocacy organization cofounded by electronics repair technician and YouTuber Louis Rossmann.

FULU challenged developers to come up with a solution to restore smart functionality to Nest devices no longer supported by Google, and that's exactly what Kociemba did with his open-source No Longer Evil project. But after cloning Google's API to create this custom software, he started receiving a trove of logs from customer devices, which he turned off. "On these devices, while they [Google] turned off access to remotely control them, they did leave in the ability for the devices to upload logs. And the logs are pretty extensive," Kociemba tells The Verge. [...] "I was under the impression that the Google connection would be severed along with the remote functionality, however that connection is not severed, and instead is a one-way street," Kociemba says.

An anonymous reader shares a report: The use of AI in the latest Call of Duty has prompted a US lawmaker to call for regulations to prevent artificial intelligence from taking jobs away from human workers. Rep. Ro Khanna (D-Calif.), who represents a large swathe of Silicon Valley, took aim at Call of Duty: Black Ops 7 after buyers noticed the popular shooter contains a significant amount of AI-generated icons, posters, and achievements. Gamers are criticizing it as filled with "AI slop."

On Friday, Khanna tweeted: "We need regulations that prevent companies from using AI to eliminate jobs to extract greater profits." He added, "Artists at these companies need to have a say in how AI is deployed. They should share in the profits. And there should be a tax on mass displacement."

Global internet freedom declined for a 15th consecutive year, according to Freedom House's annual report. Semafor: "Always grim reading," this year's is particularly sobering, Tech Policy Press noted, with the lowest-ever portion of users living in countries categorized as "free." Conditions declined in 27 of the 72 countries assessed, with those in Kenya -- where anti-corruption protests were quelled, in part, by a seven-hour internet shutdown -- deteriorating the most. China and Myanmar tied for least-free, and the US' ranking dropped, while Iceland retained its top spot for the freest digital environment. Bangladesh improved the most. The most consistent trend observed over 15 years, Freedom House noted, is the growing digital influence of state actors: "Online spaces are more manipulated than ever."

Anthropic CEO Dario Amodei says he's uneasy about how much power a handful of tech leaders -- including himself -- have over the future of artificial intelligence. From a report: "I think I'm deeply uncomfortable with these decisions being made by a few companies, by a few people," Amodei told Anderson Cooper in a "60 Minutes" episode that aired Sunday. "Like who elected you and Sam Altman?" asked Anderson. "No one. Honestly, no one," Amodei replied.

"Windows is evolving into an agentic OS," Microsoft's president of Windows Pavan Davuluri posted on X.com, "connecting devices, cloud, and AI to unlock intelligent productivity and secure work anywhere."

But former Uber software engineer and engineering manager Gergely Orosz was unimpressed. "Can't see any reason for software engineers to choose Windows with this weird direction they are doubling down on. So odd because Microsoft has building dev tools in their DNA... their OS doesn't look like anything a builder who wants OS control could choose. Mac or Linux it is for devs."

Davuluri "has since disabled replies on his original post..." notes the blog Windows Central, "which some people viewed as an attempt to shut out negative feedback." But he also replied to that comment... Davuluri says "we care deeply about developers. We know we have work to do on the experience, both on the everyday usability, from inconsistent dialogs to power user experiences. When we meet as a team, we discuss these pain points and others in detail, because we want developers to choose Windows..." The good news is Davuluri has confirmed that Microsoft is listening, and is aware of the backlash it's receiving over the company's obsession with AI in Windows 11. That doesn't mean the company is going to stop with adding AI to Windows, but it does mean we can also expect Microsoft to focus on the other things that matter too, such as stability and power user enhancements.
Elsewhere on X.com, Microsoft CEO Satya Nadella shared his own thoughts on "the net benefit of the AI platform wave ." The Times of India reports: Nadella said tech companies should focus on building AI systems that create more value for the people and businesses using them, not just for the companies that make the technology. He cited Bill Gates to emphasize the same: "A platform is when the economic value of everybody that uses it exceeds the value of the company that creates it."Tesla CEO Elon Musk responded to Nadella's post with a facepalm emoji.

Nadella said this idea matters even more during the current AI boom, where many firms risk giving away too much of their own value to big tech platforms. "The real question is how to empower every company out there to build their own AI-native capabilities," he wrote. Nadella says Microsoft's partnership with OpenAI is an example of zero-sum mindset industry... [He also cited Microsoft's "work to bring AMD into the fleet."]
More from Satya Nadella's post: Thanks to AI, the [coding] category itself has expanded and may ultimately become one of the largest software categories. I don't ever recall any analyst ever asking me about how much revenue Visual Studio makes! But now everyone is excited about AI coding tools. This is another aspect of positive sum, when the category itself is redefined and the pie becomes 10x what it was! With GitHub Copilot we compete for our share and with GitHub and Agent HQ we also provide a platform for others.

Of course, the real test of this era won't be when another tech company breaks a valuation record. It will be when the overall economy and society themselves reach new heights. When a pharma company uses AI in silico to bring a new therapy to market in one year instead of twelve. When a manufacturer uses AI to redesign a supply chain overnight. When a teacher personalizes lessons for every student. When a farmer predicts and prevents crop failure.That's when we'll know the system is working.

Let us move beyond zero-sum thinking and the winner-take-all hype and focus instead on building broad capabilities that harness the power of this technology to achieve local success in each firm, which then leads to broad economic growth and societal benefits. And every firm needs to make sure they have control of their own destiny and sovereignty vs just a press release with a Tech/AI company or worse leak all their value through what may seem like a partnership, except it's extractive in terms of value exchange in the long run.

CNN profiled the non-profit Internet Archive today — and included this tidbit about how they archive parts of the internet that are now "tucked in conversations with AI chatbots." The rise of artificial intelligence and AI chatbots means the Internet Archive is changing how it records the history of the internet. In addition to web pages, the Internet Archive now captures AI-generated content, like ChatGPT answers and those summaries that appear at the top of Google search results. The Internet Archive team, which is made up of librarians and software engineers, are experimenting with ways to preserve how people get their news from chatbots by coming up with hundreds of questions and prompts each day based on the news, and recording both the queries and outputs, [says Wayback Machine Director Mark Graham].
It sounds like a fun place to work... Archivists use bespoke machines to digitize books page by page, livestreaming their work on YouTube for all to see (alongside some lo-fi music). Record players churn out vintage tunes from 1920s and 1940s, and the building houses every type of media console for any type of content imaginable, from microfilm, to CDs and satellite television. (The Internet Archive preserves music, television, books and video games, too)... "There are a lot of people that are just passionate about the cause. There's a cyberpunk atmosphere," Annie Rauwerda, a Wikipedia editor and social media influencer, said at a party thrown at the Internet Archive's headquarters to celebrate reaching a trillion pages "The internet (feels) quite corporate when I use it a lot these days, but you wouldn't know from the people here."

Tech entrepreneur/blogger Anil Dash has been critical of AI browsers like ChatGPT Atlas. (He's written that Atlas "substitutes its own AI-generated content for the web, but it looks like it's showing you the web," while its prompt-based/command-line interface resembles a clunky text adventure, and it's true purpose seems to be ingesting more training data.)

And at the Mozilla Festival in Spain, "Virtually everyone shared some version of what I'd articulated as the majority view on AI, which is approximately that LLMs can be interesting as a technology, but that Big Tech, and especially Big AI, are decidedly awful and people are very motivated to stop them from committing their worst harms upon the vulnerable."

But... Another reality that people were a little more quiet in acknowledging, and sometimes reluctant to engage with out loud, is the reality that hundreds of millions of people are using the major AI tools every day... I don't know why today's Firefox users, even if they're the most rabid anti-AI zealots in the world, don't say, "well, even if I hate AI, I want to make sure Firefox is good at protecting the privacy of AI users so I can recommend it to my friends and family who use AI"...

My personal wishlist would be pretty simple:

* Just give people the "shut off all AI features" button. It's a tiny percentage of people who want it, but they're never going to shut up about it, and they're convinced they're the whole world and they can't distinguish between being mad at big companies and being mad at a technology so give them a toggle switch and write up a blog post explaining how extraordinarily expensive it is to maintain a configuration option over the lifespan of a global product.

* Market Firefox as "The best AI browser for people who hate Big AI". Regular users have no idea how creepy the Big AI companies are — they've just heard their local news talk about how AI is the inevitable future. If Mozilla can warn me how to protect my privacy from ChatGPT, then it can also mention that ChatGPT tells children how to self-harm, and should be aggressive in engaging with the community on how to build tools that help mitigate those kinds of harms — how do we catalyze that innovation?

* Remind people that there isn't "a Firefox" — everyone is Firefox. Whether it's Zen, or your custom build of Firefox with your favorite extensions and skins, it's all part of the same story. Got a local LLM that runs entirely as a Firefox extension? Great! That should be one of the many Firefoxes, too. Right now, so much of the drama and heightened emotions and tension are coming from people's (well... dudes') egos about there being One True Firefox, and wanting to be the one who controls what's in that version, as an expression of one set of values. This isn't some blood-feud fork, there can just be a lot of different choices for different situations. Make it all work.

"Google is going to court to help put an end to, or at least limit, the prevalence of phishing scams over text message," reports BGR: Google said it's bringing suit against Lighthouse, an impressively large operation that allegedly provides tools customers can buy to set up their own specialized phishing scams. All told, Google estimates that Lighthouse-affiliated scams in the U.S. have stolen anywhere between 12.7 million and 115 million credit cards. "Bad actors built Lighthouse as a phishing-as-a-service kit to generate and deploy massive SMS phishing attacks," Google notes. "These attacks exploit established brands like E-Z Pass to steal people's financial information."

Google's legal action is comprehensive and is intent on completely dismantling Lighthouse's operations. The search giant is bringing claims under RICO, the Lanham Act, and the Computer Fraud and Abuse Act (CFAA). RICO, which often comes up in movies and television shows, allows authorities to treat Lighthouse's phishing operation as a broad criminal enterprise as opposed to isolated scams. By using RICO, Google also expands the list of individuals who can be found liable, whether it be the people who started Lighthouse, the people who run it, or even unaffiliated customers who used the company's services. The Lanham Act, for those unaware, targets malicious actors who misappropriate well-known company trademarks in order to confuse consumers. This Lanham Act comes into play because many phishing scams masquerade as legitimate messages from companies like Amazon and FedEx. The Computer Fraud and Abuse Act, meanwhile, is relevant because scammers typically use stolen credentials to gain unauthorized access to financial systems, something the CFAA is designed to target...

The fact that Google is invoking all three of the acts above underscores how serious the company is about putting a stop to SMS-based scams. By using all three, Google's legal attack is more potent and also expands the range of available remedies to include civil damages and criminal penalties. In short, Google isn't merely trying to win a legal case; it's aiming to emphatically and permanently stop Lighthouse in its tracks.
Getting even more aggressive, Google says it's also working with the U.S. Congress to pass new anti-scammer legislation, and endorsed these three new bipartisan bills:

• The Scam Compound Accountability and Mobilization (SCAM) Act "would develop a national strategy to counter scam compounds, enhance sanctions and support survivors of human trafficking within these compounds."

• The Foreign Robocall Elimination Act "would establish a taskforce focused on how to best block foreign-originated illegal robocalls before they ever reach American consumers."

• The Guarding Unprotected Aging Retirees from Deception (GUARD) Act "would empower state and local law enforcement by enabling them to utilize federal grant funding to investigate financial fraud and scams specifically targeting retirees. "

Thanks to Slashdot reader anderzole for sharing the article.

The dream of quantum computers has been hampered by the challenge of error correction, writes the Harvard Gazette, since qubits "are inherently susceptible to slipping out of their quantum states and losing their encoded information."

But in a newly-published paper, a research team "combined various methods to create complex circuits with dozens of error correction layers" that "suppresses errors below a critical threshold — the point where adding qubits further reduces errors rather than increasing them." "For the first time, we combined all essential elements for a scalable, error-corrected quantum computation in an integrated architecture," said Mikhail Lukin, co-director of the Quantum Science and Engineering Initiative, Joshua and Beth Friedman University Professor, and senior author of the new paper. "These experiments — by several measures the most advanced that have been done on any quantum platform to date — create the scientific foundation for practical large-scale quantum computation..."

"There are still a lot of technical challenges remaining to get to very large-scale computer with millions of qubits, but this is the first time we have an architecture that is conceptually scalable," said lead author Dolev Bluvstein, Ph.D. '25, who did the research during his graduate studies at Harvard and is now an assistant professor at Caltech. "It's going to take a lot of effort and technical development, but it's becoming clear that we can build fault-tolerant quantum computers...."

Hartmut Neven, vice president of engineering at the Google Quantum AI team, said the new paper came amid an "incredibly exciting" race between qubit platforms. "This work represents a significant advance toward our shared goal of building a large-scale, useful quantum computer," he said... With recent advances, Lukin believes the core elements for building quantum computers are falling into place. "This big dream that many of us had for several decades, for the first time, is really in direct sight," he said.
"In theory, a system of 300 quantum bits can store more information than the number of particles in the known universe..." the article points out.

"The new paper represents an important advance in a three-decade pursuit of quantum error correction."

Thanks to long-time Slashdot reader schwit1 for sharing the article.

"Media headlines suggesting some slowdown in EV sales are simply incorrect," writes the site Electrek, "and leave out the bigger picture that gas car sales actually are dropping..." Over the course of the last two years or so, sales of battery electric vehicles, while continuing to grow, have posted lower year-over-year percentage growth rates than they had in years prior. EV sales used to grow at 50%+ per year, but for the last couple years, they have grown closer to ~25% per year. This alone is not particularly remarkable — it is inevitable that any growing product or category will show slower percentage growth rates as sales rise, particularly one that has been growing at such a fast rate for so long. In some recent years, we had even seen year-over-year doublings in EV market share (though one of those was 2020->2021, which was anomalous). To expect improvement at that level perpetually would be close to impossible — after 3 years of doubling market share from 2023's 18% number, EVs would account for more than 100% of the global automotive market, which cannot happen...

We have seen a global EV sales growth rate of 23% in the first 10 months of this year, according to a report just released by Rho Motion (recently acquired by Benchmark Mineral Intelligence). That includes a +32% bump in Europe, +22% bump in China, +4% in North America, and a big +48% bump in the "rest of the world." Notably, this 23% global growth rate is higher than last year's YTD growth rate, which was 22% at this time...

In covering these trends, some journalists have attempted to use the less-wrong phrase "slower growth," showing that EV sales are still growing, but at a lower percentage change than previously seen. But for the first ten months of this year, that isn't true — EV sales are up more in 2025 than in 2024 by a percentage basis. They are also up in raw sales numbers — in 2024, EV sales grew by a larger number than in 2023. And the same is true so far in 2025. Going back to 2023, 10.7 million EVs were sold globally in the first 10 months. Then in 2024, 13.3 million were sold, a difference of 2.6 million. And so far in 2025, 16.5 million EVs have sold, a difference of 3.2 million. Not only are the numbers getting bigger, but the growth in unit sales is getting bigger as well.
Even in America, the EV market "has increased so far this year, with 11.7% US EV sales growth YTD." In terms of US hybrid sales, much has been made of customers "shifting from EVs to hybrids," which is also not the case. Conventional gas-hybrid sales are indeed up and plug-in hybrids, which have grown more slowly than gas-hybrids/BEVs, have also shown some growth lately. But gas-hybrid sales have not come at the cost of EV sales, rather at the cost of gas-only car sales.

Because that's just the thing: the number of gas-only vehicles being sold worldwide is a number that actually is falling. That number continues to go down year over year. Sales of new gas-powered cars are down by about a quarter from their peak in 2017, and show no signs of recovering... And yet, somehow, virtually every headline you read is about the "EV sales slump," rather than the "gas-car sales slump." The one you keep hearing about isn't happening, but the one you rarely hear about is happening... No matter what region of the world you're in, EV sales were up in the first 10 months of this year.

From the personal blog of interface expert Bruce Ediger: Early in March 2025, I noticed that a web crawler with a user agent string of

meta-externalagent/1.1 (+https://developers.facebook.com/docs/sharing/webmasters/crawler)

was hitting my blog's machine at an unreasonable rate.

I followed the URL and discovered this is what Meta uses to gather premium, human-generated content to train its LLMs. I found the rate of requests to be annoying.

I already have a PHP program that creates the illusion of an infinite website. I decided to answer any HTTP request that had "meta-externalagent" in its user agent string with the contents of a bork.php generated file...

This worked brilliantly. Meta ramped up to requesting 270,000 URLs on May 30 and 31, 2025...

After about 3 months, I got scared that Meta's insatiable consumption of Super Great Pages about condiments, underwear and circa 2010 C-List celebs would start costing me money. So I switched to giving "meta-externalagent" a 404 status code. I decided to see how long it would take one of the highest valued companies in the world to decide to go away.

The answer is 5 months.

schwit1 shares a report from the Business Times: General Motors (GM) has directed several thousand of its suppliers to scrub their supply chains of parts from China, four people familiar with the matter said, reflecting automakers' growing frustration over geopolitical disruptions to their operations. GM executives have been telling suppliers they should find alternatives to China for their raw materials and parts, with the goal of eventually moving their supply chains out of the country entirely, the people said. The automaker has set a 2027 deadline for some suppliers to dissolve their China sourcing ties, some of the sources said. GM approached some suppliers with the directive in late 2024, but the effort took on fresh urgency this past spring, during the early days of an escalating US-China trade battle, the sources said.

An anonymous reader quotes a report from The Record: Russian telecom operators have begun cutting mobile internet access for 24 hours for citizens returning to the country from abroad, in what officials say is an effort to prevent Ukrainian drones from using domestic SIM cards for navigation. "When a SIM card enters Russia from abroad, the user has to confirm that it's being used by a person -- not installed in a drone," the Digital Development Ministry said in a statement earlier this week.

Users can restore access sooner by solving a captcha or calling their operator for identification. Authorities said the temporary blackout is meant to "ensure the safety of Russian citizens" and prevent SIM cards from being embedded in "enemy drones." The new rule has led to unexpected outages for residents in border regions, whose phones can automatically connect to foreign carriers. Officials advised users to switch to manual network selection to avoid being cut off.

An anonymous reader shares a report: Executives are turning to a novel structure to fund crypto accumulation vehicles as investor appetite thins. They're called in-kind contributions, and they now account for a growing share of digital-asset treasury, or DAT, deals. Instead of raising cash to buy tokens in the open market, DAT sponsors contribute large slugs of their own crypto, often unlisted and hard to value.

Digital-asset treasuries are a new breed of public company built to hold concentrated crypto positions. The structure surged in 2025 as small-cap firms, especially in biotech and mining, reinvented themselves as digital-asset proxies. Sponsors provide tokens or raise money to buy them, and the stock then trades as a kind of listed bet on crypto. For insiders, it's a shortcut to liquidity. For investors, a wager on upside. But not all DATs carry the same level of risk. Earlier deals raised money to buy tokens through regular markets, which offered at least some independent price check. In-kind contributions skip that step -- letting insiders decide what their tokens are worth, sometimes before the token even trades publicly. That shift means pricing and trading risks land more squarely on shareholders, many of them retail investors.

Investor faith is already wobbling. Many DATs that once traded above the value of their holdings now trade below it. As insiders supply the tokens and set their price, it's becoming harder for investors to tell what these deals are really worth, or when to get out. The in-kind structure was on full display in a recent $545 million private placement by Tharimmune Inc., a biotech firm-turned-crypto proxy, to set up a buyer of Canton Coins. About 80% of the raise came in the form of unlisted Canton tokens, priced at 20 cents each, according to an investor presentation seen by Bloomberg News. The token began trading on exchanges Nov. 10 and is now around 11 cents, CoinGecko data show.

More deals are following the same template. In these placements, insiders contribute tokens -- sometimes illiquid or unlisted -- to form a treasury, lock in valuations and seed the perception of market demand. But when tokens list below deal price, public shareholders absorb the difference. [...] Then there's Flora Growth Corp., a Nasdaq-listed company that announced a $401 million deal to start acquiring Zero Gravity tokens in September. On closer inspection, the firm had raised just $35 million in cash to pair with a $366 million in-kind contribution of then-unlisted 0G tokens. Those tokens were priced at around $3 a piece; they subsequently listed, and are now trading at about $1.20.