February 04, 2014
CAMBRIDGE — Like Facebook founder Mark Zuckerberg before him, red-haired Alexander Eldeib, 18, is studying computer science at Harvard University. He describes himself as a computer nerd and says he too would like to create his own Internet company.
The girl sitting across from him in a café near the university campus says: "Oh God, no, he’s not my boyfriend. We’re just studying together."
Who knows if Eldeib will ever become an Internet billionaire like Zuckerberg. But one thing is sure: the smart, tech-savvy next generation like him are helping to cement the future for the famous former Harvard student. "There’s no way of getting around Facebook," Eldeib says.
Hearing such reports is vital for the survival of the California firm after a spate of media reports that young users are staying away from Facebook. The catalyst for this were third-quarter 2013 results that showed for the first time a decrease in the youngest users. The beginning of the end of Facebook was soon after being forecast far and wide.
Some predicted the same fate as MySpace and SecondLife, as teens were supposedly moving on to upstart competitors like Snapchat, Instagram and Twitter. But is that really so? Die Welt wanted to find out, so paid a visit to where it all began: Harvard.
Ten years ago, on Feb. 4, 2004, Zuckerberg, then 19, put his social network online. At first, only Harvard students could register on Facebook. The site was a huge success from day one; half the students at the university had a Facebook account within the first month.
If you ask around the campus today, everybody expresses the same opinion as Eldeib: Facebook is ubiquitous.
"Facebook is by far the most popular network," Eldeib says. He has 800 Facebook friends, which is relatively few. Virtually all his communication takes place via the social network, so that he no longer uses email, SMS, an address book, or photo albums. All of these functions have been taken over by Facebook.
"The network is also very practical in that it enables you to reach a lot of people in one fell swoop." Last week for example a friend of his who was visiting briefly and needed accommodation put a post on Facebook, and Eldeib was able to help him out: "I wasn’t here, so I told him he could use my room. It’s incredibly practical."
Omar Misina, 22, and Lily Ostrer, 21, also believe there is really no alternative to Facebook. The students, who are majoring in biology and sociology respectively, both have around 1,300 Facebook friends. "There are about a hundred I’ve never met, but I mostly know everybody," says Ostrer.
Of course there are other interesting options online. Many of their friends use Twitter, the Instagram photo app or chat services What's App and SnapChat. "But those are all complements to, not a replacement for, Facebook," Misina says adding that if you want to be invited to parties, read all the latest gossip, find out the best trends or get some great study tips, you have to be on Facebook.
Misina is experiencing now what it feels like not to check in with Facebook regularly. To be able to focus more on studying for his exams, he imposed a temporary Facebook ban on himself. He’s kept it up for a week, but “it’s harder than I thought,” he says.
True, he’s less distracted from studying, but he feels stranded on a desert island right there in the middle of the Harvard campus. "I’m totally out of it," he says.
The unscientific Welt survey on the Harvard campus corresponds nicely to a study recently conducted by Socialbakers Analytics which looked at the interactions of 960 million Facebook users last year.
Both bits of research show that the decrease in young users is apparently just a temporary blip.
During the summer months of 2013, user figures for the younger target group fell off mildly, but since then have been on the rise again. For all of 2013 Facebook interactions in the 13-24-year-old target group rose by 29.12%.
Use by those 18 and over rose notably higher than that by 13 to 17-year-olds. In the 18 to 24 age group, use rose by 39.33% during 2013.
Even if objectively there are superior networks to Facebook, the company has reached a critical scale that makes it invulnerable. That came through is recent figures: The network now counts 1.23 billion members — over half of whom visit the site daily. One sixth of the world population has a Facebook profile.
If the network were a country, it would place third after China and India in terms of most-populated nations on Earth. The stock market reacted to the annual results über-euphorically. The day after Facebook released its figures, prices rose by 14.1%.
Facebook isn’t only big, it’s also grown-up. And that doesn’t have to be a bad thing. When it first started out, it might have been described by some as a glorified dating site.
Users could include in their profile whether or not they were currently in a relationship. They could also indicate what they were looking for: committed relationship or no-strings sex, hetero, homo, bi. But these options are now no longer available — and that makes sense now that people are “friends” with bosses or parents.
"Sure, the way you use Facebook today is different from a few years ago," says Jonne Sälevä. The Finn has been studying statistics at Harvard since 2012. He says he would never post compromising party photos on Facebook. "If at all, I send pictures like that via What's App to selected friends."
His Facebook friends total 2,000. Part of the reason the number is so large is that he’s moved around a lot, and has lived in Finland, Germany and the U.S.
"Facebook is quite simply practical to keep up contacts around the world and to keep up on the things your friends are doing." But things that are too private have no place on Facebook, it’s not the right platform.
He says his mom is a good judge of when something is a little too intimate and best left out, says Sälevä, 21. "She’s been my Facebook friend for a while now."
He says it’s a good way to self-censor: "If I was going to be embarrassed by my mother finding out about something, then maybe it’s better I simply don’t post it."
Die Welt ("The World") is a German daily founded in Hamburg in 1946, and currently owned by the Axel Springer AG company, Europe's largest publishing house. Now based in Berlin, Die Welt is sold in more than 130 countries. A Sunday edition called Welt am Sonntag has been published since 1948.
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It is today a proven fraud, nailed by the French stock market watchdog: Air Next resorted to a full range of dubious practices to raise money for a blockchain-powered e-commerce app. But the simplest of errors exposed the scam and limited the damage to investors. A cautionary tale for the crypto economy.
October 27, 2021
PARIS — Air Next promised to use blockchain technology to revolutionize passenger transport. Should we have read something into its name? In fact, the company was talking a lot of hot air from the start. Air Next turned out to be a scam, with a fake website, false identities, fake criminal records, counterfeited bank certificates, aggressive marketing … real crooks. Thirty-five employees recruited over the summer ranked among its victims, not to mention the few investors who put money in the business.
Maud (not her real name) had always dreamed of working in a start-up. In July, she spotted an ad on Linkedin and was interviewed by videoconference — hardly unusual in the era of COVID and teleworking. She was hired very quickly and signed a permanent work contract. She resigned from her old job, happy to get started on a new adventure.
Others like Maud fell for the bait. At least ten senior managers, coming from major airlines, airports, large French and American corporations, a former police officer … all firmly believed in this project. Some quit their jobs to join; some French expats even made their way back to France.
Share capital of one billion
The story began last February, when Air Next registered with the Paris Commercial Court. The new company stated it was developing an application that would allow the purchase of airline tickets by using cryptocurrency, at unbeatable prices and with an automatic guarantee in case of cancellation or delay, via a "smart contract" system (a computer protocol that facilitates, verifies and oversees the handling of a contract).
The firm declared a share capital of one billion euros, with offices under construction at 50, Avenue des Champs Elysées, and a president, Philippe Vincent ... which was probably a usurped identity.
Last summer, Air Next started recruiting. The company also wanted to raise money to have the assets on hand to allow passenger compensation. It organized a fundraiser using an ICO, or "Initial Coin Offering", via the issuance of digital tokens, transacted in cryptocurrencies through the blockchain.
While nothing obliged him to do so, the company owner went as far as setting up a file with the AMF, France's stock market regulator which oversees this type of transaction. Seeking the market regulator stamp is optional, but when issued, it gives guarantees to those buying tokens.
The infamous typo that brought the Air Next scam down
Raising Initial Coin Offering
Then, on Sept. 30, the AMF issued an alert, by way of a press release, on the risks of fraud associated with the ICO, as it suspected some documents to be forgeries. A few hours before that, Air Next had just brought forward by several days the date of its tokens pre-sale.
For employees of the new company, it was a brutal wake-up call. They quickly understood that they had been duped, that they'd bet on the proverbial house of cards. On the investor side, the CEO didn't get beyond an initial fundraising of 150,000 euros. He was hoping to raise millions, but despite his failure, he didn't lose confidence. Challenged by one of his employees on Telegram, he admitted that "many documents provided were false", that "an error cost the life of this project."
What was the "error" he was referring to? A typo in the name of the would-be bank backing the startup. A very small one, at the bottom of the page of the false bank certificate, where the name "Edmond de Rothschild" is misspelled "Edemond".
Before the AMF's public alert, websites specializing in crypto-assets had already noted certain inconsistencies. The company had declared a share capital of 1 billion euros, which is an enormous amount. Air Next's CEO also boasted about having discovered bitcoin at a time when only a few geeks knew about cryptocurrency.
Employees and investors filed a complaint. Failing to find the general manager, Julien Leclerc — which might also be a fake name — they started looking for other culprits. They believe that if the Paris Commercial Court hadn't registered the company, no one would have been defrauded.
Beyond the handful of victims, this case is a plea for the implementation of more secure procedures, in an increasingly digital world, particularly following the pandemic. The much touted ICO market is itself a victim, and may find it hard to recover.
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