Good morning! It’s shaping up to be an interesting week. Boom is building a supersonic jet, Faraday plans to go public through SPAC, Venmo has a new credit card, and John McAfee was arrested for fraud and evading taxes.
Venmo Launched A Credit Card
The phrase “Just Venmo me” is going to be doubly confusing as Venmo just launched its first credit card — named, um, Venmo Credit Card.
According to the PayPal-owned company, it’s rolling out today to select customers but will be available to everyone in the coming months.
Here’s what you need to know about the card:
It’s a Visa card that offers personalized rewards and a 3% cashback.
Obviously, it integrates with Venmo to allow customers to track their spending and make payments from the mobile app.
There will be a unique QR code on the front that others can scan with their phone to send/request $$$.
This isn’t Venmo’s first foray into payment cards. The mobile payment app has released a Mastercard — Venmo Debit Card — way back in 2018.
Faraday Future Plans To Go Public Through SPAC
It appears that SPAC merger remains 2020’s favorite child. EV startup, Faraday Future, is in talks to go public with a SPAC, according to its chief executive.
In case you need a refresher on what’s a SPAC, it’s a shell company that raises money through an IPO to buy an existing company.
Back to Faraday, its chief executive, Carsten Breitfeld, is taking coy to a whole new level. Breitfeld declined to say who Faraday is negotiating with or even when a deal would close.
But, he did share that the company would deliver its first electric luxury SUV, the FF91, nine months after securing funding. Meanwhile, Faraday has said that it aims to raise $800 million to $850 million to launch the FF91.
Fall from grace
While we give Breitfeld a hard time for his secrecy, it’s really not much of a surprise that he’s keeping mum after Faraday’s previous drama.
Once one of the most hyped EV startups, Faraday burned through $2 billion in cash. Ultimately, its founder Jia Yueting finalized his personal bankruptcy filing in June. Here’s hoping that the $800 million to $850 million coming its way is put to good use.
Boom Technology Builds Supersonic Jet for Transatlantic Flight
The company will unveil the completed version of its XB-1 supersonic jet today. For now, it’s just a prototype designed for a single rider. But, don’t stop your clapping just yet. It’s still a milestone since this is the first time an independent company has built a supersonic jet.
Tell me about the jet
Built out of carbon fiber and measuring 71-foot, the fighter jet-lookalike has a white and black body. The XB-1 will start making its first flights in early 2021.
If the tests go well, Boom plans to complete the design of its first commercial flight, Overture, in late 2021. Here are more details on Overture:
This 199-foot jet will carry 65 to 88 passengers.
There will be plenty of roomy seats on either side of the plane, separated by a walkway — so, you’ll get a window and aisle seat. Say goodbye to jostling elbows.
It will fly 2x as fast as today’s commercial planes. You can have bagels for breakfast in New York and fish and chips for lunch at London 3 ½ hours later. And, if you fancy sushi, you can get to Tokyo from San Francisco in 6 hours.
What’s in its way?
Well, for one, the pandemic. Plus, the company is in for years of engineering, testing, and regulatory hurdles. It’s likely that Overture won’t be carrying paying customers until at least 2029.
Cybersecurity Entrepreneur John McAfee Arrested For Evading Taxes
Textbook eccentric millionaire, John McAfee, has been arrested in Spain and now faces extradition to the U.S. for tax evasion and fraud.
What’s the crime?
The SEC accuses the cybersecurity entrepreneur/crypto personality McAfee of being paid more than $23.1 million worth of cryptocurrency assets in exchange for promoting a number of ICO token sales without disclosing the payment.
DOJ has also hit McAfee with a number of counts of tax evasion, saying that he “willfully attempted to evade” payment of income taxes owed to the federal government. In total, McAfee faced:
Five counts of tax evasion – each carry a maximum penalty of five years in prison
Five counts of willful failure to file a tax return – each carry a maximum penalty of one year in prison
If you’re looking for a good read for bedtime, we’d recommend SEC’s filing. It has the making of a great novel — mystery, a large sum of money, and a… colorful character.
Grilled and condemned. The House panel said that Amazon, Apple, Google, and Facebook abused their monopoly power and recommended restoring competition by breaking up the companies and reforming antitrust laws.
A resolution — Johnson & Johnson will pay more than $100 million to settle over 1,000 lawsuits that alleged the company’s Baby Powder caused cancer.
Musk strikes again! Elon Musk’s SpaceX won a $149 million contract to build missile-tracking satellites for the Pentagon.
G Suite out, Workspace in. Google renamed its business software package Workspace.
- Get ready to shop! Buy now, pay later firm Klarna has a new investor: Macy’s.