__“Made in India”…__ is having a moment. Indian Prime Minister Narendra Modi and President Biden met in the US last week with some big tech CEOs. The goal: [ramp up](http://bloomberg.com/news/articles/2023-06-23/silicon-valley-ceos-get-biden-modi-pitch-to-invest-in-india) investments in the South Asian country that’s on pace to becoming the world’s fastest-growing economy. (FYI: India is the most populous country with 1.4B+ residents.) And tech biggies are vying to get in on the action:

- __Sparked up:__ __[Amazon](https://robinhood.com/us/en/stocks/AMZN/)__ said it would more than [double](https://techcrunch.com/2023/06/23/amazon-investment-india-jassy-modi/) its India investments to $26B by 2030 (with a big focus on growing its cloud biz), and __[Google](https://robinhood.com/us/en/stocks/GOOGL/)__ said it’d build a global fintech center there.

- __Green light:__ Chipmakers __[Applied Materials](https://robinhood.com/us/en/stocks/AMAT/)__ and __[Micron](https://robinhood.com/us/en/stocks/MU/)__ said they’ll spend a combined $1.2B in the country, and Elon Musk said __[Tesla](https://robinhood.com/us/en/stocks/TSLA/)__ plans to invest in India as soon as possible.

__A tech frenzy…__ Last year India ranked as the fifth-largest economy, overtaking the UK. From January to March of this year, India’s GDP growth outpaced that of China, the US, and Japan. Meanwhile, as US-China tensions escalate, more companies are boosting production in India to keep their supply chains running smoothly (aka: friend-shoring). __[Apple](https://robinhood.com/us/en/stocks/AAPL/)__ aims to make a quarter of its iPhones in India by 2025, and __[HP](https://robinhood.com/us/en/stocks/HPQ/)__ is looking to up manufacturing there too.

The place to be (Ashish Vaishnav/Getty Images)

$PEND

__Old ties can open new opportunities…__ Biden said the US’s relationship with India is stronger than ever, essentially flipping the script after years of regulatory and political turbulence. The US is now India’s #1 trading partner, with trade up 8X in the past two decades. The latest tech-spending announcements could just be the start: __[JPMorgan](https://robinhood.com/us/en/stocks/JPM/)__ already raised its economic forecast for India next year.

Amazon says it’ll invest billions in India as tech biggies go all in on the fast-growing economy

__55 burgers, 55 fries, 55 tacos…__ Buffets, declared dead in recent years, [are back](https://www.nytimes.com/2023/06/26/dining/buffet-restaurants-us.html) on the menu for US diners. Although the self-serve industry saw a steep pandemic drop-off as germ-weary customers said “pass” on shared tongs and communal food bars, demand has piled back up. Buffet mainstay Golden Corral says business is up 20% so far this year, and three leading US buffet chains (Golden Corral, Cici’s, and Pizza Ranch) saw a 125% spike in customer visits between January 2021 and this March.

- __All-you-can-imagine:__ Buffets are attracting customers by appealing to the __TikTok__ crowd with snap-worthy spreads (picture: charcuterie boards, towers of crab legs).

- __All-you-can-buy:__ In buffet hotspot Las Vegas, the Bellagio reopened its signature buffet, while Sin City’s largest buffet, at Caesars Palace, underwent a $10M renovation.

__Unlimited breadsticks, unlimited power…__ From diners to drive-ins to dives, foot traffic increased at almost all restaurant types last quarter as folks favored eating out. Family-friendly Olive Garden parent __[Darden Restaurants](https://robinhood.com/us/en/stocks/DRI/)__ beat Wall Street expectations in its earnings report last week with same-store sales increasing by 4%. And while the pandemic forced some restos to shift strategies, those shifts look like they’re paying off: __[Chipotle](https://robinhood.com/us/en/stocks/CMG/)__'s expansion into small towns is generating record opening sales.

Stuffed

__Customers are still shoppin’…__ for value. Despite inflation, Americans are making space in their budgets for deals. Visits to dollar stores are up, even among those with $100K+ incomes. Buffets, which let diners help themselves to endless plates of shrimp for one fixed price, offer people peace of mind that they’re getting their money’s (and belly’s) worth.

The all-you-can-eat buffet is back for seconds as diners search for value

Dow Jones

S&P 500

Nasdaq

Bitcoin

Nasdaq data link logo

🇮🇳 Big Tech’s “Made in India” push

__Late-night heart-to-hearts…__ with ChatGPT. After 3 a.m. [convos](https://www.wsj.com/articles/softbanks-masayoshi-son-says-hes-focusing-on-ai-inventions-621089ac?mod=business_lead_pos7) with OpenAI’s bot, __[SoftBank](https://robinhood.com/us/en/stocks/SFTBY/)__ CEO Masayoshi Son had a revelation: *AI could lead SoftBank out of its rut*. Its stock popped last week after an AI-centric investor presentation. The Japanese tech investment firm is known for its Vision Fund, which has held major stakes in companies like __WeWork__, __Uber__, and __Alibaba__. Here’s a storytime, with quotes from SoftBank’s quirky earnings decks: 

- __“Valley of Coronavirus”:__ SoftBank’s iconic cartoon of [unicorns falling](https://www.bloomberg.com/opinion/articles/2020-05-18/the-unicorns-fell-into-a-ditch) into a ditch illustrated its struggle in early 2020 as the value of its Vision Fund plunged with billions in losses.

- __“Producer of Golden Eggs”:__ In 2021 it posted a *$46B* profit (a record for Japan) as shares in holdings like __DoorDash__ and __Coupang__ surged during IPO-palooza.

- __“Many Regrets”:__ [Slide 11](https://group.softbank/system/files/pdf/ir/presentations/2020/earnings-presentation_q4fy2020_01_en.pdf)’s poetic sentiment reflected SoftBank’s mood after a record $23B quarterly loss (its investments plunged as rates soared). It sold entire stakes in holdings including __Nvidia__ (which recently soared to a $1T valuation… womp).

- __“What is Mankind?”:__ After posing this q on [slide 4](https://group.softbank/system/files/pdf/ir/investors/shareholders/2023/shareholders-meeting_43_04_en.pdf) of last week’s presentation, SoftBank concluded that its future is artificial intelligence.

__AI of the tiger...__ Son wants SoftBank “to lead the AI revolution,” presumably through investments. He also said ChatGPT helped him brainstorm 600+ ideas, some of which the bot apparently praised as “feasible and wonderful.” He’s not the only one who’s caught the AI bug. A few stats:

- __168:__ # of times Big Tech leaders mentioned “AI” in recent earnings calls.

- __+30%:__ The techy Nasdaq’s gains this year, significantly outperforming the S&P 500. AI-associated names like __Nvidia__, __Symbiotic__, and __C3.ai__ have soared.

- __1 in 4__ new unicorns this year are AI startups.

Masa has a new vision (Alessandro Di Ciommo/Getty Images)

Slide

__Chasing the hype train is risky…__ when it’s barreling at full speed. AI investments could give SoftBank a boost, but going all in could risk repeating mistakes: last year, Son said he’d become "somewhat delirious" after tech valuations soared, and regrets all the $$ he funneled into startups like WeWork. While AI looks likely to stick, it’s hard to know what applications (and companies) will stay valuable when the initial boom fades.

Tech titan SoftBank dreams of an AI-inspired comeback, but risks reliving regrets

Mm-hmm, sure. So, what’s the catch? 

We know it may sound too good to be true. But thousands of investors are already smiling all the way to the bank, thanks to the fine-art investing platform Masterworks.  

__These results aren’t cherry-picking.__ This is the whole bushel. Masterworks has built a track record of 13 exits, realizing +10.4%, +27.3%, and +35.0% net returns, even while financial markets plummeted.

__But art? Really?__ Okay, skeptics, here are the numbers. Contemporary art prices:
- Outpaced the S&P 500 by 131% over the last 26 years
- Have the lowest correlation to equities of any asset class

Got your attention yet? Snacks readers can [skip the waitlist with this exclusive link](https://www.masterworks.com/?utm_source=snacks&utm_medium=newsletter&utm_campaign=6-26-23&utm_term=Snacks+readers&utm_content=banksyheart_banksy32_32return_pp_120_skip).*

Gif - Masterworks test - Bansky

A Banksy got everyday investors 32% returns?

__Checking on Chex…__ Snack star __General Mills__ is happy to spoil your dinner. When the Minnesota-based maker of Dunkaroos, Yoplait, Chex Mix, and cereals like Cheerios last reported, it beat sales-growth expectations. Higher prices played a role, but General Mills has more than just inflation going for it. Nearly half of US consumers are now eating at least three snacks a day, up 10% in the past two years — with snack sales hitting $181B last year. We'll see if the munching momentum continued when General Mills reports Wednesday. 

__Too many swooshes…__ __Nike__ reports on Thursday, and the world’s biggest shoe seller has a sneaker problem. Overstock has plagued the company like a wet sock, with inventory swelling 16% and 44% in the past two quarters. __Foot Locker__, which says Nike makes up 70% of its sales, recently cut its annual outlook and will likely have a glut of Nike kicks to move through markdowns. The shoe surplus comes as Nike pulls back on its direct-to-consumer efforts and pivots back to wholesale, which outpaced D2C growth last fall.

Events

Coming up this week

__Halo Effect…__ With pop icons like Beyoncé and Taylor Swift on tour, local economies are feeling their star power as fans travel to see their idols. Last month economists said Beyoncé’s “Renaissance” concert stops in Stockholm likely lifted Sweden’s inflation as hotel prices surged. It's not just Queen Bee: Taylor Swift’s “Eras” tour could add nearly *$5B* to the US economy. The average concertgoer is spending $720 over their budget for things like flights and food. __Morgan Stanley__ expects more pop-star “blips.”

__Double dough…__ Two of the largest grain-shipping and crop-processing companies, __Bunge__ and __Viterra__, plan to merge into the world’s second-biggest agri-business. Farmers say the megadeal could limit crop competition and drive up food prices. Bunge already reaped higher gluten profits after Russia’s invasion of Ukraine hit global grain supplies. Several countries’ regulatory authorities are expected to weigh in on the merger, but carb consolidation is standard: 90% of global grain trading and processing is controlled by four companies.

Zoom out

Stories we’re watching

- __[Cluck](https://sherwoodmedia.com/snacks/the-usda-clears-cell-grown-meat-for-sale-as-labs-try-to-do-what-plant-based/):__ Lab meat is coming to US menus. For the first time, the USDA approved the sale of cell-grown chicken from two companies. The next challenge for cell-grown: overcoming the “ick factor.”

- __[Homer](https://sherwoodmedia.com/snacks/the-ftc-sues-amazon-saying-it-used-trickery-and-sabotaged-consumers-attempts/):__ The FTC sued __Amazon__, alleging it used “trickery” to get Prime sign-ups and made it hard to cancel. The suit says Amazon internally referred to the process for canceling Prime as “The Iliad.”

- __[Rx](https://sherwoodmedia.com/snacks/drugmakers-sue-over-medicares-new-pricing-rules-potentially-setting-the/):__ __Bristol-Myers Squibb__ joined __Merck__ is suing the US gov’t over a Medicare drug-pricing law that could cost them billions. __Eli Lilly__'s CEO said the potential revenue loss could also stunt R&D of future drugs.

ICYMI

Last week's highlights

Geckos scale walls by syncing electrons in their feet to ones on surfaces

🦄 SoftBank’s AI revelation

__Tastes just like chicken…__ The USDA [approved](https://www.nytimes.com/2023/06/21/us/lab-grown-meat-sale-approval.html) two companies to sell the US’s first lab-grown meat: chicken cultivated from animal cells in a lab. With previously granted FDA approvals in hand, __Upside Foods__ and __Eat Just__ plan to debut the experimental meat at two high-end restaurants in DC and San Francisco. There the Anton Egos of the world will decide whether science chicken tastes good or gives them the ick, and the companies can take any feedback into consideration as they expand production.

- __Foodie nation:__ The US is the second country to approve the sale of lab-grown meat, after Singapore, and experts say other countries tend to follow the USDA’s lead.

- __Cell-grown’s sell:__ Cell-grown is slaughter-free, and companies say it’s good for biodiversity and could reduce emissions, though critics debate some of the benefits.

- __Growing portions:__ 150+ companies have raised $3B to cultivate meat and seafood. The industry was worth about $250M in 2022 and is projected to hit $25B by 2030.

__Overcooked plant patties…__ Cell-grown companies are trying to enter the market as plant-based options wilt. As consumers questioned the healthfulness of the “meat” and its high price, __[Beyond Meat](https://robinhood.com/us/en/stocks/BYND/)__ and other plant-based products have seen sales flattening or falling. Cell-grown companies say the problem is in the patty, arguing their product is *real* meat “that preserves life,” Upside Foods’ CEO said. Big Meat disagrees and is lobbying to strip the “meat” label from cell-grown (like Big Dairy vs. alt-milks).

Homemade look, lab-made interior (Good Meat)

Experimeat

__Warming up a new product takes time…__ Getting approvals to sell cell-grown meat was slow going, and it may just be the first lap in a marathon of getting consumers to put it on their plates. As a never-been-done product, cell-grown meat has an ick factor to overcome. And if companies *can* conquer consumers’ taste buds, affordability will be the next challenge before cell-grown can transition from Michelin-starred restaurants to Walmart.

The USDA clears cell-grown meat for sale as labs try to do what plant-based couldn’t

__Rocky Mountain high…__ What’s being billed as the largest psychedelics conference ever is [underway](https://www.axios.com/local/denver/2023/06/20/psychedelics-conference-denver-mushrooms-spotlight) in Denver this week with 10K attendees, including music artist Jaden Smith and __Whole Foods__ cofounder John Mackey. NFL star Aaron Rodgers, speaking at the conference, credited ayahuasca with his back-to-back MVP awards. The event is a Colorado housewarming for the psychedelics industry, after the state voted last year to decriminalize psilocybin mushrooms.

- __Not for sale:__ Colorado law regulates the supervised use of psychedelic plants (think: in therapeutic treatments) but stops short of allowing recreational sales. First, experts say, more studies are needed.

- __Buddy system:__ Colorful Colorado is the second state to decriminalize psilocybin after Oregon. Oregon’s law went into effect this year and allows each city and county in the state to ban the practice if they choose (many have).

__Getting a foot in the ’shroom…__ Psychedelics like magic mushrooms, MDMA, and ketamine have become pharma darlings, as clinical trials show their potential as a treatment for mental-health conditions like PTSD. Investors are racing to tap into a market that analysts say could grow to $8B by 2027. This week, __Toms Shoes__ founder Blake Mycoskie pledged $100M to support research, and NY Mets owner Steve Cohen pledged $5M to the nonprofit hosting the Mile High conference.

Dose

__Hopes of returns are beating legal concerns…__ Despite still being early on the journey to FDA approval and recreational sale, investors hope that psychedelics can one day bring them the returns seen in cannabis legalization. VC bucks have poured into the space, with companies like __Transcend Therapeutics__, __Gilgamesh Pharmaceuticals__, and __Lusaris Therapeutics__ raising tens of millions this year alone. But even weed hasn’t yet been able to shake its federal classification as a [Schedule 1](https://www.dea.gov/drug-information/drug-scheduling) drug.

Massive psychedelics conference sees big names advocate for FDA approval

🪙 __Coins…__ __[Bitcoin](https://robinhood.com/us/en/crypto/BTC/)__'s price climbed past $30K as four institutional investors including __[BlackRock](https://robinhood.com/us/en/stocks/BLK/)__ filed applications with the SEC to launch [bitcoin ETFs](https://www.bloomberg.com/news/articles/2023-06-22/bitcoin-btc-surge-sparked-by-etf-optimism-pauses-around-30-000-mark). If approved, the spot ETFs would give investors crypto exposure without having to own coins. 

📜 __Policy…__ Fed Chair Powell said stablecoins (picture: __USDC__, __tether__) are a "form of money" and that the central bank should have a role in [regulating](https://decrypt.co/145703/fed-chair-powell-says-bitcoin-has-staying-power-as-an-asset-class) them. A House committee is set to vote on a bill detailing stablecoin regs next month. 

🤹‍♀️ __Quirky…__ An NYC crypto miner's in hot water and loving it. Bathhouse, a Brooklyn spa, said it's using heat generated by its __bitcoin__ mining rigs to warm its pools, and cooler water from tubs to chill its mining setup. Talk about a crypto dip.

The Crypto Catch-Up…

The US population is older than ever with a median age last year of 39

🐔 Lab meat on the menu

__You can log out any time you like…__ but you can never leave? The FTC sued __[Amazon](https://robinhood.com/us/en/stocks/AMZN/)__ yesterday, saying it [fooled](https://www.wsj.com/articles/ftc-sues-amazon-over-manipulative-tactics-to-enroll-users-in-premium-service-85400564) millions of customers into signing up for Prime with “manipulative, coercive, or deceptive” user interfaces — and then intentionally made it hard for them to cancel their subscriptions. It’s the most aggressive FTC action against Amazon under the leadership of Chair Lina Khan, a staunch critic of Big Tech power. 

- __Primed or punked?__ Khan alleged that “Amazon tricked and trapped people into recurring subscriptions without their consent.”

- __Homeric effort:__ The suit says that Amazon internally [referred](https://www.nytimes.com/2023/06/21/technology/ftc-amazon-prime-lawsuit.html) to the process for canceling Prime as “The Iliad,” the epic Greek poem about the Trojan War. 

__*Sure* you wanna cancel?__ After all, you’ve only been asked five times. Prime members pay $140/year for “free” two-day shipping, plus other perks like streaming. Nearly 75% of all US households are estimated to have a Prime account, but growth has reportedly slumped. By one estimate, Prime finished last year with 168M US subscribers, down from 170M in 2021. That would mark the first time Prime growth stalled in the US (Amazon doesn’t share country-specific membership #s). As sub growth and online shopping slow, Amazon [reportedly](https://www.wsj.com/articles/amazon-plans-ad-tier-for-prime-video-streaming-service-8944fe51) plans to launch an ad tier for Prime to drum up fresh revenue.

Looking for the cancel button like (Artur Widak/Getty Images)

Homer

__Convenience can’t be used conveniently…__ Amazon has made it #frictionless to enroll in Prime and order online (think: one click), but it also uses a “four-page, six-click, fifteen-option cancellation process,” the FTC said. Having an inconvenient cancellation option *is* convenient for many companies. But retaining customers could get harder as the FTC looks to crack down on designs that make it tricky for consumers to cancel services.

The FTC sues Amazon, saying it used “trickery” and sabotaged consumers’ attempts to cancel Prime

__Not just for kids…__ __[Roblox](https://robinhood.com/us/en/stocks/RBLX/)__ is about to look a little more like “Grand Theft Auto.” The tween-favorite gaming platform said that, for the first time, it’ll let some users create [mature content](https://www.fastcompany.com/90911075/roblox-is-adding-content-for-its-growing-adult-user-base?), including experiences featuring blood, alcohol, and (unplayable) casinos. The content will be restricted to users 17 and older, who’ll have to verify their age by uploading a selfie and ID. 

- __Kidults:__ Until 2021, kids under 13 made up the majority of Roblox’s users. But that flipped this year, with Roblox notching a record number of daily users over 13 and saying 17- to 24-year-olds are now its fastest-growing demo.

- __Intentional:__ Roblox CEO David Baszucki shared a “vision for all ages” manifesto in May, outlining the platform’s plan to appeal to older users.

__Problem child(s)…__ Roblox’s main moneymaker is its virtual currency, called Robux, which users are encouraged to buy (or ask their parents to buy) after seeing in-game ads for items and experiences. But after a watchdog group filed an FTC complaint about these ads being served to kids, Roblox wiped them from the under-13 experience. Branded Roblox experiences, like Nikeland and Froot Loops World, have come under scrutiny too. Last year it started adding in-game ads directly from brands but barred younger kids from seeing them.

Matureverse

__It pays to grow up with your users…__ and Roblox is now 17. By appealing to non-tween audiences with more mature content like gory horror games and experiences like a Mariah Carey concert and a “Super NFL Tycoon” simulation, Roblox can make more $$ from more people. Now that it can’t serve ads to kids, older users are more important than ever — and they’re less likely to get grounded for buying too many Robux.

Roblox invites users to create mature content for its growing young-adult user base

US home prices have jumped 44% since January 2020

❌ Amazon Prime “trickery”

__Bitter pill…__ Pharma giants are [taking](https://www.cnbc.com/2023/06/20/drug-prices-drugmakers-aim-to-fight-medicare-negotiations-at-scotus.html) legal action to try to shut down a new drug-pricing law that could cost them billions. Some 65M Americans (most age 65 and older) are enrolled in Medicare, a federal health-insurance program — and the largest buyer of prescription drugs. Under President Biden’s Inflation Reduction Act, Medicare would be able to negotiate discounts of up to 60% on numerous prescription drugs. __[Merck](https://robinhood.com/us/en/stocks/MRK/)__ says its lucrative diabetes and cancer drugs would be subject to a “sham” negotiation program, which starts in 2026 with an initial round of 10 drugs. 

- __This month:__ Merck and __[Bristol-Myers Squibb](https://robinhood.com/us/en/stocks/BMY/)__ filed suits against the gov’t, arguing the policy is unconstitutional and could hit blockbuster drugs (some of which make up a quarter of their annual sales).

- __Last week:__ __[Eli Lilly](https://robinhood.com/us/en/stocks/LLY/)__'s CEO said the potential revenue loss could also stunt R&D of future drugs.

- __FYI:__ If companies don't comply, they’d face fines that are several times higher than their daily drug revenue and can be avoided only if they pull out of Medicare. 

__Refill relief…__ Lawmakers have fought for years to curb skyrocketing prescription costs. One study indicated that initial prices for new drugs have jumped 20% annually during the past 15 years. Last year nearly a fifth of US adults said they skipped or delayed taking medicine because of the cost. AARP said Medicare's new negotiations could [save](https://www.aarp.org/politics-society/advocacy/info-2022/medicare-budget-proposal.html) qualifying Americans an average of $800/year.

Side effects include lawsuits (Kyle Mazza/Getty Images)

__Solutions can come with side effects…__ By lowering drug costs for Medicare, the program could ease Rx affordability for millions and save taxpayers $102B through 2031. But as more drugmakers argue that it’s a threat to their revenue and research, the legal backlash is expected to intensify — and could end up in the Supreme Court.

Drugmakers sue over Medicare’s new pricing rules, potentially setting the stage for a SCOTUS showdown

__Takin’ over the world…__ one ad at a time. __[Snap](https://robinhood.com/us/en/stocks/SNAP/)__'s chatbot probably isn’t in the category of AI that has experts anxious over humanity’s demise, but the app still has big plans for “My AI.” 150M Snap users have exchanged billions of messages with the feed-pinned bot, and Snap’s hoping it can mine the data to [revive](https://www.wsj.com/articles/snapchat-users-embrace-of-ai-could-improve-ads-snap-ceo-says-210fc1f0?mod=pls_whats_news_us_business_f) its flailing ad biz. Last quarter Snap reported its first sales decline ever (ads = 99% of its revenue). 

- __MyByeBye:__ When My AI debuted in April, users were… not smitten. Frustrated that the bot couldn’t be removed, users blasted the app with one-star reviews — leading to an average US App Store rating of 1.7.

- __Target acquired:__ Boss Evan Spiegel said the bot could improve ad targeting, which the company has struggled with ever since __[Apple](https://robinhood.com/us/en/stocks/AAPL/)__'s privacy overhaul.

- __Sponsored chat:__ Snap started testing advertiser links in My AI convos (picture: chatting about travel plans, and then My AI dropping a link for cruise tickets).

__Adpocalyspe not now?…__ Despite fears that AI-powered search could mean the end of sponsored links as we know them, the ad industry is embracing the tech. Ads have found their way into __[Microsoft](https://robinhood.com/us/en/stocks/MSFT/)__'s ChatGPT-fueled Bing search, and the company is exploring AI tools that could predict an ad’s performance. __[Meta](https://robinhood.com/us/en/stocks/META/)__ has started letting advertisers try out its genAI ad products. __[Amazon](https://robinhood.com/us/en/stocks/AMZN/)__'s building out a team to create AI ad apps, and __[Google](https://robinhood.com/us/en/stocks/GOOGL/)__ recently launched AI tools that aim to help marketers with placements.

Chatty

__Monetizing too early is a risk…__ Infusing ads into AI chatbots and search engines runs the risk of losing users’ trust before it's been gained. But given the staggering costs of running AI servers, the risk may be necessary — unless companies can get users to pay for another subscription, like the $20/month ChatGPT Plus.

From Snap to Microsoft, Big Tech hopes AI can be the wind beneath its ad-biz wings

🛋️ *Like using Craigslist to find a new home for your couch…* 

Non-custodial exchanges facilitate crypto trades between customers but *don't* hold their coins — unlike custodial exchanges like __[Coinbase](https://robinhood.com/us/en/stocks/COIN/)__ and __Binance__. Decentralized exchanges like __[Uniswap](https://robinhood.com/us/en/crypto/UNI/)__ and __PancakeSwap__ are types of non-custodial exchanges. The CEO of __EDX Markets__, a new [non-custodial exchange](https://www.barrons.com/articles/edx-coinbase-crypto-exchange-binance-60662e8c), said __FTX__'s implosion created demand for non-custodials.

DEFI(NE)

Heard on the Block: "non-custodial exchange"

Donations to US charities declined last year — just the fourth drop since 1982

💊 Drugmakers fight discounts

__Juiced up…__ __[Tesla](https://robinhood.com/us/en/stocks/TSLA/)__ superchargers make up 6 in 10 fast chargers in the US and Canada, and the EV icon says it operates the largest fast-charging network globally with 45K plugs. Now Tesla’s charger is quickly [becoming](https://www.bloomberg.com/news/articles/2023-06-12/tesla-chargers-win-more-backers-as-its-plug-becomes-us-standard?) the standard:

- __The latest:__ Last week, charging-station companies including __[ChargePoint](https://robinhood.com/us/en/stocks/CHPT/)__ said they’ll start offering Tesla’s North American Charging Standard (NACS) in addition to the gov’t-backed Combined Charging System (CCS) they already have on tap.

- __OG support:__ The move is likely a reaction to __[Ford](https://robinhood.com/us/en/stocks/F/)__ and __[GM](https://robinhood.com/us/en/stocks/GM/)__ recently saying their next gen of EVs will use Tesla’s NACS. __Dodge__ parent __[Stellantis](https://robinhood.com/us/en/stocks/STLA/)__ said last week that it might join Team NACS too.

- __Vote of confidence:__ It’s a huge boost for Tesla’s charger because Ford, GM, and Tesla combined make up over 70% of the US EV market. 

__May the best plug win…__ Tesla has said its NACS chargers are “half the size and twice as powerful” as the CCS ones, but the US gov’t funds only CCS, which was developed by several automakers. To qualify for a bite of the $7.5B in charging subsidies the Biden admin is offering, Tesla agreed in February to add CCS to as many as 7.5K of its chargers.

- __Peer pressure:__ Given the pro-NACS news, the White House could reconsider its CCS-centric ways. Transportation Secretary Pete Buttigieg recently said one system would win out.

- __Free of charge:__ While Tesla made its NACS design available for competitors to use freely last year, its charging-station revenue should rise when more cars (including *non*-Teslas) can plug in.

Rivals in cars, friends in charge (Osmancan Gurdogan/Getty Images)

Juicy

__There’s (electric) power in numbers…__ Letting others into Club Tesla could accelerate EV adoption. While Tesla owners will lose their exclusive access to its charging stations (a major perk), Piper Sandler estimates that Tesla could generate billions more in revenue from non-Tesla charging. And while GM and Ford risk losing customers (who’ll be surrounded by Model Y’s at stations), they’ll be able to offer a charging experience that Musk has called “fundamentally better.”

Tesla pulls ahead in the EV industry’s “charge-off” as rivals pick its plug

__Hot Strike Summer…__ A historic __UPS__ strike that would wreak havoc on the US supply chain could be seven weeks away. On Friday the 340K-member UPS Teamsters union authorized the use of a strike — which would be the largest in American history against a single employer — as tense negotiations continue ahead of the August 1 contract deadline. A tentative agreement to install AC in most new vans was reached last week; now the focus is pay. UPS delivers a quarter of all US parcels (more than __FedEx__ or __Amazon__), which it says accounts for 6% of GDP. 

__Concerning…__ A commercial real estate crisis is brewing as remote work and high interest rates converge. US office vacancies hit their highest level in *decades* this year, and rent delinquencies are spiking. Building owners are scrambling for tenants as $270B in commercial bank loans come due this year. In San Francisco (where vacancies are highest), mall operator __Westfield__ and a __Hilton__ are throwing in the towel. Meanwhile, retailers from __Nordstrom__ to __Whole Foods__ are closing stores in urban shopping areas where sales are down and retail crime is up.

__Van-life aesthetic…__ RV icon __Winnebago__ thrived during the pandemic as Americans social-distanced while rolling through the heartland (#WorkFromWinnebago). In early 2022, it drove home a record $1.2B in quarterly revenue. But RV sales are down by half this year as folks ditch the open road and return to normal life. Despite cooling demand, Winnebago beat earnings expectations in March as the mobile-home life chugged on. The biz reports Wednesday, and its stock popped last week after RV rival __Thor__ unloaded a big profit beat. 

__Slaps roof of car…__ The nation's largest used-vehicle seller has hit a few speed bumps this year. The last time __CarMax__ reported profit was down 57% on the year, and in the face of loan losses it said it would toughen lending standards. (Americans struggled to make car payments as rates skyrocketed and the repo man showed up.) But when competitors __Carvana__ and __Vroom__ reported last, they both saw narrowing losses on the year. We'll see whether CarMax can drive itself out of the ditch when it reports Friday.

- __[Juneteenth](https://sherwoodmedia.com/snacks/as-juneteenth-approaches-californias-set-to-release-a-groundbreaking/):__ This month California is set to release a historic reparations report calculating proposed payouts for descendants of Black American slaves in the state. Some estimates suggest it could be as much $1.2M/person.

- __[Curious](https://sherwoodmedia.com/snacks/alcohol-alternatives-are-heating-up-as-gen-z-leans-into-the-sober-curious/):__ The hottest drink of summer could be… a mocktail. As Gen Z leans into the sober-curious lifestyle, bevs like non-boozy beer and botanical spritzes are trending. Zero proof = zero hangover.

- __[Crusted](https://sherwoodmedia.com/snacks/robot-pizza-startup-closes-shop-as-the-shark-tank-economy-dries-up/):__ Robot pizza startup __Zume__ has tossed its last dough. The ex-Silicon Valley darling was once valued at $2.3B for its ’za-delivering robo-trucks, but startup funding has dried up as risk appetites wane.

Americans say it takes $2.2M to be considered wealthy in the US

⚡ Tesla’s power play

__150+ years and counting...__ Monday marks the second official celebration of Juneteenth in the US, after President Biden declared June 19 a federal holiday commemorating the end of slavery. On that day, in 1865, troops [marched](https://sherwoodmedia.com/snacks/newsletters/46Su1ZofFXtCbYSCgWi2zw/articles/4d3nlP8TApWiNtYGFQbLTh/) into Texas to take control of the state and free the enslaved people. This year more than half of all states and a growing number of companies will recognize Juneteenth as a public holiday. 

- __Last year__ a third of private employers offered Juneteenth as a paid holiday, up from just 8% in 2020, and more said they plan to offer it this year.

- __Corporate titans__ [including](https://www.entrepreneur.com/business-news/what-companies-are-closed-on-juneteenth-2022/429409) __[Nike](https://robinhood.com/us/en/stocks/NKE/)__, __[Target](https://robinhood.com/us/en/stocks/TGT/)__, __[Apple](https://robinhood.com/us/en/stocks/AAPL/)__, and __[Best Buy](https://robinhood.com/us/en/stocks/BBY/)__ have participated in setting the Juneteenth standard.

__Reparation nation…__ While lawmakers have talked about how to make amends for the financial effects of slavery, more attention is being paid to reparations — compensating descendants of Black American slaves for their labor, an idea that dates to the Civil War. In May, House lawmakers passed a historic bill that established a committee to develop reparations proposals. This month, committee leader California will release the extensive proposal, which calculates payouts for qualifying people in the state. (FYI: some reports say it could be as much $1.2M/person).

- __Up next:__ CA lawmakers will review the report and decide whether to adopt, amend, or dismiss the suggestions. From there, CA’s government would need to pass it.

- __FYI:__ Cities including Boston, Detroit, and St. Louis have approved their own programs or are considering proposals. Last week New York lawmakers passed a bill considering reparations for slavery.

A Juneteenth celebration in San Francisco (Tayfun Coskun/Getty Images)

Impact

__Mind the gap…__ White families, on average, have 8X the wealth of Black families, a gap perpetuated by the legacy of slavery. Progress is being made: during the pandemic, Black families’ net worth grew more than that of any other racial group, and Black homeownership also rose, but the gaps remain wide. Some reports suggest it would take $15T to eliminate the racial wealth gap.

As Juneteenth approaches, California’s set to release a groundbreaking reparations report

__Having a moment…__ __[bitcoin](https://robinhood.com/us/en/crypto/BTC/)__. While the OG crypto's current market cap of $487B+ represents a three-month low, bitcoin's *share* of the total cryptocurrency market has [climbed](https://www.bloomberg.com/news/articles/2023-06-15/bitcoin-tightens-its-grip-on-the-crypto-market-as-traders-avoid-smaller-tokens) to nearly 46%. That's the highest level in nearly two years, and suggests that traders are selling their altcoin bags (like: __[solana](https://robinhood.com/us/en/crypto/SOL/)__, __[cardano](https://robinhood.com/us/en/crypto/ADA/)__) more quickly than their BTC holdings. A changing regulatory landscape may be at play.

__Who's at faultcoins…__ After __FTX__'s blowup last year, the SEC has hit industry players like __[Coinbase](https://robinhood.com/us/en/stocks/COIN/)__ and __Binance__ with [lawsuits](https://sherwoodmedia.com/snacks/the-sec-sues-the-2-biggest-crypto-exchanges-in-a-one-two-punch-for-the/). As part of the crackdown, the regulator identified 19 additional cryptocurrencies as securities, meaning they’d need to follow the SEC's rules. (FYI: the SEC has said that, in total, nearly 70 tokens are securities.) If the courts agree, those altcoins could become much harder to trade in the US. The suits could take years to resolve, but we may already be seeing the fallout:

- __This month eToro__ and __[Robinhood](https://robinhood.com/us/en/stocks/HOOD/)__ said customers would soon no longer be able to purchase some altcoins on their platforms. (Snacks is part of Sherwood Media, a subsidiary of Robinhood.)

- __Bitcoin__ has managed to stay mostly out of the fray because many regulators (even the SEC) agree it's a commodity. A possible reason: it's considered sufficiently decentralized.

BLOCKCHANGE

__Risk appetites aren't stable…__ The crypto market is fairly new, and investors and regulators are still dialing in their positions. When bitcoin launched over a decade ago, it was seen as a risky place to park $$. While bitcoin still has a volatile rep, the risk spectrum may be shifting as regulators spotlight altcoins, and US crypto cos look [overseas](https://sherwoodmedia.com/snacks/coinbase-and-gemini-expand-offshore-as-crypto-heads-for-the-us-exits-and/).

Bitcoin grabs crypto market share as US regulators put a spotlight on altcoins

📸 __Flashy…__ Miami "bitcoin mayor" Francis X. Suarez [filed](https://fortune.com/2023/06/14/miami-mayor-francis-suarez-presidential-campaign-trump-indictment/) paperwork to run for US president. The pro-crypto Republican, who said that he takes his salary in BTC, made headlines promoting the now failed MiamiCoin. 

🤹‍♀️ __Quirky…__ Metaverse Beauty Week [kicked off](https://decrypt.co/144327/metaverse-beauty-week-aims-showcase-branding-potential-metaverse) with brands like Neutrogena dipping their blush brushes into “Decentraland,” an __[ethereum](https://robinhood.com/us/en/crypto/ETH/)__-based digi world. Despite waning hype, businesses continue to explore web3 ways to reach customers. 

🌶️ __Spicy…__ Famed VC __a16z__ said it’s [opening](https://www.wsj.com/articles/andreessen-to-open-london-office-for-crypto-startups-amid-scrutiny-in-u-s-ab802233) a crypto-focused office in London, touting what it says are the UK's friendlier regulations. The move adds to an industry-wide crypto exod-US as companies look abroad.

💵 California’s reparations proposal

__We’re soarin’, flyin’...__ The next gen of single-aisle planes could have super-long and -skinny wings to cut fuel consumption by 30%. That’s the design of the new jet being built by NASA and __[Boeing](https://robinhood.com/us/en/stocks/BA/)__, which the US Air Force [welcomed](https://www.vox.com/recode/2023/2/2/23582152/nasa-x-plane-boeing-air-force-sustainable-aircraft) to the legendary ranks of “X-planes” this week. X-planes = basically the concept cars of the sky.

- __X-perimental:__ They feature ambitious, often wacky designs (picture: an uncrewed stealth fighting [aircraft](https://www.bbc.com/future/article/20121218-stealth-drone-targets-life-at-sea)). The US gov’t has been funding companies’ X-plane projects since the 1940s. NASA and Boeing’s jet is the first to focus on the climate.

- __In-fly-ential:__ Though most X-planes don’t get commercially produced, elements of Boeing’s X-plane’s CO2-slashing design could be integrated into airliners in the 2030s.

__Feeling the “flygskam”…__ That’s “flight shame” in Swedish. The pressure to go green is rising (with callouts from activists like [Greta Thunberg](https://www.theguardian.com/environment/2023/jun/13/greta-thunberg-not-phasing-out-fossil-fuels-is-death-sentence-for-worlds-poor)). Planes account for about 4% of all US greenhouse-gas emissions, and the Biden admin says it wants to bring that down to net-zero by 2050. Airlines are making some efforts:

- __Fuel’s gold:__ Big carriers like __[United](https://robinhood.com/us/en/stocks/UAL/)__, __[American](https://robinhood.com/us/en/stocks/AAL/)__, and __[JetBlue](https://robinhood.com/us/en/stocks/JBLU/)__ buy renewable jet fuel. __[Delta](https://robinhood.com/us/en/stocks/DAL/)__ plans to replace a tenth of its fuel with sustainable substitutes by 2030. Airlines also buy carbon credits to offset their emissions.

- __Discredits:__ __Delta__ [was sued](https://sherwoodmedia.com/snacks/deltas-carbon-neutrality-lawsuit-highlights-issues-with-companies-trying-to/) last month for calling itself the “the world’s first carbon-neutral airline” (plaintiffs said its offsets are “junk”). United’s CEO has called offsets “greenwashing.”

New window-seat view on the way (Boeing)

Takeoff

__Moonshot solutions may be necessary…__ for goals of astronomical proportions. __United__ is backing a project to build electric air taxis and __[Airbus](https://robinhood.com/us/en/stocks/EADSY/)__ plans to fly a hydro-powered triangular plane by 2035. Meanwhile, X-planes have made some of the aviation industry’s biggest dreams a reality ever since the first X-plane broke the sound barrier in ’47. NASA expects its X-plane to “skip a generation” of design, speeding the US toward its ambitious climate goals.

NASA and Boeing’s jet gets “X-plane” status as airlines feel pressure to go green

__When the moon hits your eye like a big pizza pie…__ that’s a startup? After eight years in business, robot pizza startup __Zume__ has pepped its last ’roni and is [liquidating assets](https://gizmodo.com/zume-softbank-ai-pizza-delivery-stellar-pizza-1850529465). A one-time Silicon Valley darling, Zume sought to automate pizza making by having robots quickly assemble pies that were cooked in mobile kitchens en route to customers. The problem: the cheese kept sliding off the pies in transit.

- __All crust:__ Pizza tech issues led the company to park its vehicles, and then ultimately shutter its pizza biz. It pivoted to selling compostable food packaging, and then decided to shut down altogether.

- __Pie in the sky:__ Zume has become something of a mascot for the exuberant era of venture-capital investing that peaked in 2021. Despite its niche concept, Zume raised nearly half a billion dollars from investors like __[Softbank](https://robinhood.com/us/en/stocks/SFTBY/)__ and once had a $2.3B valuation. 

__It’s a startup extinction event…__ Zume isn’t the only company shutting the ovens down. At least 72 startups have failed so far this year, including fintech __Plastiq__ (which had raised $142M), biotech firm __Goldfinch__ (which had raised $100M+ in 2020), and wine-tech upstart __Underground Cellar__, which was corked in April. Others are struggling to raise cash: US VC funding in the first quarter was just $37B, down from $95B in the fourth quarter of ’21.

Crusty

__Venturers don’t love rough country…__ Startups are risky, even during boom times. Now: inflation, high rates, and recession jitters have led VCs to be more scrupulous about where they put their $$. The spigot hasn’t fully turned off. It’s just become more focused — particularly on AI. Nearly a quarter of this year’s new unicorns are AI companies.

Robot pizza startup closes shop as the “Shark Tank” economy dries up

Beyoncé’s recent Stockholm concerts apparently contributed to higher-than-expected inflation in Sweden

✈️ Boeing & NASA’s “X-plane”

__The drink of the summer…__ The internet’s predicting that the season’s hottest beverage will be the Hugo Spritz. Plot twist: it might actually be a mocktail. Non-boozy drinks are booming as alcohol consumption continues to fall among younger folks. Gen Zers, who have a rep for being tuned into mental health and wellness, are leading the sober-curious shift. 

- __MokTok:__ On TikTok #sobercurious has 833M views as people share favorite recipes and expound on the benefits of a sober lifestyle.

- __Nearly 7 in 10__ US consumers said they follow or would follow a sober lifestyle for health reasons, a recent [survey](https://www.mintel.com/press-centre/nearly-4-in-10-us-consumers-closely-or-occasionally-follow-a-sober-curious-lifestyle/) suggested.

- __Clear-headed:__ Drink-delivery app __Drizly__ said last month that the desire to try zero-proof beers, wines, and spirits continues to climb, led by young adults.

- __The no- and low-alcohol__ category surpassed $11B last year, and sales of no-alcohol bevvies are expected to grow by 25% through 2026 — faster than the rest of the US drinks market. 

__Zero proof, zero hangover…__ Drizly recently said, “Consumers are more than just sober curious, they’re going all in on the nonalcoholic category.” That could pose a threat to Big Alcohol companies like Bud maker __[AB InBev](https://robinhood.com/us/en/stocks/BUD/)__ and Smirnoff maker __[Diageo](https://robinhood.com/us/en/stocks/DEO/)__. It’s already [hurting](https://www.billboard.com/pro/gen-z-drinking-less-bad-club-business/) owners of small bars and concert venues, who’ve noticed that Gen Z is drinking less, in a hit to key cocktail revenue (ahem, $15 tequila sodas). Now businesses are catering to the shifting trend: 

- __Budweiser__ is betting big on nonalcoholic beer (Bud Zero), and in recent years brands like __Corona__, __Peroni__, and __[Heineken](https://robinhood.com/us/en/stocks/HEINY/)__ have launched zero-alcohol brews.

- __Mocktails and other alts__ are gaining real estate on menus, from botanical canned aperitifs like __De Soi__ and __Ghia__ to waters like __Liquid Death__. 

Mocktails: 2. Hangovers: 0. (Annette Riedl/Getty Images)

Curious

__Marketing norms can get flipped…__ For decades, alcohol use has been normalized (and glamorized) in commercials and movies, and Big Alcohol has benefited. It was the same with cigarettes for Big Tobacco, which leveraged movie stars and cool cowboys (picture: [Marlboro man](https://www.nbcnews.com/news/obituaries/original-marlboro-man-has-died-90-bob-norris-himself-never-n1079316) billboards). But just as the tobacco trend was reversed, norms could be changing for alcohol.

Alcohol alternatives are heating up as Gen Z leans into the sober-curious lifestyle

__From wish list to White Elephant regift…__ Instant Pot maker __Instant Brands__ filed for [bankruptcy](https://www.bloomberg.com/news/articles/2023-06-12/instant-pot-and-pyrex-maker-instant-brands-files-for-bankruptcy) on Monday. Instant Brands, which also makes CorningWare and Pyrex, says a whopping 90% of US kitchens have at least one of its products. But its sales have fallen for seven straight quarters. Overall sales of electronic multicook devices (think: air fryers, Instant Pots) dropped by half from 2020 to last year, as the pandemic home-cooking boom cooled. Kitchens = gizmo stocked. Instant Brands’ CEO also pointed fingers at higher interest rates as a biz challenge. 

__Pressure rising…__ The Instant Pot became a cult favorite (picture: dedicated blogs, Facebook groups) after its 2010 debut. On the back of instant success, Instant Brands intro’d an air fryer in 2019, but struggled to unseat competitor __SharkNinja__'s dominance. By 2020 it was prepping for the Instant Pot “product phenom”’s decline with new gizmos:

- __Gadgets:__ Instant Brands released an air purifier in 2021 (which flopped). As of March it was ideating less trendy products, like an electric Dutch oven and a stand mixer.

- __Sealed fate?__ Meanwhile, Instant Brands’ CorningWare and Pyrex could be facing [__Tupperware__-like troubles](https://sherwoodmedia.com/snacks/newsletters/Ku8oHOygOUFBElNxmnQHt/articles/1KnGtuLYL8XL9xeH9UFyNb/) as consumers opt for genericized and vintage versions.

- __Reheating:__ Instant Brands said it’s secured $132M to keep its biz sizzling.

Cooked

__One-hit wonders rise fast and fall hard…__ While the Instant Pot is still a kitchen staple, even the biggest bean makers aren’t likely to need a new one very often. With consumers reining in spending on “nice to have” home gadgets like fancy blenders and flat screens, it could be a tough time for makers of one-time "it" appliances.

Instant Pot’s parent files for bankruptcy as the latest cooking gizmo loses steam

Inter Miami FC ticket prices jumped 28X on secondary markets after news that Messi was joining

🍹 Sober-curious summer

__Driving gets surge pricing…__ New York City could [become](https://www.cnn.com/2023/06/10/business/congestion-pricing-new-york-city-transportation/index.html) the first US city to charge congestion tolls, and others could follow to ease traffic troubles. Last month the Federal Highway Administration greenlighted Gotham’s congestion-pricing plan, and yesterday was the final day for public objections. The Biden admin is expected to give final approval soon, which would mean a pricier commute for millions. 

- __Big fees:__ As soon as next spring, drivers heading below 60th Street could face congestion tolls ranging from $9 to $23, depending on peak traffic hours.

- __Small print:__ Cars carrying people with disabilities and emergency vehicles are expected to be exempt. Residents earning under $60K/year may also qualify for a tax credit.

- __FYI:__ The Big Apple’s expected to rake in $1B+/year from the tolls, helping offset billions in losses as fewer people take public transit and splurge on lunch bowls (blame: WFH).

__Feeling extra congested…__ and it’s not spring allergies. Higher fuel prices + more congestion (think: burning gas while stuck in traffic) cost the average commuter almost $900 last year — nearly 3X as much as in 2021. While no American cities have adopted congestion pricing yet, Stockholm, London, Singapore, and others have had it for years. They’ve seen fewer traffic jams — and Stockholm saw fewer asthma attacks because of less pollution. Now traffic-plagued Los Angeles is also considering charging drivers during peak hours.

Congestion worse than spring allergies (Spencer Platt/Getty Images)

__Clearer lanes come at a cost…__ Taxi and ride-hail drivers have condemned congestion tolls, saying they’ll hurt biz and raise fares. The MTA says fare hikes triggered by the new tolls could curb cab and ride-hail demand by 17%. Meanwhile, commuters worry that extra fees could strain their already tight budgets as more employers mandate a return to the office.

NYC could become the first US city with a congestion toll, easing (and adding to) commuting woes

__It wasn’t you — it was us…__ After years of focusing on its direct-to-consumer (D2C) business, __[Nike](https://robinhood.com/us/en/stocks/NKE/)__ is back in retailers’ inboxes asking if they’re free to catch up sometime. The sneaker icon has [expanded](https://www.wsj.com/articles/nike-broke-up-with-retailers-now-its-trying-to-win-them-back-6c0b475c) its wholesale relationships with the likes of __[Macy’s](https://robinhood.com/us/en/stocks/M/)__, __[Foot Locker](https://robinhood.com/us/en/stocks/FL/)__, and DSW parent __[Designer Brands](https://robinhood.com/us/en/stocks/DBI/)__. It’s an about-face from the company’s recent strategy:

- __Split:__ Since 2018, Nike has halved its wholesale business, ditching deals with thousands of small retailers and downsizing distribution to chains like Foot Locker. The shift was part of a profit-pumping attempt to boost D2C sales through Nike sites and stores.

- __Second thoughts:__ In the past two quarters, Nike’s wholesale biz logged impressive growth, outpacing D2C in the fall. Inventory glut and ensuing markdowns hurt profits, making the company further question its D2C focus.

__Rediscovering the intermediary…__ A few years ago, D2C was all the rage. But shifting consumer habits have seen D2C-native brands lean into wholesale deals to boost revenue. After disappointing earnings, __[Allbirds](https://robinhood.com/us/en/stocks/BIRD/)__ announced it would consider expanding deals with partners like __[Nordstrom](https://robinhood.com/us/en/stocks/JWN/)__ and __REI__. __[Adidas](https://robinhood.com/us/en/stocks/ADDYY/)__, struggling with big losses from its Yeezy split, recently said that wholesale would play a larger role in its strategy. __[Peloton](https://robinhood.com/us/en/stocks/PTON/)__ began selling gear on __[Amazon](https://robinhood.com/us/en/stocks/AMZN/)__ and in Dick’s stores last fall. Beyond apparel, __Casper__ mattresses can now be found at __Mattress Warehouse__ and __Glossier__ products are stocked at __Sephora__.

Laces

__Ownership isn’t all it’s chalked up to be…__ The D2C model lets brands own more of their business, control how their products are sold, and glean more info about their customers. But it comes with higher shipping, marketing, labor, and tech costs. For companies chasing profits and presence, maintaining wholesale relationships can take some of the pressure off.

Nike rethinks its direct-to-consumer pivot and repairs relationships with retailers

🏗️ *Like when a city planner starts with the electrical grid…*

Crypto developers work to scale blockchains as they grow in users *and* in use cases. But the foundation new crypto additions are built on, the base blockchain itself, is called a "layer 1." (The additions are — you guessed it —  [layer 2s](https://sherwoodmedia.com/snacks/newsletters/1lStK6DDLtXoSjK8u403uF/articles/5rZMgT0eYgQgLTGQZAx9US/).)

The price of __[solana](https://robinhood.com/us/en/crypto/SOL/)__ and __[cardano](https://robinhood.com/us/en/crypto/ADA/)__ [slipped 30%](https://fortune.com/crypto/2023/06/11/solano-cardano-and-polygon-plunge-nearly-30-as-big-firms-dump-holdings-after-sec-allegations/) last week after the SEC said in a lawsuit that the cryptos are securities. The coins are associated with layer-1 blockchains (also dubbed solana and cardano), which compete with the __[ethereum](https://robinhood.com/us/en/crypto/ETH/)__ blockchain (aka: "ETH killers").

Heard on the Block: "layer 1"

75% of US homes for sale are too expensive for middle-incomes buyers