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You can't ignore the bitcoin scams, Big Tech

Good morning! This Friday, bitcoin scams are changing the internet, how to value your startup overnight, and why you should start hiring a quantum team ASAP.
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Porn had a good run, helping usher in high-definition video and faster data connections and online subscription services. But now there's a new weird thing that you need to pay attention to before it shapes the internet before your very eyes: the bitcoin scam.
Last week, we had the Twitter hack, which is already reshaping the whole debate over how messaging works online. Especially now that Twitter admitted that of the 130 targeted accounts, 36 had their DM inbox accessed, and eight had their entire account downloaded.
And now it's Susan Wojcicki's turn to squirm, because Steve Wozniak and a number of other folks have sued YouTube, alleging that the company "has been unapologetically hosting, promoting and directly profiting from similar scams" for several months. Basically, scammers used videos and pictures of Wozniak to create what looks like a live broadcast, put a Bitcoin wallet address next to it, and raked in the cash.
Whether you're an IT director or a security researcher, these scammers are who I'd be tracking. Because it's not just Twitter and YouTube: Bitcoin scams have taken the form of Facebook ads, malware, phishing and the rest of your internet-security bingo card. And what first gets exploited for money can eventually get exploited for something scarier.
Everybody thought bitcoin and blockchain were going to go legit and change the internet forever. Turns out the scams might do it first.
Here's an idea: Instead of worrying about fixing the internet, why don't we just build a new one? That's what the Department of Energy is proposing, anyway: It unveiled a long-term research plan Thursday designed to result in a nationwide, quantum-based internet. Imaginatively named … Quantum Internet.
The "plan" is really more like a plan to do research in order to make a plan, and kind of an acknowledgement that there's a ton of work to do to build a quantum internet. But it's an important step out of labs and into the world.
But the big takeaway is you should be staffing a quantum team, because the technology is set to become part of the fabric of the internet, maybe sooner than you think. And as the University of Chicago's David Awschalom pointed out, "When you ask tech companies what is their number one concern with quantum information technology, the number one concern by far is the workforce."
By the way: Want to know way more about all things quantum? I've got a Protocol Manual you really ought to read.
Shakeel Hashim writes: Clearbanc, the VC-alternative that built a business off a "20-minute term sheet," has a new tool for founders: A product that gives your startup a "valuation" in 24 hours. Kind of.
Valuation, now in beta, compiles data from a company's financial information — such as its payment processor, bank account and ad spending — and uses it to forecast future revenue and growth. The tool then finds comparable companies in the startup's sector to generate a valuation range that shows founders what their business is worth.
The aim is to help overcome the "huge information disadvantage" that Clearbanc co-founder Andrew D'Souza says founders face when talking to investors.
Clearbanc is very clear that this number isn't an official 409a valuation, and any VC will happily tell you there's more to a startup's valuation than the metrics feeding Clearbanc's algorithm. But D'Souza said that in cases where the tool has facilitated investments, those have been done "in the valuation range that we presented."
Join us: Protocol's transformation editor Mike Murphy will lead a discussion on how businesses have long "gone digital" even if they didn't start that way. We are joined by New Balance CEO Joe Preston, WW CEO Mindy Grossman, and Honeywell Chief Digital Technology Officer Sheila Jordan. This event is presented by AlixPartners.
Jack Dorsey said Twitter's thinking about a subscription model and has a lot of work to do on internal security in the wake of the hack:
Mira raised more money for its AR gear, and COO Matt Stern took a shot at Magic Leap in the process:
Max Wang, a Facebook employee, posted a video on his last day with a harsh note about his employer:
Aaron Zamost is leaving Square. He spent nearly a decade as the company's head of comms, policy and people, and said a bunch of nice things about Jack Dorsey on his way out.
I dare you to watch this video — of phones being scratched, dropped from high up and hit — and stay calm. But if Corning's for real, you won't have to worry anymore. Its new Gorilla Glass Victus can supposedly handle falls, scratches, pressure, and the rest of your life's daily rigors without shattering so badly that your fingers bleed from touching the screen of your phone. If it's true, it'd be a huge deal for the entire electronics industry, but I've been hurt by these promises before. And so has my phone.
Join us: Protocol's transformation editor Mike Murphy will lead a discussion on how businesses have long "gone digital" even if they didn't start that way. We are joined by New Balance CEO Joe Preston, WW CEO Mindy Grossman, and Honeywell Chief Digital Technology Officer Sheila Jordan. This event is presented by AlixPartners.
Today's Source Code was written by David Pierce, with help from Shakeel Hashim. Thoughts, questions, tips? Send them to david@protocol.com, or our tips line, tips@protocol.com. Enjoy your weekend, see you Sunday.
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