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Kim Kardashian is now worth $1.8 Billion (…at least)
I was planning to dedicate this edition of our weekly newsletter to Elon Musk reclaiming his title as the richest person in the world, surpassing LVMH’s Bernard Arnault, with a staggering net worth of $240.7 billion.
Twitter Rebrands as "X," the "Everything App"
"Twitter was acquired by X Corp both to ensure freedom of speech and as an accelerant for X, the everything app," the company's owner, billionaire Elon Musk, posted on Monday.
Musk has been vocal about his goal of turning Twitter into a so-called super-app, something akin to China's WeChat. For now there's no American equivalent to such an app, but industry experts imagine an app that encompasses basically anything a person wants to do online.
…Musk appears to have a longstanding fixation on the letter X, dubbing his very first startup X.com. (After a merger, the app became PayPal, although Musk reportedly pushed for it to keep the name X.
…For now, the platform's rebrand is just a name change — no new features have been introduced, staying true to Musk's apparent preferred product strategy of hype first, delivery much later.
Kim Kardashian is now worth $1.8 Billion (…at least)
Upon deeper contemplation, it becomes evident that the most significant story of the week revolves around Kim Kardashian, the renowned "self-made" female mogul, boasting an impressive estimated net worth of $1.8 billion.
In the wake of an extensively covered funding round, Kim Kardashian's Skims has achieved an astounding valuation of $4 billion, a remarkable feat for an apparel company. With plans to venture into physical stores and men's clothing, the latest funding round raises speculation about the possibility of Skims going public.
Having already reached unicorn status four times over, Skims raised $270 million in the recent funding round, elevating its value from last year's $3.2 billion valuation. While it was initially known for its direct-to-consumer approach, Skims is now placing its bets on physical retail by announcing its intention to open flagship stores in Los Angeles and New York City next year.
Notably, the company has achieved profitability and is on track to achieve $750 million in sales this year, a significant increase from the $500 million recorded in 2022. Skims has also demonstrated its global appeal, with about 15 percent of its online customers hailing from outside the United States. Moreover, a substantial 70 percent of its overall customer base comprises millennials and Gen Z individuals.
But this isn’t the first unicorn Kim K has created…
According to sources, Kim K has also banked the following:
SKKY Partners (2022)- A Private Equity firm focusing on hospitality, media, luxury, and consumer products, with $1B under management.
KKW Beauty (2017-2022) - A make-up and beauty brand that was valued at $1B at its peak before it was shut down in 2022.
SKKN by Kim (2022) - The skincare brand replaced KKW Beauty and launched in partnership with Coty
The Mogul also continues to make money on television, gaming, and her real estate investments.
Not bad for a reality TV star that has been frequently accused of having “no talent.” Kim is a testament that in the modern age, where we all have access to social media and e-commerce tools, anything is possible. The men may still own the financial world, but the women are quickly catching up.
This Week By the Numbers 📈
Markets are down at the start of the week due to expectations of a 25 basis points interest rate hike by the U.S. Federal Reserve on July 26. Economists predict it to be the last increase in the current tightening cycle. Inflation is slowing, with the consumer price index falling to 3.0% in June from 4.0% in May, leading to speculation about potential rate cuts by the end of 2023. The debate now centers on whether more rate increases are necessary for continued "disinflation" or if they could harm the economy unnecessarily.
Deal of the Week 💰
This week I’m investing in a hospitality concept in Santa Monica.
Led by Winston House and the Waterfront founders, the team is developing a new 9000 sq ft, ~270 seat concept on Main Street. The venue will include a vinyl speakeasy in the back, as well as a piano/Jazz bar, patio and a full restaurant in the front.
I’m very “jazzed” about this one (pun intended!). Please reach out to me directly if you are interested in learning more about this investment opportunity.
Top Stories 🗞️
U.S. House Republicans introduced a new digital assets oversight bill on Thursday that aims to establish a regulatory framework to protect investors in the crypto sector. “Today's introduction of the Financial Innovation and Technology for the 21st Century Act marks a significant milestone in the House Committees on Agriculture and Financial Services efforts to establish a much-needed regulatory framework that protects consumers and investors and fosters American leadership in the digital asset space,” said Chairman of the House Committee on Agriculture Rep. Glenn “GT” Thompson (R-Pa.) in a statement. The bill, one of several introduced in recent years that aim to create comprehensive rules for digital assets, comes at a time when a perceived lack of regulatory clarity and a wave of aggressive enforcement actions are spurring established crypto businesses to consider leaving the U.S., and deterring startups from forming there.
FTX lawyers accuse Sam Bankman-Fried of financing his criminal defense with $10 million in misappropriated funds
Sam Bankman-Fried, co-founder of failed crypto exchange FTX, was sued in Delaware bankruptcy court on Thursday by his ex-company’s lawyers, who accuse him and members of his leadership team of stealing hundreds of millions of dollars. The lawyers are seeking to recover funds from Bankman-Fried and former executives of FTX and sister hedge fund Alameda Research. One way the attorneys for the bankrupt exchange say Bankman-Fried pilfered money was through a $10 million gift to his father, distinguished legal scholar Joe Bankman. Much of that $10 million gift from was routed from FTX to Bankman-Fried’s Morgan Stanley and TD Ameritrade accounts around January 2022, the lawsuit alleges. The complaint claims those proceeds are now paying for Bankman-Fried’s criminal defense bills.
Apple is working on artificial intelligence (AI) offerings similar to OpenAI's ChatGPT and Google's Bard, Bloomberg News reported on Wednesday, sending its shares up as much as 2% to a record high. The iPhone maker has built its own framework, known as "Ajax", to create large language models (LLMs) and is also testing a chatbot that some engineers call "Apple GPT", the report said, citing people with knowledge of the matter. Apple has so far held back from any big moves in AI and even avoided mentioning the buzzword at its developer conference in June - in stark contrast to other tech giants such as Alphabet and Microsoft which have made bold moves to incorporate the breakthrough technology. Shares of Microsoft, Nvidia and Alphabet dropped more than 1% after the report.
Senators introduce bipartisan ban on stock ownership for executive and legislative branch office holders and their families
New York Democratic Sen. Kirsten Gillibrand and Missouri Republican Sen. Josh Hawley are introducing bipartisan legislation that would prevent members of the executive and legislative branches — as well as their spouses and children — from trading individual company stocks. The legislation will also ban blind trusts, require increased filing transparency, and significantly increases penalties for violations, including fines of at least 10% of the value of the prohibited investments for members of Congress. The Senate bill builds upon a proposed bill in the House that would ban members from trading stocks, but did allow members of Congress, their spouses and their dependent children to put certain investment assets into a qualified blind trust while the member is in office. The Senate’s version would ban that provision. “Politicians and civil servants shouldn’t spend their time day-trading and trying to make a profit at the expense of the American public, but that’s exactly what so many are doing,” Hawley said.
Elon Musk's brazen attempt to refashion Twitter into a new, broader service called X will apparently turn the iconic social-media app into a platform for making payments. This dream, according to experts, probably has implications for cryptocurrencies, most specifically one of the billionaire's favorite playthings: dogecoin (DOGE). Musk has long talked about creating a so-called everything app that incorporates not only social media and messaging but also the ability to buy things and send money. Crypto could easily factor into that, given Musk’s long history of dabbling in digital assets. The DOGE token jumped this week on Monday after Twitter’s X rebranding.
Thank you for reading this week’s edition of the Myth of Money.🚀
Until next week,
About the Author: Tatiana Koffman
Hi there and thanks for reading! If you stumble upon my newsletter, you will notice that I write about money, economics, and technology. I hold a JD/MBA and spent my career in Capital Markets working across Mergers & Acquisitions, Derivatives, Venture Capital, and Cryptocurrencies. I write to make financial topics more accessible and create equal opportunity for the next generation of investors. I have personally invested in 20+ companies and funds (👉 my portfolio).