Session 3 Notes WSC
Session 3 Notes WSC
Session 3 Notes WSC
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● Suppose a single drop of blood were enough to test you for a host of diseases; you could
learn if you had lupus with less pain than from a papercut. That was the marketing pitch
of the company Theranos; now the founder is in jail for fraud. The electric vehicle
company Nikola (whose last name was already taken) promised zero-emission trucks but
demonstrated prototypes that had zero functionality; now the founder is on his way to
jail—for fraud. Although vaporware and business scams have existed for decades,
examples today seem more creative and egregious than ever. Explore those below and
discuss with your team: what did they have in common? Was it mainly their charismatic
leaders that led so many people to believe in them?
Article 1
Former Theranos CEO Elizabeth Holmes received a sentence of more than 11 years in jail and
Judge Edward Davila announced this sentence.
Holmes had to report on April 27, 2023, to the penitentiary.
She will also be under supervision for three years after this.
Holmes was found guilty by Judge Davila of cheating ten victims out of $121 million.
Her failure to take accountability had a detrimental effect on her sentence.
Three charges of wire fraud and one count of conspiracy to conduct wire fraud were found proven
against Holmes.
At first, the prosecution asked for almost $800 million in damages to the victims as well as 15 years
in prison.
The defence pushed for a less severe sentence of community service and 18 months of home arrest.
Article 2
In December 2016, Nikola Motor Company founder Trevor Milton released the Nikola One truck
prototype.
In January 2018, he claimed to have it working perfectly and displayed a video of it in action.
In a research released by Hindenburg Research, inconsistencies in Nikola's statements were
exposed.
Nikola acknowledges that when the video was released in December 2016 or earlier, the prototype
wasn't working.
Nikola acknowledges that important parts were absent, such as the motors and hydrogen fuel cell.
The business chose to concentrate on developing Nikola Two instead of investing in enabling the
Nikola One to be driven.
Nikola explains that it was never stated in the video that the vehicle was self-propelled.
The success of Nikola now rests on its more recent offerings, such as the Badger pickup vehicle and
Nikola Two.
GM will not use hydrogen or Nikola's battery in the construction of its Badger vehicles.
Article 3
The creator and former CEO of Nikola, Trevor Milton, received a four-year prison sentence for
misleading investors.
He also received a $1 million fine.
He was accused of fabricating claims that Nikola constructed its own electric truck, the Nikola One,
from the ground up and misleading investors about the company's technological prowess.
According to reports, Milton set up a video that appeared to show the Nikola One truck rolling
down a hill rather than driving on its own.
Nikola was established in 2015 with the intention of using hydrogen fuel cell technology to produce
big, emission-free rigs.
The controversy forced Milton to resign, and he was eventually arrested.
Milton was also charged with misrepresenting vehicle orders and making false claims that it could
produce hydrogen fuel at less than market prices.
Consequently, Nikola reduced its activities and put an end to its intended initiatives involving
electric ATVs and motorboats.
The stock of the corporation crashed, closing at less than $1 per share.
Article 4
Vaporware: What Is It?
Refers to computer software or hardware that has been revealed to the public but has never been
created.
In today's terminology, the term also refers to smart cars.
When Was "Vaporware" Originally Used?
It was created in 1982 by an engineer at Microsoft and published in print in an Esther Dyson
newsletter in 1983.
Common Vaporware Examples include:
Ovation: A software suite that was announced in 1983 but never launched.
The 1991 and 1995 announcements of the portable communication gadgets Apple W.A.L.T. and
VideoPad were never followed through on.
Silicon Film EFS-1: a 1998 digital photographic solution that was never released, although being
promised.
Infinium Phantom: A 2003 announcement for a console that never happened.
Palm Foleo: A subnotebook that was cancelled after three months of announcement in 2007.
Items Initially Touted as Vaporware but Eventually Released:
Often referred to as "China's Starbucks," Luckin Coffee was a fast-growing and well-liked Chinese
coffee chain.
Its success was first credited with outstanding leadership, strong marketing strategies, and
promises of quick development.
Nevertheless, claims of fraud and accounting problems were made against Luckin Coffee, which
resulted in a sharp drop in investor confidence and financial difficulties.
Nikola
Trevor Milton started Nikola with the goal of using alternative energy sources and
hydrogen-electric trucks to transform the transportation sector.
The personality and vision of Trevor Milton were essential in drawing in investors and forming
alliances with big businesses such as General Motors.
But once it was alleged that Nikola had misled investors and exaggerated the power of their
technology, the company came under fire and faced legal issues.
Bitconnect:
Bitconnect was an investment strategy for cryptocurrencies that offered a trading bot and a lending
programme with significant returns promised.
Charming executives and advocates extensively advertised Bitconnect, drawing in investors with
claims of substantial returns.
But Bitconnect fell apart in 2018 as a result of regulatory investigations and charges that it ran a
Ponzi scheme.
FTX
The cryptocurrency exchange FTX is renowned for its cutting-edge trading solutions and forceful
advertising campaigns.
Even while FTX might not have had as much controversy as some other public companies, its
success and development were probably aided by its charismatic leadership and astute marketing.
● Cryptocurrencies and other decentralized money tools have helped criminals scheme up
new ways to conduct rug pulls, pump and dumps, and Ponzi schemes. These are clear
financial crimes in traditional markets, but when they are taken online, regulators can
struggle to keep up. Discuss with your team: who should be prosecuting crimes on new
platforms or in a virtual world? You may also want to explore how these questions are
resolved in the air or in outer sace.
In a cryptocurrency fraud known as a "rug pull," producers inflate token prices, disappear with the
money, and leave investors with worthless assets. Liquidity theft, limiting sell orders, and dumping
are the three categories. While soft pulls involve rapid token dumping, hard pulls involve malicious
code or liquidity theft. Tracking and punishment are difficult because, although forceful pulls are
unlawful, mild pulls are unethical but not always so. The $2 billion theft by Thodex and Meerkat
Finance are two examples. Investigate the reliability of developers, verify the state of liquidity locks,
keep an eye out for limits on sell orders, be cautious of abrupt price increases, make sure external
audits are in place, and perform in-depth research to prevent rug pulls.
Pump-and-dump schemes use fake enthusiasm to drive up cryptocurrency values, which they
subsequently sell for a profit resulting in losses for investors. Influencers on social media are
frequently used by scammers to market coins. Crypto pump-and-dumps are unregulated, even though
they are prohibited in stock markets. FaZe Clan's support of the SafeTrade coin and the
SaveTheChildren token are two examples. Investors should investigate new cryptocurrencies
properly, be wary of sudden enthusiasm, closely examine influencer advertisements, avoid making
decisions based solely on FOMO, and only invest money they are willing to lose in order to avoid
falling victim to these frauds.
Article3
DOJ's approach to cryptocurrency regulation focuses on wire fraud rather than asset classification
(The phrase "wire fraud rather than asset classification" means that instead of focusing on
categorizing cryptocurrencies into specific types like securities or commodities)
Wire fraud statute, established in the 1800s, extends to modern telecommunication methods.
Recent cases demonstrate DOJ's use of wire fraud in prosecuting NFT rug pulls and insider trading.
Examples of rug pulls include Frosties NFT and Baller Ape NFT cases, emphasizing false promises
and non-delivery.
Insider trading cases involve misuse of nonpublic information by OpenSea and Coinbase employees.
Wire fraud offers advantages for prosecutors by bypassing complexities of securities classification
and enabling unilateral action.
Future trends may include increased scrutiny of disclosure issues and larger insider trading cases,
along with efforts to combat market manipulation using wire fraud.
Continued reliance on wire fraud can be expected in evolving crypto prosecutions.
With tools like ChatGPT and Gemini, you could easily generate a fake term paper, or
college essay, or World Scholar’s Cup outline. Discuss with your team: when, if ever,
is it illegal to use AI-generated text—and when should it be? Recent studies have also
shown that services intended to spot AI-generated text can be unfairly biased against
non-native speakers. Should their use be discontinued?
After the launch of ChatGPT, several developers introduced AI detectors claiming to identify content
written by AI.
However, a study by Stanford scholars found these detectors to be unreliable, especially for
non-native English writers.
The detectors performed well with essays by U.S.-born eighth-graders but misclassified a significant
portion of TOEFL essays (61.22%).
All seven detectors identified 18 out of 91 TOEFL essays (19%) as AI-generated, with 97% flagged
by at least one detector.
Detectors typically use "perplexity" as a metric, which correlates with writing sophistication, favoring
U.S.-born writers.
It is crucial to understand that AI detectors are unreliable
Depending on where you live, if you have ever backed up your DVDs or had your
phone repaired, you may have broken the law without knowing it. Explore the
following examples, and discuss with your team: should they be legalized? If not,
should we stop them from happening?
Reverse Engineering:
Reverse engineering involves breaking down a product to understand its design, functionality, or
code.
File Sharing:
File sharing involves distributing or accessing digital files, such as music, movies, or software, over
the internet. While it can facilitate access to information and cultural content, it often involves
copyright infringement.
Jailbreaking:
Jailbreaking refers to removing software restrictions imposed by manufacturers or service providers
on devices like smartphones or gaming consoles. It allows users to install third-party applications,
customize settings, and unlock additional features.
Ad Blocking:
Ad blocking involves using software or browser extensions to prevent the display of online
advertisements. It aims to improve user experience by reducing clutter, enhancing privacy, and
conserving bandwidth.
Fansubbing:
Fansubbing involves creating unauthorized subtitles for foreign-language media, typically for anime,
movies, or TV shows. It allows non-native speakers to access content that may not be officially
translated or distributed in their language.
DeCSS:
DeCSS is a software tool designed to decrypt and circumvent the Content Scramble System (CSS)
basically used to protect DVDs from unauthorized copying.
Hackintosh
Hackintosh refers to the practice of installing macOS on non-Apple hardware, typically PCs. It allows
users to create custom macOS-based systems without purchasing Apple-branded hardware.
youtube-dl:
youtube-dl is an open-source command-line utility used to download videos from various websites,
including YouTube. It provides users with offline access to online content for personal use.
Touring the Ends of Eras
A ball drops; some scholars open red envelopes while others dip apple bits in honey. Different
cultures around the world celebrate the new year differently and at different times, but all of
them are marking the forward march of the calendar. Yet the fact that there are so many ways
to split one year from the next suggests these divisions are ultimately arbitrary. Are they?
Explore the reasons behind each of them, then discuss with your team: should we stop
celebrating New Year’s as a holiday? When would be the best time of year for people to take
stock of the past and think about the future?
Cultural Customs: Various cultures worldwide have unique traditions for celebrating the new
year. For instance, in China, the practice of giving red envelopes (hongbao) filled with money
is common during the Chinese New Year. In the United States, the dropping of a ball in Times
Square, New York City, is a famous part of the New Year's Eve celebration. Meanwhile,
Jewish people dip apple slices in honey during Rosh Hashanah as a symbol of wishing for a
sweet new year.
Calendar Systems: Different calendar systems are used globally to mark the passage of time
and determine the start of a new year. The Gregorian calendar, introduced by Pope Gregory
XIII in 1582, is the most widely used calendar for civil purposes. Islamic lunar calendar
(Hijri) determines the timing of Islamic holidays such as Eid al-Fitr and Eid al-Adha. The
Hindu lunar calendar plays a significant role in determining the dates of Hindu festivals such
as Diwali and Holi.
Reflection and Forward-Thinking: New year celebrations often prompt reflection on the past
and contemplation of the future. However, there's a debate on whether new year celebrations
should continue as holidays. Some argue that reflection and goal-setting could be done at
alternative times, such as the start of spring or personal milestones like birthdays. Different
cultures have various practices associated with self-reflection and renewal, such as making
New Year's resolutions in Western societies or engaging in spiritual practices like meditation
and prayer in others.
“Captain’s log,” says whoever is captaining the Enterprise. “Stardate…” Star Trek’s stardates
are based on a calendar meant to be used around the galaxy. Consider the different calendars
and related listed below, then discuss with your team: does it make sense to restart the
calendar periodically, perhaps when a new leader takes over? Or would such changes risk
angering people—as when the English allegedly rioted over the loss of eleven days as part of
a calendar transition in 1752?
Julian Calendar:
● Named after Julius Caesar, the Julian calendar was introduced in 46 BCE. It was based
on a 365-day year with an extra day added every four years (leap year). However, it
overestimated the solar year by 11 minutes and 14 seconds, leading to inaccuracies
over time.
Gregorian Calendar:
● The Gregorian calendar was introduced by Pope Gregory XIII in 1582 to reform the
Julian calendar. It corrected the inaccuracies by omitting leap years in centennial years
not divisible by 400. This adjustment helped bring the average year length closer to
the actual solar year.
Islamic Calendar (Hijri):
● The Islamic calendar is a lunar calendar consisting of 12 months in a year of 354 or
355 days. It is used to determine the proper days of Islamic holidays and rituals. Each
month starts with the sighting of the new moon.
Japanese Calendar:
● The Japanese calendar has both a lunisolar and solar component. Historically, it was a
lunisolar calendar similar to the Chinese calendar. However, in 1873, Japan adopted
the Gregorian calendar for most purposes. The traditional Japanese era names (nengo)
are still used alongside the Gregorian calendar for ceremonial and historical purposes.
Korean Calendar:
● The Korean calendar is a lunisolar calendar derived from the Chinese calendar. Like
the Japanese calendar, it incorporates both lunar and solar elements. Each year is
associated with one of the twelve animals of the Chinese zodiac, and each month
begins with the new moon.
Rumi Calendar:
● The Rumi calendar is based on the Islamic lunar calendar but starts from the Hijra
(migration of Prophet Muhammad from Mecca to Medina) in 622 CE. It's used
primarily for historical and cultural purposes in Turkey and other parts of the Muslim
world.
Hindu Calendar:
● The Hindu calendar is a lunisolar calendar with many regional variations. It consists of
12 lunar months, with each month divided into two lunar fortnights (paksha). Hindu
festivals and rituals are determined by this calendar.
Nepali Calendar:
● The Nepali calendar is a lunisolar calendar used in Nepal. It shares similarities with
the Hindu calendar but has its own set of months and festivals. The Nepali New Year,
known as "Nepal Sambat," marks the beginning of the year and is celebrated with
various cultural events.
Mayan Calendar:
● The Mayan calendar was a system used by the ancient Mayan civilization in
Mesoamerica. It consisted of several interlocking cycles, including the Tzolk'in
(260-day sacred calendar) and the Haab' (365-day solar calendar). These cycles were
used for religious rituals, agricultural planning, and prophecy.
Solar Calendar:
● A solar calendar is based on the Earth's orbit around the sun. It typically consists of
365 days in a year, with an extra day added every four years (leap year) to account for
the extra fraction of a day in the solar year. The Gregorian calendar is the most widely
used solar calendar today.
Lunar Calendar:
● A lunar calendar is based on the phases of the moon. Each month corresponds roughly
to one lunar cycle, which is about 29.5 days. Lunar calendars are used in various
cultural and religious contexts, such as determining the dates of Islamic holidays or
traditional Chinese festivals.
● A storytelling trope is that high school seniors know nothing will ever be the same again for
them and their friends. (The trope is accurate.) The same weight can apply to entire countries
and calendars. In 1996, aware the millennium was ending, American president Bill Clinton
hoped to deliver an Inaugural Address for the ages. Reviewing it can provide insight into how
people in the 1990s were reimagining their world. “Ten years ago,” he said, “the Internet was
the mystical province of physicists; today, it is a commonplace encyclopedia for millions of
schoolchildren.” No mention of e-commerce, nor a whisper of social media. Then, evoking
the academic Francis Fukayama’s theory of the end of history, he adds, “The world is no
longer divided into two hostile camps… For the very first time in history, more people on this
planet live under democracy than dictatorship.” Review more of his speech, then discuss with
your team: does it sound like one that a political leader could deliver today? Were the 1990s
an important period of transition in your own country as well?
● The speech emphasizes the importance of embracing the challenges of the new century,
defining the nation's course and character for decades to come. It highlights the historical
significance of past choices and the need to shape the future, particularly in the Information
Age and global society.
● Reflecting on past accomplishments, the speech celebrates America's progress in
industrialization, global leadership, technological innovation, civil rights, and democracy.
However, it also acknowledges persistent challenges such as racial division, prejudice, and the
need for responsible citizenship.
● The speech outlines a vision for the 21st century, focusing on education, community,
prosperity, security, environmental stewardship, political reform, and the enduring strength of
the human spirit. It calls for unity, responsibility, and a commitment to realizing the American
Dream for all citizens.
Francis Fukuyama's Thesis: Fukuyama's "The End of History" thesis suggests that liberal
democratic states tied to market economies represent the ideal form of political
organization, despite their flaws. This concept emerged from his paper in 1989 and
subsequent book in 1992.
Origin of the Idea: The phrase "the end of history" traces back to Hegel and his interpreters,
who argued that history had a telos or endpoint, marked by the emergence of a rational and
just state. Fukuyama agreed with this notion, seeing the French Revolution as a pivotal
moment in history.
Critiques and Limitations: Fukuyama's thesis has faced criticism for valorizing a particular
model of government and overlooking its inherent tensions, such as balancing state strength
with individual freedoms. He acknowledges flaws in the US system and warns against
conflating liberalism with neoliberalism or populism.
Current Perspective: While Fukuyama remains committed to the idea of liberal democracy
as the ultimate political organization, he acknowledges the challenges posed by the global
rise of authoritarian regimes and populist movements. He expresses a more cautious
outlook on the future of democracy, recognizing the complexities and uncertainties of
political development.
Explore the following selections from the 90s—multiple 90s, in this case—then discuss with
your team: do they reflect periods in which the world was in transition more than songs from
other decades before and after—or would that be reading too much into them?
"Freedom! '90" by George Michael is an iconic anthem from the early 1990s, reflecting a spirit of
liberation and defiance. Its lyrics express themes of personal empowerment and breaking free from
societal constraints. In the context of the early '90s, it resonated with a generation undergoing
significant cultural shifts, including changing attitudes towards identity and individuality. The
song's popularity and enduring relevance suggest it captured the transitional spirit of its time,
embodying a sense of liberation that characterized the era.
"Losing My Religion" by R.E.M. is a seminal alternative rock song from 1991, exploring themes
of doubt, disillusionment, and existential crisis. Its haunting melody and cryptic lyrics convey a
sense of emotional turmoil and spiritual searching. In the context of the early '90s, it resonated with
a generation grappling with societal upheavals and questioning traditional beliefs. The song's
enigmatic lyrics and evocative music captured the transitional spirit of the time, making it an
enduring emblem of introspection and uncertainty in the face of change.
"Brændt" by Lis Sørensen is a Danish pop song from 1993. Its title translates to "Burned" in
English. The song's lyrics delve into themes of heartbreak, betrayal, and emotional pain. Lis
Sørensen's emotive vocals and the song's melancholic melody convey a sense of deep loss and
longing. In the context of the early '90s, it resonated with audiences navigating the complexities of
relationships and personal struggles. While not explicitly reflecting broader societal transitions,
"Brændt" captures the universal experiences of love and loss, making it a poignant and relatable
song for its time
Pink Flamingo by Alyona Sviridova is a Russian pop song released in 1994. Its catchy melody and
upbeat rhythm create a lively atmosphere. The lyrics depict a playful and whimsical narrative,
evoking images of summer, fun, and carefree moments. In the context of the mid-1990s, marked by
post-Soviet transformations and newfound cultural freedoms, "Pink Flamingo" provided a
refreshing escape, offering listeners a brief respite from the uncertainties of the time. While not
explicitly reflecting significant societal transitions, the song embodies the spirit of joy and
optimism, making it a memorable and cherished part of its era's musical landscape.
"Black Hole Sun" by Soundgarden, released in 1994, is a grunge masterpiece that delves into
themes of existentialism and societal decay. Its haunting melody and cryptic lyrics create an eerie
atmosphere, reflecting a sense of disillusionment and alienation. In the context of the mid-1990s,
marked by cultural shifts and uncertainty, the song resonated with a generation grappling with the
complexities of modern life. While not explicitly reflecting societal transitions, "Black Hole Sun"
captures the zeitgeist of the era, serving as a powerful commentary on the darker aspects of
contemporary society and human existence.
"Singing in My Sleep" by Semisonic, released in 1998, is a melodic pop-rock song that explores
themes of longing and desire. Its catchy hooks and heartfelt lyrics convey a sense of yearning and
emotional vulnerability. In the context of the late 1990s, a period marked by technological
advancements and cultural shifts, the song resonated with audiences navigating the complexities of
modern relationships and personal introspection. While not explicitly reflecting broader societal
transitions, "Singing in My Sleep" captures the universal experiences of love and longing, making
it a timeless anthem for introspection and emotional connection.
"I Saved the World Today" by Eurythmics, released in 1999, is an anthemic pop-rock song that
addresses themes of personal triumph and resilience. Its upbeat tempo and empowering lyrics
convey a sense of optimism and empowerment. In the context of the late 1990s, a time marked by
technological advancements and global uncertainties, the song resonated with audiences seeking
hope and inspiration. While not explicitly reflecting broader societal transitions, "I Saved the
World Today" captures the spirit of individual agency and the desire for positive change, making it
a compelling anthem for overcoming adversity and making a difference in the world.