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This Week in Fake Meat

No matter which restaurant you visit today, the vast majority will offer a variety of options to appease dietary preferences. Most now offer gluten-free foods, and even more have vegetarian and vegan offerings as well. On the one hand, this highlights the level of sophistication both diners and restaurants have achieved. But at the same time, it also provides hope that alternative foods could be the answer for food scarcity of the future. By 2050, more than nine billion people are projected to exist on the planet. And it’s already clear that current food sources like animal meats will not be able to sustain needs alone. This is why companies invested in “fake meats” and the science of cultured meat is a hot topic. In fact, lab-grown meat offerings are already starting to appear in some restaurants around the world.

In total, there are between 100 and 140 companies exploring the science of cultivated meat. Unlike plant-based meats, these companies create lab-grown meat directly from animal cell samples. To date, leaders in the lab-grown meat sector have introduced things like chicken nuggets. But within a few years, many hope to be providing foods that mimic animal meats on a much grander scale. Notably, there are many advantages in using this animal cell technology. But at the same time, the industry faces many challenges as well. The following thus provides a snapshot of where the lab-grown meat industry is today.

(Plant-based meat is a pretty expansive menu–get a handle on it with this Bold story.)

“Instead of needing billions of animals and all the land and the water, and all the rain forests you typically need to knock down to make that happen, we start with a cell.” – Josh Tetrick, Co-founder and CEO of Eat Just

The Science of Cultured Meat

If you’re not familiar with lab-grown meat, the overall concept is quite simple in theory. Cells are harvested from an animal, like a chicken, cow or fish. Then, the cell is cultured in a laboratory and grown into a larger protein mass. In essence, the product is no different than that animal’s muscle protein. Thus, the same protein that exists in an animal-based diet can be created without animal slaughter. Notably, the science of cultured meat cannot product something that looks like a steak or even a slice of bacon. But the potential of these clean meats to play a role in food production in the future is quite positive.

The interest in lab-grown meat stemmed from the recent success of plant-based foods. Faced with the risks of food scarcity, plant-based foods will be a natural part of the global solutions. But many believe that the science of cultured meats will play a role as well. While plant-based food options can mimic things like cheeses and burgers, there ability in this regard is limited. That may not be the case for lab-grown meat as the technologies continue to advance. With such competition in the industry already, advances are expected to occur quickly. And based on some countries already establishing regulatory oversight of these foods, this perspective is supported.

“Our food system’s role on climate change is generally underappreciated, but industrial animal agriculture is a major contributor. Alternative proteins, including cultivated meat, can be a key aspect of how we reduce the emissions from our food system.” – Caroline Bushnell, VP of Corporate Engagement at the Good Food Institute

Challenges Facing the Lab-Grown Meat Industry

Currently, the only nation to pass regulations allowing lab-grown meat is Singapore. Already, startup Eat Just has been selling cultured chicken nuggets in some restaurants there. Recently, an Australian start-up in the industry, Vow, announced it would be selling its brand Morsel in the country by year’s end. Unlike, Eat Just, Vow offers cultured umami quail products created through the science of cultured meat. But the company recently acknowledged the demand is much greater than their scalable capacity. Despite over $49 million in Series A funding received this month, Vow sees major challenges in scaling operations. Not only are materials costly, but it is difficult to reach volumes that make prices competitive with animal meat products.

A sad fake burger waiting to be eaten
Lab-grown meat offerings are expanding, despite the fact that they’re still not real meat.

The second challenge facing the lab-grown meat industry has more to do with aesthetics according to meat lovers. To date, meats cultured in a lab do not have the same texture, mouth-feel, appearance, or even aroma as regular animal meats. The science of cultured meat has advanced to combine fats and other tissues with cultured proteins. But to create something in a lab that looks and feels like a steak or pork chop is more difficult. Recently, however, another company called Matrix F.T. may have solved these issues. The company creates nanofiber scaffolding upon which cultured cells can grow. In essence, this scaffold allows cells to form into a shape that closely resembles real animal meat offerings. And the nanofiber can be consumed in the process leaving no trace of its existence. Or, because it is plant-based, can be eaten along with the lab-grown meat. Matrix F.T. is already working with 30 companies in the science of cultured meat sector.

“There are two major challenges that would need to be overcome for alternative meats to make a significant contribution to the food supply: they need to be affordable, and they need to provide an eating experience that can drive consumer enthusiasm.” – Steven Savage, M.S. and Ph.D. in Plant Pathology

A Slow But Steady Progress

As is evidenced by Vow’s recent funding, investors are still bullish on the lab-grown meat industry. The pressing need to find solutions to address food scarcity with rising populations is real. Likewise, the impact that the animal meat sector has on the environment is significant and unsustainable. These driving forces along with ongoing advances in the science of cultured meat technologies account for the continued support. And while it may be years before companies reach scalable volumes, consumer demand appears to be fueling progress as well. Vow projects it will be able to produce 66,000 tons of lab-grown meat annually with its recent funding. This is far from adequate when considering global needs. But it’s an impressive start that will undoubtedly increase over the next decade.

 

Want to control your cost efficiency and protect your bottom line? Bold Business can help.

Will Cryptocurrency Survive?

The volatility of cryptocurrency values over the last few years is nothing new. The ebb and flow of exchange values of various digital coins have been difficult to predict. But this has not prevented experts from rationalizing precisely why values rise and fall. Inevitably, when a cryptocurrency crash occurs, it will recover in the months to follow. But what happens when a recovery never comes? What if experts are wrong, and the future of digital assets aren’t the sure thing we thought they were? These questions about whether we’re destined for a cryptocurrency collapse are important ones. Especially given the recent demise of the cryptocurrency exchange, FTX.

On November 11th, cryptocurrency exchange FTX filed for bankruptcy. Over the course of about 9 days, the company worth billions of dollars effectively faded out of existence. Through a series of rapid-fire events, traders on the platform pulled their digital assets resulting in an $8 billion shortfall. And being unable to secure a buyer, a bailout or funding, FTX had little choice but to fold. As a result, the cryptocurrency crash sent ripples throughout the sector. And once again, many are questioning the merit of digital assets in general. It might just be that we’re witnessing a real cryptocurrency collapse that’s signaling its inevitable future.

“Had I been a bit more concentrated on what I was doing, I would have been able to be more thorough. That would have allowed me to catch what was going on on the risk side [of FTX].”- Sam Bankman-Fried, CEO of FTX

An Overview of the FTX Collapse

You may have not previously heard of Sam Bankman-Fried. But in finance circles, he has been compared to elites like Warren Buffett and John Pierpont Morgan. Only 30 years of age, Bankman-Fried launched FTX in 2019 as a cryptocurrency marketplace. The platform allowed traders to buy, sell and store cryptocurrency as well as leverage future values. Interestingly, this served Bankman-Fried well since it offered his other company, Almeda, an ideal place to trade. As a cryptocurrency trading firm, Almeda made billions by exploiting inefficiencies in Bitcoin markets. And within FTX, it thrived when other traders struggled. This wasn’t the ultimate reason for FTX’s demise, but it highlights notable conflicts of interest that existed.

(Bold has written extensively about crypto–dive into some of it here!)

In terms of the cryptocurrency collapse triggered by FTX’s failures, two events can be identified. The first involved Almeda’s large margin position in FTX. In essence, Almeda borrowed roughly $10 billion in funds from FTX, contributing to the subsequent shortfall. The second involved trader panic set off by the CEO of another cryptocurrency trading platform, Binance. Changpeng Zhao, who owned large amounts of FTT, a cryptocurrency created by FTX, announced a sell-off. The sell of FTT by Zhao triggered trader reactions to pull their FTX assets. And FTX was unable to cover these requests due to a lack of funds. This is what led to FTX’s collapse and a relative cryptocurrency crash throughout the market.

Notably, there were many red flags leading up to the latest cryptocurrency crash. For one, FTX had relocated from California, to Hong Kong, to eventually the Bahamas to escape regulatory oversight. These moves eventually allowed FTX to take on risker trading of digital assets including hedging on cryptocurrency futures. Also, Bankman-Fried’s own actions heralded an impending cryptocurrency collapse to come. Not only was he purchasing numerous smaller cryptocurrency companies, but he was trying to manage them all within limited staff. This as well as excessive spending on charities, political campaigns and stocks further drained value from FTX. In the end, there was little to show for his efforts.

“Cryptocurrency is a giant scam, although a complicated scam that uses technobabble, heterodox economics and populist anger to obfuscate its functioning. A pitch perfect scam for the post­-truth era of social media where trust in institutions and experts is at an all-time low.” – Stephen Diehl, Co-author of ‘Popping the Crypto Bubble’

The Future of Money or Simply a Ponzi Scheme?

The introduction of cryptocurrency years ago touted that it represented a new type of peer-to-peer payment system. Free of the need for banks and financial institutions, cryptocurrency traders could electronically exchange currency values with one another. There was no need for regulatory oversight as a result of this freedom. Likewise, its fixed supply was assumed that cryptocurrency was better able to be managed by market forces alone. But with each cryptocurrency crash, these assumptions do not appear to be valid. The most recent cryptocurrency collapse actually suggests the opposite. With some type of regulatory oversight and flexibility in supply, risk mounts and traders stand to lose. This is precisely what happened with FTX.

Some bitcoins lying on a screen
A cryptocurrency crash is never a good thing for investors, but sometimes market corrections are necessary for long-term survival.

The existing currencies in the world as well as their related financial institutions are here for a reason. More than a century of economic lessons were leveraged to create existing laws, regulations and oversight bodies. Likewise, the ability to alter monetary supply provides protections to consumers and traders. And most important, existing currencies are tied to objective values rather than blind faith. When a cryptocurrency crash occurs, it generally does so because traders have lost faith in its value. The cryptocurrency collapse linked to FTX occurred because Zhao’s sudden sell of FTT crypto undermined this faith. Without something more solid to define a cryptocurrency’s value, it’s not surprising that volatility followed.

The bottom line is that the current cryptocurrency crash is yet another bubble-bursting event. With a specific value, traders determine how much cryptocurrency is worth. When faith increases, the bubble expands, and cryptocurrency platforms like FTX do well. When faith is lost, the bubble bursts, and companies go bankrupt. And with each cryptocurrency collapse, some innocent people get hurt, including those with their pensions tied to the FTX platform. In short, cryptocurrency platforms like FTX and trading firms like Almeda are just part of another Ponzi scheme. When inputs no longer cover outputs, the pyramid implodes. This may not mean that digital assets are doomed. Blockchain technology has many advantages. But in terms of digital trading platforms today, a periodic cryptocurrency crash can be expected.

 

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