The $1 billion acquisition of rent-to-own startup Divvy Homes, which was announced Wednesday, is expected to leave some shareholders without a payout, according to sources familiar with the deal. 

The terms — and Divvy’s journey from buzzy startup to acquisition target — reflects the rollercoaster ride the proptech industry has endured over the past decade.

The San Francisco-based startup, founded in 2016, had raised more than $700 million in debt and equity from well-known investors such as Tiger Global Management, GGV Capital, and Andreessen Horowitz (a16z), among others. By 2021, the company was valued at $2.3 billion.

And while the Brookfield Properties purchase of Divvy for $1 billion was at half of its peak valuation, the acquisition could still be considered a win in an industry that has had a string of shutdowns and bankruptcies. 

However, it’s a loss for some shareholders, according to a letter from Divvy CEO and co-founder Adena Hefets, which was viewed by TechCrunch. 

“If the transaction closes, Divvy will sell substantially all of its assets, namely its home portfolio and brand, to Brookfield for approximately $1 billion. However, after repaying its outstanding indebtedness, transaction costs, and liquidation preference to preferred shareholders, we unfortunately estimate that neither common shareholders nor holders of the Series FF preferred stock will receive any consideration,” according to the letter, which was sent to shareholders, former employees, and “Divvy supporters.”

FF preferred stock, also known as Founders Preferred Stock, is a type of stock that is issued to founders of a company. The law firm Cooley defines the shares as being issued to founders “at the time of incorporation in order to facilitate sales of stock by founders in connection with future equity financings.”  

TechCrunch has reached out to Hefets and Divvy Homes for comment and will update the article with any response.

Another source told TechCrunch that equity holders “got zero’d” so “founders, employees and VCs” will get “nothing” from the sale. The identity of the source, who asked to remain anonymous, has been verified by TechCrunch.

Divvy operated a rent-to-own model in which it worked with renters who wanted to become homeowners by buying the home they wanted and renting it back to them for three years while they built “the savings needed to own it themselves,” it said.

The company ran into some hiccups when mortgage interest rates began to surge in 2022, leading it to conduct three known rounds of layoffs in a year’s time. Divvy’s last known funding occurred in August 2021 — a $200 million Series D funding led by Tiger Global Management and Caffeinated Capital. The Series D round was announced just six months after a $110 million Series C. 

Hefets also shared in the letter the “decision to sell wasn’t easy” and “came after a thorough review of Divvy’s strategic alternatives … and with significant deliberation around our options.” 

She said the move followed “years of fighting difficult market conditions, including rising interest rates, and making as many cost cuts as possible.”

As the company looked into what lay ahead in 2025, it decided the best way forward was to sell its “portfolio of homes now and return as much capital as possible to shareholders.”

“With almost a decade of pouring myself into this company, and believing in this mission, this was not the ending I had hoped for…While I am not proud of the financial outcome, I am proud of the impact we had on our customers’ lives,” Hefets added.

Want more fintech news in your inbox? Sign up for TechCrunch Fintech here.

Want to reach out with a tip? Email me at maryann@techcrunch.com or send me a message on Signal at 408.204.3036. You can also send a note to the whole TechCrunch crew at tips@techcrunch.com. For more secure communications, click here to contact us, which includes SecureDrop and links to encrypted messaging apps.

Cardano (ADA) and XRP investors are buzzing about 1Fuel’s wallet technology, looking to get in early.

Cardano (ADA) and Ripple (XRP) are widely known for their blockchain solutions, and achieved more fame when they announced plans to collaborate. But lately, their investors have been more interested in 1Fuel (OFT), especially since its new wallet technology might transform the DeFi landscape.

This DeFi wallet is important to 1Fuel’s ecosystem, offering cross-chain transaction capability and privacy tools. With the 1Fuel presale quickly progressing, there has been a lot of excitement surrounding the public listing.

Cardano and Ripple plan collaborative projects 

Recently, the founder of Cardano, Charles Hoskinson, and the CEO of Ripple, Brad Garlinghouse, announced that they have been discussing collaborations. Once this news broke out, the value of the two altcoins increased in a week. Cardano‘s price increased by 1.14% while XRP rose by 20.68%, further attracting investor interest. 

This potential collaboration has caused investors to rank ADA and XRP among the best altcoins. With their rising in value, these tokens can be easily managed on wallets like MetaMask and Trust Wallet.

New wallet technology piques widespread interest 

1Fuel has emerged with a new wallet technology which is attracting a lot of attention, especially from ADA and XRP whales. This technology is expected to transform the DeFi space, driving 1Fuel’s value as one of the best altcoins. 

One of the best parts of this wallet is cross-chain transactions and one-click technology. This is a major advantage over platforms like MetaMask and Trust Wallet, which require multiple wallets and tokens for cross-chain swaps. With only the 1Fuel token, investors can freely send altcoins from one blockchain to another.

1Fuel is also fitted with highly advanced financial tools that make it easy to manage digital assets. These include crypto debit and credit cards, peer-to-peer (P2P) exchange, disposable wallets, and AI-driven features. With all of these, 1Fuel could be a top DEX wallet, especially as it features an inbuilt privacy mixer and cold storage. These are privacy features that are usually lacking in well-known platforms like MetaMask and Trust Wallet. 

1Fuel presale sees fast progress 

The 1Fuel presale has been moving at an impressive pace, which is a sign of the widespread investor interest and confidence. In just a week, stage 1 achieved 100% completion while stage 2 had a similar progress. Now it is in stage 3 and over 30% complete, selling over 146 million tokens and raising $1.4 million.

Investors can buy the token at $0.017 in stage 3. Analysts predict that 1Fuel could rise by 100x in 2025, and investors are highly anticipating long-term growth.

1Fuel’s launch 

Investors are looking forward to 1Fuel’s public listing in Q2 2025. Supported by a robust DeFi ecosystem, 1Fuel could change how digital assets are managed. The exchange technology is offering an edge over widely known blockchain systems like Cardano and Ripple.

To find out more about 1Fuel, visit their website, Telegram, or X.

© 2024 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.

An industry-wide debate over crypto institutional adoption and centralized custody risk will trigger a surge of interest in self-custody, OKX’s President Hong Fang said in a recent interview with CoinDesk.

While institutional adoption and the increasing popularity of crypto ETFs are a net positive for the industry, there may be a shift in industry narrative to caution against custody concentration risk, Fang argued. She predicts that most native crypto users will adopt self-custody this year.

On OKX, assets held in its self-custody wallets (almost $50 billion) exceed assets on its centralized exchange ($30.8 billion).

This series is brought to you by Consensus Hong Kong. Come and experience the most influential event in Web3 and Digital Assets, Feb.18-20. Register today and save 15% with the code CoinDesk15.

“The tension between adoption and concentration risk will come under a spotlight,” said Fang, who will be a speaker at Consensus Hong Kong in February. “Against this backdrop, I anticipate more industry campaigns to educate why self-custody is important and how to use it, and more products to make it easier for the masses to use self-custody and alleviate the risks accordingly.”

According to Fang, OKX DEX volume has increased 20 times. But she argues that DEXs and centralized exchanges are complementary.

“The crypto-native audience will want to be able to use CEX for reliability and DEX for catching innovations,” she said. “Such supply-demand dynamics will drive further adoption of DEX to enable innovation while supporting the gradual maturity of the crypto regulatory framework.”

A bitcoin strategic reserve?

A national bitcoin strategic reserve, a policy touted by the new Trump administration, would serve to centralize the leading cryptocurrency. But many in crypto doubt it will actually happen, if bettors on Polymarket are any guide (as of Jan. 22, they were putting the chances of Trump creating such a reserve in the first 100 days of his administration at just 30 percent.)

Fang agrees with this sentiment.

“I personally find it hard to believe that major sovereign countries like the U.S. will officially adopt bitcoin strategic reserve at the federal level at this stage, but it is very possible that smaller sovereign countries or states could,” she said.

But, this being crypto, anything is possible.

Very unexpected events — like a lack of follow through by the Trump administration on its crypto promises — could dampen the bull run quickly, she said. But the biggest risk according to Fang remains over-centralization.

For that risk there’s a vaccine: self-custody. Which, according to OKX, the market is quickly adopting.

Quordle was one of the original Wordle alternatives and is still going strong now more than 1,000 games later. It offers a genuine challenge, though, so read on if you need some Quordle hints today – or scroll down further for the answers.

Enjoy playing word games? You can also check out my NYT Connections today and NYT Strands today pages for hints and answers for those puzzles, while Marc’s Wordle today column covers the original viral word game.

XYZVerse and these 4 altcoins could redefine crypto success stories, potentially creating the next wave of millionaires.

Early investors in cryptocurrencies like Ethereum reaped enormous rewards. Now, new digital assets are emerging with the potential for significant growth. This article explores XYZVerse, along with four other promising altcoins that offer a chance to catch the next wave of crypto success, potentially making millionaires.

XYZVerse secures $5.5 million in presale

XYZVerse is transforming the crypto space by fusing the excitement of sports with the charm of meme coins. Tailored for fans of football, basketball, MMA, and esports, this project seeks to bridge the gap between sports enthusiasts and crypto investors in search of the next big opportunity.

While many meme coins falter, XYZVerse sets itself apart with a robust roadmap and a commitment to long-term growth. Already in its presale phase, XYZVerse has attracted significant attention, raising over $5.5 million. This impressive milestone showcases the strong support and enthusiasm of its growing community.

The presale consists of 15 stages, with token prices incrementally rising at each phase. Currently priced at $0.002 in stage 10, XYZ is set to reach $0.1 by the presale’s conclusion, signaling substantial growth potential for early adopters.

XYZVerse aims to become the G.O.A.T. of meme coins, already earning accolades such as the best new meme project.

XYZVerse isn’t just about hype; it’s built on a solid tokenomics foundation designed for sustainability. With 15% allocated for liquidity and 10% reserved for community rewards, including bonuses and airdrops, the project is focused on fostering value. A deflationary burn mechanism will eliminate 17.13% of the total token supply over time, increasing scarcity and potentially boosting token prices.

Security and credibility are at the forefront of XYZVerse’s mission. The team has implemented smart contracts audits and has planned listings on both centralized and decentralized exchanges (CEX and DEX). These measures, combined with a fully vetted team, position XYZVerse as a credible project with a clear roadmap for growth.

Interested investors can be part of XYZVerse’s winning team via presale.

NEAR Protocol

NEAR Protocol’s price has seen modest downshifts recently. Over the past week, NEAR’s price declined by 2.56%. In the last month, the price changed by -5.95%.

Currently, NEAR is trading between $4.75 and $5.83. The 10-day simple moving average is $4.98, slightly below the 100-day average of $5.33. The Relative Strength Index (RSI) stands at 45.25, which suggests that the asset is neither overbought nor oversold. The Stochastic indicator is at 39.92, supporting the RSI’s neutral stance. The MACD level is -0.0677, hinting at slight bearish momentum.

Looking ahead, NEAR faces its nearest resistance at $6.55. Breaking above this level could pave the way toward the second resistance at $8.00. Moving to the first resistance would represent an increase of over 13%. 

On the downside, the nearest support is at $3.63, and falling to this level would mean a decline of around 16%. If the price drops further, the second support at $2.18 comes into play. The data suggests that NEAR’s price could either bounce back from current levels or test these support zones in the near future.

Artificial Superintelligence Alliance

Over the past week, the FET token of the Artificial Superintelligence Alliance has declined by 5.29%. In the last month, it fell by 6.58%, and over the past six months, it has decreased by 3.46%. These consistent declines suggest a bearish trend in the market.

FET is currently trading between $1.13 and $1.43. The nearest support level is at $0.96, and a second support is at $0.66. If the price continues to decrease, it may test these support levels. On the upside, the nearest resistance level is at $1.55, with a second resistance at $1.84. Overcoming these resistances could indicate a shift towards a bullish trend.

The Relative Strength Index (RSI) is at 45.40, which is below the neutral 50 mark, suggesting slight bearish sentiment. The Stochastic oscillator is at 46.51, also indicating a neutral to bearish stance. The MACD level is negative at -0.0171, pointing towards bearish momentum. The 10-day Simple Moving Average is $1.16, which is below the 100-day SMA of $1.28, indicating that the short-term price is underperforming compared to the longer-term average.

Ondo

Ondo has shown significant movements. Over the past six months, its price increased by 37.68%. In the last month, however, it declined by 21.51%. This past week saw a recovery with a 2.65% rise. The coin is currently trading between $1.20 and $1.55.

Technical indicators present mixed signals. The Relative Strength Index (RSI) stands at 47.03, suggesting a neutral market. The MACD level is slightly negative at -0.0172, indicating mild bearish momentum. Meanwhile, the Stochastic at 62.63 points toward potential upward movement. The 10-day and 100-day simple moving averages are close at $1.29 and $1.33, indicating consolidation. Based on this data, ONDO’s price might stabilize or see moderate growth in the near term.

Looking ahead, the nearest resistance level is $1.80. If ONDO breaks through this, it could reach the next resistance at $2.26, representing an increase of about 43% from current levels. On the downside, support exists at $0.88 and further at $0.42 if the price dips significantly.

Hedera

Hedera has been performing strongly in recent times. In the past week, its price increased by 4.12%. Over the last month, it rose by 10.15%. Remarkably, in the past six months, HBAR has surged by 207.56%. This significant growth indicates rising interest in the coin.

Currently, HBAR trades between $0.32 and $0.40. It is approaching the nearest resistance level at $0.47. If it breaks through this point, the next target could be the second resistance at $0.62. Reaching this level would represent a substantial increase from the current price. On the downside, the nearest support level is at $0.18, which may provide a safety net if the price dips.

The Relative Strength Index is at 44.99, suggesting HBAR is neither overbought nor oversold. The 10-day Simple Moving Average is at $0.33, slightly below the 100-day average of $0.35. The MACD level sits at -0.0048, indicating slight bearish momentum. However, considering the recent price gains, there’s potential for the upward trend to continue. Traders will be watching these levels closely to see if HBAR can sustain its momentum.

Conclusion

While NEAR, FET, ONDO, and HBAR show promise, XYZVerse uniquely combines sports and meme culture, aiming for 20,000% growth and becoming the G.O.A.T of memecoins.

To find more information about XYZVerse, visit their website, Telegram, or X.

On top of that, he claims that Pearl is significantly less likely to provide misinformation than many other AI search engines—which he believes are likely to deal with “a tidal wave” of lawsuits based on bad answers they give. “Those other players are building amazing technologies. I call them Ferraris or Lamborghinis,” Kurtzig says. “We’re building a Volvo—safety first.”

This pitch about Pearl’s superiority, of course, made me even more keen to try it. Kurtzig seemed so certain that Pearl would still enjoy Section 230 protections. I asked the AI if it agreed.

Pearl said it likely qualifies as an “interactive computer service” under Section 230, which would mean that it’d be shielded from being treated as a publisher, just as Kurtzig suspected. But, the AI went on, “Pearl’s situation is unique because it generates content using AI.” It didn’t have a definitive answer for me after all.

When I asked to speak to a lawyer directly, it rerouted me to JustAnswer, where it asked me to provide the answer I wanted verified. I said I needed to go back and copy the answer, as it was several paragraphs long, but when I navigated back to the Pearl website, the conversation was gone and it had reset to a fresh chat.

When I tried again, this time opening the Pearl browser on desktop, I received a similarly uncertain answer. I decided to trigger a human-fact check; after several minutes, I received the TrustScore™—a measly 3!

Pearl recommended that I seek out an actual expert opinion, porting me to its subscription page. I’d been given a log-in so I didn’t have to pay while I tested the tool. It then connected me with one of its “legal eagle” experts.

Unfortunately, the lawyer’s answers were not clearer than the AI. He noted that there was ongoing legal debate about how Section 230 will apply to AI search engines and other AI tools, but when I asked him to provide specific arguments, he gave a strange answer noting that “most use shell companies or associations to file.”

When I asked for an example of one such shell company—quite confused about what that has to do with a public debate about Section 230—the “legal eagle” asked if I wanted him to put together a package. Even more confused, I said yes. I got a pop-up window indicating that my expert wanted to charge me an additional $165 to dig up the information.

I declined, frustrated.

I then asked Pearl about the history of WIRED. The AI response was serviceable, although basically the same stuff you’ll find on Wikipedia. When I asked for its TrustScore™ I was once again confronted with a 3, suggesting it was not a very good answer. I selected the option to connect with another human expert. This time around, possibly because it was a question about the media and not a straightforward legal or medical topic, it took a while for the expert to appear—well over 20 minutes. When he did, the expert (it was never established what gave him his media bona fides, although his profile indicated he’d been working with JustAnswer since 2010) gave me a remarkably similar answer to the AI. Since I was doing a free test, it didn’t matter, but I would’ve been annoyed if I had actually paid the subscription fee just to get the same mediocre answer from both a human and an AI.

For my last stab at using the service, I went for a straightforward question: how to refinish kitchen floors. This time, things went much more smoothly. The AI returned an adequate answer, akin to a transcript of a very basic YouTube tutorial. When I asked the human expert to assign a TrustScore™, they gave it a 5. It seemed accurate enough, for sure. But—as someone who really does want to DIY refinish my kitchen’s old pine planks—I think when I actually go looking for guidance, I’ll rely on other online communities of human voices, ones that don’t charge $28 a month: YouTube and Reddit.

If you end up testing Pearl, or any other newfangled AI search products, and you have a memorable experience, please do let me know how it went in the comments below the article. You can also reach me by email at kate_knibbs@wired.com. Thanks for reading, and stay warm!