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World, the biometric ID verification project co-founded by Sam Altman, released the newest version of its app today, debuting several new features, including an encrypted chat integration and an expanded, Venmo-like capability for sending and requesting crypto.

World was created by the startup Tools for Humanity in 2019, and originally launched its app in 2023. The company says that, in a world roiled by AI-generated digital fakery, it hopes to create digital “proof of human” tools that can help separate the humans from the bots.

During a small gathering at World’s headquarters in San Francisco on Thursday, Altman and World’s co-founder and CEO, Alex Blania, briefly introduced the new version of the app (which developers have termed a “super app”) before the product team took over to explain the new features. During his remarks, Altman said that the concept for World grew out of conversations he and Blania had had about the need to create a new kind of economic model. That model, based around web3 principles, is what World has been trying to accomplish through its verification network. “It’s really hard to both identify unique people and do that in a privacy-preserving way,” said Altman.

World Chat, the app’s new messenger, seems designed to do just that. It uses end-to-end encryption to keep users’ conversations safe (this encryption is described as being equivalent to Signal, the privacy-focused messenger), and also leverages color-coded speech bubbles to alert users to whether the person they’re talking to has been verified by World’s system or not, the company said. The idea is to incentivize verification, giving people the power to know whether the person they’re talking to is who they say they are. Chat was originally launched in beta in March.

The other big feature reveal on Thursday was an expanded digital payment system that allows app users to send and receive cryptocurrency. World app has functioned as a digital wallet for some time, but the newest version of the app includes broader capabilities. Using virtual bank accounts, users can also receive paychecks directly into World App and make deposits from their bank accounts, both of which can then be converted into crypto. You don’t have be verified by World’s authentication system to use these features.

Tiago Sada, World’s chief product officer, told TechCrunch that part of the reason chat was added was to create a more interactive experience for users. “What we kept hearing from people is that they wanted a more social World app,” Sada said. World Chat is designed to fill that need, creating what Sada says is a secure way to communicate. “It took a lot of work to make this feature-rich messenger that is similar to a WhatsApp or a Telegram, but with encryption and security of something that is a lot closer to Signal,” Sada said.

World (which was originally called Worldcoin) deploys a unique authentication process: interested humans get their eyes scanned at one of the company’s offices, where the Orb—a large verification device—converts the person’s iris into a unique and encrypted digital code. That code, the verified World ID, can then be used by the person to interact with World’s ecosystem of services, which are available through its app.

The addition of more social-friendly features is clearly meant to drive broader adoption of the app, which makes sense since scaling verification is the company’s main challenge. Altman has said that he would like the project to scan a billion people’s eyes, but Tools for Humanity claims to have scanned less than 20 million people.

Since standing in long lines at a corporate office to have your eyeballs scanned by a giant metallic ball may seem slightly less than enticing to some users, the company has already sought to make its verification process less cumbersome. In April, Tools for Humanity announced its Orb Minis—hand-held, phone-like devices—that allow users to scan their own eyes from the comfort of their homes. Blania previously told TechCrunch that, eventually, the company would like to turn the Orb Minis into a mobile point-of-sale device or sell its ID sensor tech to device manufacturers. If the company takes such steps, it would drop the barrier to verification significantly, potentially inspiring much more widespread adoption.

Two funds at quant-trading pioneer suffered worst months ever in October

Unprecedented turbulence at a pair of quantitative hedge funds managed by the industry pioneer Renaissance Technologies is causing the firm to consider adjusting its trading models, according to people familiar with the matter.

The Long Island-based firm, founded by the mathematician Jim Simons, uses machine learning and predetermined algorithms to bet on and against thousands of stocks at any given time.

Renaissance told clients it is weighing an adjustment in its trading models after the two funds, which together manage nearly $20 billion, suffered their worst months ever in October before surging in November. Renaissance’s investing algorithms weren’t prepared for recent, unusual moves in the shares of some small companies, including so-called meme stocks, people familiar with the matter said.

The famously secretive firm is now examining ways to reduce the volatility of these funds, the people said.

Renaissance’s deliberations show how even successful firms are grappling with a stock market that is at record levels, but has seen some shares endure roller-coaster rides.

Renaissance usually doesn’t react to short-term market moves and might elect not to make any changes. Even considering tweaks is a departure. After a losing streak about five years ago, Renaissance told clients that its models were time-tested and that it wouldn’t modify them in response to short periods of underperformance, a person familiar with the matter said.

One of the two funds, the Renaissance Institutional Equities Fund, lost about 14% in October, before gaining 12.7% in November to put it up 2.3% so far this year. The other, the Renaissance Institutional Diversified Alpha Fund, was up 1.3% so far this year through November. The returns were earlier reported by Institutional Investor.

By comparison, an index of stock-picking quant funds compiled by the research firm PivotalPath is up 6.3% this year through November and was down 1.6% in October.

The two Renaissance funds, known as RIEF and RIDA, are the only Renaissance investment vehicles available to outside investors. Its flagship Medallion fund, one of the industry’s top-performing funds for decades, pushed clients out years ago and primarily manages money of the firm’s own employees.

Medallion climbed around 20% this year through November, topping the overall market, much as it has for decades, people familiar with the matter said. The S&P 500 gained 17.8% in the same period, including dividends. Medallion’s results come after subtracting the fund’s notoriously high investor fees, which amount to 5% of assets and 36% of any gains.

Still, the gains are lower than what they had been for much of Medallion’s history. Between 1988 and 2018, the hedge fund produced average annual returns of 39% after fees, topping nearly every other hedge fund.

Medallion, which manages more than $10 billion, holds more cash than usual, a person familiar with the matter said. That reduces its risk but is weighing on returns.

Renaissance executives remain satisfied with Medallion’s results and aren’t contemplating any changes, even if the gains don’t quite measure up to past performance, people familiar with the matter said.

While Renaissance executives like to say that Medallion holds investments for “seconds to seasons”—often just days at a time—RIEF and RIDA make longer-term trades.

Quant funds including RIEF and RIDA were shorting a number of meme stocks that rallied in September and October, fueling short squeezes and inflicting pain, according to traders. The funds’ losses were concentrated in small information-technology, communications and industrial stocks, one of the people familiar with the matter said.

Meme stocks widely held by quants include the digital marketing company QMMM Holdings and Beyond Meat, according to a banker who deals with hedge funds.

QMMM soared from $5 at the end of August to an intraday high of over $300 in September before trading was halted by the Securities and Exchange Commission for potential manipulation. Shares in Beyond Meat zigzagged from under $2 at the end of September to a low of 52 cents on Oct. 16 to over $3 on Oct. 21.

Despite the bumpy ride for these kinds of stocks, the overall market hasn’t been volatile. The Cboe Volatility Index, also known as the VIX, has averaged 19.19 this year compared with its long-term average going back to 1990 of 19.47.

That makes it harder for Medallion, which often does best in hectic markets; its trading models often reduce trading and build cash when stocks are placid.

Simons died last year. Renaissance since 2024 has been led by the longtime executive Peter Brown and David Lippe. Brown, 70 years old, previously ran the firm with Bob Mercer, after Simons became chairman. Brown is expected to hand the baton to Lippe eventually, according to people familiar with the matter.

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Galderma shareholders’ best case is that French group’s stakebuilding is prelude to full takeover

It is rarely a good look for a listed company to buy a minority stake in another, however glamorous the target’s prospects may be. There is no reason why a company should be better than its shareholders at stockpicking, and investors should be free to make their own mistakes.

Corporate finance orthodoxy doesn’t necessarily dissuade executives from having a go. Witness the web of interlocking stakes that US tech companies have woven with impunity, including Nvidia’s investments in OpenAI and Intel. And sometimes there are genuine reasons why tying up capital in this way creates value.

L’Oréal, which this week doubled its stake in Swiss skincare company Galderma to 20 per cent — a shareholding worth SFr8bn ($10bn) at current market value — provides an example. Neither of the two reasons the French company posits for its investment is watertight, but there is an unmentioned third that would make the whole thing worthwhile.

First, the bad. L’Oréal highlights Galderma’s “solid growth journey”. It is true that the group’s injectable aesthetics — treatments similar to Botox, which make up more than half its revenue — are part of a niche expected to grow at roughly twice the rate that skincare products are delivering at present, according to Berenberg analysts. L’Oréal might want to coattail on Galderma’s prospects, but that’s something its investors can do by themselves.

Second, L’Oréal mentions the potential for board seats and for collaborating with Galderma on “scientific partnerships”. This gets half a point. There may well be a market opportunity for products that straddle Galderma’s medical approach to skincare and L’Oréal’s lotions and potions. But the parties could as easily strike commercial agreements without buying shares. 

What about the third potential reason? While L’Oréal says it will continue to support Galderma’s “independence”, the best case for its shareholders would be if its stakebuilding were the prelude to a full takeover. As well as potential new product launches, the companies would probably be able to cut a healthy slug of costs.

True, buying the company in stages may increase the overall cost of the transaction, as Galderma realises more of its potential. But its backers — a consortium led by private equity group EQT — still own a chunk of shares, and may not want to immediately sell. And the extra cost is probably worth it if L’Oréal gets time to learn the mechanics of a new category, lowering future integration risk. Warren Buffett likes to say that the more you learn, the more you’ll earn. L’Oréal should take that to heart.

New EV class with lighter rules and subsidy arrangements aims to help European carmakers battle Chinese competition

Brussels is to propose special privileges for a “Made in Europe” small car class, which will benefit from preferential parking, lighter rules and more generous subsidy arrangements to keep out Chinese competition. 

The new all-electric category will be presented as part of a package of measures aimed at easing pressure on Europe’s car industry, which is under heavy pressure from the influx of affordable Chinese EVs, US tariffs and sluggish demand.

It will grant eligible cars — which are built in Europe and under a certain weight — access to reserved parking spaces and charging infrastructure as well as a 10-year exemption to incoming regulations such as safety rules and the EU’s Euro 7 emissions standards that are due to come into force in 2026. By doing so the commission hopes to keep the price lower since frequent changes in standards contribute to rising costs for carmakers.

The weight is still subject to negotiations but will probably be no more than 1.5 tonnes, according to people with knowledge of the plans. In the commission, the car category has been nicknamed the “Sejournette” after the diminutive French industry commissioner Stéphane Séjourné overseeing the proposal.

Small cars are one area where European manufacturers still have an edge over their Chinese counterparts, which have focused on larger car segments for their EVs and plug-in hybrids. 

Carmakers such as Stellantis and Renault have argued that there should be a new category for even smaller cars that are more affordable, with lighter regulations so that compact electric cars can be built profitably.

But at the same time, the manufacturers have lobbied for the definition of the new category to allow similar support for existing smaller sized models such as the new Twingo for Renault, Citroën ë-C3 for Stellantis or the Golf for Volkswagen.

Proposals for the small car class, loosely inspired by Japan’s Kei car, will accompany a heavily lobbied review of the EU’s 2035 combustion engine ban. First proposed in 2021, the law will outlaw sales of new combustion engines in the bloc from 2035 and was seen as a totemic part of the EU’s ambitious climate laws.

But it has come under heavy pressure from the car industry and rightwing politicians who argue that it is too stringent in forcing the sector to rapidly switch to electric vehicles. Heated discussions are ongoing in the commission ahead of the announcement of the review on December 16.

Among several options under negotiation is whether to allow plug-in hybrids and range extenders, which have a fuel unit that kicks in to extend the battery power, for potentially another five years, according to officials involved.

Another option being discussed is to require an emissions reduction of 90 per cent by 2035, leaving a small gap for combustion engine sales to continue, two officials said. “It’s not a done deal,” one said.

The commission is also weighing allowances for biofuels and “carbon neutral” e-fuels, made with carbon dioxide and renewable power, officials said, while cautioning that no final decision has been made.

Some officials have argued against the inclusion of plug-in hybrids, warning that the Chinese are already further ahead in this technology than their European counterparts.

The commission declined to comment on the upcoming proposals.