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XDigital Avatar and Influencer Lil Miquela Releases a NFT Collection
Sam primarily covers entertainment and media for dot.LA. Previously he was Marjorie Deane Fellow at The Economist, where he wrote for the business and finance sections of the print edition. He has also worked at the XPRIZE Foundation, U.S. Government Accountability Office, KCRW, and MLB Advanced Media (now Disney Streaming Services). He holds an MBA from UCLA Anderson, an MPP from UCLA Luskin and a BA in History from University of Michigan. Email him at samblake@dot.LA and find him on Twitter @hisamblake

The virtual influencer Miquela Sousa, aka Lil Miquela, whose rise has garnered equal parts uproar and admiration, continued her foray into NFTs on Wednesday with part two of a five-part series that promises to "tell a special story over time."
Brud, the L.A. startup behind Miquela and a handful of other characters with fully fledged digital identities across social media, is doing the free drop to hype up their superstar avatar and expand her narrative. An announcement from the company said the underlying artwork, called "Unseen by eyes but forged in stone," can exist as a standalone piece or as part of a collection that will roll out over the next several months.
Brud appears to be gamifying the collection of tokens to unlock a unique, surprise reward.
"This NFT is part of a larger series featuring Miquela," the company wrote in a Google doc linked in Miquela's tweet announcing the drop. "Each NFT in this series serves as a piece to a larger puzzle. Each piece will work together to tell a special story over time. The only way to access the story before anyone else is to own each NFT and connect them together along the way."
New NFT drops NOW! First 1500 people to reply to THIS TWEET with their wallet address will BE BLESSED and the FULL… https://t.co/7XZdblfZbd— lilmiquela (@lilmiquela) 1617814863.0
Users could claim one of the available 1,500 NFTs by replying to Lil Miquela's tweet with the address to their crypto wallet.
Brud, valued at $144 million, said it will deliver the tokens within 24 hours. Users had to agree to let the company contact them in the future for marketing purposes.
Within three hours the post had received nearly 4,000 comments and been retweeted over 1,600 times.
Upon validation of users' addresses, Miquela's Twitter would post a response.
"Obsessed with u, there's 1481 left!"
"We're making history, TYYY!! there's 1377 left!"
"We're making history, TYYY!! there's 1203 left!"
And so on.
Since debuting on Instagram in 2016, Lil Miquela has picked up three million followers and sponsorship deals from the likes of Supreme and Barney's. Her curated digital identity ostensibly makes her less of a risk than human influencers for brands.
Last year, the digital teenager was estimated to have earned more than $12 million. She's repped by CAA, alongside many real celebrities, and has appeared on a billboard in Times Square.
In November, Brud released her first NFT, tied to a digital artwork entitled "Rebirth of Venus" that sold via SuperRare for 159.5 Ether. At the time, that was worth about $82,000; Ether's value has since nearly quadrupled. The winning bidder of that token appears to be linked to crypto investment fund Divergence Ventures, based on the link in the buyer's SuperRare profile.
It has been a common refrain as NFTs have gone mainstream: the investor behind last month's headline-grabbing $69 million NFT tied to a digital artwork by Beeple also had a financial interest in propping up the legitimacy of cryptocurrency.
The latest Miquela offering is part of an ongoing spree of creative NFT offerings that provide buyers more than just a certificate of digital ownership tied to the blockchain. It also expands the storyline of a 19-year-old who blurs the lines between fantasy and reality as a racially ambiguous, socially conscious teenager.
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Sam primarily covers entertainment and media for dot.LA. Previously he was Marjorie Deane Fellow at The Economist, where he wrote for the business and finance sections of the print edition. He has also worked at the XPRIZE Foundation, U.S. Government Accountability Office, KCRW, and MLB Advanced Media (now Disney Streaming Services). He holds an MBA from UCLA Anderson, an MPP from UCLA Luskin and a BA in History from University of Michigan. Email him at samblake@dot.LA and find him on Twitter @hisamblake
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Mother Blames TikTok For Daughter’s Death in ‘Blackout Challenge’ Suit
Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
The mother of a 10-year-old girl who died after allegedly trying a dangerous online “challenge” has sued Culver City-based TikTok and its Chinese parent company ByteDance, claiming the social media app’s algorithm showed her videos of people choking themselves until they pass out.
Nylah Anderson, an intelligent child who already spoke three languages, was “excruciatingly asphyxiated” and found unconscious in her bedroom on Dec. 7, according to a complaint filed Thursday in federal court in Pennsylvania. She spent five days in pediatric intensive care until succumbing to her injuries.
The lawsuit, filed by her mother Tawainna Anderson, claims TikTok’s algorithm had previously shown Nylah videos depicting the “Blackout Challenge,” in which people hold their breath or choke themselves with household items to achieve a euphoric feeling. That encouraged her to try it herself, the lawsuit alleged.
“The TikTok Defendants’ algorithm determined that the deadly Blackout Challenge was well-tailored and likely to be of interest to 10-year-old Nylah Anderson, and she died as a result,” the suit said.
In a previous statement about Nylah’s death, a TikTok spokesperson noted the “disturbing” challenge predates TikTok, pointing to a 2008 warning from the Centers for Disease Control and Prevention about deadly choking games. The spokesperson claimed the challenge “has never been a TikTok trend.” The app currently doesn’t produce any search results for “Blackout Challenge” or a related hashtag.
“We remain vigilant in our commitment to user safety and would immediately remove related content if found,” the TikTok statement said. “Our deepest sympathies go out to the family for their tragic loss.”
At least four other children or teens have died after allegedly attempting the Blackout Challenge, according to the Anderson lawsuit. TikTok has grappled with dangerous challenges on its platform before, including one in which people tried to climb a stack of milk crates. That was considered so dangerous that TikTok banned the hashtag associated with it last year. In February, TikTok updated its content rules to combat the dangerous acts and other harmful content.
The Anderson lawsuit comes as lawmakers and state attorneys general scrutinize how TikTok and other social media can be bad for teens and younger users, including by damaging their mental health, causing negative feelings about their body image and making them addicted to the apps.
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Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
Netflix Updated Its Culture Memo for the First Time in 5 Years to Address Censorship, Secrecy
Kristin Snyder is an editorial intern for dot.la. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
Netflix promised change after its poor first-quarter earnings. One of the first targets: the Netflix Culture document.
The changes, which Variety reported on Thursday, indicate a new focus on fiscal responsibility and concern about censorship. While promises to support honest feedback and open decision-making remain, the memo’s first update in almost five years reveals that the days of lax spending are over. The newly added “artistic expression” section emphasizes Netflix’s refusal to censor its work and implores employees to support the platform’s content.
The “artistic expression” section states that the company will not “censor specific artists or voices” and specifies that employees may have to work on content “they perceive to be harmful.” The memo points to ratings, content warnings and parental controls as ways for users to determine what is appropriate content.
Censorship has been a contentious issue within Netflix. Last year, employees walked out in protest after the company stood by comedian Dave Chappelle’s special, “The Closer,” which many said was transphobic. The streaming service has since announced four more specials from the comedian, who was attacked on stage at Netflix’s first comedy festival. The show will not air on the platform, as Netflix did not tape the event.
The reaction to Chappelle’s 2021 special ripples further in the updated memo. After firing an employee who leaked how much the company paid for the special, the new “ethical expectations” section directs employees to protect company information.
The memo also reflects pressure borught by poor first-quarter earnings. Employees are now instructed to “spend our members’ money wisely,” and Variety reported that earlier passages that indicated a lack of spending limits were cut. Variety also found that the updated memo removed promises that the company would not make employees take pay cuts in the face of Netflix’s own financial struggles.
These updates come as employee morale has reportedly dropped and editorial staffers at the Netflix website TuDum were laid off en masse. Those employees were offered two weeks of severance pay—and Netflix has now cut a section in the memo promising four months of full pay as severance.
As the company that literally wrote the book on corporate culture faces internal struggles, it's unlikely that making employees take on more responsibility while prioritizing corporate secrecy and discouraging content criticism will improve morale.
Kristin Snyder is an editorial intern for dot.la. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
‘Raises’: Mahmee Secures $9.2M, Wave Financial Launches $60M Fund
Decerry Donato is dot.LA's Editorial Fellow. Prior to that, she was an editorial intern at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.
Venture Capital
Mahmee, an integrated care delivery platform for maternal and infant health that connects patients, health professionals, and healthcare organizations to increase access to prenatal and postpartum care, raised a $9.2 million Series A funding round led by Goldman Sachs.
FutureProof Technologies, a climate risk analytics platform, raised $6.5 million in capital led by AXIS Digital Ventures along with Innovation Endeavors and MS&AD Ventures.
Anja Health, a doctor-backed cord blood banking company, raised $4.5 million led by Alexis Ohanian's Seven Seven Six.
Funds
Wave Financial LLC, a digital asset investment management company, is launching a $60 million fund to deploy capital via cryptocurrency.
Raises is dot.LA’s weekly feature highlighting venture capital funding news across Southern California’s tech and startup ecosystem. Please send fundraising news to Decerry Donato (decerrydonato@dot.la).
Decerry Donato is dot.LA's Editorial Fellow. Prior to that, she was an editorial intern at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.