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Can the Dave App's Cartoon Bear Keep You Warm This Winter?
Or will the hungry predator eat your future paychecks?
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I really wish this wasn’t a real ad being circulated by the Dave App.
Sadly, it is.
The app known for the friendly-looking cartoon bear is suggesting that you get a cash advance to cover winter expenses like heat and coats.
So — Dave doesn’t care about the state of an economy where covering the basics isn’t possible for many.
OR — Dave needs cash so the company is asking those least able to pay to take out a loan and incur debt at crazy interest rates so the Dave team can stay rich.
Well, and even though the operators of Dave are ostensibly well off, the company itself may be struggling:
Dave shares have plummeted over 97% since the company went public, mirroring the performance of the broader basket of SPACs. In July, the Nasdaq warned Dave that if its share price didn’t improve, it was at risk of being delisted. The stock currently trades for 28 cents and the market cap sits at around $100 million.
Oh, right — but back to the insanity that is a loan on your phone from a cartoon bear.
A story from the L.A. Times digs deeper, explaining just how bad the fees associated with friendly, cartoon bear apps can be.
Here’s how the Times broke down the fees associated with a loan from Dave:
Given that the money had to be repaid in 12 days, the $5.99 fee and $2 tip, if considered as interest, cost Goad 122% on an annual percentage rate basis — a metric that helps compare the relative cost of loans. If he tipped $6.93, the company’s average in the first quarter, it would amount to an APR of nearly 200%. If he chose a 15% tip, the total cost would rise to $35.99 with an APR of 547% — corner payday loan territory.
Need to stay warm this winter but short on cash?
Steer clear of Dave’s cartoon bear and the big hit to your wallet when the bill comes due.
Summers Called Out for Role in Crypto Crash
An advocacy group focused on calling out the conflicts of interest of public officials is taking former Treasury Secretary Larry Summers to task for his role in the current crash of cryptocurrency markets - a crash that has broader economic implications, the group claims.
Specifically, the Revolving Door Project is calling Summers out for his role as an advisor to Digital Currency Group (DCG), a cryptocurrency conglomerate.
“For years, Summers advised DCG on the one hand, and made widely-reported positive statements about Bitcoin and the crypto industry on the other," said Jeff Hauser, Executive Director of The Revolving Door Project. "Then, as DCG and the broader crypto market began to crumble a few months ago, Summers slipped out the back door, quietly deleting his name from the DCG website. The media shouldn’t let him wipe his hands of the cryptocurrency industry or treat his speculation on future economic trends the same as they would someone who didn’t spend years opening doors for crypto barons.”