Daily Email Archive

Ain’t playing it safe

Your daily newsletter for January 25, 2019
Risky business
“Go to heaven for the climate, hell for the company.
- Mark Twain
It's Friday baby! Go forth and enjoy, fellow weekend warriors! ⚔️ To those of you who are thinking about working this weekend, remember that working on a weekend is like wetting your pants in a dark suit. You get a warm feeling but no one else notices. 🤷

Today in history (1965), American Airlines began its first Boeing 707 coast-to-coast flight service. 🛫

In today's newsletter, we will be covering Coinbase integrating a tax-filing software into their services for its U.S. customers, the NYDFS granting Robinhood and LibertyX New York’s BitLicense and Overstock.com's security token trading platform, tZERO, is now live.

Please don't forget to answer the polls down below too! It's a great way for us to interact with you all and hear what you have to say. 💭 Happy reading! 📚

Copy and paste 🙂🙃
Over the last 24 hours, we saw no change in the total market capitalization of the crypto space. Total market capitalization stayed within a tight range of ~$119.3 billion and ~$120.7 billion. At time of writing, total market capitalization is currently at ~$120 billion, a 0% increase from yesterday, with most coins either seeing gains or losses in the ~1-2% range. 😴

BTC is currently trading at ~$3,600, a 0% change from yesterday. RSI levels on the daily chart has stayed within ~41.3 and ~44.1 over the past week, indicative of overall market indecisiveness and slight consolidation at the ~$3,600 levels. According to the Bitcoin Volatility Index, BTC's volatility levels have been steadily decreasing since the start of the year. It is currently at ~3.49%, a level previously seen in mid Aug of 2018.  

All in one 🤗
Coinbase has integrated the tax-filing software by Intuit Consumer Tax Group, TurboTax, into their services for its U.S. customers. 👌

Coinbase and Coinbase Pro clients will be able to upload their transactions, up to 100 at a time, and gains and losses of 2018 directly to TurboTax Premier, one of the tax firm’s products. TurboTax Premier will then help customers determine how to file their taxes from the last year, and any customers who need additional assistance can tap certified public accountants or enrolled agents at Intuit. 🙏🏻

According to Intuit, “not every cryptocurrency transaction constitutes a taxable event" - For instance, customers who bought cryptocurrencies and have not yet sold, gifted cryptocurrencies (<$15,000 per gift) or purchased cryptocurrencies with a Self-Directed IRA or Solo 401(k). 👀 However, customers who converted cryptocurrencies to fiat, sold cryptocurrencies, spent it to pay for goods or services, or received free coins through a fork or airdrop will need to report that as income.

The go ahead 👍
Trading app Robinhood Crypto and Bitcoin ATM provider LibertyX have recently been granted New York’s BitLicense (virtual currency license) by the New York Department of Financial Services (NYDFS). Robinhood will also be granted a money transmission license. 🤝

According to Robinhood's co-founder Vlad Tenev, the new licenses “will complement the larger suite of investment services that New Yorkers already have access to on the Robinhood platform.” He also added that they "look forward to their (NYDFS) ongoing guidance as we [they] prepare to launch Robinhood Crypto in New York,”

On the same note, LibertyX's co-founder Chris Yim they are “delighted" to "offer the first debit card Bitcoin purchasing options to New York State residents.” LibertyX will become the first licensed firm to allow residents to buy Bitcoin using debit cards through traditional ATMs. 🙌

Long awaited ⏲️
Overstock.com's security token trading platform, tZERO, is now live. Accredited investors can sign up to trade tokens through a digital securities brokerage account at Dinosaur Financial Group, LLC. Alternatively, TZERO subsidiary Pro Securities LLC is providing an alternative trading system (ATS) to trade the tokens. 👍

According to the CEO of tZERO, Saum Noursalehi, "the world of security tokens has lacked a regulated venue for secondary trading. The trading of our own security tokens is the crossing of the Rubicon for the new world of digital assets" as it will "create liquidity, democratize access, bring transparency and efficiency to global markets and accelerate the adoption of security tokens.”

Investors of the tZERO token have been long awaiting for the platform’s launch, after its 2015 unveiling. 😣

Blockchain term of the day 🤓 - Security token

A crypto token that passes the Howey Test is deemed a security token. Security tokens usually derive their value from an external, tradable asset. 

They need not have a utility, and rather than conferring a tangible benefit on the investor, a security token typically represents a share in the company who issued it (e.g. equity tokens representing partial ownership of a company). 

As these tokens are deemed as securities, they are subject to federal securities and regulations and thus are much more heavily regulated by the government than utility tokens.

Crypto deep dive: Tron
  • Cryptocurrency: TRX
  • Market Capitalization Rank: 9th (~$1.78 billion)
  • Consensus Algorithm: Proof-of-Stake (PoS) - several voted nodes deployed by global users themselves, cooperate to accomplish consensus calculations. 
How it happened ⚙️
  • Tron was established in September 2017 by its current CEO Justin Sun. It seeks to be a decentralized entertainment content-sharing platform where anyone can host content on its blockchain and get paid for it directly from the audience, essentially cutting out the middlemen.
Why people love it 😘
  • Content producers can create free and uncontrolled content, without restrictions on characters, images, audio or video can be created on the TRX blockchain. 
  • Since the TRX blockchain is essentially a network of peers between content creators and consumers without the middleman, content creators are empowered and more incentivized to produce better content. 
  • Strong Chinese backing. Some backers include Bitmain, CEO of Kuaidi Dache Weixing Chen, Chair of Lifan Industry Yin Minshan and CEO of Ofo Wei Dai. 
  • Tron recently acquired the file sharing software provide BitTorrent for $140 million, effectively boosting their user base by 100 million users. 
Why people doubt it 🤔
  • Tron was criticized for plagiarizing the Filecoin and IFPS whitepapers for its own whitepaper. Sun attributed the lack of citation to translation issues from volunteers. This set TRX off on the wrong foot. 
  • Tron has been known to be huge on marketing. While this has been good at creating awareness, some argue it's to the point where it's over-marketed. 
  • Although the number of TRX addresses has been increasing, the number of transactions on the TRX blockchain has been decreasing. This could signal that people are using TRX tokens more as a speculative tool rather than to help run the TRX blockchain.
Other news 📰
  • The crypto merchant bank launched by billionaire Michael Novogratz, Galaxy Digital, is reportedly raising $250 million to build a credit fund. 💰
  • According to a recent report by crypto data startup, Messari, it is estimated that the true market capitalization and circulating supply of the digital asset XRP is markedly less than what data sources currently present. According to them, about 19.2 billion XRP “may be illiquid or subject to significant selling restrictions”. 🤔
  • According to Reuters, JP Morgan analysts forecasted that “widely-hyped” blockchain technology will not make any real difference to banks for at least 3 to 5 years. 😔
Crypto calendar 📅

End Jan - ICE's Bakkt Bitcoin Daily Futures Contract updated launch timeline

Catch the CoinMarketCap team at these community events! 🤝

To be announced. Watch this space. 
Poll of the Day
How much do you agree with this statement: "By the next 5 years, people purchasing Bitcoin (BTC) from Bitcoin ATMs will be commonplace" 💭
Why or why not? And...what are your plans for the weekend? Share with me in the polls! 😆
What you said
How much do you agree with this statement: "I am interested in trading security tokens"

The average vote was 7.5. I believe that security tokens can open up many of the current illiquid markets. For instance, with the right infrastructure in place, security tokens can allow for fractional ownership and the easy trading of real estate, private equity and other traditionally illiquid assets. 👌 As projects continue to improve upon interoperability, one can only imagine the potential of this. Additionally, compliance can also be hard coded into security tokens. For instance, security token A can be programmed to only be able to be bought or sold by accredited investors. 

"Why or why not?"

Need to see how reliable and efficient it would be ... and more so ... amount of risk of loss added by trading the tokens vs the actual security. - While it is possible you may have to pay more in service fees due to the convenience of it all, the fact that you will be able to trade previously illiquid assets presents a far better case than if the option was not made available. 😀
It will gonna be good for the market bcoz it's a new way of business - The possibilities are without a doubt, endless. 🤯
if there is market.. buyer & seller, if i can profit i will... - It would certainly present you with more investment options. Increased accessibility is never a bad thing in my books. 💪
It is the only way, in the US anyway, to move forward in the digital asset space. I agree with the former chairman of the SEC, in the near future (he says within 5 years) all stocks and bonds will be tokenized. This is the way forward and I already am investing in security tokens and have for the last almost year now. - Good on you! My sentiments exactly. 👌🏻
This is the future of everything! - Preach it! 🗣️

Thank you all for reading! Catch you back here again next week for your daily dose of crypto news! 💙
See you again on Monday!
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