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Internal affairs

Your daily newsletter for March 29, 2019
Inner demons
“The way we experience the world around us is a direct reflection of the world within us.
- Gabrielle Bernstein
End of the week! Congratulations for making it through. While I'm gonna be sad to see y'all go for the weekend like an overbearing mother sad to see her child leave on his first day of school, I know you're all gonna come back soon. 😉

Today in history (1999), the Dow Jones Industrial Average (DJI) closed at 10006.78, above the 10,000 mark for the first time ever. 🚀 The DJI is a widely used stock market index that indicates the value of 30 large, publicly owned companies based in the U.S. 

In today's newsletter, we will be covering the crypto gift card provider Bitrefill has now allows users to pay for Airbnb rentals with 5 different crypto, CEDEX securing $50 million in diamonds ahead diamond ETF and FINMA ruling that crypto mining firm Envion AG severely violated laws in its ICO. Today, we will also be covering Stellar (XLM) in our weekly deep dive! Also today in our 'Blockchain term of the day' section, we have another well put together infographic done by cryptocurrency index building and trading automation software, Panda Analytics! So don't forget to check that out below too!

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! 📚

Watch this space 👀
Over the last 24 hours, total market capitalization did not budge from the ~$143 billion level, with most coins either seeing gains or losses in the ~1-2% range. Notable movers of the day are Tezos (XTZ) and Basic Attention Token (BAT), both up ~19.8% and ~14.7% respectively.

BTC is currently trading at ~$4,090, up ~0.3% over yesterday. It is still contesting the 100-day EMA line on the daily chart, and the 50-day EMA line on the weekly chart. Also on the daily chart, the MACD line has just crossed to the upside of the signal line and the rising RSI levels indicates some bullish momentum. We should keep our eyes peeled on this one during the weekend. It could get pretty interesting! 😀

Versatility 👍
Crypto gift card provider Bitrefill has added a service that lets users pay for Airbnb rentals with 5 crypto - Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Dogecoin (DOGE) and Dash (DASH). 😲

The company recently announced crypto support for Netflix subscriptions, for the same 5 cryptos. It also offers cards for travel services, gaming, VOIP and more, depending on global location.

Diamantes 💎
Blockchain exchange CEDEX has secured $50 million in diamonds ahead of its launch of a diamond exchange-traded fund (ETF). CEDEX said that the diamonds come from diamond holders who have registered their stock on the exchange for trading. 💰

CEDEX said it aims to turn diamonds into a tradeable asset class, and claims to have used blockchain tech and a proprietary algorithm to overcome some barriers that previously prevented diamonds from becoming a tradable asset class like gold, due to reasons such as lack of transparency, liquidity and fungibility.

The firm is currently in talks with commodity brokers, exchanges, banks and ETF issuers to offer them a software solution that will allow integration of its ETF products onto their trading platforms. CEDEX raised $20 million in March 2018 to develop its platform.

Guilty 👨‍⚖️
Switzerland’s finance watchdog has ruled that cryptocurrency mining firm Envion AG “seriously violated” laws in its ICO last year through which it raised millions. 🛑

FINMA began investigating Envion in July 2018 for potentially breaking financial market rules and the regulator concluded that Envion carried out the offering without the necessary banking licenses.

Envion has been forced to undergo liquidation proceedings by the Swiss Cantonal Court of Zug, which found “organisational shortcomings.” FINMA said it would not be taking supervisory action against the firm.

Blockchain term of the day 🤓 - Forks
Crypto deep dive: Stellar
  • Cryptocurrency: XLM
  • Market Capitalization Rank: 8th (~$2.06 billion)
  • Consensus: Stellar Consensus Protocol - does not require all nodes to be in agreement to reach a consensus.
What it's about ⚙️
  • Stellar was founded by Jed McCaleb and Joyce Kim in 2014, and is a fork off of Ripple (RPX). Jed was actually the founder of Ripple (XRP)! The had a different set of ideologies that were fundamentally different from the rest of the RPX team, and thus left to start XLM based on those ideals.
Why people love it 😘
  • XLM has a built-in, fixed, nominal inflation routine mechanism that increases at 1% per year. This predictability is can be preferred to some.
  • The XLM network can facilitate multi-currency exchanges and store orders to create an order book. Essentially, XLM has a decentralized exchange functionality to match buyers with sellers across multiple trading pairs.
  • Fast transaction speeds (~5 tps) with low fees. The fees are currently approximately ~$0.000002 per transaction, which is distributed weekly as part of the inflation pay outs.
  • Partnerships with recognizable brands like IBM, Deloitte, Stripe, ICICI Bank, TransferTo and Tempo.
Why people doubt it 🤔
  • The Stellar Development Foundation owns a majority share of the tokens (~80%). About half of those tokens are set to be distributed in the coming years, but this centralized structure forces investors to place trust on the foundation that the distribution will actually take place.
  • Centralized nature may prevent capital flows from retail investors.
  • As of now, only ~20% of XLM tokens have been distributed, meaning that by the time the remaining ~80% do get distributed, the relative price of XLM has to 5x just to keep its current price. Essentially, XLM's demand has to grow accordingly by many fold just to maintain the current price.
Special announcement 📢 - 'A 10-Year Perspective: From Genesis to Today' webinar with Karthik Iyer
Join us in our second webinar as Karthik shares the history on how the crypto space came to be. From the day Satoshi Nakamoto announced the first Bitcoin client on the P2P-Foundation website, to how everything transpired and evolved to its current state. Join us as he takes us in a trip back in time in the cryptoverse!  

Karthik Iyer is an ambassador for the P2P-Foundation, venture partner of Genesis Block NYC and CEO of BlockchainMonk!

The webinar will take place on 14th April 2019, 10pm Eastern Time (UTC-4) / 15th April 2019, 10am (GMT+8). But before all that good stuff, be sure to fill our the pre-webinar survey form here

Special announcement 📢 - CoinMarketCap Mobile App Beta Launch
Calling all CoinMarketCap crew... 🤙

We are soon going to be launching our new CoinMarketCap mobile app! If you are interested in participating in our private beta launch and help us test it, simply fill out the form here! What are you waiting for! 😀

Other news 📰
  • Blockchain services firm AlphaPoint has upgraded its tech solution for security token offerings (STOs) to appeal to institutional clients. 🤑
  • Charles Hoskinson, founder of IOHK, the firm that developed cryptocurrency Cardano (ADA), has said that the crypto industry needs more interoperability. 👫
  • Crypto startup Tokenpay (TPAY) has bought a 6% equity stake in Naked Brand Group (NAKD), which makes supermodel Heidi Klum’s lingerie lines. 🙃
Crypto calendar 📅

31 Mar  - U.S. SEC's initial decision on the NYSE Arca and Bitwise Asset Management's Bitcoin ETF application
5 Apr    - U.S. SEC's initial decision on the VanEck, SolidX and the Cboe BZX Exchange Bitcoin ETF application
TBA      - ICE's Bakkt Bitcoin Daily Futures Contract updated launch timeline

Catch the CoinMarketCap team at these community events! 🤝

23-24 Apr   - 3rd International Blockchain Life 2019 Asia (Singapore)
25-26 Apr   - Trescon World Blockchain Summit Taipei (Taipei, Taiwan)

Poll of the Day
How much do you agree with this statement: "I would find a crypto credit card useful. One that could automatically convert crypto to fiat and make the purchase. " 💭
Why do you say so? 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 unsure about the topic of crypto taxes"

The average vote was a 7.

"Why do you say so?"

Not so much “unsure” as completely in the dark. - It certainly is pretty ambiguous at this point. 🤷
totally agree. although the answer may be different based on country of residence. but from most interaction, i find all very confused on the taxation. - Do not worry, you're not alone. Everyone pretty much is at this point. From what I understand, each trade is taxed based on the First-In-First-Out (FIFO) method that CPAs use. v
Need to research. - Definitely, or hire a good tax representative. 👍
It's pretty clear the IRS doesn't want mass adoption. It treats cryptos as property and, therefore, subject to capital gains taxes. So, we have to keep track of every purchase, trade, or spend. Either the IRS should change its attitude, or wallets needs to keep track for us. - I mean, can we blame them for subjecting crypto to capital gains tax? It's perfectly understandable imo - it's more money and it's a way to control the space to a certain degree.  
It is difficult to track trades between multiple exchanges and wallets - That is true, and the IRS does not currently have a treasure trove of third party data atm. 
hard to answer as definitions of crypto vary widely per country as well as taxation implications thereof - This is also true. 
Not really sure how the IRS taxes cryto assets. Coinbase should do a better job explaining that process. - There definitely needs to be more clarity on the matter. 🙏🏻
This has been such a difficult thing to figure out in the community, there seems to be a divide in paying and not paying because of the philosophy of the government not creating crypto and it's honestly very confusing especially in the USA🤔🧐. - Pretty sure we're all gonna end up having to pay, unless crypto grows to a point where its so widely used on a day to day basis that you don't have to change it to fiat. Even then, I'm sure Uncle Sam is gonna find a way to get ya. 🤑
Been looking at proposals laid out in my native country, but still not sure how they plan on implementing. By taxing it would mean they have to recognize crypto as a currency, (a great thing for many reasons unique to situation there). But will you be able to claim if losses are suffered? Will you be able to claim mining equipment? In many ways the USA sets trends for rest to follow, but in this sector I have not witnessed that. - That is true. It really does seem like the rest of the world is waiting on the U.S. to make a move on this front, and what's holding the U.S. regulatory bodies back is that they still have yet to fully understand this asset class. 😅
In the UK it has not really been a hot topic for HMRC (equivalent to IRS in US) so a bit in the dark about it. However that is not to say that once they see they are leaving a lot of potential tax money on the table they will put their money grabbing machine into overtime and no doubt back dating the recovery period!!! - Yeah no doubt 😂
I have a clear understanding on what amount of tax I need to pay should I cash out. However how to pay the tax without the help of an accountant I would need to research. - That is great to hear. Although, doing taxes is more of an art than a science to me. So sometimes, it's always good to use an accountant to give you a second look! 👌🏻

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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