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[Part 2] KAVA Historical AMA Tracker! (Questions & Answers)

ATTN: These AMA questions are from Autumn 2019 - before the official launch of the Kava Mainnet, and it's fungible Kava Token.
These questions may no longer be relevant to the current Kava landscape, however, they do provide important historical background on the early origins of Kava Labs.
Please note, that there are several repeat questions/answers.

Q51:

How do you think about France in Kava market development plan?

What is your next plan to raise awareness among French about Kava?

Q52:

Why did you choose Cosmos instead of Aion, which comes with AVM built on JAVA, which can be accepted by many developers?

Will there be a possibility that one day we will be able to collateralize a privacy coin, such as Monero, on KAVA?

  • Answer: We like programming in GO, interfaces are OK for Java. Cosmos will also feature a WASM module and EVM later. The Cosmos-SDK is very flexible and it allowed us to choose our own security model. That was unique compared to other frameworks where we had to adopt the underlying blockchains. In Cosmos-SDK we can create our own blockchain.
  • Re: privacy - you can do some fun things in payment channels to make transactions more private. Such as onion routing clearing and settlement across different nodes. This can be possible in the future, but not our priority now.

Q53:

The biggest advantage of finance is the efficient allocation of resource allocation. If KAVA connects assets of multiple platforms through the interchain technology, the efficiency across the market will be improved.

But in terms of connectivity, Facebook's Libra, with its centralized giant platform, could be a big threat for the future. Of course, regulatory uncertainty still exists. KAVA wonders what big platform companies think about entering the blockchain field and how they can cope with their competition.

  • Answer: We think of Kava as a DeFi service that can integrate with wallets, exchanges, and other platforms when users want loans or stable coins for payments. We don't see competition with Libra, but we see lots of users potentially getting into crypto which will be good for the market, good for BTC, and good for Kava.

Q54:

What will you do with the money after IEO?

What is the most important markets that Kava is focusing?

What is your marketing strategy to approach those markets?

  • Answer: What will we do with the IEO money? Put it in a bank and keep building. We keep our funds safe in secure accounts that are insured. We always maintain at least 2 years runway in pure fiat to ensure we can survive in any bear market conditions and come out on top in the end.

Q55:

On mainnet, which function/feature can we expect to see on Kava since i only saw informations about its testnet?

  • Answer: mainnet will feature KAVA, staking, delegating, validator software, voting and governance / parameter changes. Following mainnet, the validators will vote to enable transactions and the CDP platform. We expect this to be towards the end of the yeaQ1 2020

Q56:

How does Kava maintain the stability of its stablecoin? Are there any opportunties for outsiders to arbitrage or any other mechanisms to maintain price stabilization?

  • Answer: Kava users deposit crypto assets as collateral and can withdraw a loan based on the amount they deposited. They must always provide more collateral than the loan is worth. When the value of the collateral drops due to market conditions, before it reaches the value of the loaned amount, the platform will auction off the crypto assets for USDX that is on the market at a discount. Holders of USDX can buy these assets at a profit. This removes USDX from the market and makes sure that the global USDX to collateral in the system remains balanced. Similar to MakerDao, 3rd parties can run "keepers" - very simple implementations which continuously monitors the Kava/USDX credit system for unsafe CDPs, and execute the liquidation function the moment they become unsafe. Keepers can also perform arbitrage on DEX/Exchanges executing trades across the Kava platform and the markets.

Q57:

Alright! So KAVA is doing DeFi right, could you explain DeFi in layman term to us.

  • Answer: Decentralized Finance. Finance is really ensuring everything about past, present, and future value of money. You need safe custody and a store of value to keep money you earned in the past safe to be used later when you need it. You need something liquid and easily tradable to be used in the present. And the trickier one is the future - people need to get loans on the assets they have or hedge against the assets they have in order to ensure they can build for a better future. That’s finance.
  • DeFi is taking all those things and making them open access and unregulated so that regardless if you were born with out an ID, if your credit score is bad, or if the government is trying to censor your actions and limit your spending - DeFi promises to give you a way to get access to the financial products you need.

Q58:

Could you please briefly explain your projects, and why you choose DeFi as a problem to solve?

  • Answer: Kava is a cross-chain DeFi platform for cryptocurrencies. Kava offers decentralized loans and stable coins for any other crypto asset such as BTC, XRP, BNB, and ATOM.
  • DeFi is the killer use case of crypto today. I think most people see this clearly now. We believe providing the basic DeFi services is the very first step that is required before blockchain technology can really become wide spread - so we started here.

Q59:

Why the name of the project KAVA?

  • Answer: We started in crypto thinking we would build banking products and we wanted a more relaxed cool name to stand out from other solutions. Turns out Kava means many things.
  • Kava = Hippopotamus in Japanese
  • Kava = crow in hindi
  • Cava = wine region in spain
  • Kava = a medicinal root you add to Tea
  • Kava = now a cross-chain DeFi platform
  • But TLDR - we liked the name and thought it sounded short and sweet.

Q60:

What do you think of the future of DeFi in this space? Will DeFi one day take over the traditional financial systems? -- any wild guess on when it might happen?

  • Answer: I think centralized solutions will always have certain advantages and DeFi will also have certain advantages.
  • But truthfully, KYC is a problem from a user experience point of view. One of the big things with DeFi is there is no need to make people go through a KYC process anymore.
  • If we imagine a world where USD Is king, or Renminbi is king, or BTC is king. DeFi has a place in all of them because open access to financial services is a basic human necessity.

Q61:

As we have known, Lending is not the only problem to solve in the whole financial areas, are you planning on going beyond lending? What other financial products are in your pipeline?

  • Answer: Thats a good #Q .
  • While we have a lot to solve to offer lending to other crypto assets - we can expand our support to non-crypto assets, to NFT tokens, and other assets.
  • We also have plans to offer derivatives and other synthetics other than USDX - such as synthetic bitcoin and Yuan. What is exciting about Kava and the oracle system run by validators is that we can leverage this infrastructure around the world to do all sort of things.
  • One of the more interesting products is creating under-collateralized loans using payment channel (layer-2 tech) of our USDX coin. Two parties can lock funds in payment channels and place bets on the price feeds from the oracles. When the funds reach a maximum threshold, the bet closes. Since a price feed is just a data set, we can have the settlement rules be multiples of the real data. In simple terms we can create 100x leverage products for the craziest of traders 😉

Q62:

Btw KAVA is a bit unique because it use Cosmos/Tendermint. While other DeFi use Ethereum , why you guys choose Cosmos?

  • Answer: Cosmos is the future. Even facebook’s Libra consensus design was just a copy of Tendermint. Kava, Binance, the Cosmos Hub and many other blockchains are built on the same Cosmos-SDK framework.
  • It’s very flexible and soon interoperable. This is a huge advantage over Ethereum. Where system’s like MakerDAO will be forced to develop in a slowly evolving chain like Ethereum and only touching Erc20 assets, Kava will be able to rapidly evolve, program in GO rather than solidity, and interoperate with chains like Binance directly.
  • We’re very excited to get BNB and BTCB onto Kava’s CDPs and to put KAVA and USDX onto the Binance DEX. This is fairly easy on Cosmos.

Q63:

I saw in KAVA deck that you guys will use USDX, is it a stable coin? How is it going to work and its relationship with KAVA token itself?

  • Answer: USDX is an algorithmically stable token pegged to the USD. USDX is the token users recieve when they get a loan from the Kava platform. USDX is collateralized or backed by crypto assets so the Kava platform should always hold more crypto value than the USDX it loans making USDX a very safe store of value even if the market crashes 10x overnight. That is what a stable coin should do.
  • USDX is special though. Natively, users can spend or trade USDX freely like other stable coins, but the important difference is that 1) USDX is free of censorship and does not require a bank or anything else. 2) USDX can be “bonded” or “staked” providing an interest bearing yield between 2-10% APR. This is substantially more than what I can even get from my bank account.

Q64:

From your point of view as KAVA team, what would be most anticipated feature in KAVA ?

  • Answer: Our CDP platform launch later this year. The first USDX will be minted then.
  • Support of BTC in the CDP smart contracts. No blockchain has supported a real decentralized custody and use of BTC with smart contracts before.

Q65:

Indonesia is one of the “developing” countries, how is DeFi can help in making a difference in those “developing” countries?

  • Answer: I can’t speak for developing countries as it’s not my expertise, but DeFi in general is trying to offer the exact same services to EVERYONE. Whether you are in San Francisco or Indonesia, the financial services you should have should be similar. The rates and fees you pay should be the same. DeFi is fair treatment and open access for everyone. That is what’s nice about having things run on a protocol.

Q66:

Last but no least, since we are doing AMA in Indonesian group, I believed our members wants to know if you are interested in going to Indonesia to expand your community and reach?

  • Answer: As I said, I have not been before! I am traveling throughout South East Asia for a lot of the year. It is one of my destinations. I hope to meet many of you while I am out there.

Q67:

Defi companies are growing at a rapid pace, but they're actually smaller than traditional financial institutions. In order for Defy to become a global trend, it must eventually acquire consumers within the traditional financial industry.

Traditional financial consumers, however, have poor technical understanding and want psychological stability through government guarantees such as deposit insurance. After all, what does KAVA think about long-term competitors as traditional financial institutions, and what long-term strategies do they have to embrace traditional financial consumers?

  • Answer: We think of financial institutions as big honey pots of potential DeFi users. For example, if Kava can offer margin lending at better rates than a bank because there is no middle men or compliance costs, users should want to use that service.
  • As crypto grows, I believe more FIs will integrate crypto assets and DeFi services. For example, in the US you cannot currently margin trade crypto as a retail user. But it could be possible for a regulated FI to integrate a lending service like KAVA without causing issues with regulators due to Kava having no counter party risk other than the user itself.

Q68:

MakerDAO is only for ethereum but Kava support multiple assets, is this only difference?

What are Kava main advantages compared to MakerDAO?

  • Answer: Kava supports multiple assets THAT are on different blockchains. Maker can only support ETH. This is a huge difference. In addtion, the role of Maker is quite likely a security token. It represents fees paid by others. Where in Kava, the token is used in security of the blockchain protocol itself. The holders of Kava have a lot at stake and need it to govern the system. Maker holders have nothing at stake.
  • I think a huge difference is that with our model being POS and based on validators with slashing if they don't participate our governance participation and management will be much more effective than MakerDao.

Q69:

Ticket claim for KAVA Launchpad is comming around the corner. This maybe last IEO ticket claim of this year. With this hype and expectation of investors/traders, do you think KAVA will be a big boom to end this year with happy tears?

If someone wants to manipulate Governance function of KAVA by changing voting result by possessing many Validators Node through buying over 51% KAVA of market, what will KAVA team do? Do you think Emergency Shutdown(Maker has this) can be considerd as a solution?

How will USDX be minted and backed on KAVA platform? If its based on uses crypto collateral, how will KAVA team make it stable since the inflation of crypto price?

  • Answer: I believe Kava to be underpriced currently, especially compared to maker which is 10x the value and serving ETH which is much smaller market than ours.
  • But I cannot tell you with certain if Kava will boom or bust - only the market can decide that. As with all speculative assets, do your homework and trade at your own risk. We here at kava are very LONG Kava, but we are biased 😉

Q70:

Stablecoin is the word that I heard everyday, so do you have any plans to release wallet for stablecoin?

  • Answer: There are already wallets created for Kava that can hold our tokens 😉

Q71:

My first question is: Why do traders choose to use KAVA instead of margin on exchanges?

My second #Q is: What happens whenKAVA doesn't have enough cash to loan out?

  • Answer: Traders who cannot get passed KYC can use Kava. Traders who want better rates than exchanges can use Kava. If regulators like in the US prevent margin trading, Kava is a great solution.
  • Kava creates USDX out of thin air when users withdraw loans. It will only create Kava is the user locks a great value of crypto in the system to back it. When the USDX loan is repaid, it is destroyed. In this way, Kava can scale however big it wants - it will never run out of cash.

Q72:

i heard as you said before in San Fransisco, Silicon Valley. what is the relationship about Silicon Valley and KAVA? and what will KAVA done in this Q1 ?

  • Answer: I am born and raised in Silicon Valley. I am blessed to have grown up in this area where lots of tech innovation is. However, I am the only one at Kava that lives here full time. The others on my team are in the Cayman Islands and Cambridge.
  • San Francisco is a hub for the largest crypto projects - Ripple, Coinbase, Stellar, etc. It's a great place to network with founders and feel inspired to do big things. It is not the best weather here, but the people are focused and extremely helpful if they can be if you aim to do big things.

Q73:

With regard to minting new USDX, is there any potential chance to against Global financial law? Likewise USDT, issuing money should guarantee deposit of real collateral as I have known.

  • Answer: USDX is debt. It is not a guarantee, but the protocol's rules state it must have more crypto assets behind it than the # of USDX issued. In this way, rules are better than guarantees. Tether guaranteed 1:1 USD, it turned out not to be true because their funds were seized by regulators. That is impossible in the case of Kava.

Q74:

What is the uniqueness of KAVA project that cannot be found in other project that´s been released before?

  • Answer: Cross-chain is unique for us. But most unique is our partners and validator group that is launching our blockchain. We have incredible partners that support our work including Ripple, Cosmos, Arrington, Hashkey, SNZ, Lemniscap, etc.

Q75:

KAVA was initially planned to launch on Ripple network but later switched to Cosmos Tindermint Core. What is that something you see in Tindermint Core that is not available anywhere.

  • Answer: We did not plan to launch on ripple and did not launch on "Tinder"-mint. I have a fiance - she would be quite mad.
  • We did however use the Cosmos SDK - a tool set, to build our blockchain that features tendermint consensus.
  • Tendermint is just the consensus so I assume you mean the SDK. The SDK is very much "choose your own adventure" you can build anything and design all the spec of your blockchain easily. In this way you choose the tradeoffs that make the most sense for your special application/network

Q76:

How much portion of USDX is backed from crypto/fiat money ...& please mention why any trader, hodler will prefer USDX over other stable coins?

What are the biggest challenges you expect to face and how do you plan to overcome these challenges?

  • Answer: 150% of USDX or more is backed by crypto. Traders will use USDX because it offers a savings rate. This rate allows traders heding bitcoin or other assets to not only store value, but earn a return.

Q77:

What do you think about creating liquidity for the Kava project?

  • Answer: It's the biggest challenge. My hope is the savings rate USDX offers will give it natural organic demand over existing stable coins. It will definitely be a large BD process to get USDX listed and used worldwide.
  • We work with some of the worlds best market makers to seed liquidity today. But we will need organic demand in the long-term

Q78:

So many IEO projects consistently drop in price after listing. Whats different with KAVA, what are some special highlights?

  • Answer: Why is Kava based on Cosmos? Based on what considerations?

Q79:

How do you see the chinese language community? How do you view the opportunities for growth in the chinese community?

  • Answer: You will be soon listing on Binance, what are your plans on the business side after listing? In one years time, what are your thoughts on where Kava's development will be?

Q80:

If we take a look at all the different types of DeFi products/apps out there, including decentralized exchanges, stablecoins, atomic swaps, insurance products, lending platforms, trade financing platforms, custodial platforms, crowd investment platforms, etc, nearly cover all the important areas of traditional finance.

In this age of all these different platforms taking hold, where does Kava see itself appealing to its app developers, users, investors?

  • Answer: What does Kava do? What can a normal user (of crypto) achieve by using KAVA?

Q81:

How does Kava maintain the stability of its stablecoin? Are there any opportunities for outsiders to arbitrage or any other mechanisms to maintain price stabilization

  • Answer: What is the reason for the IEO price reaching 6x the first round private sale price? How did you come about to reaching this valuation?

Q82:

What would you be able to do more for Russian-speaking communities and regions?

  • Answer: one thing to keep in mind is that yes, we do have limitations and regulations to follow when it comes to certain countries and we will adhere to those regulations in hopes of proving ourselves to be a thoughtful and long-term solution. while we may not directly work with some countries, we hope that communities there can understand that we're here focused on being sustainable rather than another project around shorter-term gains.
  • for myself, I'm actually belarusian myself so I absolutely see the value of working in the CIS/Russian-speaking regions. we'll continue to do AMAs, interviews, and always engage with Russian-speaking communities to better understand what the #Q s, concerns, and thoughts.
  • If there's anything else we can do in this region and with the @gagarin_ico communities, please let us know!

Q83:

What are your major goals to archive in the next 3-4 years? Where can we KAVA ecosystem in this period? What are your plans to expand and gain more adoption?

Do you guys feel satisfied by seeing your progresses and achievements till now, when you look back to the day when you have started this project?

  • Answer: We want to really build out great DeFi products for the masses. I really believe that DeFi will be a major force to allow much more mass adoption for crypto over the coming years. In the sorter term, we want to push out our blockchain and build on top of that our CDP platform, which allows users to trustlessly put collateral onto the Kava blockchain, and receive a loan in USDX that will be also trustlessly administered.
  • We will then build out more complex products and financial derivatives for crypto users and traders. We have barely scratched the surface in what we can do with DeFi so I can't predict the future, but we want to build products that are pegged to BTC values so that traders have more leverage purely in crypto.

Q84:

Which one of your milestone do you think was difficult and which was the encouragement that courages you to achieve it?

What were the Minimum and Maximum limit of KAVA tokens that one can be able to STAKE after the Mainnet launch ? And What will be the percentage of reward one gets and will it in future ?

  • Answer: Good #Q ! Well we've been working on open source cross-chain technologies for a number of years and honestly it can be a pain. I think the Cosmos SDK made it significantly easier to implement the features that we wanted into the software.
  • I think the largest challenges for Kava are not software based but in market adoption. Makerdao is a great project and they have spearheaded a lot of the work in the lending field. Hopefully Kava can be a very meaningful contributor as well

Q85:

What if someone fails to repay the debt? Is that KAVA is taking collateral system to enterprise level & if so, what's the plan? How secure KAVA is to safely handle the collateral tokens?

  • Answer: These CDPs or "collateral debt positions" are always over-collateralized, which means you have to have more asset locked up in the bucket than you can draw from the bucket. The system leaves a margin when the collateral is 'called' to be able to sell off. If the asset cannot be fully redeemed KAVA is minted to cover the balance. Hence KAVA is a 'lender of last resort". This is why its important that we select good initially assets to support 👍

Q86:

I am very impressed with your voting method, how does it work? Whether users can vote to change things in the platform, are you a programmer with filters to decide what can be voted on and what is not possible?

  • Answer: Thanks. A lot of this was pioneered with the Tendermint team. Basically voting is entirely open and asynchronous, meaning anyone can submit a proposal to be voted on. All the project in the Cosmos ecosystem are working diligently to expand the space of variable or features that can be modified via this governance method in protocol. For example, we were the first to enable transactions directly via governance in our Testnet-2000!

Q87:

Where does the interest rate come from for holding USDX specifically & technically?

  • Answer: Great #Q ! Just like in MakerDAO, lenders of collateral (e.g. BTC, BNB) pay an annual interest rate to borrow USDX. A portion of that interest rate accretes to holders of KAVA, the rest we can apply a 'carrot' for users to adopt USDX. In short, Savings rate is loan interest rate less 'rents' collected from KAVA holders

Q88:

As far as I understand it KaVa is used both as a staking token and as collateral for Kava stablecoins (UsDX) .Can you talk a bit about the stability mechanism? Can other forms of collateral be used to create Kava stablecoins (a la Multi-Collateral Dai)?

  • Answer: KAVA will not be used as a collateral type in the CDPs. Collateral types will be assets exogenous to the system, like BTC and BNB. Of course BTC and BNB's value fluctuates. To make USDX not fluctate we ensure there is always more BTC or BNB in the CDP bucket than 'stable' USDX. Therefore BTC could increase or decrease a lot, as long as its less than the 'stable' debt of USDX that you have drawn, the system is healthy and functional 👌

Q89:

As far as I know, KAVA had 150 Validators in the test. Why do you have so much. Which conditions are your team based on to choose / invite them to stay decentralized, important for a Defi platform like KAVA?

  • Answer: KAVA mainnet will launch with a cap of 100 validators. We want as many validators as possible. The reason? What if KAVA was run by just you and me. Well that works if people trust us, but its pretty for us to collude and act maliciously. Its harder for 100 people to collude -- its still possible, but harder. And so we put a lot of effort in to promoting a healthy and large validator community, and empowering them to grow their stake in the system

Q90:

As a developer, which program languages can i use in kava core smart contracts?

2How secure your fully on-chain liquidity protocol & What's is a core Smart Contract ?can you briefly explain.

  • Answer: Yay developers! 🤓 The Cosmos SDK is currently written in Golang. So thats a good start. What other language would you like to work in?

Q91:

What do you think of DEFI in the Blockchain space?

DeFi brings many benefits to users, but conflicts of interests with the Bank. What is the solution of kava?

  • Answer: Defi to me is offering financial primates, the supplies of which are spreadout amongst many participants, as opposed to few. People offer loans on BTC today. Kava's goal is to maximize the amount of counterparties to any loan, thereby 'socializing' the returns on any activiely used financial product

Q92:

What is the crucial thing, in your opinion,that would increase adoption of KAVA and possibly the rest of crypto. What’s the KAVA economic model and how will it is architecture ensure scarcity of the token and help to growth token price?

Can you tell me more about the new technology that combines the benefits and interactive functions of Cosmos with the DeFi applications you have built?

  • Answer: Principly what I believe is 'new' about the KAVA tech stack is that we are building a standalone piece of software that treats other network techologies as 'first class citizens'. This means from the ground up our design is mean to easily incorporate and work with other software. A lot of blockchain is a story of "everyone will use my software, because its the best". Kava Labs worked for years against this view while bringing open Interledger to market.

Q93:

As Per Kava website ! $KAVA was done many partnerships with Big project like Ripple, Cosmos, TenderMint, Hashkey, etc ! So, whats the major reason and benefits of these partnerships to kava project?

Kava Project have their own Mainnet Blockchain So, whats the main work of Cosmos Blockchain in Kava ? Is Kava projects is on Both mainnet and Cosmos OR Kava is just using the Cosmos Blockchain services?

  • Answer: Working together. Pooling resources and talent to make something bigger! Crypto is still a little fish in a huge ocean of financial services. Kava Labs has always had an eye for inclusivity. Grow the pie!

Q94:

I have been too involved in KAVA's AMA, I think I know all about your technology.I want to ask a successful person like you why come with cryptocurrencies and blockchain, with talent. There are many other areas for you to choose, so why are you targeting such a risky market?

  • Answer: Successful ay? hehe. Depends how you define success and what your goals are. I love delivering products to users. Crypto has some fantastic users, and there is still sooo much to be built. I think KAVA has a lot of promise, but there is still so much work to be done and I hope users like you all become producers some day as well

Q95:

What's the most critical and innovative point of KAVA to ensure users that it is the best under DeFi niche?

How can you compete MakerDAO which has done good number of business with recent market! If I hold KAVA tokens how KAVA leverage the tokens value and make it moon for me? 🙈

  • Answer: "IF" you hold KAVA tokens now? 😂 Again I think this a markets concern. To the extend that users on other chains begin to trust KAVA brand for loan issuance, and we get some solid adoption of USDX I think we're in a good spot. I would say a benefit of KAVA is that we are FOCUSED. We're not trying to be everything for everyone. This is lending, quite simply, for the large market cap coins -- and that's hard enough

Q96:

Why KAVA needs to create it's own stable coin, whereas there are are many other options available in the market? Is that crypto tokens can be stable!!?

  • Answer: Yeah there are a lot of USD backed stable coins that is true. Indeed we have looked around with working together with a number of them. The difference with USDX (and DAI) is that its crypto-collateral backed. Doesnt mean we won't work with others in the future 😉

Q97:

Processing fees on loans we need to pay in kava or usdx?

Which types of success you've been seen in testnet? Why on Nov 5th you've planned to launch mainnet? How many testnet was processed in the past?

  • Answer: Three major testnets with some minor iterations therein. Testnet-3000's software was pinned to KAVA mainnet software. That testnet is looking good which is a good indicator for smooth sailing on mainnet launch, we'll see 🤞

Q98:

DeFi is a hot niche when it comes to crypto/blockchain project! Most of the projects are developing aiming DeFi, How KAVA is looking to contribute in DeFi ecosystem? What will be the approach of KAVA to systemize & increase adoptability?

  • Answer: DeFi is big. Mostly on Ethereum, which is great! KAVA is for non-ethereum networks 😇

Q99:

What is the main reason that you think that Cosmos-based Kava zone will present a new validator opportunity :- a complex and multi-faceted governance system that allows differentiation?

  • Answer: Validator #Q , nice. I believe its important for validators to be able to distiguish there service in multiple ways, not just on security (otherwise they will be treated as a commodity). KAVA present an opportunity for validators to distiguish themselves on the basis of proper governance of system parameters on behalf of their delegating constituents. KAVA is a "lender of last resort", so delegating to a sophisticated validator could lead to better results beyond security.

Q100:

How is kavas tendermint better than other defi consensus especially with the introduction of etheruem 2.0 which many believe will be better than all others - considering kavas association with ripple, is it possible to foresee defi loans from crypto to fiat ?

Maybe kava partnership with centralised banks?

  • Answer: IDK about that. But we will be working closely with the great folks over at Ripple, thats for sure!

Q101:

Adoption is one of the important factor that all sustainable blockchain projects should focus to be more attractive in the invertors' eyes.

Can you tell me what KAVA has done and plan to do to achieve Adoption in the reality, real use cases, our real society?

  • Answer: Bitcoin is real!? I'm continuously impressed by the demand and size of that network. Help us capture that demand! Really, if we can I think the future looks bright for KAVA!
submitted by Kava_Mod to KavaUSDX [link] [comments]

How and why on earth did cryptocurrency become what is is today and should we seriously do something aboout it?

My first thought is - rather fittingly - the genesis block of BTC. Specifically the message:
The Times 03/Jan/2009 Chancellor on brink of second bailout for banks

Today, over 10 years later, this kind of message might as well read:
Coindesk(dot)com xx/xx/2019 Crypto whales and miners on the brink of a second bailout for cryptocurrency exchanges

Bitfinex being perhaps the most iconic example. Losing 850 million USD just like that thanks to transnational government agencies, they faced a similar fate as banks in the housing crisis. Total wipe-out. Just like banks, these monolithic exchanges are too big to fail. Failure would mean a global financial crisis in crypto, much like mt.gox. Not that different from the banks that got bailed out by institutions, Bitfinex received the same treatment, except from whales, investment funds, rich corporate entities and such. They covered for the whole loss basically, allowing things to keep operational at least. There wasn't really any demand for another tether, so without it, it could have been an economic meltdown in crypto. Hearing about similar offers made by other rich entities operating in the crypto scene to Binance after their hack, I'm starting to think this has become an even bigger, more common thing with crypto exchanges than it has been with banks.
It's rich people in positions of power protecting their own interests, except that in the proper spirit of crypto, it's quite secretive, likely (pseudo)anonymous and way less transparent than what the central banks did. Due to the nature of this technology, it can be hard to grasp what the actions taken by Bitfinex mean. To my understanding, they minted a new coin, LEO (witty name for a token under these circumstances..) and basically just decided it's market cap is 1 billion, then in a private sale, managed to somehow pull off the biggest ever ICO in the history of crypto, 1 billion of funding in just 10 days for what appears to me as basically printing money in order to cover for accounting, as this exclusive club taking part in the sale of LEO committed into buying said tokens using the money Bitfinex previously printed in order to manipulate the markets and profit, USDT that is. Can't remember any ICO in the past where the minimum barrier for an individual to participate was 1 million dollars and for companies, groups, or funds 100+ million.

We traded the tyranny of the banking system for a system that eventually reached centralization of power to a much greater degree, accompanied with lack of regulation and oversight which we all welcomed. I have observed and participated in the scene for at least 9 years, so almost from the very beginning, seeing the rise of first altcoins for example and all the crazy phenomena which emerged and how the community dealt with them, evolving in the process. There has been a distinct pattern that can be traced back to these early days, where some group of people would figure out how to use this new technology in all kinds of creative ways which under normal circumstances would have been considered fraud, collusion... all kind of things we did NOT want. So when the majority aka victims became aware, we always protested accordingly. Pre-mined cloned coins that were hyped over social media only so the creators would profit? We decided they were worthless.
So these people, having a very lucrative way of essentially scamming people dreaming of moons came up with a solution: there will be no pre-mine, but coins were launched under the radar and only people with power (many BTC) were informed. In case you aren't familiar, when a new minable coin is released and there's only a handful of miners, a significant portion of the tokens in circulation are mined in an insanely fast manner, first 10% of total supply generated in a matter of hours perhaps, giving everyone who managed to mine on the day of launch a major advantage. We decided the secrecy was equally bad and they openly announced these coins, directing masses to use mining pools, only for them to be be under DDOS during the launch.

That pattern eventually evolved to ICO's and everything else we see today. Ripping people off in sophisticated enough ways that we put up with it. After all, we could always get lucky from the 'generous' pump & dump groups they were organizing and offering to us. The system may have changed, but the philosophy is the same: people with the most money either as individuals or a group exploiting 'lesser' people and groups, concentrating power (BTC) in the process much akin to 'rich get richer while poor get poorer'. 10 years onwards, thanks to the financial side (trading), the whole crypto economy is still not only using but dependent on market manipulation and all kinds of deceiving schemes.

This has been a major obstacle to wide-scale adoption, despite powerful people trying to convince us that manipulating prices to the level of a bubble will lead to people thinking this technology is great and start using it. In reality, many among the general population either had or started having doubts about these bitcoins. Imagine if they tried to sell internet and all of it's possibilities solely through nigerian prince scam spam.

Then there's the miners, one of if not the most powerful entity in cryptoscene as a whole. Naturally their power and influence only grew, significant investments were made. I remember conversations with some chinese guy mining LTC back in 2014, he was always like "Yay, the newest shipment of 300 AMD GPU's came straight out the factory". Must have had thousands. Asics had begun dominating BTC mining and they weren't cheap either. Not to mention all that electricity too. Where I'm leading you with this, is the current situation where we have established mining companies with ASICs dedicated solely to BTC mining for efficiency, probably pretty much useless for anything else. Valuations of 100's of millions if not billions at their peak. Then we realized how stupid it is to waste electricity like that when we could do it in a better way, Proof-of-Stake. Instant conflict of interest hindering further innovation due to competition instead of the opposite. The mining giants refuse to go out quietly and many have been mining BTC at a loss (electricity) for a long time now, effectively needing a pump to dump those mined BTC just to cover their operating costs in the past as they naturally didn't want to sell them at a loss.
Side-note: I think the current pump is due to a lot of BTC miners quitting and cashing out of BTC in a way that doesn't bankrupt them. To make matters force, they can effectively coerce both whales and crypto exchanges to co-operate in order to pump the prices because if the miners go out of business, everyone utilizing BTC for profit is in big trouble. So if they say they need a pump to dump, they get one. Bail-outs for miners too for christ sake.

Luckily, we have alternatives being heavily developed, but I fear for a financial meltdown for crypto before they reach a mature stage. Not a very popular subject to my knowledge, because in the near future, somebody has to pay the bill and this time it ain't covered by taxes collected. This awesome technology has been primarily abused and exploited, with people innovating in the are of 'get-rich-quick' schemes more than the technology itself. Ethereum was supposed to be a paradigm shift, but it became another instrument of the same scheme, even though it helped push tech forward some.

Remember that this is a time of decentralization. It's up to us, the collective, to do something about this if we want (or even can for that matter). Ironically, we stuck with the old mindset of 'just wait it out and The Man will fix it for us eventually' which was supposedly a thing of the past.

So I ask you: What are your opinions about the current state of affairs in crypto, especially the financial side? Do you feel it's all good and if so, why? Any and all input is welcome. Let's make the scene a better place and show good example to the pagans who doubt us due to our dubious practices in the past and even today, furthering acceptance and adoption instead of laser-point focus on profit to the point the system collapses.
submitted by RanCestor to CryptoCurrency [link] [comments]

Multicurrency Wallet DEXs will be the standard of the 2020s. The present status quo is an absolute joke.

Before I begin, I'd like to ask you a question. Why are so many of the most established people in crypto among the most closed-minded when it comes to talking about new ideas? Why is the crypto space more concerned with what a clown from Australia is lying about or petty figurehead drama than the hard work and effort of the good and lesser-known among them?
Let's talk about altcoins for a minute. It'd be a very tough job to count every single alt that's come in on a hypetrain and died in obscurity. If I were to guess that 95% of them failed, I wouldn't be surprised to hear that it was a conservative estimate and that the number is even higher. Indeed, it would be much easier to count the exceptions to the rule. To name a few - ETH, LTC, XMR, and (quite amusingly) DOGE.
Should the stubbornly high failure rate of alts justify writing them all off as garbage? Businesses have an incredibly high failure rate too. It would be foolish - outright silly, even - to say that the grocery store is a fraud and a scam because the aqua-saxophone jazzercise laundromat failed to live up to it's expectations. Maybe not, because this is exactly the way the crypto space is right now.
That line of thinking is the de facto standard in the cryptocurrency space right now - "guilty (of being a shitcoin) until proven innocent (by some central authority figure or big exchange who can validate it for us so we don't have to do it ourselves)". To be fair, there was an aggressive torrent of these "goofy laundromats" in 2017 and people are either hungover or shell-shocked from all the broken pipedreams and costly fiction. You'd think that the titans of this industry, particularly those who care more about the cypherpunk essence of Bitcoin than how rich they can get off of it, would be more receptive to the legitimate projects that are working in obscurity to harden the crypto space and it's infrastructure. Unfortunately, that does not seem to be the case. All too many seem to think that everything that needed to be built has already been built.
Considering that all the Bitcoin titans are somewhat newly-minted, the irony is remarkable. No one used to take Bitcoin seriously. The further back in time you go, the more it took lonely effort and independent research to truly grasp its ideas. This is still the case today. Most have heard of it but have no idea what it is or why it's important. Many who are fervently in PMs or traditional investments like stocks and bonds continue to deride it, even though it will go down as the best performing asset of the 2010s by far. Others are a little more aggressive and, despite a lack of knowledge, call it anything from a scam to "rat poison squared". Like anything else, it's foolish to make bold claims atop little to no education.
You'd think that treatment would make Bitcoin maximalists do some reflecting. Instead, a sizable number of them decided to emulate the ones who beat up on Bitcoin when it was small and irrelevant. "All you need is Bitcoin. Everything else is trash. I know what I'm talking about because I bought the top of the 2013 bubble and I'm probably immune to future dumps for life".
Now let's talk about where cryptocurrency infrastructure falls short. Bitcoin still retains the same cypherpunk essence that it's always had. The same can be said for Bitcoin wallets. They're secure. They allow for anonymous transactions. They run on an immutable blockchain. There is no central authority between a key-holder and their funds. Enter the exchanges. In a way, they were a necessary evil. Without them, adoption would be severely throttled. With them, Bitcoin is compromised.
For many, the privacy and anonymity that BTC is supposed to offers has been tossed out. It was the only way it could be retrofitted into a tightly-controlled system that demands KYC. While this has helped to spread adoption, Bitcoin has become more and more traceable. Quite ironically, many of these same exchanges that adopted KYC policies to "ensure accountability from their customers" had no trouble exit scamming.
They come and go. The old one gets hacked, or it exit scams, or proves itself to be corrupt and suspicious. A new one comes. This time it will be different. Then the cycle repeats itself. Mt. Gox. Bitfinex. Polo. Bittrex. Binance. They all had their time in the Sun.
These exchanges are in many ways the antithesis of the cypherpunk manifesto - vulnerable honeypots directly controlled by a centralized figurehead. Unsurprisingly, they cause a lot of unneeded trouble and give Bitcoin a ton of bad publicity. Example:
Me: "What do you think of Bitcoin?"
Co-worker: "Didn't that thing get hacked last week?"
Me: "Bitcoin didn't, but a place where it was exchanged was."
Co-worker: "I don't trust it. It's only a matter of time til they find out how to type in some numbers to make more show up on a screen blah blah blah."
You've all likely met someone like this and brushed them off as closed-mined, but they're exactly the type of person this industry needs to convince to further adoption. It will be next to impossible to do so with the way things are right now.
In order for Bitcoin to survive, it needs exchanges that are built to the same code that it was. The solution, therefore, is to "port" the cypherpunk essence of Bitcoin to the exchanges. Immutability. Anonymity. Privacy. No central authority of figurehead.
With all that said, let's talk about DEXs. I started a thread on here a few months back when Binance announced that they were giving Americans the boot. I got a ton of answers. It shows that, among the hardcore at least, there is a desire to go in a new direction. Loopring, IDEX, and Bisq were among the more popular choices.
It's a step in the right direction. However, these DEXs are still rather inaccessible - especially to outsiders. Performance wise, they're on the slower side of things. Due to these setbacks, they suffer from low volume. This is where some recent developments in multicurrency wallets with embedded DEXs from lesser-known projects will come out of obscurity and catch everyone by surprise.
Among them - I'd like to mention Stakenet Wallet and KMD's Atomic DEX. Both of them, now seemingly weeks away from launch, will allow for atomic swaps between a wide variety of coins directly from a private wallet. Stakenet goes a step further by offering atomic swaps running atop Lightning Network.
Why does this matter? These two platforms will be to exchanges what the inception of Bitcoin was to currency. Finally, after almost 9 years, Bitcoin not only has an exchange that truly honors its essence, but it's starting to see healthy competition between them.
To elaborate further on why this is very important.. No KYC. No accounts. No sending Bitcoin to an exchange and waiting around for it to show up. No downloading multiple wallets. No exchange figureheads. No withdrawal freezes. In Stakenet's case, the decentralized MN network that runs it's DEX will also act as a massive LN payment processor (routing, watchtowers) that provides a ton of liquidity for it while allowing Bitcoin to scale. "Lightning swaps" will provide every LN-based coin the ability to be instantly swapped to purchase anything in BTC. Stakenet will also feature a DEX aggregator that will pool together the orderbooks of numerous DEXs into one easily-accessible spot, boosting traffic to the many DEXs that are harder to reach and furthering their adoption along. Simply download a wallet like you would any other app and you're ready to get started. It's so much easier and more convenient. I don't see how or why CEXs and all their ilk (figurehead drama, geoblocking, exchange hacks, wash trading, currency manipulation, exit scams, etc) could remain relevant in the environment to come.
Regulation will not save us. Decentralization will. As long as one person learned something from this, it was all worth it. I welcome the opinions of everyone in this space.
submitted by ketchuma to CryptoCurrency [link] [comments]

BitcoinTaxes Podcast: Crypto Audits w/ Alex Kugelman

BitcoinTaxes Podcast Link
TLDR; Alex Kugelman, a tax controversy lawer, discusses crypto audits and how to avoid them.
Highlights:
IRS audits are a real possibility for anyone who has traded cryptocurrencies. Our guest today is Alex Kugelman, a tax controversy lawyer with an abundance of knowledge concerning cryptocurrency audits. He's here to share his expertise on IRS cryptocurrency audits, including risk reduction strategies as well as enforcement predictions and misconceptions.
Alex Kugelman specializes in IRS audits. His experience includes four years of Federal government court experience at the U.S. Tax Court and a U.S. District Court. [00:40]
Alex: I'm an attorney out in California. I clerked for a US District Court judge and as well as the United States Tax Court. I've been in private practice exclusively doing tax controversy work for the past five years or so. I kind of got involved with crypto towards the end of 2016. I tended to represent clients mainly with compliance & disclosure issues with respect to cryptocurrency. I just really like it. Really interesting area.
The Coinbase summons in 2018 played a major role in Alex's interest in crypto audits. [01:19]
Alex: What started me into the crypto space was when the IRS first issued summons for Coinbase. We started getting some interesting calls regarding that. And at that time I thought to myself, this might be an interesting area. So I started following the actual summons enforcement proceeding at the District Court here in San Francisco - from there kind of worked with people under different types of compliance, including international disclosures. Now we're starting to see some of the first cryptocurrency audits come through.
First, let's get a brief rundown of how IRS audits work. [02:00]
Alex: It is important to understand the IRS as an administrative agency and all different layers of it. So when it comes to an audit the term that the IRS uses is an examination and there's three basic levels.
The first is a correspondence exam. That's where you get a letter that says, dear taxpayer, so-and-so reported that you had $100 of interest income that wasn't on your tax return - we're going to increase your tax. If you want to challenge that, you can. And that's basically termed an under reporter notice. That's probably not going to be a cryptocurrency audit if you get that notice.
The next one is an office exam. That is someone in the local IRS office sending you a letter that says, we have selected a certain tax return for audit and we're going to look at these issues. We'd like you to call us to schedule an appointment. That's going to be usually a tax compliance officer that is doing that.
The third and probably the most serious level of exam is a field examination. That's also going to be a local IRS representative, typically a revenue agent. There, the revenue agent may come to your work or ask come to your work or business to kind of conduct the audit.
All three of those are going to start the same: a letter that's sent to you at your most recent address provided to the IRS.
Cryptocurrency audits follow a similar protocol. [05:40]
Alex: I think it's likely that most crypto audits are going to start with one of two things happening. One is that there is information from the Coinbase summons that is inconsistent with what was on a taxpayer's tax return. I think for someone who's involved with that issue, they're going to have a good sense of that one because they should've gotten an email notice from Coinbase.
Or two, the audit notice is going to identify older tax years - 2013, 2014 or 2015 because those are the years that the information related to.
Another reason I think people will get audited is going to be because information on the return is incomplete, in the sense that the taxpayer or the cryptocurrency owner reports some transactions, without enough detail to figure out the actual cost basis.
Does reporting your data in an aggregated fashion increase your chances of being audited? [06:45]
Alex: I mean one - to the extent that there's going to be a lot of taxpayers - a lot of people use TurboTax, right? If that's the way TurboTax is preparing all of those returns, it would seem to me you're kind of in a herd of people like that. And at least it's consistent with what a lot of people are doing. The second part of that is going to be at least those people who have prepare the returns in that manner, they're going to, or should have, the underlying data. So even if it's an aggregate reporting of each asset class as opposed to each individual trade, if there ever were questions then you're going to have your CSV files, you're going to have your Bitcoin.tax exports, you're going to have all the information that you need to back that up.
Alex is an advocate of over-reporting your information to the IRS. [09:30]
Alex: I'm a big proponent of over-reporting - and I don't mean paying too much tax. I just mean including too much information. Because at some point there's kind of two ways that your returned can be flagged: a computer flags the return for some reason or there's a special unit or a person who actually flags it. At the end of the day, a human being will be looking at that return and deciding whether it actually is going to go all the way through to an audit. I want them to completely understand what's being reported, why it's been reported, and if there's too much information, that's fine - it's less likely that someone's going to have more questions.
A crypto audit is very likely to be a field exam - and it's important to hire a good rep. [11:00]
Alex: It's very likely going to be a field exam, which means you're going to have a revenue agent - and those are kind of the best of the best auditors for an IRS audit. And remember - an IRS audit is a civil matter. It is not criminal at this point. Again, it's unlikely that it will become criminal. It is, however, the highest level of audit you're going to get.
If you're going to hire a representative, which you have every right to do, you should contact that person, let them know what's going on and probably have them interface with the auditor. You should receive, as part of the opening notice or letter, the information document request - which is identifying what things to bring for the auditor. Also, it'll tip to what topics might be important. For example the typical things you're going to see will be bank statements, financial or asset account statements, which I view as requesting exchange statements or exchange CSV files. Any documents that show the cost basis for your cryptocurrency trades.
Audits are more art than science. [13:35]
Alex: The auditor has a fair amount of power. So if you play real hardball - that's not going to prevent the auditor from expanding to other years. So when you get that audit notice ,and let's say that you're going to deal with this yourself, the first thing you want to kind of figure out is what are the areas that I wouldn't want to go into, and what are the areas that I don't have good records? That will help guide the way to respond or what information to pull together.
The reality is, and let's just be honest here - for most people reporting cryptocurrency gains, they have all of the information. The IRS does not have much. They might have some records from Coinbase, but it's not as if they have a treasure trove of third party data.
The burden is really going to be, in every audit, on the taxpayer to prove their tax return is correct.
It's difficult to say how lenient the IRS will be regarding past years. [15:35]
Alex: I think the way that I would look at it is that maybe the standard of of records required to really substantiate older years might be a little bit lower for older years as opposed to now because it's different now. There's a lot better information provided by some of the exchanges. There's a lot more software out there to help you, especially for people who are newer to crypto. You should have access to all your bank records. You should still have a lot of emails, reflecting on-ramping off-ramping, or other purchases. You should be able to kind of pull this all together.
I can understand when we have clients who come in and are early adopters and they're missing chunks of information. So I do think that in those types of circumstances, yes, I think there would be a little bit of leniency. But I don't think if you're asking, hey, I reported my gains in 2017 but I never really did it 14, 15 or 16 - I don't think that's going to be viewed very favorably.
It is possible to substantiate your data without all of your records. [19:00]
Alex: I think the first thing is, I mean, outside of cryptocurrency and just generally in audits, how many people have complete records to support everything on their tax return from three years ago? Right? It's just not the reality.
The best source of information in a lot of these cryptocurrency clients are the clients themselves. They kind of know what they did and they can remember. There's some who take good notes and other people don't, but as you go through and ask people: what exchanges have you've been on, what type of coins, if you bought any ICOs, have you ever sold for actual US cash, and have you ever bought goods or services? As you talk through things people tend to recall what happened. We use that information and we cross check that against bank statements, as well as CSV files, to pick out what those transactions look like.
Most people have some sort of records, at least reflecting the transfer in and the transfer back out of that exchange. So you can use historical data and historical pricing information to essentially estimate what that transaction would have been. And then what we do is we provide a written statement summary of what we're doing and why we're doing it.
The other big one that we see all the time - and anybody listening to this, please hear this, do not trade for your friends on your exchange accounts - because that type of commingling causes such major problems. Essentially you are walking into those taxable gains just because you're allowing someone access to the exchange to make sales.
If you need representation for an audit, get representation. [23:00]
Alex: My general rule is that I think experienced representatives are really important. I probably would not hire the CPA that prepared my return unless they were: one, experienced with being a representative in audits. And two, you felt comfortable that they weren't going to go in there with a conflict of interest. But I do think if you're worried about going into audit - hiring a skilled, and experienced rep is really, really important.
If they're experienced with this, they should understand the appropriate ethical standards and go in there and essentially help resolve portions of the audit and move it to a resolution that you can deal with.
Taxpayers actually have a lot of leverage in an audit. And that sounds crazy to say, but there is a lot of truth to that. And so as you're kind of working through the audit itself, you want to make sure that you're not just agreeing to something to be done with it. You're not agreeing to something just because you think that you'll get in more trouble or get a worse result otherwise.
There are important risk-reduction strategies you can utilize to avoid a crypto audit. [28:15]
Alex: The first thing that you really want to do, is just assess; for those of you that are really worried about an audit - just assess what it is you've actually done over the years. When did you start trading, what exchanges were you on, do you have records that reflect on-ramping and off-ramping? And that's going to be your bank account statements. Do you know where you've been, what exchanges you've been on?
For foreign exchanges, there may not be as much of that AML & KYC compliance, but I really believe that you do have reporting requirements under FATCA for FBAR and something called an 8938, which if you listen to the podcast with Tyson, he kind of explains what that is. But it's basically if you have ownership of a foreign bank account or asset, you have certain reporting requirements, whether you've had income or not.
You want to make sure you at least track when you've actually exchanged crypto for cash or vice versa. That's partly because that's one of those areas where when people can get in trouble with some sort of federal investigators - because those types of transactions can be potentially considered money laundering.
For those who believe that they've used like-kind exchange rules to defer taxable gains -you should look on your tax returns to see if you filed the form 8824, which is where like kind exchanges are actually reported. That kind of goes back to the over reporting issue I was talking about before. I think that if you didn't report the actual trades that you're taking like-kind treatment for in past years, I don't know that you've actually taken like-kind treatment to be frank with you. I think, objectively, that might be viewed as just not reporting certain transactions.
You want to make sure that you address these issues sooner rather than later.
1099-K forms can be misleading - to the recipient and, potentially, the auditor. [32:40]
Alex: A 1099-K is actually a merchant processing third party information returns. And it really is typically associated with people who have credit card sales - so it's going to reflect a gross amount and typically on a monthly basis.
It shows the gross amount and what I've seen too is that sometimes transfers actually get caught into that amount as well. So it's not even just gross sales or purchases - it may have other information. So the 1099-K can be really inflated. That's why reconciling that against accounting records is really, really important because that is one of those issues that I think could lead to an exam.
To those who think crypto isn't beholden to tax laws: you are not correct. [37:38]
Alex: The current commissioner of the IRS is Charles Rettig, and he's a really well known practitioner in tax controversy. I know from people that know him well, that he's actually mentioned Reddit as one of the reasons that cryptocurrency enforcement is his number one enforcement priority right now.
The other person that I've seen speak a couple of times is the head of the IRS Criminal Investigation Unit. His name is Don Fort and every year he does a presentation at the National Tax Controversy and Criminal Tax Conference. The last two years cryptocurrency has been number two and number one on his list. As much as the IRS lacks the funding and the manpower that it needs for all the enforcement, the IRS CI are really, really good and they are probably best agency at dealing with cryptocurrency enforcement issues.
I really think that it's gaining steam and I think once the audits from the Coinbase summons kind of get going, I think it's going to be a really scrutinized area. I think the people who have gone through the cost and the pain of disclosing and amending returns and doing everything they can will be happy that they did in a couple of years. I think the other people are going to be sweating it out - I don't know if it's ever really worth it to be honest with you. I would recommend people do their best to get in compliance.
In summary: do your best to report your crypto gains and losses - and don't try to pull one over on the IRS. [42:36]
Alex: For people who have potential issues with past years, one is getting a consistent record and just amending your past years, so they're consistent.
For people who have the foreign account issues - let's just say, for example, had an account with Binance, and that Binance account was never reported. The IRS has disclosure programs that allow you to amend certain returns, pay the tax that you report and pay a penalty, which would be 5% of the the highest account value that you have.
For people who don't want to deal with this, I think taking evasive steps is the best way to get the worst result possible. One of the things that I learned very early in dealing with audits and tax compliance, is that you can always make things worse. I think you really just want to address it and resolve the issue while you have a good opportunity.
We may see criminal prosecution of some of the "big fish" tax evaders from the Coinbase summons. [46:43]
Alex: Yeah, and I think the two things that I'm fairly certain we're going to see: one is we're going to see the IRS use the information provided by Coinbase to start auditing the biggest account holders from that period. I think that's very likely.
Probably the second one that I would say is very likely is that you're going to see limited criminal prosecutions related to cryptocurrency. And these are going to be people that have some sort of level of notoriety, whether actually famous or maybe famous in the cryptocurrency world. That's typically how the IRS and Department of Justice uses limited resources to prosecute criminal tax tax crimes.
Alex is a great guy to reach out to with any audit-related questions, crypto or otherwise. [48:50]
Alex: You can go to my website: www.kugelmanlaw.com. You can email me at [email protected]. I have clients all over the country, international clients. If you need any sort of help, whether that's representing you, or at least doing the nitty gritty audit investigation, we're always willing to talk to people and help them out as best we can.

If you enjoyed our podcast, be sure to check back frequently for more great discussions about a range of topics in the crypto space. If you have any questions for Alex Kugelman, or want to schedule a consultation with him, he can be reached via his website www.kugelmanlaw.com, or via email at [email protected].
If you would like to request a topic for an interview, or have any questions related to this podcast, be sure to reach out to us at [email protected].
submitted by Sal-BitcoinTax to bitcointaxes [link] [comments]

Bitcoin & IRS Auditing - A Podcast Discussion

I recently interviewed Alex Kugelman, a tax controversy lawyer - I asked him about IRS audits in relation to crypto trading. Below is a link to the podcast interview itself, as well as a summary I wrote up. Thought this would be a good place to post (let me know if I'm wrong about that).
BitcoinTaxes Podcast Link

Highlights:
IRS audits are a real possibility for anyone who has traded cryptocurrencies. Our guest today is Alex Kugelman, a tax controversy lawyer with an abundance of knowledge concerning cryptocurrency audits. He's here to share his expertise on IRS cryptocurrency audits, including risk reduction strategies as well as enforcement predictions and misconceptions.
Alex Kugelman specializes in IRS audits. His experience includes four years of Federal government court experience at the U.S. Tax Court and a U.S. District Court. [00:40]
Alex: I'm an attorney out in California. I clerked for a US District Court judge and as well as the United States Tax Court. I've been in private practice exclusively doing tax controversy work for the past five years or so. I kind of got involved with crypto towards the end of 2016. I tended to represent clients mainly with compliance & disclosure issues with respect to cryptocurrency. I just really like it. Really interesting area.
The Coinbase summons in 2018 played a major role in Alex's interest in crypto audits. [01:19]
Alex: What started me into the crypto space was when the IRS first issued summons for Coinbase. We started getting some interesting calls regarding that. And at that time I thought to myself, this might be an interesting area. So I started following the actual summons enforcement proceeding at the District Court here in San Francisco - from there kind of worked with people under different types of compliance, including international disclosures. Now we're starting to see some of the first cryptocurrency audits come through.
First, let's get a brief rundown of how IRS audits work. [02:00]
Alex: It is important to understand the IRS as an administrative agency and all different layers of it. So when it comes to an audit the term that the IRS uses is an examination and there's three basic levels.
The first is a correspondence exam. That's where you get a letter that says, dear taxpayer, so-and-so reported that you had $100 of interest income that wasn't on your tax return - we're going to increase your tax. If you want to challenge that, you can. And that's basically termed an under reporter notice. That's probably not going to be a cryptocurrency audit if you get that notice.
The next one is an office exam. That is someone in the local IRS office sending you a letter that says, we have selected a certain tax return for audit and we're going to look at these issues. We'd like you to call us to schedule an appointment. That's going to be usually a tax compliance officer that is doing that.
The third and probably the most serious level of exam is a field examination. That's also going to be a local IRS representative, typically a revenue agent. There, the revenue agent may come to your work or ask come to your work or business to kind of conduct the audit.
All three of those are going to start the same: a letter that's sent to you at your most recent address provided to the IRS.
Cryptocurrency audits follow a similar protocol. [05:40]
Alex: I think it's likely that most crypto audits are going to start with one of two things happening. One is that there is information from the Coinbase summons that is inconsistent with what was on a taxpayer's tax return. I think for someone who's involved with that issue, they're going to have a good sense of that one because they should've gotten an email notice from Coinbase.
Or two, the audit notice is going to identify older tax years - 2013, 2014 or 2015 because those are the years that the information related to.
Another reason I think people will get audited is going to be because information on the return is incomplete, in the sense that the taxpayer or the cryptocurrency owner reports some transactions, without enough detail to figure out the actual cost basis.
Does reporting your data in an aggregated fashion increase your chances of being audited? [06:45]
Alex: I mean one - to the extent that there's going to be a lot of taxpayers - a lot of people use TurboTax, right? If that's the way TurboTax is preparing all of those returns, it would seem to me you're kind of in a herd of people like that. And at least it's consistent with what a lot of people are doing. The second part of that is going to be at least those people who have prepare the returns in that manner, they're going to, or should have, the underlying data. So even if it's an aggregate reporting of each asset class as opposed to each individual trade, if there ever were questions then you're going to have your CSV files, you're going to have your Bitcoin.tax exports, you're going to have all the information that you need to back that up.
Alex is an advocate of over-reporting your information to the IRS. [09:30]
Alex: I'm a big proponent of over-reporting - and I don't mean paying too much tax. I just mean including too much information. Because at some point there's kind of two ways that your returned can be flagged: a computer flags the return for some reason or there's a special unit or a person who actually flags it. At the end of the day, a human being will be looking at that return and deciding whether it actually is going to go all the way through to an audit. I want them to completely understand what's being reported, why it's been reported, and if there's too much information, that's fine - it's less likely that someone's going to have more questions.
A crypto audit is very likely to be a field exam - and it's important to hire a good rep. [11:00]
Alex: It's very likely going to be a field exam, which means you're going to have a revenue agent - and those are kind of the best of the best auditors for an IRS audit. And remember - an IRS audit is a civil matter. It is not criminal at this point. Again, it's unlikely that it will become criminal. It is, however, the highest level of audit you're going to get.
If you're going to hire a representative, which you have every right to do, you should contact that person, let them know what's going on and probably have them interface with the auditor. You should receive, as part of the opening notice or letter, the information document request - which is identifying what things to bring for the auditor. Also, it'll tip to what topics might be important. For example the typical things you're going to see will be bank statements, financial or asset account statements, which I view as requesting exchange statements or exchange CSV files. Any documents that show the cost basis for your cryptocurrency trades.
Audits are more art than science. [13:35]
Alex: The auditor has a fair amount of power. So if you play real hardball - that's not going to prevent the auditor from expanding to other years. So when you get that audit notice ,and let's say that you're going to deal with this yourself, the first thing you want to kind of figure out is what are the areas that I wouldn't want to go into, and what are the areas that I don't have good records? That will help guide the way to respond or what information to pull together.
The reality is, and let's just be honest here - for most people reporting cryptocurrency gains, they have all of the information. The IRS does not have much. They might have some records from Coinbase, but it's not as if they have a treasure trove of third party data.
The burden is really going to be, in every audit, on the taxpayer to prove their tax return is correct.
It's difficult to say how lenient the IRS will be regarding past years. [15:35]
Alex: I think the way that I would look at it is that maybe the standard of of records required to really substantiate older years might be a little bit lower for older years as opposed to now because it's different now. There's a lot better information provided by some of the exchanges. There's a lot more software out there to help you, especially for people who are newer to crypto. You should have access to all your bank records. You should still have a lot of emails, reflecting on-ramping off-ramping, or other purchases. You should be able to kind of pull this all together.
I can understand when we have clients who come in and are early adopters and they're missing chunks of information. So I do think that in those types of circumstances, yes, I think there would be a little bit of leniency. But I don't think if you're asking, hey, I reported my gains in 2017 but I never really did it 14, 15 or 16 - I don't think that's going to be viewed very favorably.
It is possible to substantiate your data without all of your records. [19:00]
Alex: I think the first thing is, I mean, outside of cryptocurrency and just generally in audits, how many people have complete records to support everything on their tax return from three years ago? Right? It's just not the reality.
The best source of information in a lot of these cryptocurrency clients are the clients themselves. They kind of know what they did and they can remember. There's some who take good notes and other people don't, but as you go through and ask people: what exchanges have you've been on, what type of coins, if you bought any ICOs, have you ever sold for actual US cash, and have you ever bought goods or services? As you talk through things people tend to recall what happened. We use that information and we cross check that against bank statements, as well as CSV files, to pick out what those transactions look like.
Most people have some sort of records, at least reflecting the transfer in and the transfer back out of that exchange. So you can use historical data and historical pricing information to essentially estimate what that transaction would have been. And then what we do is we provide a written statement summary of what we're doing and why we're doing it.
The other big one that we see all the time - and anybody listening to this, please hear this, do not trade for your friends on your exchange accounts - because that type of commingling causes such major problems. Essentially you are walking into those taxable gains just because you're allowing someone access to the exchange to make sales.
If you need representation for an audit, get representation. [23:00]
Alex: My general rule is that I think experienced representatives are really important. I probably would not hire the CPA that prepared my return unless they were: one, experienced with being a representative in audits. And two, you felt comfortable that they weren't going to go in there with a conflict of interest. But I do think if you're worried about going into audit - hiring a skilled, and experienced rep is really, really important.
If they're experienced with this, they should understand the appropriate ethical standards and go in there and essentially help resolve portions of the audit and move it to a resolution that you can deal with.
Taxpayers actually have a lot of leverage in an audit. And that sounds crazy to say, but there is a lot of truth to that. And so as you're kind of working through the audit itself, you want to make sure that you're not just agreeing to something to be done with it. You're not agreeing to something just because you think that you'll get in more trouble or get a worse result otherwise.
There are important risk-reduction strategies you can utilize to avoid a crypto audit. [28:15]
Alex: The first thing that you really want to do, is just assess; for those of you that are really worried about an audit - just assess what it is you've actually done over the years. When did you start trading, what exchanges were you on, do you have records that reflect on-ramping and off-ramping? And that's going to be your bank account statements. Do you know where you've been, what exchanges you've been on?
For foreign exchanges, there may not be as much of that AML & KYC compliance, but I really believe that you do have reporting requirements under FATCA for FBAR and something called an 8938, which if you listen to the podcast with Tyson, he kind of explains what that is. But it's basically if you have ownership of a foreign bank account or asset, you have certain reporting requirements, whether you've had income or not.
You want to make sure you at least track when you've actually exchanged crypto for cash or vice versa. That's partly because that's one of those areas where when people can get in trouble with some sort of federal investigators - because those types of transactions can be potentially considered money laundering.
For those who believe that they've used like-kind exchange rules to defer taxable gains -you should look on your tax returns to see if you filed the form 8824, which is where like kind exchanges are actually reported. That kind of goes back to the over reporting issue I was talking about before. I think that if you didn't report the actual trades that you're taking like-kind treatment for in past years, I don't know that you've actually taken like-kind treatment to be frank with you. I think, objectively, that might be viewed as just not reporting certain transactions.
You want to make sure that you address these issues sooner rather than later.
1099-K forms can be misleading - to the recipient and, potentially, the auditor. [32:40]
Alex: A 1099-K is actually a merchant processing third party information returns. And it really is typically associated with people who have credit card sales - so it's going to reflect a gross amount and typically on a monthly basis.
It shows the gross amount and what I've seen too is that sometimes transfers actually get caught into that amount as well. So it's not even just gross sales or purchases - it may have other information. So the 1099-K can be really inflated. That's why reconciling that against accounting records is really, really important because that is one of those issues that I think could lead to an exam.
To those who think crypto isn't beholden to tax laws: you are not correct. [37:38]
Alex: The current commissioner of the IRS is Charles Rettig, and he's a really well known practitioner in tax controversy. I know from people that know him well, that he's actually mentioned Reddit as one of the reasons that cryptocurrency enforcement is his number one enforcement priority right now.
The other person that I've seen speak a couple of times is the head of the IRS Criminal Investigation Unit. His name is Don Fort and every year he does a presentation at the National Tax Controversy and Criminal Tax Conference. The last two years cryptocurrency has been number two and number one on his list. As much as the IRS lacks the funding and the manpower that it needs for all the enforcement, the IRS CI are really, really good and they are probably best agency at dealing with cryptocurrency enforcement issues.
I really think that it's gaining steam and I think once the audits from the Coinbase summons kind of get going, I think it's going to be a really scrutinized area. I think the people who have gone through the cost and the pain of disclosing and amending returns and doing everything they can will be happy that they did in a couple of years. I think the other people are going to be sweating it out - I don't know if it's ever really worth it to be honest with you. I would recommend people do their best to get in compliance.
In summary: do your best to report your crypto gains and losses - and don't try to pull one over on the IRS. [42:36]
Alex: For people who have potential issues with past years, one is getting a consistent record and just amending your past years, so they're consistent.
For people who have the foreign account issues - let's just say, for example, had an account with Binance, and that Binance account was never reported. The IRS has disclosure programs that allow you to amend certain returns, pay the tax that you report and pay a penalty, which would be 5% of the the highest account value that you have.
For people who don't want to deal with this, I think taking evasive steps is the best way to get the worst result possible. One of the things that I learned very early in dealing with audits and tax compliance, is that you can always make things worse. I think you really just want to address it and resolve the issue while you have a good opportunity.
We may see criminal prosecution of some of the "big fish" tax evaders from the Coinbase summons. [46:43]
Alex: Yeah, and I think the two things that I'm fairly certain we're going to see: one is we're going to see the IRS use the information provided by Coinbase to start auditing the biggest account holders from that period. I think that's very likely.
Probably the second one that I would say is very likely is that you're going to see limited criminal prosecutions related to cryptocurrency. And these are going to be people that have some sort of level of notoriety, whether actually famous or maybe famous in the cryptocurrency world. That's typically how the IRS and Department of Justice uses limited resources to prosecute criminal tax tax crimes.
Alex is a great guy to reach out to with any audit-related questions, crypto or otherwise. [48:50]
Alex: You can go to my website: www.kugelmanlaw.com. You can email me at [email protected]. I have clients all over the country, international clients. If you need any sort of help, whether that's representing you, or at least doing the nitty gritty audit investigation, we're always willing to talk to people and help them out as best we can.
---
If you would like to request a topic for an interview, or have any questions related to this podcast, you can reach out to me at [email protected].
submitted by Sal-BitcoinTax to btc [link] [comments]

LIVE Beijing Conference June 22, 2017: English Translation

Me and my partner are going to do English play by play here. Tickets were around 570 each, so if you found this helpful , please donate.
2:10 Checked in. Around 100 guests attending so far. Conference should officially start in 20 mins.
2:30 Conference started. Currently in the Microsoft Beijing Office Lobby. Just introductions so far. The video trailer they played before the conference was quite impressive and in English.
2:32 srikanth Raju is speaking in English. You guys are good for this part. Big point: Microsoft believes in a heterogeneous Blockchain environment for Azure. Mentioned​ Ethereum specifically coexisting with antshares.
2:41 Skipped Jiang Li, Microsoft senior consultant's section for some reason.
2:45 Feng han is talking about the rise of alipay and transactions becoming electronic. Believes that full automation is the next step. Alibaba is still only half automated in their logistics. Huawei is interested in building smart cities, and will need blockchain. Note: they aren't announcing a partnership. Just talking about it.
2:51 Feng han talking about current internet infrastructure not being safe for the futures smart infrastructure. Then talked about a class offered by a genius cryptography professor, wangxiaoyun at tsinghua. Made a joke about 300x returns since ICO.
2:57 Hongfei Da. Talking about bitcoin and history of crypto. Now talking about founding of Antshares. Discussing dBFT and consensus briefly. Now talking about ICO. State of AntShares: 432 nodes, 1058300 blocks, main env running for 150 days. 352 stars on GitHub. LOL talking about this subreddit specifically now. Coinmarketcap ranking.
All assets will be digitized. Two categories: 1. Proof of existence is on the blockchain. 2. Off chain physical assets like IDs, bikeshare locks, intellectual property.
Spirit of blockchain isn't decentralization. It is transparency and fairness via publicly agreed upon rules and data.
Mantra: digital asset + digital ID + smart contract = smart economy.
REBRANDING: NEO smart economy. Green logo
Neo contracts with C#, Java/kotlin, python, go
NeoX is like an interledger protocol
NeoQ is quantum safe encryption
NeoFS is a new database layer
Emphasized ecosystem partnership with bancor agrello matchpool
Missed some points because too fast. Will go back later.
3:28 innospace CEO talking. Selected AntShares to join a pool of 10 companies out of 800 applicants. Best companies get 100x growth. Talked about Neo contracts active dev community and emphasized fintrch fundamental paper.
3:35 Alex norta from agrello. English speaking. Introducing the agrello platform currently. Announced new white paper finished today and ICO occurring now.
3:43 Adam from Coindash. Marketing Coindash as a onestop crypto portfolio that enables social trading and facilitates ICOs. Gives test runs for ICOs and let's you gauge interest. Announcing foray into China with close partnership with NEST partnership.
3:59 they made a reference to the matrix where they all pushed buttons and the screen said, WAKE UP NEO
4:00 break for 30 mins
4:31 restarting. CTO of AntShares speaking. Explaining smart contracts. Telling a story about Coke vending machine software executing a smart contract, except it ate his money because of a malicious party blocking the coin entry. Blockchain is necessary to allow smart contracts to be executed fairly.
Neo is different from Eth and fabric because it has static contract calls, deterministic blockchain network calls, and uses oracle's instead of internet API calls. Example, different nodes will have different Google search results based off of IP location.
NeoVM vs EthVM vs Docker Dyanmic sharding for NeoVM makes parallel processing scale better than EVM which has static sharding. Variables in NeoVM are determined beforehand and then the sharding is done before computation as opposed to EVM which divides work inflexibly.
EVM has high coupling (bad). NVM has low coupling like docker. Execution of contracts depends too much on the nodes and blockchain. This point wasn't too clear. Coupling seems to be a concept that people don't talk about often. Sounds like he was saying that you need to run eth smart contracts on a test blockchain environment while NeoVM allows you to test and run code independent of blockchain.
Microsoft offers IDE plugins and compilers to help people develop on the Neo platform.
Digital certificate issuance and asset digitization are supported in Neo but not inherently in Eth.
Storage layer for contracts is built into Neo. You can give authorization for others to read or write your contract storage space. Also, if your contract has a bug, you can take the data and migrate it to a patched contract. Lastly, allows rental of storage space for contracts. No support for any of the three points above in EVM.
Giving example of locking an account for a period of time. Showing decentralized domains. Sounds a lot like Eth name service.
5:21 bijie tech CEO. Talking about Binance ICO. Introducing the Binance team. Binance is a coin to coin centralized exchange. Made a joke about not wanting to ICO but did it after seeing everyone elses valuations.
5:35 fangzhou charity entrepreneur. Became a multimillionaire after getting some ANS.
Money is freedom. Now wants to give charity loans to kids that need an operation but parents don't have the money. Because of new Chinese laws only 113 out of 500 NGOs can receive donation money. Therefore the market for charity is undersupplied by organizations that can use the money.
5:46 xiaobai medical founder
No fixed location, employees or resources. Wants to make a medical system where people record their illnesses and compare outcomes with other patients to determine what is the best treatment. Can also match patients with doctors. Sounds like a combo of ZocDoc and patientory.
5:55 nest smart fund founder
Problems of most funds are lack of liquidity, inability to participate in the invested company, and high management cost.
DAO on ethereum was hacked, but NEST wants to do what DAO does but more safely and more transparently. They choose C# ( made a joke about being at Microsoft and using C#).
Going to make a nest coin that is redeemable for some of the coins that the project backs.
.................................
Questions:
what's going to happen to ANS?
AntShares will retire and get redistributed as NEO in the new wallet software. You don't have to do anything. No reissue so investors don't get screwed. Exchanges will get contacted automatically.
How many devs do you have now?
2 full time devs. They are going to offer NEO bounties on code and hire more.
New exchange announcement?
Binance
.................................
DONE
.,..............................
ETH donation address: 0x92CBE3Ae9ECB30Fa52BE536d55616571380c43b5
LTC donation address: LZXsdjZJJBWpAx7VQmQ4turVrvgBJwguru
ANS donation address: ARA25KDeQMbcR7nAAjTbbnf3pkW98etD2U
submitted by miaharles to Antshares [link] [comments]

Crypto and the Latency Arms Race: Crypto Exchanges and the HFT Crowd

Crypto and the Latency Arms Race: Crypto Exchanges and the HFT Crowd


News by Coindesk: Max Boonen
Carrying on from an earlier post about the evolution of high frequency trading (HFT), how it can harm markets and how crypto exchanges are responding, here we focus on the potential longer-term impact on the crypto ecosystem.
First, though, we need to focus on the state of HFT in a broader context.

Conventional markets are adopting anti-latency arbitrage mechanisms

In conventional markets, latency arbitrage has increased toxicity on lit venues and pushed trading volumes over-the-counter or into dark pools. In Europe, dark liquidity has increased in spite of efforts by regulators to clamp down on it. In some markets, regulation has actually contributed to this. Per the SEC:
“Using the Nasdaq market as a proxy, [Regulation] NMS did not seem to succeed in its mission to increase the display of limit orders in the marketplace. We have seen an increase in dark liquidity, smaller trade sizes, similar trading volumes, and a larger number of “small” venues.”
Why is non-lit execution remaining or becoming more successful in spite of its lower transparency? In its 2014 paper, BlackRock came out in favour of dark pools in the context of best execution requirements. It also lamented message congestion and cautioned against increasing tick sizes, features that advantage latency arbitrageurs. (This echoes the comment to CoinDesk of David Weisberger, CEO of Coinroutes, who explained that the tick sizes typical of the crypto market are small and therefore do not put slower traders at much of a disadvantage.)
Major venues now recognize that the speed race threatens their business model in some markets, as it pushes those “slow” market makers with risk-absorbing capacity to provide liquidity to the likes of BlackRock off-exchange. Eurex has responded by implementing anti-latency arbitrage (ALA) mechanisms in options:
“Right now, a lot of liquidity providers need to invest more into technology in order to protect themselves against other, very fast liquidity providers, than they can invest in their pricing for the end client. The end result of this is a certain imbalance, where we have a few very sophisticated liquidity providers that are very active in the order book and then a lot of liquidity providers that have the ability to provide prices to end clients, but are tending to do so more away from the order book”, commented Jonas Ullmann, Eurex’s head of market functionality. Such views are increasingly supported by academic research.
XTX identifies two categories of ALA mechanisms: policy-based and technology-based. Policy-based ALA refers to a venue simply deciding that latency arbitrageurs are not allowed to trade on it. Alternative venues to exchanges (going under various acronyms such as ECN, ATS or MTF) can allow traders to either take or make, but not engage in both activities. Others can purposefully select — and advertise — their mix of market participants, or allow users to trade in separate “rooms” where undesired firms are excluded. The rise of “alternative microstructures” is mostly evidenced in crypto by the surge in electronic OTC trading, where traders can receive better prices than on exchange.
Technology-based ALA encompasses delays, random or deterministic, added to an exchange’s matching engine to reduce the viability of latency arbitrage strategies. The classic example is a speed bump where new orders are delayed by a few milliseconds, but the cancellation of existing orders is not. This lets market makers place fresh quotes at the new prevailing market price without being run over by latency arbitrageurs.
As a practical example, the London Metal Exchange recently announced an eight-millisecond speed bump on some contracts that are prime candidates for latency arbitrageurs due to their similarity to products trading on the much bigger CME in Chicago.
Why 8 milliseconds? First, microwave transmission between Chicago and the US East Coast is 3 milliseconds faster than fibre optic lines. From there, the $250,000 a month Hibernia Express transatlantic cable helps you get to London another 4 milliseconds faster than cheaper alternatives. Add a millisecond for internal latencies such as not using FPGAs and 8 milliseconds is the difference for a liquidity provider between investing tens of millions in speed technology or being priced out of the market by latency arbitrage.
With this in mind, let’s consider what the future holds for crypto.

Crypto exchanges must not forget their retail roots

We learn from conventional markets that liquidity benefits from a diverse base of market makers with risk-absorption capacity.
Some have claimed that the spread compression witnessed in the bitcoin market since 2017 is due to electronification. Instead, I posit that it is greater risk-absorbing capacity and capital allocation that has improved the liquidity of the bitcoin market, not an increase in speed, as in fact being a fast exchange with colocation such as Gemini has not supported higher volumes. Old-timers will remember Coinsetter, a company that, per the Bitcoin Wiki , “was created in 2012, and operates a bitcoin exchange and ECN. Coinsetter’s CSX trading technology enables millisecond trade execution times and offers one of the fastest API data streams in the industry.” The Wiki page should use the past tense as Coinsetter failed to gain traction, was acquired in 2016 and subsequently closed.
Exchanges that invest in scalability and user experience will thrive (BitMEX comes to mind). Crypto exchanges that favour the fastest traders (by reducing jitter, etc.) will find that winner-takes-all latency strategies do not improve liquidity. Furthermore, they risk antagonising the majority of their users, who are naturally suspicious of platforms that sell preferential treatment.
It is baffling that the head of Russia for Huobi vaunted to CoinDesk that: “The option [of co-location] allows [selected clients] to make trades 70 to 100 times faster than other users”. The article notes that Huobi doesn’t charge — but of course, not everyone can sign up.
Contrast this with one of the most successful exchanges today: Binance. It actively discourages some HFT strategies by tracking metrics such as order-to-trade ratios and temporarily blocking users that breach certain limits. Market experts know that Binance remains extremely relevant to price discovery, irrespective of its focus on a less professional user base.
Other exchanges, take heed.
Coinbase closed its entire Chicago office where 30 engineers had worked on a faster matching engine, an exercise that is rumoured to have cost $50mm. After much internal debate, I bet that the company finally realised that it wouldn’t recoup its investment and that its value derived from having onboarded 20 million users, not from upgrading systems that are already fast and reliable by the standards of crypto.
It is also unsurprising that Kraken’s Steve Hunt, a veteran of low-latency torchbearer Jump Trading, commented to CoinDesk that: “We want all customers regardless of size or scale to have equal access to our marketplace”. Experience speaks.
In a recent article on CoinDesk , Matt Trudeau of ErisX points to the lower reliability of cloud-based services compared to dedicated, co-located and cross-connected gateways. That much is true. Web-based technology puts the emphasis on serving the greatest number of users concurrently, not on serving a subset of users deterministically and at the lowest latency possible. That is the point. Crypto might be the only asset class that is accessible directly to end users with a low number of intermediaries, precisely because of the crypto ethos and how the industry evolved. It is cheaper to buy $500 of bitcoin than it is to buy $500 of Microsoft shares.
Trudeau further remarks that official, paid-for co-location is better than what he pejoratively calls “unsanctioned colocation,” the fact that crypto traders can place their servers in the same cloud providers as the exchanges. The fairness argument is dubious: anyone with $50 can set up an Amazon AWS account and run next to the major crypto exchanges, whereas cheap co-location starts at $1,000 a month in the real world. No wonder “speed technology revenues” are estimated at $1 billion for the major U.S. equity exchanges.
For a crypto exchange, to reside in a financial, non-cloud data centre with state-of-the-art network latencies might ironically impair the likelihood of success. The risk is that such an exchange becomes dominated on the taker side by the handful of players that already own or pay for the fastest communication routes between major financial data centres such as Equinix and the CME in Chicago, where bitcoin futures are traded. This might reduce liquidity on the exchange because a significant proportion of the crypto market’s risk-absorption capacity is coming from crypto-centric funds that do not have the scale to operate low-latency strategies, but might make up the bulk of the liquidity on, say, Binance. Such mom-and-pop liquidity providers might therefore shun an exchange that caters to larger players as a priority.

Exchanges risk losing market share to OTC liquidity providers

While voice trading in crypto has run its course, a major contribution to the market’s increase in liquidity circa 2017–2018 was the risk appetite of the original OTC voice desks such as Cumberland Mining and Circle.
Automation really shines in bringing together risk-absorbing capacity tailored to each client (which is impossible on anonymous exchanges) with seamless electronic execution. In contrast, latency-sensitive venues can see liquidity evaporate in periods of stress, as happened to a well-known and otherwise successful exchange on 26 June which saw its bitcoin order book become $1,000 wide for an extended period of time as liquidity providers turned their systems off. The problem is compounded by the general unavailability of credit on cash exchanges, an issue that the OTC market’s settlement model avoids.
As the crypto market matures, the business model of today’s major cash exchanges will come under pressure. In the past decade, the FX market has shown that retail traders benefit from better liquidity when they trade through different channels than institutional speculators. Systematic internalizers demonstrate the same in equities. This fact of life will apply to crypto. Exchanges have to pick a side: either cater to retail (or retail-driven intermediaries) or court HFTs.
Now that an aggregator like Tagomi runs transaction cost analysis for their clients, it will become plainly obvious to investors with medium-term and long-term horizons (i.e. anyone not looking at the next 2 seconds) that their price impact on exchange is worse than against electronic OTC liquidity providers.
Today, exchange fee structures are awkward because they must charge small users a lot to make up for crypto’s exceptionally high compliance and onboarding costs. Onboarding a single, small value user simply does not make sense unless fees are quite elevated. Exchanges end up over-charging large volume traders such as B2C2’s clients, another incentive to switch to OTC execution.
In the alternative, what if crypto exchanges focus on HFT traders? In my opinion, the CME is a much better venue for institutional takers as fees are much lower and conventional trading firms will already be connected to it. My hypothesis is that most exchanges will not be able to compete with the CME for fast traders (after all, the CBOE itself gave up), and must cater to their retail user base instead.
In a future post, we will explore other microstructures beyond all-to-all exchanges and bilateral OTC trading.
Fiber threads image via Shutterstock
submitted by GTE_IO to u/GTE_IO [link] [comments]

General info and list of exchanges for FIC Network

ENG 한국어 HOME WHITEPAPER PRODUCT DEMO TOKEN SALE TEAM NEWS Bonds on Blockchain Issue and Invest in Fixed Income Assets with Crypto Pre-sale is over READ MORE ON MEDIUM Join the public sale Invest any amount REGISTER FOR THE PUBLIC SALE Soft cap reached Read more TELEGRAM
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REDDIT Read the news FIC Pre-sale Status Announcement: ETH Raised & Mainnet Update FIC Pre-sale Status Announcement: ETH Raised & Mainnet Update More FIC Network: Mainnet Launch & SAFT Update FIC Network: Mainnet Launch & SAFT Update More Smith + Crown: FIC is uniquely positioned Smith + Crown: FIC is uniquely positioned More Astronaut Capital invests in FIC Astronaut Capital invests in FIC More Crush Crypto review: Good/Good Crush Crypto review: Good/Good More 1/10IT'S HUGE It’s time to launch the largest financial market for the crypto economy.
The global credit and fixed income financial market exceeds $230 trillion USD, (3x the global equity market size of $70 trillion USD)1.
The global cryptocurrency market size exceeds USD $480 billion2 without an infrastructure for crypto credit and fixed income products.
FIC is a new blockchain infrastructure, designed to create a global crypto and fiat currency credit and fixed income financial market for all global participants.
FIC will accelerate global economic growth by enabling financial institutions, businesses, and individuals to lend and borrow crypto and fiat assets, and securitize crypto and fiat debt.
1https://www.statista.com/statistics/247092/transaction-volume-of-debt-securities-on-the-global-bond-market/ 2https://coinmarketcap.com/charts/ FIC is a blockchain-based network that will enable users to list, buy, and sell any type of crypto or fiat fixed income financial instrument including: LoansBonds Collateralized Loan ObligationsLoan Syndication Credit Default SwapsFutures 2/10IT'S COMING
A combined crypto and fiat fixed income market makes the future crypto market mainstream and sustainable. Existing crypto coins and tokens are operating as currencies or utilities without a fixed-income offering. A crypto and fiat fixed income market can sustainably drive the crypto market into mainstream usage. Better than the conventional fixed income market FIC’s blockchain-based platform will allow users to list, buy, and sell any type of crypto or fiat fixed financial instruments avoiding the drawbacks of conventional fixed income markets such as friction, illiquidity, lack of interoperability, asymmetry of information and operational risks.
Merging crypto and fiat markets within one seamless network One, multi-currency, asset agnostic system with a built-in exchange allows users to operate in currencies of their preference, eliminating exposure to exchange rate risk and simplifying accounting. 3/10IT'S NO JOKE
Because we’re up and running We don’t just have a prototype, we have a business that already exists.
Because the market needs us It’s only a matter of time until the fixed income market will migrate to blockchain.
Because the market trusts us We have a full time team backed by world-class advisers, prominent investors, business media and conference presence. AS SEEN IN:
PARTNERS:
4/10THE MAKERS AND DOERS Arturs Ivanovs, FoundeCEO
Arturs Ivanovs is the founder of FIC Network, a fixed income infrastructure for cryptocurrencies and blockchain assets. He started the company in 2016 when he moved to New York City, attracting investments from Startupbootcamp Fintech NYC, Boost VC and other prominent investors.
He serves as advisor to Turing Funds, the first mainstream exchange traded fund of cryptocurrencies.
Before getting deeply involved in blockchain technology in 2015, his background includes fintech regulation in European Union. Arturs holds LLB in Law and Business from Riga Graduate School of Law.
Alvar Soosaar, Co-foundeCOO
Alvar is an experienced executive in the structuring and management of fixed income securities and portfolios. He previously managed a $7.8 billion portfolio of fixed income securities. He is an investor with over 20 years of experience in a variety of asset classes, including a particular interest in and involvement with early-stage startups.
Alvar holds an MBA from the University of Oxford’s Saïd Business School and BA from the University of Virginia.
Ismail Malik, Advisor
Ismail is an ICO strategist and chairman of Blockchain Lab in London, UK. Blockchain Lab acts a specialized crypto development project partner for existing DLT projects. The Lab has a strong focus on R & D, primarily researching, secure embedded smart contract trusted execution environments on the Ethereum, Bitcoin and Corda blockchains.
Ismail is regarded as one of the World's most influential people within the Blockchain industry.
moreSEE ALL OF US 5/10HOW IT WORKS One coin to rule them all — a complete infrastructure for fixed income market on blockchain.
Expected Cash Flows (ECF) Investors can buy and trade single installments of loans. Multi-currency and crypto Conventional lenders will be able to receive investments in crypto. Blockchain transactions Auditability and transparency enables price discovery and opens vast amount of credit data. Instant Settlement The ledger closes and reconciles every 4-10 seconds instead of 3 and more days. moreDOWNLOAD WHITEPAPER 6/10SEE FOR YOURSELF Explore the demo version. moreDOWNLOAD THE APP 7/10YOU READY? The FIC Coin COIN NAME FIC HARD CAP USD 16m SOFT CAP 3,500 ETH FIC PRICE USD 0.0002 TOTAL COINS FOR SALE 150,000,000,000
Pre-sale: Ongoing Public sale: Coming Soon moreSALES MECHANICS 8/10WE'RE READY Roadmap Since the creation of the prototype in 2016, we have received investments from various leading fintech, crypto and startup investors as well as formed a full time team and launched an Alpha version of our app. ACHIEVED Q2 2016 Prototype idea drafted ACHIEVED Q2 2016 Factury Inc. Delaware Incorporated ACHIEVED Q2 2016 Startupbootcamp NYC TOP10 team worldwide ACHIEVED Q3 2016 BoostVC, the World's leading blockchain accelerator, invests ACHIEVED Q1 2017 Bialla Venture Partners invests ACHIEVED Q1 2017 European reach: subsidiary formed ACHIEVED Q1 2017 Full time team ACHIEVED Q3 2017 Testnet & App Alpha version ACHIEVED Q4 2017 Newblock fund & fintech angels invest UPCOMING Q1 2018 Token Sale Q4 2018 FIC Network & App Launched 9/10SEE YOU SOON Events & Roadshows Tokyo, Japan 6-10 MAY Seoul, Korea 29 APRIL - 5 MAY Seoul, Korea 2-7 APRIL TokenFest San Francisco, CA 15-16 MARCH London 8-9 MARCH World Blockchain & Token Summit Dubai 4-5 MARCH GibFin 27 FEBRUARY - 1 MARCH
moreCONTACT US 10/10KEEP AROUND READ THE NEWS
FACEBOOK
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YOUTUBE
REDDIT Subscribe to our newsletter
Enter your Email Terms of Use Privacy policy Terms of Token Sale Important Note: An investment in our SAFT or FICs (the “Coins”) involves a high degree of risk and uncertainty. You should consider carefully all of the risks including, but not limited to, the risk the Company may not successfully develop the FIC Network or may cease operations all together, the risks related to investing in untested technologies and startup companies, the risks related to illiquid and volatile investments like Coins, the uncertain tax and regulatory treatment of Coins, the risks related to the security and stability of the Ethereum network, the risks related to coin wallets and exchanges, and the risks related to a coin holder’s lack of governance rights. YOU SHOULD CONSIDER THESE RISKS TOGETHER WITH ALL OF THE OTHER INFORMATION CONTAINED IN OUR FULL TERMS OF TOKEN SALE AND SAFT BEFORE MAKING AN INVESTMENT DECISION. This site or product includes IP2Location LITE data available from http://lite.ip2location.com.
Kucoin
Binance
Bit-Z
Bibox
Linkcoin
Qryptos
submitted by cryptoinvestor2020 to FIC_Network [link] [comments]

Tokenomy June Highlights!

Tokenomy June Highlights!

Welcome to the Tokenomy June Highlights — your monthly digest of Tokenomy’s past, ongoing and upcoming activities all through the month.

Highlights of the Month!

1. HNST has successfully migrated to the BNB chain and has been listed on Binance Dex

https://preview.redd.it/rexxlqpfao731.png?width=800&format=png&auto=webp&s=8182404b44184cacc07d7ed1e84e28394c5bd227
Honest Mining has recently announced that their partnership with Binance and their migration to the Binance Chain ecosystem. By migrating to Binance Chain, Honest Mining is in a position to maximize its utility of Honest (HNST) token in the near future. All HNST holders will also be able to enjoy the near-instant transaction finality and one-second block times that Binance Chain offers.
Following our previous announcement, the migration and support of the Binance Chain’s BEP-2 standard has been completed on Tokenomy Exchange as of 19 June 2019. All deposit and withdrawal functions have since reopened.
2. FlywithTEN PlayGame Competition has successfully concluded!
https://preview.redd.it/nv5km5qmao731.png?width=1600&format=png&auto=webp&s=495a133a1797fc741185e973078b49b7a50269d2
Last month, in celebration of PlayGame’s partnership with Tokenomy, we launched FlywithTEN PlayGame competition! For this competition, participants had a fun time brushing up on their flying skills playing PlayGame’s Floppy Bird while standing a chance to win some exciting prizes.
Total Prize 5gr of Gold will be distributed to the Top Score Winner and 3 Lucky Winners!Want to know if you could be one of the lucky winners? 📷📷
We will officially announce the Winners LIVE on the 4th July 2019. Remember to keep a lookout for the announcement on our Telegram chat groups and Social Media Accounts!
📷Top Score Rewards: 📷Winner: 1 gram of Gold
📷Participation Rewards: 📷Lucky winner #1: 2 grams of Gold 📷Lucky winner #2: 1 gram of Gold 📷Lucky winner #3: 1 gram of Gold
We thank you for being an enthusiastic participant and supporter of FlywithTEN PlayGame Competition.
3. Tokenomy @ CryptoCompare Digital Asset Summit in London
Tom Lee giving a talk on the future of Bitcoin
Tokenomy CTO Rick Behl together with Andreas Antonopoulos, Bitcoin guru and author of the best-selling Mastering Bitcoin, The Internet of Money Series and Mastering Ethereum.
Earlier this month, our Chief Technology Officer Rick Behl attended the CryptoCompare Digital Asset Summit in London. The CryptoCompare Digital Asset Summit is London’s first crypto, blockchain and finance conference to bring together institutional, retail and regulatory crypto experts.
The summit revolved around four key themes: institutional involvement, crypto-asset and market regulation, the overall technology revolution, and the disruptive financial tools needed to propel the mass adoption of blockchain and cryptocurrency. It featured a great line-up of speakers, including keynotes from Andreas M. Antonopoulos, author of the best-selling Mastering Bitcoin and cryptocurrency experts from Binance, London Stock Exchange Group, Nasdaq and UBS.
Overall, it was a fulfilling conference for Tokenomy with networking, partnership opportunities and expert talks on the latest trends in the industry!

Upcoming and Ongoing Events

1. Launch of Tokenomy Charity, in collaboration with Kitabisa

https://preview.redd.it/m1b3nteubo731.png?width=4254&format=png&auto=webp&s=c895c79c7a0ec0e799b66edca166e4619dec014e
Last month, we announced the launch of a brand new feature on Launchpad: Tokenomy Charity!
Tokenomy Charity aims to extend our support to charity causes kickstarted on KitaBisa by allowing our members to make donations using cryptocurrencies (TEN, BTC, ETH, or USDT).
With the launch of Tokenomy Charity, we also introduced two very special projects in collaboration with KitaBisa:
Project 1 — IT Islamic Boarding School
Patungan Bangun Pesantren is currently raising funds to build an IT Islamic Boarding School that focuses on imparting technology expertise along with Islamic values to young Muslim children. By equipping our Muslim students with programming and digital marketing skills, we empower our children to contribute to the Indonesian society in valuable ways.
Project 2 — Javier’s Treatment
Our second project hopes to raise funds for a young boy, Javier who is currently suffering from Leukemia. 2 years ago, Javier was a happy and carefree boy. However, after returning home from a holiday, Javier started to fall sick. Even after going through multiple treatments in Indonesia, Javier could not be cured. Javier’s parents were told that he will stand a better fighting chance by seeking treatment in Singapore.
Currently, Javier is undergoing chemotherapy in Singapore, but the total cost of his treatment in Singapore is a shocking 100 times of the family’s monthly income in Indonesia.
Donate to make a difference, find out how you can help Patungan Bangun Pesantren and little Javier here: https://launchpad.tokenomy.com/charity

2. Indodax’s Community Coin Voting 10, in collaboration with Tokenomy

https://preview.redd.it/181lt9aybo731.jpg?width=760&format=pjpg&auto=webp&s=101d750b904b398aa909d625105e6c41341a18d6
Indodax’s Community Coin Voting, in collaboration with Tokenomy, is back and currently ongoing!
What is Indodax Community Coin Voting? Indodax Community Coin Voting is a program to determine the new coins/tokens that are to be listed on Indodax, based on the demand of our very own members. This program has been running for more than a year and till date, more than 18.6 million TEN has been utilised by members to take part in the voting!
Find out how you can participate in Indodax Community Coin Voting using TEN here! Stand a chance to win Datsun Go or Honda Beat Pop and Total 5 million Rupiah of Vouchers for 50 winners by voting for your favourite coin on Indodax when you use TEN!
For more information, please visit here!
About Indodax: Indodax (formerly known as Bitcoin.co.id), Tokenomy’s affiliated company in Indonesia, has become one the largest cryptocurrency exchange in Southeast Asia, and has a shared login with Tokenomy Exchange.

3. Tokenomy Will Support Vexanium (VEX) Mainnet Migration

https://preview.redd.it/vd737h83co731.png?width=2127&format=png&auto=webp&s=ee75b5e4b24238c463e2b178847a78269aa9b644
As Vexanium will be launching their mainnet soon. Tokenomy is happy to announce that we will be supporting the upcoming Vexanium (VEX) Token migration to VEX Mainnet!During the migration, Tokenomy will temporarily suspend all deposits and withdrawals of VEX Token.
For more information, please visit here!
And that’s it for now! Thanks for tuning to this month’s updates!
Sign up for a Tokenomy account to start trading and become a part of our active community!
There will be more exciting announcements and events coming your way. Be sure to keep yourself up-to-date with all our social media channels or sign up for our Tokenomy Newsletter!
Thank you, Tokenomy Team
submitted by Tokenomy to tokenomyofficial [link] [comments]

Justice For People Voice Who Affected With Disable Account And Right For People - Ticket: #288592

u/hitbtc I am try to be very straightforward today I has been frustrated and I Just lost my Baby Boy, my wife has been taunting me all over about my kid losses.
On 2nd May 2018
I transfer My Bitcoin from my Binance exchanger which from my verified account to Hitbtc, the reason of my transfer was i wanted to be trade under Datx altcoin because there is few exchanger has listed that coin unfortunately when i transfer successfully out to Hitbtc all my Bitcoin 10.92 I found out that the algorithm was high on that times so i have no option to trade there then i requested to transfer back my BTC to my same Binance exchager wallet which original source when i transfer to Hitbtc in first place.Then the rejection code pop up and i thought it was a error in wallet address, i try it again then it come out with the error "currency not available".
On same day i raise ticket to support center.
On 3rd May 2018
I got a reply from Mathias Huber For my account and reason behind "currency not available" so that he told me to provide information regarding my account base on to protect and prevent KYC/AML and there it goes I provided all my information according to the law and second email he inform me that he will de-activate my account for the verification process and on top of that I has been also submit transaction sources to provide that my transaction is transparent and legit A to A.
As per that i did not hear from him as per my account sources of reply. As a customer I am fear coz that was my life saving money and treatment money for my kids.
On 4th May 2018
I try to send email and hence i did not get any reply and on same time mis fortune things happen that my baby boy has been admitted in hospital coz he was on stages of cancer and doctor wanted to have fees for the treatment then i has escalated my details ton email to them and yet there don't reply my mail as I mention to expedite the process and If there need any document to support I am here to provide. Yet no reply sadly.
On 5th May 2018
I try to post in reddit as per my importance and yet no reply, as a father which my kids was fighting life and dead in hospital,I was asking just verified my process and no one reply.
On 7th May 2018
There told me in reddit we are sorry to here and this is our KYC/AML and ToS rules.
My question was i know that this is your rules and i been agree but please reply and expedite the process coz my kids are in stages and I willing to provide all the document.
No Mercy and nothing i get reply for them maybe there was never take serious on my matter.
On 10th May 2018
I got reply from Paola as per below :
Paola Balzano (HitBTC)
May 10, 16:55 WEST
Thank you for provided information.
Your activity on HitBTC consists of performing BTC deposit and BTC withdrawal immediately after that. Please provide us with the explanation of that activity.
Regards,HitBTC Team
and my reply as per below :
Hi Paola,
Firstly I do understand the transaction was take immediate effect.
Here is my situation, firstly on May 3rd you guys have this altcoin which call DATX,i wanted made trade on the trade unfortunately the algorithm was too high compare to other exchanger so I call off the trade and wanted to switch back to my Binance exchanger to trade other altcoin which is not listed by Hitbtc.
The transaction sources are same as per my origin address which i send my BTC to Hitbtc and Send back MY BTC to Binance.
Here is my proof records as per your reference from my ID itself.
AND YET I DON'T HAVE ANY REPLY BACK!!!
MY QUESTION IS WHERE IS THE SLA FOR YOU GUYS WHICH WAS 3DAYS TO GET BACK TO YOUR CUSTOMER OR BY 48HOURS IF TRAFFIC IS HIGH!!!
Because of your lame reply and slow process today I lost my kids, can you guys bring back my kids.
U CAN'T COZ IT GONES.
Now I am just a hopeless father, for your this process today I lost something precious in my entire life.
submitted by ck061288 to hitbtc [link] [comments]

General info and list of exchanges for FansTime (FTI)

Ecosystem Individual IP Value System
If currency no longer represents the amount of work per unit of time, then what can measure the value of talent? FansTime believes that only fans can do it. IFS, the TOKEN generated on iFans Chain parent chain will become the only object to price an Individual IP so as to solve the pricing, financing, derivative development and assetization. Gradually, a decentralized multilateral market can be built then the value of Individual IP can be cherished fairly.Based on the new logic of communication, changing from domain addressing to content addressing, FansTime will promote the establishment of a truly worldwide content distribution system and copyright identification system together with other technology enterprises which focus on the fundamental technical advances in the Blockchain area. International Crowdfunding Platform for Individual IP
FansTime will also provide an international crowdfunding platform for IFS holders in addition to continuously connecting the terminal consumption scenarios to the Ecosystem. Compared to the traditional crowdfunding platforms, the new ones will operate independently without man-mad interferences, thanks to the Smart Contracts and Decentralized&Distributed Databases. In this case, "code equals to law" would be truly realized at least in the process of profits allocation between investors. Global Membership Rewards System of Individual IP
Based on distributed data storage, asymmetric encryption, peer-to-peer networking and other Blockchain related technologies, a global membership rewards system may be realized. The problems such as identity certification, unfair treatment, poor flexibility of databases will be solved. Application Scenarios Time Exchange
As the number of users increasing and the depth of user engagement enhacing,there will be a huge amount of demand for individual IPs. So FansTime will launch an equivalent object as Exclusive Token in order to simplify the process of issuing and auditing. Time,the equivalent object,provides a more flexible assetization channel which can attract much more Individual IPs with potentials.Time Exchange will work with Exclusive Token Exchange in parallel, thus enriching the value system. Fans Rights Mall
It is one of the terminal consumption applications in FansTime ecosystem. With the development of the community, terminal consumption scenarios will increase greatly. Commodities in Fans Rights Mall covers traditional copyright commodities, tickets for offline activities , weaker-copyright digital contents. According to different status of Individual IPs, the comodities can be priced by IFS, Exclusive Token or Time. Exclusive Token Exchange
With the Smart Contract of the FansTime parent Chain (iFans Chain), Individual IP can issue its own Exclusive Token, which is used to anchor its own IP value. Fans can obtain investment returns by holding and selling the Exclusive Token of Individual IP, directly participating in the process of Individual IP increasing. In this case, problems of pricing, transaction and assetization can be solved. FansTime will introduce high quality Individual IPs and more demanders of segment markets into the community as to expand the scope of Exclusive Token using. Management Team Martae Honorably,Miss Apinya Pramoj(More)
Honorary Chairman Eric Jiang(More)
CEO TETSUYA SHIN(More)
RD Department Head Ting SHE(More)
Marketing Department Head Terry Wu(More)
Finance Department Head Investment Institution
With a globalization strategy, ChinaEquity Group (CEG) focuses on investment in High-tech and Culture&Entertainment industries. CEG was co-founded by Wang Chaoyong, returned American investment banker and Chief Representative of Morgan Stanley Beijing Office, together with Swiss investors. Mr. Wang is hailed as Investment Godfather and he is one of the first overseas Chinese students working in the Wall Street investment and financing community.
Leading domestic non-public online equity investment platform. 36 Kr is a mainstream, prestigious and influential new business media and its parent company is now the largest service platform for the 'Entrepreneurship and Innovation Initiatives’ in China.
Chen Shu, the founding initiator of NEXT, is the initiator of Wenzhou Financial Management Association and co-founder of W Youth Capital. NEXT has now accomplished its initial operations in blockchain-related fields, concerning TMT, cloud computing, big data, AI, financial technology, etc.
Qianhai M&A Funds, with the powerful support of Qianhai Equity Exchange shareholders, specializes in 7 sectors of high-tech investments, including culture and education, internet, IT, industrial automation, healthcare, environmental protection, national defense conversion to civil use.
iFensi is the most professional fans operation and service platform, ranking top on Alexa Chinese entertainment website. It secured RMB 150 million in B- Round Financing in 2017 and was valued at RMB 1 billion, a record high in fan economy financing.
A frontier investor in blockchain technology co-founded by the core team of Waltonchain and business circles and pevcnews, committed to offering support to teams with industrial expertise and connections as well as understandings and visions on blockchain.
A venture capital firm dedicated in blockchain and one of the earliest professional investment companies laying hands on blockchain. Node capital is to connect nodes existing in blockchain ecology and integrate sector resources through investment projects and cooperation, thus construct eco-system of the industry and carry forward steady and healthy development of blockchain.
Ainvestment arm under huoxun.com, was established by several top blockchain experts.
Tsing Capital, specializing in risk investment in block chain industry, is a professional investment institution, the earliest one established in the world for linking and hatching young leaders' new technology projects.
United Cultural Works Exchanges is the largest and most influential film and television derivative exchange platform and the only government-approved cultural art works equity exchange platform in Liaoning Province, China. United CulturalWorks Exchanges has worked with Chunqiu Time, H&R Century Pictures, Alibaba Pictures, Huayi Brothers Media Group and other top IP creators to publish over 50 pieces of derivative works, business turnover exceeding RMB 50 billion in 2016.
Xiang Chain Fund of Funds (XCF), the first Fund of Funds (FOF) of blockchain industry in Hunan province, was jointly established by Cheng Guihua, a founding member of the China Young Angel Investor Leader Association and Wang Xiaoye, an executive director of the China Young Angel Investor Leader Association. XCF has invested many projects including the following: EGCC, Extrade, Rcash, etc. It maintains a highly cooperative relationship with well-known blockchain investment institutions, and has a high degree of integration of the head resources of the entire blockchain industry. At the same time, XCF provides high-quality blockchain industry projects with consulting services of one-stop investment and financing, helping accelerate the development of excellent projects in blockchain infrastructure and commercial applications.
DFUND was founded by Zhao Dong, a well-known person in digital currency field, in July 2017, specializing in the investment in the field, and supplying the invested project with end-to-end investment bank services. It sticks to the principle of value investment, which is judged and screened by professional team. It has impressive earnings in its early open-ended fund. Till January 2018, the net earnings of Bitcoin in the first phase project of DFUND is 620%, or 2543% in U.S. currency. The major investment projects are TNB、QASH、aelf、Cybermiles、LLT、MobileCoin、Beechat, etc.
Genesis, a blockchain-oriented professional investment bank and venture capital institution, was found by Zhu Huaiyang and Sun Zeyu in 2017, engaging in finding the top quality blockchain projects and providing long-term comprehensive assistance. The major investment projects are Deep Brain Chain(DBC)、IOS、AELF、JEX、Game.com、ProChain、Acute Angle Cloud, etc.
Link Capital, founded by Lin Jiapeng, a senior investment expert in blockchain field, is an investment institution specializing in the sectors of blockchain project, digital currency and network finance, used to invest in lots of quality blockchain projects home and abroad. It has established offices in Singapore, Canada, and China’s Hong Kong and Shenzhen.
HS Capital has sharp acumen in blockchain industry, unique insight and control over projects, and energizes invested project with community energy.
Ju Capital under the Jubi Group, is a venture capital company concentrating on blockchain industry, as well as one of the professional investment institutions early involving in blockchain industry. Ju Capital is aimed at bringing most potential blockchian projects to frontier markets through project investment and cooperation. Over years, Ju Capital has been implementing influential blockchain projects worldwide by supplying end-to-end professional team services, sticking to the principles of dedicating and professional investments, and upholding the concepts of vale investment and deep guidance.
Stars Capital, founded by Mr. Liu Jingchao in 2017, is a venture capital company specializing in blockchain industry, and one of the profession investment institutions early involving in the blockchain industrial ecology in the global context. It sets its purpose on integrating industrial resources, building industrial ecological circle, and fueling the healthy and stable development of blockchain industry through the way of project investment and cooperation. Mr. Liu Jingchao is also the founder of Bijiu.com and Binvestment, as well as an accomplished expert in blockchain industry.
Trueway Capital is a professional investment institution focusing on the blockchain sector, engaging in building ecological layout in the fields of mineral pool, transaction platform, technical media, technology application, etc. It is now devoting itself to the technology innovation and development of blockchain by investing in and incubating excellent venture teams in blockchain sector.Investment cases: CyberMiles(CMT)、JEX、Coindom(CCC)、OneRoot(RNT)、GIFTO、Zipper OS、TopChain(TOPC)、Game.com(GTC)、RenRen、Nebulas(NAS)、BAIC、TrueChain、QUNQUN、WaykiChain 、HotChain(HOTC)、TokenClub、All Sport(SOC)、ARMADA MINER(AMUT)
Lemi Capital is a venture capital company focusing on the investment in global blockchain sector in its early and growing stages, and is one of the earliest professional investment institutions making layout for creating blockchain industrial ecology worldwide. Lemi Capital’s target lies in, by means of project investment and cooperation, fueling rapid rising of new technology and high-value projects, linking the nodes on blockchain industrial ecology, integrating industrial recourses, building industrial ecosystem so as to better release the potentials of blockchain technology in its coming development and application, and promoting the healthy and steady development of blockchain industry.
Gama Capital is a type of blockchain industrial fund established at the beginning 2018. Its capital investment portfolio covers all developing stages of blockchain industry, vertical industries, regions and commercial modes, including tracks such as basic chain, Internet of things, supply chain, cross-border remittance, traceability, enterprise level application, etc. Our concept is to realize linking in the global blockchain ecosphere by laying out the blockchain enterprises worldwide. Gama Capital has established a most professional globalized investment team in the industry, which is composed of lots of investment managers and industrial analysts equipped with long-term experiences working at large-scale international investment management institutions. The blockchain projects invested by the partners of Gama Capital are PNT, Quantum, VeChain, ABT, EOS, FSN, etc., achieving dozens of times of return on investment on the whole.
Trichain Capital is a comprehensive and professional venture capital focus on blockchain industry and digital asset investment banking. Trichain Capital is driven by capital, industry and technology, and is committed to becoming the best partner of the global blockchain entrepreneur.
Shuanghua Capital is a new prominent fund focusing on blockchain industry, which registered in Cayman Islands. The scope of investment includes crypto currency, smart contract, oracle, decentralized storage, decentralized database, cross chain trading, consortium blockchain, etc.
SMWM is a professional Venture Capital focusing on BlockChain and Fintech, which is committed to finding excellent project and accelerating their development。 Our team are from Tsinghua University, Peking University and overseas returnees, who have wide experience in BlockChain industry , professional research capacity and keen insight into the future development of BlockChain. SMWM has abundant resources about institution investor, talent and capital market, and has general investment layout in Blockchain industry. Hence, SMWM can provide all-round and systematic post-investment service, and has had some successful cases yet.
Tsinghua Alumni Fintech Capital is an investment firm that exclusively invests in companies related to blockchain technology and Fintech. Our fund has an innovative operating model--we connect campus with capital and combinator to help entrepreneurs get starting fund, connections, coaching and professional consulting. Tsinghua Alumni Fintech Capital collaborates closely with funds including Zhen Fund, Aplus Capital, Plum Ventures, Skysaga Capital, Legend Star, Future Capital, Tusstar, Flyfot Ventures, Collinstar Capital, Taiyou Fund and Innoangel Fund to accelerate the development of the industry through investing in the whole industrial chain and integrating resources. Our goal is to empower the whole industry, so we make investments with high quality standard. We endeavor to find companies with the potential to become the industry leaders and help them succeed with our resources. With the resources of Tsinghua University and its alumni, we keep excellent cooperative relations with Tsinghua related funds, Tsinghua Alumni TMT Association, Tsinghua Holdings and Tsinghua Tongfang. Also, we stay closely cooperative relations with our advisor—Digital Currency Lab of Central Bank. With an estimated $100 Million AUM, we help our portfolio companies to achieve higher goals by offering funding support, deploying resources and providing professional advices. Our portfolio includes KyberNetwork, Tezos, NEO, Bluzelle, aelf, Icon, EOS, 0x, Trinity, Zilliqa, Gifto and Qash.
Crypto Vision Capita Limited focuses in investing crypto currency, since founded in BVI, Crypto Vision Capital has invested in several famous and successful ICO, obtained supernormal returns. Main members graduated from top universities all over the world, possessing rich investment experience in both primary and secondary markets. AUM is around 1 billion yuan.
LD Capital is one of Asia's earliest organizations focusing on value investing in blockchain field. Owing to industrial resource advantages and professional investment research teams, LD Capital has successively discovered and invested in projects such as Qtum, Vechain and Eos which all achieved over 100 times return. Our teams spread over China, the United States, Europe, Singapore, Japan, and South Korea, and have accumulated rich experience in areas of traditional internet, Fintech, and advanced blockchain technology. We are committed to the globalization of blockchain and quality investment in the entire industry. LD Capital focuses on blockchain innovation projects within finance, games, content publishing, Internet of Things and other circuits, and we have been propelling broad layout of blockchain technology and infrastructure construction to facilitate the comprehensive development of the global blockchain ecosystem.
BN Capital is a new type of investment banking and investment institution focusing on the blockchain sector. We provide high quality investment services for blockchain projects with professional knowledge and continue to tap quality blockchain investment targets.
The Great Voyage Capital, set up by NewBorn Town and Plum Ventures, is the first investing fund focusing on the overseas mobile market in China. NewBorn Town is a mobile company whose product portfolio has over 1 billion oversea users and Plum Ventures is a professional vertical internet Venture Capital. The purpose of the Great Voyage Capital is to discover the valuable early stage projects and teams in China who have strong wish to expand oversea markets and have the capacity and potential to enlarge the Great Voyage Capital investment portfolio. By joining the Great Voyage Capital, one could get support from end to end like capital injection, resource sharing, mentor guidance and post-investment management (lawyer, job hunter, media coverage and so on).
FROM INVESTMENT MANAGEMENT CO.,LTD is a capital management company registered in the Republic of the Marshall Islands. Our main business is providing investment advice and investment management in the blockchain and cryptocurrency industry. Road Map Media Report
In order to solve the existing problems in the fan economy for a long time, such as centralization-based value system, unhealthy market environment, exploitation of intermediary agents , limited channels of commercialization, we will establish a global decentralized ecosystem to reconstruct the industry market environment including value and credit mechanism.
EXCHANGE LIST
Kucoin
Binance
Bit-Z
Bibox
Linkcoin
Qryptos
Bitrue
Bilaxy
Bitpaction
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Open a Binance US Bitcoin Trading Account - YouTube

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