Binance Responds to Allegations That Its U.S. Arm Is a ...

ICON is about to take off. Here's why ...

This post is primarily about a solid uptick in community involvement, decentralized marketing, and the token side of things.
For the last year and a half we live had a pretty uninvolved community, while the company continued to work under the hood to build something huge.
A lot is happening right now. I feel like nobody knows about it, so a Reddit post was warranted. It just started. Most of it. So your patience will be appreciated. But I’ve never seen so much proactivity in this project on the token-side of things before.
My point in writing this: A LOT is coming in the next 8 to 12 weeks. All of this is centered around recovering and catapulting the price as high as it can possibly go. ICON is seeking out the all-stars in this industry with incredibly resumes, and asking the experts for direction and input.
All of the marketing and promotion has just barely begun. Everything is at ground zero. But its finally happening. All the things we've been hoping for, for a year and a half.
submitted by BitttBurger to helloicon [link] [comments]

Recap of AMA with Zac on July 3 and Q2 report

Dear Pundians,
Thank you for participating in the AMA session with Pundi X co-founder and CEO Zac Cheah.
For those of you who may have missed it, the live recording of the AMA session held on July 3 at 10:00 am GMT+8, tackling Q2 progress and addressing questions and concerns by the community members, can be viewed here. A side note that today’s AMA video quality and setting was not ideal. We acknowledge this situation and will make improvement for our next AMA session.
You may also find a summary of the Q2 progress presentation as well as all the detail Q&A below.
## Pundi X Q2 2019 Highlights
* Pundi X has integrated more public chains into our products. In Q2, we completed integration of Binance Chain. NEM chain is in the work. As of today we’ve launched BNB, the Binance Chain native Coin and XEM, NEM native coin on Pundi X payment platform. We will integrate at least one more public chain in Q3.
* The transactions on XPOS for Q2 is 15.5 million in USD, which is close to 300% quarterly growth. The number of transactions is 29,367, which leads to a 11% growth QoQ.
* XPOS has successfully received FCC and KC certifications. A new certification for Latin American market is on the way. * To expand XPOS footprint, Pundi X’s integration with a new leading mainstream point-of-sales device is in the work. Stay tuned for the announcement.
* Pundi X Open Platform was launched in May, 2019, which now supports ERC20 and BEP2 token listing. Moving forward, we will continue to support tokens from other public chains.
* A 3,000 XPASS order from DigiX, a gold-based token, and a 10,000 XPASS order from BitCobie this quarter.
* XPOS is spread in use in over 30 countries. We’ve published a map of XPOS location of self-report XPOS merchant directory. You can find a list of selected XPOS merchants at [https://www.pundix.com/products\](https://www.pundix.com/products). * The QoQ growth of XWallet is tremendous at 43%. In the previous quarter, we have less than 20k users, whereas in Q2 we have hit 297k XWallet users.
More updates on XWallet:
* Supported BNB and NEM tokens; 2FA, face ID, and optimized SMS serviceAvailable on iOS, Android as well as in Samsung Galaxy Store
New features coming up in Q3:- DApp integration - Decentralized wallet- In-app crypto payments - Chat service, which will be compatible with a commonly used chat app- f(x) testnet features to be rolled out first in XWallet
## Other notices coming up in Q3 2019
* The Q2 token removal will take place on July 14, 2019, which will involve in total 34 billion of NPXS and NPXSXEM (22 million worth in USD) removal. In the past 365 days, we’ve removed a total of 36.1 million US dollar worth of NPXS and NPXSXEM.
Before Q2 removal, the total supply of NPXS ERC20 is 266,962,422,906.53 and NPXSXEM is 95,816,218,929. [See Q1 removal here.](/pundix/recap-of-ama-with-zac-on-july-3-and-q2-report-a23de165dd28)
* [NPXSXEM will be ported to Binance Chain from July 20](/pundix/npxsxem-will-be-on-binance-chain-c6485f17726b). * XPhone pre-order will start in late July with a new product name. Stay tuned. Check out the teaser video that we are releasing it across our communication channels. ## Q&A
## On XPOS
* **Where are we on official global location of XPOS?**
Zac: We have made a map on our official website that merchants can self report and feature their locations. It’s at [https://www.pundix.com/product\](https://www.pundix.com/product). We’ll be increasing and updating the map once we have permission form the merchants to update their locations.
* **The marketing from pundi has shifted from 100,000–700,000 xpos units by 2021 to 100,000. I understand the bear market has affected this but please share the strategy moving forward to hit your goal. How do you feel about hitting this goal?**
Zac: The 100K XPOS target has always been the initial goal and it’s stated in our whitepaper. And we are still working on achieving the goal by the end of 2021. Part of our growth strategy is to also explore the possibility to port our platform to traditional POS manufacturers to increase the adoption, which is ongoing at the moment.
* **1 year ago you sent 5000 XPOS somewhere. When, at least half of them, will be working? 3 year target was 100,000 by 2021. Now we have only 150 units, how do you expect to reach this goal?**
Zac: Yes, we have shipped thousands of XPOS to over 30 countries in the world. The 150 you’ve mentioned are the featured merchants which are published on the map. The active XPOS devices are deployed over 33 countries and we are actively talking to B2B partners to have higher wholesale and big deployments.
* **How many XPOS are live and used?**
Zac: We have gone through a very serious bear market, and some of the initial inbound requests for XPOS are not delivered. However, we are working slowly but surely with our Business Development team to not just roll-out into individual buyers, such as what we did on Pizza Day, but also to B2B partners. With the certifications approved, that will also help us to officially roll out to some of the key markets.
Individual merchants can use XWallet collection feature to accept crypto payment with QR code. For the merchants who have physical offline storefronts, they can use XPOS to enable the instant crypto transaction seamlessly. Moreover, as mentioned previously, we are exploring the integration on leading traditional POS terminal so that their distributors have option to enable crypto transaction feature. As for the challenge to adopt XPOS, it is the regulatory compliance in different countries. For this, our legal team think ahead and encourage our merchants to complete KYC.
I must be very honest to say the activation takes longer time than we expect but it will be worth at the end.
* **What’s the average number of transactions per xpos in use?**
Zac: The transaction number has increased very well. The number of each XPOS differs, due to the frequency of using crypto currency to purchase item or crypto assets. There’s no standard answer to this, but overall we see the transaction number and volume are going up.
* **How do you plan to reach the target of 100,000 by 2021?**
Zac: One of the challenges that we have is regulatory compliances in different countries. There are certain markets that do not allow crypto currencies and some require a clear approval for us to deploy XPOS. We are working on both challenges by talking to governments and applying for certifications. So how we plan to reach 100,000 XPOS user by 2021 is to work with distributors, B2B partners on a government / business level, and with existing POS companies to integrate our software solution into the system.
* **We understand as there was bear market and hence Xpos usage demand was low. Are you guys seeing growth of Xpos usage with current market conditions. Can you guys put some statistics comparison like last 30 days Xpos usage vs any month from bear market usage?**
Zac: It is very clear that as we moved out from the bear market, the demand for XPOS has been increasing. As we’ve shared just now both the transaction number and volume of Q2 have beaten Q1. We’ll be able to share more transaction numbers once we receive approval from our XPOS merchants.
One exciting thing is that, with the listing of different tokens, we also see users using these tokens as a way to transact on XPOS, which means we will be having more ways to transact and this is a growth point for XPOS.
* **When will there be more details for XPHONE and XPOS HANDY?**
Zac: For XPOS handy, we have finished production and it will be released in Q3
* **When will the iOS version of XWallet and XPOS be fully translated to other languages?**
Zac: Right now, the XWallet has Traditional Chinese, Korean, Spanish, German and English. With the latest version update, it now includes Portuguese. XPOS also comes with many languages and we hope to finish with more language, either working with professionals or volunteers. If you’re interested in volunteering, please contact us.
* **When will the Merchant back office have Product Registration and SKU id ability and also integrate with other POS software?** * **When will the top-up feature go away for XPOS to allow liquidity for XPOS**
Zac: We constantly update features in XPOS and merchant backend to make it easier for distributors and merchants to use. We understand that one of the ways for mass adoption is to enhance our distributor management system. With that, the distributors can manage manay XPOS at one time with different merchants.
Please stay tuned as we announce more and more functions of this feature.
## On Dubai
* **When will we see the deployment of the XPOS in Dubai?** * **Can we spend NPXS on the Dubai XPOS?**
Zac: As with all big projects there are a lot of moving parts, that includes working very closely with the local government, in Dubai’s case, the Credit Bureau of the Finance Ministry. Things are progressing for the Dubai project but due to confidentiality agreements with the parties involved, we cannot reveal much. All we can say is that we and our Dubai partners are working hard to have XPOS roll-out in the Dubai market and the UAE.
We are also discussing aggressively with Dubai partners whether to include crypto assets in the XPOS in Dubai. That clearly will involve local compliance and legal for that to happen.
* **Your system upgrades expect merchants to have downtime on their XPOS terminals, can you explain if you plan to run a business why this would be considered feasible (specially at the rate you have been doing your upgrades)?**
Zac: Yes, the benefit / strength of the XPOS is that most of the updates can be done on the fly. For example, when we have a token update on our XPOS where developers submit their tokens on Open Platform, the updates of this token are on the fly, which means that once we approve the token on our Open Platform, it will automatically appear on XPOS without any software updates.
The great thing that we believe about XPOS is not just the support of crypto assets, but also the ability to update most things on the fly, which means that whenever we have a good feature or a new token, the updates will be done instantaneously.
* **Can you guys arrange at least a community voting which is the next blockchain we would like to see next in XPOS? Voting will help to prioritize to chose the projects.**
Zac: One of the reasons why BNB is being listed on the XPOS is simply because of its popularity and also our user demand, in a way that we are already answering to our community’s request.
Right now, our main focus is getting all the tokens submitted on Open Platform to be listed on the XPOS. The submission process includes legal and compliance valid, so our legal and compliance teams are working hard to make sure that we have more tokens to roll out onto Open Platform, which means that they will be on XPOS, XWallet, and XPASS.
As to a specific voting mechanism, we’d like to consider that and hopefully we’ll be able to run a specific voting for the chain which users would like to see.
* **While comparing Xpos handy to Square POS devices at least with mobile it’s very cheap like under $30 and easy to use. When can we expect such light weight and cheaper version for XPOS? Is team working on such devices ?**
Zac: There are different POS companies around the globe and pour focus is to work with these POS companies with our software, so that a crypto sales feature will be part of the existing POS system. The more support of crypto asset usage using our software on existing POS, the better it is for global adoption.
We actually strongly believe that the pricing of our POS system is competitive in the market. And one of the great features of the XPOS is that the merchants will not need not to pay a certain percentage to existing acquirer but to be able to earn certain percentage from each transaction. That is the key differentiator for merchant to want to adopt this.
* **From the website with some of the key Countries for XPOS adoption looks great. However, the concern is for Venezuela, there is no reference link like the others have. Can you guys add the link with details to clear the ambiguity?**
Zac: Let’s give a little bit more patience so that we can actually release more information about our Venezuelan partnership. The good news is that we expect concrete news from Venezuela in the coming 2 weeks. So stay up-to-date about our Venezuelan roll out on XPOS, the best way is to subscribe to our telegram group for Venezuela.
## On Partnerships
* **Are there some major partnership in the works? I’m also interested in how you do immediate transactions? Do you anticipate scaling issues?**
Zac: The way XPOS is being designed is that when you use your crypto assets to purchase, it will have instantaneous confirmation because the action is an off-chain process. An on-chain action happens when a user who owns crypto assets in our system transferring the assets out of the Pundi X ecosystem to their own wallets; or to transfer crypto assets in Pundi X from an off-chain to a private wallet, which we will have very soon on XWallet itself.
That is why we are able to handle scaling. When a person wants to use crypto currency to buy a coffee, the transaction will happen instantaneously.
For specific partnership, especially with B2B partnership, we oblige to the NDA that we have signed. But if you follow us closely, you’ll know that we go to different parts of the world, talking to major companies to try to land more deals so that NPXS usage will increase dramatically.
* **Any big partnerships for making xphone or using the software for xBlockchain?**
Zac: These partnerships are also subjected to NDA, so please be patient for us to release more news.
* **When will XPOS have approval to process Visa and MasterCard payments?**
Zac: We have met representatives from these players including some of the key management people. They are obviously looking into crypto currency attentively, and we hope that there’s something we can do with MasterCard and/or Visa.
This is something that the community has suggested and we agree fully. Please allow us with some time to work on this. We have also showcased XPOS to the CEO of MasterCard. For what or when will anything happen, please wait for our official announcement.
* **What’s the status on Quantum fund and their contribution or involvement with Pundi’s project?**
Zac: We announced last year that we are creating a fund to invest in projects beneficial to our ecosystem. We’ve identified some interesting projects, and we have invested in at least 1 project. The reason why we’re investing in that project is because of the services that it will bring onto the Pindi X ecosystem. So the purpose of the investment of the companies is that these companies in turn will benefit on our ecosystem. This is our key consideration.
The team has evaluated the projects that will benefit the Pundi X / Function X ecosystem. Vic and his team will be able to reveal more details on the companies we have invested in and how they will contribute to our ecosystem in Q3.
* **Recent update on NPXSXEM is highly ambiguous as mentioned that it will be now BEP token and later once FX goes live it will get back to Fx platform. Why you guys had so rush to use Binance chain only for few months? Isn’t you guys switching to much in a short time span?**
Zac: Liquidity and utility have been an issue for NPXSXEM. Due to the design philosophy and the limit of token that can be created on NEM’s smart contract, we are only able to create a small number of tokens on NPXSXEM. By moving into the Binance chain for NPXSXEM, the BEP2 token version will be able to support all the NPXSXEM tokens, which means that we’ll migrate and also be able to make sure all the NPXSXEM tokens are under the same contract address.
We believe with the strong liquidity, we will be able to give our NPXSXEM token holders a good reason of what the token holders have been waiting for. We hope to bring NPXSXEM to match the level of NPXS.
* **When #XRP?**
Zac: Our OpenPlatform is a currency agnostic platform, which means that we will work on integrating public chain as well as tokens that are most requested by the users. We’ll also be looking into the listing of different tokens that are being mentioned by the community.
As said, we will have at least one more public chain integration in Q3, perhaps even more.
* **Are you as a company going to try and connect with libra? If they have said they want to be a payment remittance service, have Square, PayPal, Visa on board I as an investor would prefer you try to join them rather than beat such large competitors**
Zac: Of course, we’ll be delighted to work with Facebook and also the Libra coin. Pundi X and XPOS is a currency agnostic / currency neutral platform, if there’s opportunity to list Libra coin or work with Facebook in different ways to promote crypto currency adoption, we’ll certainly look into that and work on reaching out to them.
## On Trading
* **Can you confirm during AMA, Pundi team is not involved with any trading with their own token like selling over time to manage the fund to run the company.**
Zac: All the wallet addresses of the team holdings are disclosed and transparent. This is one of the first things that we did after ICO. Hence, our token holdings are transparent and everyone can monitor our fund transactions. Also, we have strict internal financial regulation and compliance, shows that we are here to build a long-term project.
The best way to make NPXS or the NPXSXEM to rise is real daily life use case.
* **When will you stop manipulating NPXS chart?**
Zac: Our focus has always been and will be building great products. The more product usage, the demands for NPXS and NPXSXEM will increase. Let’s address again that, Pundi X the company is NOT involved in any manipulation of the NPXS price.
There are trading teams, market makers, financial institutions that profit from the drop and rise of token prices in the crypto market. The good thing about NPXS is that we have managed to create a high liquidity by listing on 40+ exchanges and having global trades and demand from all over the world. We hope this and coupled with the fact that we are a solid product and roll out the use cases, the demand of NPXS will only continue to rise and will be able to deter any of the traders or speculators there is for NPXS.
These traders gain profit from manipulating tokens whether BTC or other tokens. In fact, the traditional financial markets have similar challenges as well. What I want to stress is that, we at Pundi X, do NOT speculate or manipulate the price. We work very hard to create demands for NPXS and as a company, it is only beneficial for us to see the prices of NPXS and NPXSXEM rise.
* **Can we please address the elephant in the room which is the Binance bot with huge sell walls and buy walls causing huge distress and concern among users?**
Zac: First, I cannot confirm nor deny that whether Binance has a bot. I think this is something that you need to ask Binance. We need to work with Binance because Binance has one of the biggest liquidities, if not the greatest liquidity, for NPXS. The best way to counter manipulators is to create more use case, more demand and more acceptance of our tokens.
* **Why on almost all exchanges do you not offer a USDT trading pair?**
Zac: We have USDT trading pairs on Bittrex, Bittrue, and more. In addition, we have fiat pairs in Korean Won, IDR, INR, and Turkish liras. We will continue to work on adding trading pairs for NPXS to make it more liquidate.
* **Why don’t you offer a stable coin sell and purchase on the xpos to help with adoption? Places in Africa with volatile currencies would go crazy for this.**
Zac: It’s a great observation. This is a request that’s been asked from many users. We’re working on stable coin listing on XPOS and hopefully it’ll come soon. Stable coin requires a greater compliance and legal validate, which we have been working on since months ago and we hope to have the stable coin up in XPOS soon.
* **When will you add an active tracker for coin burn, whether its measured in usd, NPXS or whatever you choose. The community has been asking for this on twitter, reddit and telegram for this entire year.**
Zac: It will be hard for us to have a daily tracker of the coin burn, but what we might be able to work on is a tracker which have shown all of the tokens that have been removed from the usage. Thank you for giving us this great suggestion and we will work on it in some form.
Zac: Our token supply has always been specified in our white paper, and as promised in our white paper, we will continue to remove tokens through usage and use cases, which we’re working on all the time.
* **Price movement. When will NPXS go to which price?**
Zac: We cannot comment on the change of the price. Our focus is on building products. We hope by doing that the NPXS value will go up. Again, there’s no way that we can comment on the price.
**I believe that burning tokens every 14 weeks keeps the price suppressed and will only lead to huge pumps and dumps. Imo, If the burns were more frequent, the price would move organically.**
Zac: We continue removing tokens quarterly per advised by our legal and compliance team.
**Is it mandatory npxs swap? What happens for token we have in binance?**
Zac: No it’s not a mandatory NPXS swap for FX.
**How many NPXS or NPXSXEM was converted?**
Zac: In Q2, we will remove 29B NPXSXEM and 9B NPXS.
## On XWallet
* **Why not put in XWallet like the place where we can buy and sell like restaurants and shops?**
Zac: You are correct. In fact, if you look at XWallet, there is a merchant feature, whereby you can register as a merchant. By becoming a merchant, you will be able to print out your QR code and stick it on your restaurant. People are able to make payment through this QR code. This will act like a mini-XPOS.
* **In addition to that having multiple different blockchain in XWallet will increase the XWallet adoption. Hence, we would like to see aggressive game plan and execution from the team and would like to hear that**
Zac: That’s a great suggestion. Every day we want to increase use cases for XWallet. In fact, our XWallet update is one of the most frequent in the market. Within 5 months, we have over 10 updates on iOS and Google Play. This does not include soft update which happens every several days. In my view, the effort is very tremendous.
* **Is there any plan to add Swap option within XWallet so that people can trade the coins within XWallet?**
Zac: Yes, there’s such plan and in fact there is an upcoming feature that people will be able to use coins in XWallet to exchange into other things. The exact form and format have not been reviewed. We hope to share more when we have concrete example. But what you suggested is what we are planning for months ago.
* **When will XPOS and XWallet have fiat on ramps?**
Zac: This is a good question. It’s not only involved with regulatory compliance but also involved the technical part. This is also something we are planning for months. Once approved, hopefully we are able to support fiat currency on ramps and off ramps on XWallet.
**On Others*\*
* **How is the internal organization doing? Currently how many employees work for Pundi? Currently how many job positions are open?**
Zac: Pundi X has grown tremendously. We are now having over seven offices around the globe. I’m sitting in the Singapore office. We have office in Jakarta, Taiwan, Tokyo, Shenzhen, São Paulo and London. These are the places we have physical offices and house approximately 100 full time employees of Pundi X.
The positions open from Pundi X are legal associate in Singapore and other offices. We are looking for more R&D people, especially in Taiwan. We are looking at marketing and PR people in different parts of the world. And we are looking for POS distributors. As a POS distributor, you will work with our business development team and also our technical team to roll out many XPOS which you have a network to control in your local market.
* **Would you consider removing the KYC to allow u.s. holder to stake and be rewarded?**
Zac: We would love to have more users, including US. However, our compliance and legal advisors have not allowed us to accept US holders to stake and be rewarded.
I’m sorry to say that but this is after serious consideration to make such a decision. In fact, it is a very hard decision because we have healthy user base in the US.
will continue to monitor the situation in the different markets and be compliant. There are also ways to be rewarded when using XWallet service without KYC. We are looking into to explore more on this and launch new features. Hopefully we are able to bring the beta version for you to test this week or next.
**On XPhone*\*
* **Where are we on pre-sale announcement of Xphone? It was highlights of Q2 goal. If we are getting delay, that’s ok. But at least community will have some clarification why it’s getting late and when approximately it coming?**
Zac: Pre-sale order will start this month. It’s likely the end of July. Pre-sale will take place in different channel including the official website and XWallet. Apart of our own channel, the pre-sale will go live on a 3rd party channel. People will be able to pre-order crypto either in crypto or in fiat.
* **Can you discuss in AMA, is participants can pay with Crypto or Credit/debit card or in both ways?**
Zac: As a crypto company, we prefer payment in crypto, but fiat, Visa, MasterCard, and other traditional payment methods will be accepted on different pre-order channels. Stay tuned for pre-order which will happen in late July.
* **Will the Xphone be open to purchase in all regions of the world?**
Zac: Yes, pre-orders will be able to be done on-line, and products will be shipped from our offices to users in different parts of the world.
* **Will the blockchain mode on the Xphone be operable during the testnet or will this function not work until mainnet?**
Zac: XWallet and XPhone are the first channel and avenue for Function X testnet, so once the testnet is operateble, we will start to engage certain services on XWallet and XPhone into Function X testnet, and ultimately into mainnet. Slowly but surely.
* **Does Xphone have hard protective cover,extra Sim slot, also is it enhanced with ip68 water rating?**
Zac: XPhone will not be waterproof, so please do not submerge XPhone into water. XPhone will definitely be eavesdrop-proof because we’re using a blockchain mode, only you and you control your own conversation.
* **Which country accept the Xphone?** * **Will I also be able to use the SIM-card?** * **The blockchain modus will work in every country (what in the absense of nodes)?** * **Will the XPhone I buy now support updates in the future?**
Zac: People from any country will be able to buy XPhone on-line. You will be able to use a SIM for we have built a SIM slot. Wherever you are, the XPhone can be turned on to become a node.
Will XPhone support future updates? Yes, of course. Just like the XPOS, we support silent update. It will be like how we support XPOS, many updates. The updates will always be supported on XPhone.
**On Function X*\*
* **When is the detail white paper coming for FunctionX? Why the team is very resistive to have well documented white paper? We need scientific approach and well documentation on FunctionX to have developers to be more involved.**
Zac: Yes, developer involvement is a key criterion of the growth of Function X. We have done 2 things, one is that we have set up Function X Foundation which is led by David Ben Kay and will involve third party adviser and board members. Second, we have set up a developer relations team led by one of our own members as well. This team will work on creating developer documents, developer demos and sample, so that excellent developers can tap into working with Function X resources.
The first version of developer documentation is ready in English and Chinese. We are still polishing up the documents and hopefully to release them soon.
We are also working with third party developers, and are engaging at least 2 third party developer companies, so that we can help create their services on Function X and also XWallet.
We are hoping to showcase a smooth and usable service to the audience, we think this is the key criterion of the Function X growth.
Thank you for this suggestion. We need to update more often on github developer documentation as well.
As for the white paper, we did not have one per se because Function X did not do an ICO. But we will continue to update our white paper and include not only technical details, but also details on the chain and how we can get more developers and users so that the future hardware will be added as a node and you will be rewarded financially, at least through our ecosystem genesis fund. Please stay tuned and there are a lot of things going on in the company. Each and one of us is working hard.
* **Why does the FX ecosystem need a decentralized OS?**
Zac: The mantra of Function X is decentralization and having private control of your data. A full private control of your data comes with a decentralized system not just in transmission of your data, but with the operating system built fully for decentralization , which includes a transmission protocol replacing http. The apps uploaded into Function X will be decentralized as well as the data that is stored on the app, which means that how BitCoin or crypto assets are verified on different nodes will also be part of the way we store data and content.
The decentralized OS is key to fulfilling a decentralized environment for a more private and free usage.
* **What about FX are you most excited about?**
Zac: We are actually creating a shift of how people view of blockchain and how decentralization is not just about transacting commercial commodity, but also data, including your identity, are all decentralized. That is what we are most excited about.
The only way for us to achieve this is to have developer support, for we need the developers to build on the foundation we have to offer those exciting services.
* **We understand that developing a new blockchain is time consuming. As a community we are in a dark space to understand where exactly the development of FX right now.**
Zac: We are working hard on creating the testnet and eventually the mainnet. For the latest updates of Function X, what I can encourage you to do is to go on and subscribe to the Function X telegram group where discussions are made. We have formed the Function X Foundation and created the developer relations team, so that the Function X progress will go smoother and with more partnership from outside, whether it’s developers, third party companies, teleco, etc.
* **When FX goes live on the mainnet, will FX coin be used to stake and earn NPXS? how will staking work on that new mainnet?**
Zac: The NPXS/NPXSXEM staking will last till March 9, 2020 as announced. What we are committed is to create more use cases. For FX tokens, the use cases will be focusing on the Function X Chain and the use cases on Function X that include DApp on Function X and different hardware/software services.
* **When fx testnet will be available?**
Zac: First I would like to thank you for your constant support. In Q3, we plan to open Function X testnet so that we will be migrating and creating certain use cases that can be used on Function X testnet, starting with our own XWallet. Which means, the XWallet will migrate some features into Function X testnet, and slowly followed by our other Pundi X products, including XPhones, XPASS, Open Platform and Function X own developer related products from third parties.
submitted by crypt0hodl1 to PundiX [link] [comments]

Slack log for Ark token's value proposition discussion 16-07-18

Please find below a log of the discussion we had in slack regarding the ark token's value proposition. Some of the community members who happen to be long term holders of ark feel that the ark token's value proposition isn't clearly communicated by the team so they asked about it. I'm posting the entire discussion it here to make a permanent record since slack wipes messages after a while.
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arigard [7:21 PM]
Hey team, so I'm curious. Is there any update on a new white paper at all that was being mentioned? I've been holding Ark since it hit Bittrex and I personally don't really have a clear idea about how the token is going to work in the overall picture, or what really the direction is for the project once v2 is out. It feels like things have gone a bit flat recently, are there any updates on direction and what the plan is once V2 is live? Is there any idea about when it might go live? Or how the Ark token will fit into the economy (will it be a gas?). I see a lot of other projects i'm invested in coming up with very clear roadmaps/dates and direction about what they want to be and I still personally feel Ark's message is a little confused and hard to read especially for people who are not coders/developers.
rob [ Ark Labs ] [7:22 PM]
the roadmap is on the site, arkdirectory.com/kits has nice presentations and other goodies
roks0n (deadlock) [7:23 PM]
@Matthew_DC mentioned a couple of days ago that he’s preparing several blog posts which should explain most of these @arigard
rob [ Ark Labs ] [7:23 PM]
the Blog also goes into lots of v2 details
Djenny Floro (Ark Tribe) [7:24 PM]
Hi everyone.
rob [ Ark Labs ] [7:24 PM]
Ark is Ark, not like Eth with gas, hence no gas.
Hey @Djenny Floro (Ark Tribe) welcome back
Djenny Floro (Ark Tribe) [7:24 PM]
Hey rob, hi Rok :slightly_smiling_face:
roks0n (deadlock) [7:25 PM]
Rob, I think he means how everything will be connected with ArkVM etc.
similar conversation as the one few days ago (edited)
Djenny Floro (Ark Tribe) [7:25 PM]
It's been a while, but I was head on in the project, sorry for not showing more often.
arigard [7:25 PM]
Yeah my main question is really I still don't know what will give the actual Ark token value .
goldenpepe [7:25 PM]
we dont know how the arkvm will work
All we can do is wait
Doubled1c3 (ArkStickers.com) [7:26 PM]
uploaded and commented on this image: bucket.jpg
@Djenny Floro (Ark Tribe)
goldenpepe [7:26 PM]
We can make assumptions but that's all they'll be
roks0n (deadlock) [7:26 PM]
@arigard this was the discussion: https://arkecosystem.slack.com/archives/C2ABRLZB8/p1531422791000216
roks0n (deadlock)
definitely, I’m not blaming anyone :slightly_smiling_face: Was just curious if there were any developments in terms of the updated whitepaper because I was reading one of the threads on reddit from 6 months ago where it was mentioned you’re looking to hire someone write it up.
Posted in #generalJul 12th
arigard [7:26 PM]
And I kind of feel this is such a big elephant in the room for people in the long run.
roks0n (deadlock) [7:26 PM]
click on the link and read from that post on (edited)
arigard [7:26 PM]
ok
Djenny Floro (Ark Tribe) [7:27 PM]
I saw that there has been some drawbacks with the V2 ?
(Not sure if it's exact, I only came a few times and seemed to understand it was so)
goldenpepe [7:28 PM]
There are just some incompatibilities between v1 and v2 in devnet
which is why devnet is currently down
rob [ Ark Labs ] [7:28 PM]
ArkVM may be unnecessary as more modern approaches to handling contracts are available, one of the main issue is having them be distributed just like the tokens.
goldenpepe [7:28 PM]
There's a community run v2-only devnet though #devnet_unofficial
rob [ Ark Labs ] [7:28 PM]
it's more like drawback with v1
arigard [7:30 PM]
I mean I've seen a lot of stuff in that discussion discussed over the past year and there still seems to be no concrete answers coming out and that is a bit of worry to me personally. It makes it look like the team doesn't even know. I think most that know of Ark understand it wants to create an easy way to deploy blockchains and work as a platform and have some inoperability options. But the fundamentals of how that work right now seems to be up in the air. In other projects I know what gives those tokens value, but in Ark I don't, so it's hard for me as an investor to really sell to someone else the benefits of the token when there is a big question mark still on it.
rob [ Ark Labs ] [7:33 PM]
do you know that Ark Deployer has been available for quite some time?
arigard [7:34 PM]
Yes, that doesn't really answer any questions though.
mak [7:34 PM]
Ark deployer helps the main chain's business case somehow?
arigard [7:35 PM]
What gives Ark token actual value? Like what is the reason people need to buy and hold the Ark token? That is my question.
Djenny Floro (Ark Tribe) [7:36 PM]
@mak what you're saying is kinda like answering you can use a hammer when asked what a nail do.
arigard [7:36 PM]
You don't need to buy the Ark token to deploy a chain. You can just do it.
Djenny Floro (Ark Tribe) [7:36 PM]
I mean, the Ark Deployer doesn't answer what's the Ark.
mak [7:36 PM]
@Djenny Floro (Ark Tribe) my point was directed towards rob's comment. I think you misunderstood it.
Djenny Floro (Ark Tribe) [7:37 PM]
@mak My bad then. I apologize.
Blockhunter [7:38 PM]
:boogieark9:
rob [ Ark Labs ] [7:38 PM]
" I think most that know of Ark understand it wants to create an easy way to deploy blockchains and work as a platform and have some inoperability options. But the fundamentals of how that work right now seems to be up in the air."
This is why I wrote that.. there is no mystery of how that works. You are mistaken or uninformed.
arkenstone [7:38 PM]
That's the problem here because team is programming orientated but there hasn't been alot done on business aspect of the token and marketing investor point big view
mak [7:38 PM]
That only explains the value of the ark codebase not the blockchain though
arigard [7:38 PM]
I think you seem to be trying to turn the argument in a seperate direction.
It's a simple question.
What gives the Ark token value.
rob [ Ark Labs ] [7:39 PM]
The market does. It's on 19 different exchanges.
arigard [7:39 PM]
Seems like you are being unhelpfully obtuse. I'll rephrase.
roks0n (deadlock) [7:39 PM]
so one thing that is clear to me is interoperability using ACES, where ARK is used as a “middleman” between two different chains, so if there’s high volume between those chains, it means the volume of ark increases as well .. what I’d like to know is how things will work with arkvm and how it will all work with sidechains (on eth, all the side chains will basically link back to the main chain which will be the one responsible for security afaik?)
arigard [7:39 PM]
What gives the Ark token value in the Ark ecosystem.
Blockhunter [7:40 PM]
Vote for Pedro he will make all your dreams come true
arigard [7:40 PM]
Eth is a gas, Waves is a gas. Ark is... what?
mak [7:40 PM]
ACES can work with any chains though. Doesn't have to be ark main chain. So I guess tomorrow persona can become the settlement layer for the Ark ecosystem and there's no incentive to stop it from happening.
arigard [7:40 PM]
^
roks0n (deadlock) [7:41 PM]
Mak, correct but if there are already lots of chains connected between ARK, it will be more appealing to link it through ARK directly
Djenny Floro (Ark Tribe) [7:41 PM]
As I understand it, ACES could be using any given blockchain as the middle man...
roks0n (deadlock) [7:41 PM]
it doesn’t mean that it can’t be copied tho
arigard [7:41 PM]
But there are no chains connected through Ark atm
That have any real value anyway
roks0n (deadlock) [7:41 PM]
eth and btc are
arigard [7:41 PM]
And they can be connected through any Ark clone.
bangomatic [7:41 PM]
I'd love to hear the Ark team chime in on this discussion
arigard [7:42 PM]
So anyone can come along and make another chain that can instantly overtake Ark at this present time if there isn't a failsafe reason for Ark to be the defacto currency.
rob [ Ark Labs ] [7:42 PM]
https://arkecosystem.slack.com/archives/C2ABRLZB8/p1531762883000422 you can't keep saying things like this as if they are true.
arigard
That have any real value anyway
Posted in #generalToday at 7:41 PM
Blockhunter [7:42 PM]
Interoperability to the moon
mak [7:42 PM]
"it will be more appealing to link it through ARK directly"
Currently Ark is the only mature chain because it's been around longer but the moment persona or some other bridge chain gets listed on an exchange that dynamic is no longer there. So why would you prefer Ark over persona when that happens. That's the question as far as I understand it. (edited)
rob [ Ark Labs ] [7:43 PM]
Persona has other goals, not duplicating Ark goals
Djenny Floro (Ark Tribe) [7:43 PM]
@bangomatic Hi!
arigard [7:43 PM]
What current sidechain of Ark has real value/position in the crypto market? Persona?
bangomatic [7:43 PM]
hey @Djenny Floro (Ark Tribe)!
mak [7:43 PM]
The blockchain as a transaction medium doesn't care about secondary goals.
It still has all the capabilities that Ark has.
Colby [7:43 PM]
What has value right now? :thinking_face:
rob [ Ark Labs ]
https://arkecosystem.slack.com/archives/C2ABRLZB8/p1531762883000422 you can't keep saying things like this as if they are true.
https://arkecosystem.slack.com/archives/C2ABRLZB8/p1531762883000422
Posted in #generalToday at 7:42 PM
arigard [7:43 PM]
Ark's ecosystem at present is not big enough to be a reason not to just take the tech and start your own.
To think otherwise is ludicrous.
rob [ Ark Labs ] [7:44 PM]
that's a fine opinion
Jarunik [7:44 PM]
it is harder than you think :slightly_smiling_face:
arigard [7:44 PM]
We aren't Eth with multi $100mn + start ups and even if we were, what's currently to stop one of those just overtaking Ark and leaving it behind?
Jarunik [7:45 PM]
i hope some ark clones get really sucessful to be honest :slightly_smiling_face:
Colby [7:45 PM]
Same here!
Jarunik
i hope some ark clones get really sucessful to be honest :slightly_smiling_face:
Posted in #generalToday at 7:45 PM
Blockhunter [7:45 PM]
HODL ROCKET TECHNOLOGY
mak [7:45 PM]
Same here but then there's no reason to hold Ark over something else
arigard [7:45 PM]
i hope so too if there is some reason for Ark to always be there at the top considering it's the Ark platform.
Colby [7:45 PM]
But the thing is that I am wondering, if ark clones get successful, what benefits does it give back to ark
Djenny Floro (Ark Tribe) [7:45 PM]
@Jarunik to create an ecosystem?
mak [7:45 PM]
Right now we have to consider Ark's value not the other bridge chains
arigard [7:45 PM]
But if there isn't a reason for Ark to exist at the top, why are we all holding it?
Colby [7:45 PM]
Haha I think we are all thinking the same :slightly_smiling_face:
arigard [7:45 PM]
It's a terrible business plan
rob [ Ark Labs ] [7:46 PM]
the point of BridgeChains is to allow new projects with no access the market a path to them through Ark, and hence gain value.
Other blockchains connections are through ACES, such as BTC, LTC, ETH, and more coming..
Persona has a way to trade Ark <> Prs
arigard [7:47 PM]
What is to stop them from getting their own exchanges in the future and just using Ark as a stepping stone to becoming their own platform operator?
mak [7:47 PM]
Sure rob, but there's now 10 different projects doing the same and they are faster in development than the ark team is
arigard [7:47 PM]
^
Blockhunter [7:47 PM]
Ark is the Yoda of blockchain and they need a better catchphrase. Better than ark gives no dates or point click blockchain
arigard [7:48 PM]
This attitude seems horribly naive if this is the value proposition.
mak [7:48 PM]
All of us believe in the vision that Ark brought us but I personally am not sure if Ark is the best option to execute that vision in time
arigard [7:48 PM]
The issue is, we don't know what the value proposition is.
mak [7:48 PM]
Other projects seem much faster
rob [ Ark Labs ] [7:48 PM]
if you are into speculation, which it seems you are, then on paper all of your projects with no code are better and have more value than Ark
arigard [7:48 PM]
That's not true at all. lol.
Matthew_DC [7:49 PM]
At the most base level, ARK is a common currency token that is essentially automatically compatible with every bridge chain that is built based on ARK and is optimized for transaction volume and throughput to avoid bloat of other mechanisms introduced by the other chains. That is at the most basic level. By holding the ARK token itself, you will be able to enact the functions of multiple bridged chains both issued by our team and others. You will also be able to utilize the ARK chain as a pegged token to many bridged chains but that process will be transparent to users as it will be done behind the scenes without the user needing to do any functions. To think that someone will fork the code and generate a more effective ARK main chain means you have no confidence in the ARK team as the primary developer of the technology itself. In this case, if we are not and someone pushes a better version of the network, then I would argue maybe they SHOULD be chosen. That is the point of a free and open market. Not to mention the potential for registering and providing snapshot hashes to the main ARK blockchain to provide added security measures to a bridge chain with lower security due to lower market share etc, those are just baseline reasons.
As I mentioned the other day, at face value, consider this. What brings value to Litecoin or Bitcoin or Doge? In essence, ARK is a more effective currency and base network than all of these aforementioned networks with all of the added benefits being added for additional use cases.
roks0n (deadlock) [7:50 PM]
will ark based chains be bridged via arkvm?
goldenpepe [7:50 PM]
They cant be
You'd need the VM on both sides
Matthew_DC [7:50 PM]
I am currently on a conference call and have a lot going on so I can't respond too much.
goldenpepe [7:50 PM]
You can use AIP11's new tx types to do a sort of escrow between chains though i think
mak [7:50 PM]
@Matthew_DC Are you saying that the bridgechains deployed by ark-deployer don't have the same features?
rob [ Ark Labs ] [7:50 PM]
ArkVM is not for bridging chains
goldenpepe [7:51 PM]
It can be
Coinme [7:51 PM]
And ICO's that will join Ark in the future will use it for buying their token.
goldenpepe [7:51 PM]
But both chains will need to be running the VM
Matthew_DC [7:51 PM]
The ARK main chain will have specific methods of allowing token transfer and utilization between chains to include quasi-centralized methods through aces, decentralized aces based intermediary networks, Time locked transfers, among custom built smart contract like logic built into the core technology itself that doesn't make the network susceptible to the bloat and mis-utilization an vulnerabilities of full VM use.
goldenpepe [7:51 PM]
(which the main ark chain wont be)
mak [7:51 PM]
"ICO's that will join Ark in the future will use it for buying their token"
Or any other bridgechain that's listed on exchanges
@Matthew_DC So will all of the bridgechains, no? I could start an ACES node today for persona and it will have no difference from what you describe.
Matthew_DC [7:52 PM]
@mak no, we promised ARK would be open source and everything we build for the core ARK blockchain will be open source.
arigard [7:53 PM]
You can be open source and still protect your value..
Matthew_DC [7:54 PM]
The point of ARK from day 1 has been to create a better base layer blockchain technology and protocol for everyone everywhere to be able to use to create anything they can dream up.
The ARK token is a core payment layer for the ecosystem including any applications we build ourselves, sponsor, partner with, or support.
mak [7:54 PM]
It seems like the team's vision for Ark is as a software product only and there's no business plan for the main chain. Which is fine but it's not explained as such. (edited)
Blockhunter [7:55 PM]
Great to see such active discussions
goldenpepe [7:55 PM]
I think what Matt is trying to portray is this:
A single universal Ark Ecosystem wallet holding ARK that has a nice UI with a list of dapps in the ecosystem
You select a dapp
You send a tx from the wallet using Ark
----------------Everything below this line is transparent to the user-----------------
The Ark transaction has instructions in the smartbridge field
The Ark gets converted to dappCoin via an intermediary like ACES (trustful) or a trustless escrow smart contract
The intermediary received Ark and uses the dappCoin on the dapp chain to do whatever it is the user wanted to do using the instructions in the smartbridge field
The dappchain responds to the request to the intermediary
Intermediary sends an Ark tx with the results of the dapp computation/action in the smartbridge field
---------------Everything above this line is transparent to the user-------------------
After 8+ seconds, user's wallet shows them the result of their interaction with the dapp bridgechain
That's where the value of Ark will come from
The Ark coin will be a universal "omni-coin"
Matthew_DC [7:56 PM]
:this: This
goldenpepe [7:56 PM]
That will instantly shapeshift into bridgechain coins to interact with the bridgechain dapp
mak [7:58 PM]
I understand what your point is and I agree it will work but only as long as none of the bridge chains are on an exchange
when for example persona gets listed on binance the scenario changes
and now either chain can become the backbone of the ark ecosystem
arigard [7:58 PM]
Yes. We see that. But hypothetically what is to stop a bridged Ark chain from becoming bigger than Ark and then going on to become that gateway? At this point it just seems to be hopium that the Ark network will always be the one people look to. But in one year, or two, or five, it might not be the case. What is to stop Ark being just sidelined if another team come along with develop on what Ark has built and propel it forward and take the mantle?
goldenpepe [7:58 PM]
What you say will be a problem only if the utility of the dapp coin is greater than the utility of the ark omnicoin
Would you rather hold a coin that can do one thing and is forever tied to a single chain
arigard [7:59 PM]
But in other crypto's an app becoming sucessfull is a benefit. In Ark's network it could be a negative.
goldenpepe [7:59 PM]
Or would you rather hold a coin that can interact with that single chain and 3232523432 others
arigard [7:59 PM]
But why can't another coin become an omnicoin?
If there are no limitations against it
goldenpepe [7:59 PM]
Why can't another coin become ethereum?
mak [7:59 PM]
"What you say will be a problem only if the utility of the dapp coin is greater than the utility of the ark omnicoin"
Or if it gives out better staking returns etc like persona because of higher inflation rate
goldenpepe [7:59 PM]
if there are no limitations against it
You can literally go on AWS right now and deploy an ethereum clone chain
arigard [7:59 PM]
It can, but an ETH token can't oust ETH
That's the difference. We are giving people an easy route here.
rob [ Ark Labs ] [7:59 PM]
do you often think your children should not surpass you? Or is that the hope?
Matthew_DC [8:00 PM]
Well it's about security, trust, potential vulnerabilities due to added functionality, the ability of the bridgechain team to create interactions and focus on use cases for their token outside of their core use, etc.
But that's the point of open and free markets
goldenpepe [8:00 PM]
There is a solution to your concern @arigard
Matthew_DC [8:00 PM]
What is to stop someone from being better than Bitcoin?
arigard [8:01 PM]
I think all these strawman arguments are fun, but they still aren't adressing the issuel
goldenpepe [8:01 PM]
Instead of having Ark Deployer literally cloning the ark codebase, have it be a turnkey solution to run a layer 2 chain
Matthew_DC [8:01 PM]
You could go fork Ethereum right now and have an exact copy of the capability of the main Eth chain.
goldenpepe [8:01 PM]
bridgechain dapps can be "colored coins"
that are forever tied to the main chain
arigard [8:01 PM]
Yeah but you wouldn't have those businesses on the chain.
goldenpepe [8:01 PM]
but that would introduce bloat
Matthew_DC [8:01 PM]
So you are saying the utility of Ethereum is adoption.
arigard [8:01 PM]
And those businesses won't have the potential to become the main ETH.
Matthew_DC [8:01 PM]
Which is the case for the value of any token.
goldenpepe [8:01 PM]
@arigard It sounds like you want ark to become Ethereum Plasma
arigard [8:02 PM]
I just want an answer.
Matthew_DC [8:02 PM]
How many companies are pulling their ERC20 tokens off of Ethereum because of the issues?
Colby [8:02 PM]
Yeah but correct me if im wrong
goldenpepe [8:02 PM]
There is no answer that will satisfy what you are asking
arigard [8:02 PM]
And i keep getting strawmanned.
Colby [8:02 PM]
Ethereum projects NEED eth for gas
Matthew_DC [8:02 PM]
We talk to people almost every day that are looking to leave Ethereum.
Colby [8:02 PM]
Ark is needed for?
arigard [8:02 PM]
^
Colby [8:02 PM]
This is all I am wondering, where does the ark coin fit into it
I love the idea
goldenpepe [8:02 PM]
@arigard You want ark-based coins to rely on Ark
The team wants the Ark chain to not be bloated
The solution to this is unironically ethereum plasma and sharding
Colby [8:02 PM]
but have been waiting for a while to know how the Ark coin will actually be used
goldenpepe [8:03 PM]
Shards in ethereum are basically "bridgechains"
arigard [8:03 PM]
Ok, and those teams might be big enough and clued up enough to eventually knock Ark from being the de facto omni coin. That's the worry.
If this is in fact the possibility.
Then it should be clear.
mak [8:03 PM]
"You could go fork Ethereum right now and have an exact copy of the capability of the main Eth chain."
@Matthew_DC Ethereum has value because all the dapps live on it which is not true for ark
arigard [8:03 PM]
Because as an investor it worries me, a lot.
I don't know where the value of Ark as an investment is 100% right now.
Jarunik [8:03 PM]
Ark is basically the inverse approach to Ethereum. Eth goes for big one-fits all first and tries to shard ... Ark is creating shards and then combines them
goldenpepe [8:03 PM]
There is no solution to what @arigard and @mak are saying right now
Literally no existing solution
Only proposals like sharding
arigard [8:04 PM]
And all this noise about defensiveness doesn't help. These are legit concerns.
Matthew_DC [8:04 PM]
When was it not clear that if a company comes along and builds a better more used product it could potentially take over market share?
That's how all free markets work.
You can't believe in open source and build and open source product without that risk.
arigard [8:04 PM]
But that isn't the same thing. Ark is literally building THE tools for people to then do that.
mak [8:04 PM]
@Matthew_DC Just to clarify I appreciate the work you guys are doing but I want to make an informed investment decision about holding the ark token
arigard [8:04 PM]
As a platform.
Jarunik [8:04 PM]
yes ... that is the idea how to grow
arigard [8:04 PM]
if you cloned Bitcoin back in the day you were a seperate currency.
Jarunik [8:04 PM]
provide good tools for others to create chains
arigard [8:04 PM]
This is a platform, its totally different.
And what we are discuswsing here is who runs that platform.
Matthew_DC [8:05 PM]
If someone launched an Ethereum chain right now and gained adoption there is a huge potential that all tokens decide to move their ERC20 tokens to the new chain and it becomes the new Ethereum and you have in essence lost all value because Ethereum is not capable of being used on the bridge chain as a currency.
ARK maintains it's value if for no other reason than the pegged value to any chain we personally create to include VM chain, token issuance chain, etc.
arigard [8:05 PM]
If it's built by Ark, does Ark always retain control? if not, why? What happens if Ark ends up building tools for a subsidary project that propels itself above them. Investors will just move to that coin.
Matthew_DC [8:05 PM]
Because it's an open decentralized system.
The problem is people don't actually believe in decentralization if it possibly harms their potential for monetary gain.
rob [ Ark Labs ] [8:06 PM]
we hope bridgechains get popular because that also means more for Ark in many ways.
arigard [8:06 PM]
You can be decentralized without being 100% altruistic. It's not mutually exclusive.
mak [8:06 PM]
@goldenpepe Since you guys claim that there's no solution for this how about I present one which @Matthew_DC can decide if it's useful or not. Make delegate voting for the ArkVM happen on the main chain. So anyone who wants to become a delegate for the VM needs to hold money on the main chain.
arigard [8:07 PM]
It just seems people are being dogmatic about this.
And if this isn't about investment. Why have an ICO?
Matthew_DC [8:07 PM]
Ethereum being the core chain for all ERC20 token based businesses centralizes the industry in a massive way. Not only is Ethereum itself centralized in the way it's mining structure was developed, but it also is centralized in that if the Ethereum network is compromised, thousands of companies assets and business are now compromised.
We don't believe that is the future.
mak [8:07 PM]
I'm not saying that this should be done for all sidechains. Just for the VM and it will be a special case.
Matthew_DC [8:07 PM]
We believe in a different business model.
That has been at the core of every description and explanation I have given from day 1.
arigard [8:07 PM]
Ok and that's fine, but my point is this should be made very clear if it's the case.
From the team officially.
goldenpepe [8:07 PM]
@mak now you're strawmanning me
Matthew_DC [8:07 PM]
Where is it not clear?
goldenpepe [8:08 PM]
I was addressing the fact that the idea that bridgechains shouldnt be independent and should be tied to Ark being in conflict with the Ark team's idea that the main chain should not be bloated with dapps
The only plausible solution to that right now
is Ethereum Plasma
Sharding
yokoama (thefoundry Delegate) [8:09 PM]
Sharting
mak [8:09 PM]
"We believe in a different business model."
I respect that. But it changes the ark's value proposition to just being a source of funding to the ark team and a means of speculation.
goldenpepe [8:09 PM]
Shards in ethereum are like bridgechains but the coins are all erc20s that rely on ethereum
Matthew_DC [8:09 PM]
People said ARK's DPoS mechanism would be a failure when we changed the voting structure because they said it wouldn't be secure enough. It has turned out to be massively secure compared to the centralized cartel run solutions of other DPoS chains. This is another fundamental issue where we believe we have a model that will work and will create value and thousands of use cases for the ARK token in a seamless way for the average user.
goldenpepe [8:09 PM]
and the shard blocks dont interfere or bloat up the "main" eth chain
mak [8:09 PM]
@goldenpepe I'm not suggesting deploying dapps on main chain. Just that the voting should take place there so there is always incentive to keep money on the main chain.
Matthew_DC [8:10 PM]
At no point did we say ARK was gas and have constantly made sure to outline the differences between ARK and Ethereum.
I believe the Eth model is flawed.
goldenpepe [8:11 PM]
The current ethereum model is flawed
If sharding works then it's going to solve a lot of its issues
(i dont hold any ethereum btw)
arigard [8:12 PM]
At no point have we actually had an updated white paper discussing this question in detail, clearly. It's not on the website and if it is it's buried somewhere in a blog post. The fact these discussions keep cropping up is proof of this.
nukacolaplease [8:12 PM]
I think we don't understand clearly what makes Ark important after the launch of the sidechains, Ark will be only an "exchange token"? The sidechain doesn't need Ark for operating
goldenpepe [8:12 PM]
+1 on needing a new whitepaper
Matthew_DC [8:12 PM]
replied to a thread:
This is a means of centralization of the network. Instead, by utilizing a form of pegged bridge chains, we can maintain a similar effect without creating centralization and reliance on 1 chain for others to properly function.
arkenstone [8:12 PM]
I think these things should be clearly written in a new WB and officially made public and promoted
goldenpepe [8:12 PM]
A new whitepaper would clear up so much FUD
pieface [8:13 PM]
Yeah I think a new WP is needed for sure
arigard [8:13 PM]
So don't start going "Oh everybody knows this, it's clear" Show me where on the front page of the website it tells you how the token mechanics will work in the ecosystem? It's not good it being on some powerpoint on a google drive, or hidden in comments in the slack.
mak [8:13 PM]
I though there wasn't going to be a new whitepaper.
arigard [8:13 PM]
It needs to be clear to investors how it works, exactly.
goldenpepe [8:13 PM]
I agree with arigard here
I only know what I know because I live on slack
Matthew_DC [8:13 PM]
The solutions are still in development and there are always opportunities to continue to adapt the model, that's why I have these conversations and ask for feedback regularly, but the core fundamental belief of how open and free decentralized markets should work most likely won't change.
arkenstone [8:13 PM]
Same here
goldenpepe [8:14 PM]
The vast majority of ark holders have no idea
they just bought bc of the cool red triangle
arigard [8:14 PM]
Stop playing cute, this is people's money you are asking for. So at least give them the benefit of being honest that there is no inherent business model reason why Ark will be necessary in the future.
And let them make their decisions.
roks0n (deadlock) [8:14 PM]
I agree, it took me months of following discussion on slack and digging around reddit to get information
arigard [8:14 PM]
With proper information.
mak [8:14 PM]
replied to a thread:
It's centralizing value onto one chain but doesn't bottleneck the ecosystem so I don't see anything being wrong with that.
Matthew_DC [8:15 PM]
replied to a thread:
I'm not arguing with you and I made a clear post here within the last 2 days that our website messaging is shit and needs completely redone.
If the ARK network is compromised or the consensus mechanism of the ARK main net is compromised then all subsequent networks reliant on that consensus would be compromised as well.
mad4thrash [8:15 PM]
In my opinion Ark's value come from (in the future) the fact that by holding one coin I can interact with every bridgechain plus any ACES services
Matthew_DC [8:16 PM]
So what I am saying is that we have to be cautious of these kinds of decisions and ensure that we aren't inadvertently creating attack vectors to take down partners, businesses, and other industries using the technology.
I'm sorry guys, I have to go, but I would love to continue this conversation on Reddit or here at a later time.
mak [8:16 PM]
"all subsequent networks reliant on that consensus would be compromised as well"
^ Correction: only the VM chain will be compromised since I'm not advocating that all bridgechains should vote on the main chain.
Matthew_DC [8:19 PM]
In an isolated case, if we can map it out and vet the concept, I'm more than happy to hear it out and have the conversation.
Solowatch [8:19 PM]
So I think we can all agree an updated Whitepaper is due
Matthew_DC [8:20 PM]
This is a community project and we are shaping pieces of it together as we continue to build. We have already made changes based on community feedback on many occasions.
So I would love to see someone post a proposal to reddit or even as an AIP at some point that we could discuss.
Jarunik [8:20 PM]
If you write a white paper it will be outdated soon :smile:
Solowatch [8:21 PM]
Well a V2 whitepaper shouldn’t be outdated soon
I don’t care about a V1 or V1.5 whitepaper lol
I want a whitepaper for V2 that’s clearly explaining all these concerns that the community has
arkenstone [8:22 PM]
:this:
Solowatch [8:23 PM]
I wrote a few questions down that I’ll post in here later today that @rob [ Ark Labs ] asked for. Please add to it if I missed anything once I do.
arkenstone [8:23 PM]
And I think now it's the time do it. Present it with full package on mainet launch.. (edited)
Solowatch [8:23 PM]
Or PM and I’ll add them before posting
mak [8:25 PM]
Anyways thanks for listening and responding @Matthew_DC. Some of us have been trying to discuss this with the ark team but didn't get much feedback until today.
arigard [8:25 PM]
Yeah +1
arkenstone [8:28 PM]
Alot of early investors are getting worried
submitted by moazzam2k to ArkEcosystem [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]

The best crypto and blockchain podcasts of 2019

For anyone who it interested in learning more about investing, crypto, finance, blockchain, and entrepreneurship can checkout this list I made of the top podcasts to follow in 2019 with some selected episodes chosen from each one:

Off The Chain With Anthony Pompliano
Host Anthony Pompliano talks to some of the most respected names in crypto and Wall Street to find out how intelligent investors from the new and old financial system are thinking about digital assets.
Top Episodes:
CZ, Founder and CEO of Binance: Binance and the Future of Global Crypto Regulation
Murad Mahmudov: The Ultimate Bitcoin Argument
Travis Kling: The Secrets of A Crypto Trader

Unchained: Your No-Hype Resource for All Things Crypto
This weekly, hour-long podcast with host Laura Shin dives deep into the people building the decentralized internet, the details of this technology that could underpin our future, and some of the thorniest topics in crypto, such as regulation, security and privacy.
Top Episodes:
Vitalik Buterin, Creator of Ethereum, On The Big Guy vs. The Little Guy
Naval Ravikant On How Crypto Is Squeezing VCs, Hindering Regulators, and Bringing Users Choice
Blockchain 101 with Andreas Antonoloulos

What Grinds My Gears
From Meltem Demirors and Jill Carlson, What Grinds My Gears is a podcast about the bizarre and buzzworthy happenings in the world of cryptocurrency. Each week, they delve into one key theme in crypto, and examine this theme through a broader financial, political, and cultural lens to learn from the past, understand the present, and explore the future.
Top Episodes:
An Unfetted Orgy Of Capitalism
It’s All About The DEX, Baby!
Tarred & Tethered

What Bitcoin Did
Since the birth of Bitcoin in 2009, a new class of Crypto assets built using the innovative design of the blockchain is disrupting technology and financial markets. In this podcast you will hear host Peter McCormack speak with crypto traders, miners, venture capitalist, investors, technical developers, CEOs, journalist and other people driving forward the growth of Bitcoin and other cryptocurrencies.
Link To Listen
Top Episodes:
Andreas Antonopoulos: What Happens When Bitcoin Takes Over?
Peter Van Valkenburg on Lightning & The Law
Tuur Demeester on Why Bitcoin Is In Heavy Accumulation

Untold Stories with Charlie Shrem
Host Charlie Shrem dives deep into the lives and personal histories of some of crypto’s most influential leaders. A focus on personal stories weaves together a nuanced, untold narrative of how the crypto movement truly came to be.
Top Episodes:
J. Maurice “Wiz” — The Real Story of Mt. Gox & How to Become a Self-Sovereign Bitcoin Miner
Arianna Simpson — Why Founders Shouldn’t Think About an Exit & Becoming BitGo’s 3rd Employee
Steven Nerayoff — Crypto as a Disruptive Technology & Governments Debasing Their Own Currencies

Tales From The Crypt
Tales from the Crypt is a podcast hosted by Marty Bent about Bitcoin. Join Marty, Editor in Chief of “the best newsletter in crypto”, as he sits down to discuss Bitcoin with interesting people.
Top Episodes:
Tales from the Crypt: Pierre Rochard Pt. I
Tales from the Crypt #3: Santiago Siri
Tales from the Crypt Ep1: The History of Bitcoin Pt. 1

The Token Daily with Soona Amhaz
Host soona amhaz sits down with the movers and shakers of the crypto industry to discuss the big ideas they spend their days thinking about. Soona and her guests examine everything from industry trends, to what books they’re reading, to human psychology and investing.
Top Episodes:
Taylor Pearson, Author of The End of Jobs: Markets Are Eating the World
Dani Grant, Analyst at Union Square Ventures: The VC Outlook on Crypto’s Trends and Future
Tony Sheng, Independent Analyst: A Writer’s Take on Bitcoin Lore

The Flippening
Flippening is for cryptocurrency investors. Each week host Clay Collins discusses the cryptocurrency economy, new investment strategies for maximizing returns, and stories from the front lines of financial disruption. Flippening is for a new class of investors that were not part of the financial services world before bitcoin, but got into the finance because of their passion for cryptoassets, blockchain, altcoins, and distributed ledger technology.
Top Episodes:
Strategies for Accumulating BTC (Instead of USD) w/ Tuur Demeester from Adamant Capital
The Economics of Cryptoasset Markets w/ Professor Stephen McKeon
Bootstrapping A Crypto Nation State From Scratch, w/ Eric Meltzer of INBlockchain

The Chain Reaction Podcast
Host Tom Shaughnessy of Delphi Digital converses with the top names in crypto and blockchain.
Top Episodes:
ConsenSys’ Joe Lubin: Ethereum’s Competition Isn’t Even Close
Delphi Digital’s March Analyst Call — Ethereum, Enjin and Our Short Term Bitcoin Outlook
Vision Hill Group’s Scott Army: Digital Asset Management of the Future

a16z Podcast
The a16z Podcast discusses tech and culture trends, news, and the future — especially as ‘software eats the world’. It features industry experts, business leaders, and other interesting thinkers and voices from around the world. This podcast is produced by Andreessen Horowitz (aka “a16z”), a Silicon Valley-based venture capital firm.
Top Episodes:
What Time Is It? From Technical to Product to Sales CEO
Principles and Algorithms for Work and Life
Five Open Problems Toward Building a Blockchain Computer

Unconfirmed: Insights and Analysis From the Top Minds in Crypto
Events in crypto take place at warp speed. This weekly crypto podcast reveals how the marquee names in crypto are reacting to the week’s top headlines. With host Laura Shin, the guests also discuss what they’re thinking about these days and reveal what they believe is on the horizon in crypto. Disclosure: Laura is a nocoiner.
Top Episodes:
To the Moon and Back With Polychain’s Olaf Carlson-Wee
Don Wilson of DRW Holdings on What’s Been Driving 2018’s Crypto Downturn
Hu Liang of Omniex on What Institutional Players Are Planning to Do in Crypto

The Unhashed Podcast
Unhashed breaks down the latest in Bitcoin news and developments and puts them into terms everyone can understand. Expect to be both entertained and educated about cryptocurrencies and blockchain. How do hardware wallets work and do they really keep you safe? Which crypto exchanges pose the greatest risk to the bitcoin ecosystem? Does Litecoin help or hinder bitcoin development? Expect the answers to these and many other questions from the Unhashed professionals offering different perspectives to all the blockchain issues you care about!
Top Episodes:
The Very Rich, Very Patient Binance Hacker
Bitcoin Goes High Fidelity
Initiating Unhash

The Scoop
The Block’s team, led by Frank Chaparro, draw out the freshest and deepest insights about digital assets from traditional Wall Street, crypto native, Fortune 500 and many other crypto ecosystem leaders. It’s light, fun and informative brain food!
Top Episodes:
A Conversation with Mark Yusko, CEO and CIO of Morgan Creek Capital Management
A Conversation with Stephen Palley, Partner at Anderson Kill
A Conversation with Emilie Choi, VP Business and Data, Coinbase

Base Layer
Base Layer with host David Nage will be providing insights from founders and investors in the base layer of cryptoassets. Simplifying complex projects and the technology being developed, from interoperability to relayers and more — who is building the future, why are they and how are they doing it.
Top Episodes:
Base Layer Episode 028 — Zaki Manian (SkuChain, Cosmos, Tendermint)
Base Layer Episode 026 — Diogo Monica (Co — Founder, Anchorage)
Base Layer Episode 032 — Alexander Skidanov (NEAR)

Blockchain Innovation: Interviewing The Brightest Minds In Blockchain
Blockchain Innovation is where host Frederick Munawa interviews the brightest minds in Blockchain and cryptocurrency — entrepreneurs, executives, and top academics — to discuss present and future applications of Blockchain Technology. Why? To determine how Blockchain can be used to increase profits, cut costs, and disrupt traditional industries and business models — so you can borrow their strategies, tools, and tactics for your own success. Join Frederick every Tuesday to learn how the brightest minds in Blockchain are pushing the envelope with Initial Coin Offerings (ICOs) and token sales, public blockchains, private blockchains, Bitcoin, Ethereum, Hyperledger, smart contracts, and much more.
Top Episodes:
Why Bitcoin Should Hard Fork With Roger Ver
How Blockchain Assets Are Changing The World With Erik Voorhees
Blockchain Meets Artificial Intelligence with Dr. Ben Goertzel

Blockchain Insider
Blockchain Insider, hosted by Simon Taylor and Colin Platt is a dedicated podcast specializing in Bitcoin, Blockchain and distributed ledger technology (DLT). Simon and Colin break down the week’s news with expertise and enthusiasm for the blockchain and digital currency sector. Since the price of Bitcoin has rocketed, and Bitcoin, Ethereum and Litecoin have become household names, Blockchain Insider has charted their rise in a way that’s accessible to new listeners.
Top Episodes:
Ep. 42. Santander Makes Ripples and Charles Hoskinson Shares His Vision of Cardano
Ep. 27. XRP’s Ripple effect and Blockchain use cases
Ep. 43. Sexism in Crypto, Pornhub takes Verge, and Binance Denies the Dollar

Let’s Talk Crypto
Have you ever heard of digital currencies like bitcoin, ethereum, and buzzwords like blockchain, cryptocurrencies and mining? Don’t know what it all means or how to get started? Let’s Talk Crypto with Barry Moore and Tom Galeski breaks it all down in easy to understand terms and helps you “learn and earn” in the age of cryptocurrencies.
Top Episodes:
006: Altcoins
017: Fiat & Crypto
010: Proof of Work vs. Proof of Stake

Blockchain 2025
Blockchain is a technology that will disrupt nearly every industry. Host Matt Aaron and Blake Moore explore one industry in every episode. How will blockchain change art, music, or online advertising? What projects are already underway? Listen & find out.
Top Episodes:
Online Ads — Publishers and Advertisers vs. Centralized Platforms
Music Biz — Can Artists Have More Money + Freedom?
Crypto Debit Cards — A Bridge to the Future? TenX, Monaco, Comit

IBM Blockchain Pulse
Host and blockchain-evangelist Matt Hooper engages with the planet’s most dynamic blockchain thought-leaders, explorers and innovators to discover the countless new ways blockchain is leaping from theory to reality: From entertainment to identity, from payments to secure supply-chain transparency.
Top Episodes:
Making Cross-Border Payments Seamless — IBM Blockchain and Stellar’s Collaboration That is Bringing Commercial Payments to the Financial World
A Blockchain Origin Story and Enabling Complete Ownership With Blockchain
The Future of Protecting Your Wallet and Identity: Blockchain Identity and Digital Credentials, with Adam Gunther and Drummond Reed

Messari’s Unqualified Opinions
Unqualified Opinions is a podcast hosted by Messari’s CEO Ryan Selkis featuring candid, fast-paced interviews with crypto’s top builders and investors.
Top Episodes:
Bill Barhydt, CEO & Founder of Abra
Anthony Pompliano, Founder at Morgan Creek Digital
Unlock Protocol CEO Julien Genestoux
submitted by RndmWrdCombntn to podcasts [link] [comments]

EXPERIMENT - Tracking Top 10 Cryptocurrencies of 2019 - Month Four - UP 30%

EXPERIMENT - Tracking Top 10 Cryptocurrencies of 2019 - Month Four - UP 30%
https://preview.redd.it/pmulcjylmsw21.png?width=2560&format=png&auto=webp&s=0728e90d1a4141d5b7a9551b7d7543f53a1e00ac
Click here for full blog post with all the charts
tl;dr - April marked the third positive month in a row. Top Ten portfolio is up +30%, almost double S&P500. Litecoin best performer by far. Bitcoin Cash wins best monthly performer for the first time since the experiments began 16 months ago.

The Experiment:

Instead of hypothetically tracking cryptos, I made an actual $1000 investment, $100 in each of the Top 10 cryptocurrencies by market cap as of the 1st of January 2018. I then repeated the experiment on the 1st of January 2019. Think of it as a lazy man's Index Fund (no weighting or rebalancing), less technical, more fun (for me at least), and hopefully still a proxy for the market as a whole - or at the very least an interesting snapshot of the 2019 crypto space. Trying to keep it simple and accessible for beginners and those looking to get into crypto but maybe not quite ready to jump in yet.

The Rules:

Buy $100 of each the Top 10 cryptocurrencies on January 1st, 2019. Run the experiment two years. Hold only. No selling. No trading. Report monthly. Compare loosely to the 2018 Top Ten Experiment.

Month Four - Up 30%

April was another solid month for the 2019 Experiment. The Top Ten portfolio added another +14%, bringing the total gain from January 1st, 2019 to +30%. Like March, While the spreadsheet makes it look pretty even in terms of reds and greens, you'll notice that the losses are all quite mild (except for BTCSV, which had a horrible month) and the gains are exceptional, ranging from +12% to +49%).

Ranking

Half of the Top Ten were on the move in April. Tether climbed one spot from #9 to #8, Bitcoin Cash leaped two spots from #6 to #4. Moving downward, EOS switched with Bitcoin Cash, falling from #4 to #6. Stellarslipped one place from #8 to #9 and BTCSV fell another 2 slots from #12 to #14.
Tron and BTCSV have already dropped out of the Top Ten. They have been replaced by Cardano and Binance Coin.
April Winners - Bitcoin Cash crushed the competition in April, up almost +50% in the month. Building on a gain of +28% in March, Bitcoin Cash seems to have built a bit of momentum. A distant second in April is Bitcoin, up almost +30%.
April Losers - BTCSV again had a rough month, down -17%, followed by Stellar, down -8%.
For those keeping score, here is tally of which coins have the most monthly wins and loses during the first 3 months of this experiment: Bitcoin Cash, EOS, Litecoin, and Tron each have one victory each. Bitcoin SV has now lost three out of the first four months. Ouch. Tron has recorded one monthly loss as well.

Overall update – Litecoin increases its lead again, BTCSV down -$3%

Only three of the Top Ten have significantly lost value, the rest are at break even or in the green. Litecoin continues to increase its lead, now up nearly +132% on the year and has pulled even further ahead of second place EOS. For EOS, being in second place means "only" being up +80%. Not bad. My initial $100 investment in Litecoin is now worth $237.
Bitcoin SV, on the other hand, continues its downward trajectory, now down -43% since January 1st, 2019. The initial $100 investment in BTCSV is now worth about $58.

Total Market Cap for the entire cryptocurrency sector:

The total crypto market cap increased over $25B in April, up +18% from last month's report. The end of April saw the highest total market cap so far for 2019 and is now up +35% since the beginning of 2019.

Bitcoin dominance:

After dropping in March, Bitcoin dominance moved up again in April, now approaching 55%.

Overall return on investment from January 1st, 2019:

If I cashed out today, my $1,000 initial investment would return $1296, a +30% gain. This is nearly double the return the stock market has provided (as measured by the S&P 500, see below).

Implications/Observations:

April 2019 marked the first time I've been able to record three back to back winning months since I started these Top Ten Crypto Index Fund style experiments.
A significant change this month: up until March, the 2019 Top Ten Experiment's focus of solely holding the Top Ten was a winning strategy. This was a stark departure from last year because at no point in the Top Ten 2018 Experiment did this investment strategy work.
Well, that changed in April. The 2019 Top Ten strategy yielded a +30% gain, while the overall crypto market gained +35%. This is largely because of the meteoric fall of BTCSV.
I'm also tracking the S&P 500 as part of my experiment to have a comparison point with other popular investments options. After a pretty significant December dip, the stock market has rebounded nicely in 2019. Had I redirected my $1000 investment to the S&P 500, I would be up about +$170, compared to the +$296 I'm currently ahead in crypto.

Conclusion:

For the first time in 16 months of reporting, I've been able to report three consecutive positive months. That's not definite proof that we're out of the bear market, but it's not nothing either. The next few months will show us if this is a temporary peak or the start of a true bull run.
If you're just finding this experiment now, here's the backstory: On the 1st of January, 2018, I bought $100 each of the Top Ten cryptos at the time for a total investment of $1000 to see how they would perform over the year. I tracked the experiment and reported each month. The result? I ended 2018 down -85%, my $1000 worth only $150.
After last year's experiment ended, I decided to do two things:
  1. Extend the Top Ten 2018 Crypto project one more year. The experiment is now in its 16th month. You can check out the latest update here.
  2. What you're reading now is the 4th report of a parallel project: this year I repeated the experiment, purchasing another $1000 ($100 each) of the new Top Ten cryptos as of January 1st, 2019.
Thanks for reading and the support for the experiment. I hope you’ve found it helpful. I continue to be committed to seeing this process through and reporting along the way. Feel free to reach out with any questions and stay tuned for progress reports.
submitted by Joe-M-4 to CryptoCurrency [link] [comments]

DENT Roadmap 2019/2010 Release & AMA

Mikko Linnamaki, [12.02.19 12:02]
We have a lot of stuff to talk about today, so lets get started!

Combot, [12.02.19 12:03]
Channel mode enabled. Only admins can send messages. Other messages will be deleted. Call the command again to disable.

Mikko Linnamaki, [12.02.19 12:03]
Yeah my old SE30 from the 80s;)

Mikko Linnamaki, [12.02.19 12:04]
So lets start with questions that you guys have sent to us on reddit, telegram and other channels, after that we will go thru 18 Months in the future, so you get an overview where we are heading to

Mikko Linnamaki, [12.02.19 12:05]
A User from Telegram asked:
Q: Is there a referral program from the DENT Exchange planned?

Mikko Linnamaki, [12.02.19 12:05]
There are no plans to introduce referrals for the Exchange at this point. We are quite happy with the daily rate of growth of traders. As we have seen with our referral program on the app side, viral marketing is very effective, so we might consider that in the future.

Mikko Linnamaki, [12.02.19 12:06]
another very good question from telegram:

Telegram
Q: Any plans to add a stable coin trading pair? If so, when and which (approx).

Mikko Linnamaki, [12.02.19 12:06]
Yeah, that’s not a bad idea. We have considered adding a stable coin into the mix in the future, however there are no specific plans for one at this moment. As a principle, our aim is to have a select few useful utility coins/tokens on the Exchange. As stable coins mature, we're sure to examine the good ones for potential addition.

Mikko Linnamaki, [12.02.19 12:06]
Frequently asked question:
Q: Why does the circulation continue to grow after the original token sale amount?

Mikko Linnamaki, [12.02.19 12:07]
As you know, DENT is building a real business around the token.

Mikko Linnamaki, [12.02.19 12:07]
DENTs from the growing circulation supply are used in large amount in the DENT Apps - for the welcome bonuses after registration of the users, for the very successful referral program to acquire users and of course as rewards for the offer wall - where users earn DENTs against interaction with advertisers. DENT Wireless has a successful live product and an ecosystem with 11 million users, 147 operators in 43 countries. That business requires a growing circulation as it is planned to grow to 40+ Million users til mid 2020.

Mikko Linnamaki, [12.02.19 12:08]
So the target for Q2 2020 is 40 Million users

Mikko Linnamaki, [12.02.19 12:08]
DENT circulation at the moment is about 31%, which is relatively low compared to most Top 50 tokens on CMC. Coinmarketcap.com now shows with regular updates the growth in the Dent token economy as it transparently takes into account the whole mobile ecosystem and business that we are building.

Mikko Linnamaki, [12.02.19 12:08]
As the DENT ecosystem grows, there will be a larger amount of DENTs on Mobile phones than on crypto exchanges like Binance and others. These tokens are used for utility, buying and selling of data and telco services.

Mikko Linnamaki, [12.02.19 12:09]
From Telegram:
Q: Will there be a token burn at DENT?

Mikko Linnamaki, [12.02.19 12:09]
A: No token burns are planned, all tokens will be needed in the ecosystem of tens of millions of mobile users.

Mikko Linnamaki, [12.02.19 12:10]
This one from Telegram user was also nice:

Mikko Linnamaki, [12.02.19 12:10]
Q: How have you experienced the past year? What is it you are most proud off achieving and what was the hardest part so far?

Mikko Linnamaki, [12.02.19 12:10]
A: Thanks for asking! Overall 2018 was an extremely busy, but a great year for us. We successfully followed our original whitepaper as well as our roadmap, delivering most key milestones well on time. Big thanks to the DENT Team, they really rocked the 2018. And there are no signs of slowing down in 2019. Hardest part was certainly to reach the ambitious numbers and technically, the DENT Exchange public trading release was a major challenge.

Mikko Linnamaki, [12.02.19 12:10]
But we like challenges!

Mikko Linnamaki, [12.02.19 12:10]
From Telegram
Q: Money remittance - is there any thought towards using DENT Afterburner physical card, as a debit card, (similar to Revolut), given we have an exchange and soon a DENT > Euro or DENT > USD pairing, this could be relatively seamless to implement.

Mikko Linnamaki, [12.02.19 12:11]
A: We like the idea, yet no plans on a physical card at this point. The Afterburner membership is not a credit card, we let that crypto credit card business to others. While we all like the idea of a physical card (who doesn't like the idea of carrying a sleek carbon fibre/metal card!), but we will keep things digital at the moment.

Mikko Linnamaki, [12.02.19 12:11]
From Telegram
Q: For each transaction being made on the exchange (or the app) DENT Wireless receives a small fee (I presume). Does this already results in a sustainable business? If not, when do you believe it to be break even?

Mikko Linnamaki, [12.02.19 12:12]
In the bear market it is very essential that the projects have a profitable business

Mikko Linnamaki, [12.02.19 12:12]
A: DENT Wireless has a few solid revenue streams for the operations, such as the Offer Wall, where advertisers pay us for the ad impressions the mobile users make, then we also make a margin on the data packages that people buy, and of course the DENT Exchange trading fees. Having a large user base creates a pretty solid cash flow, and yes we are a profitable business already. Quite remarkable for a startup on only its second year in business!

Mikko Linnamaki, [12.02.19 12:13]
Q: Indonesia is currently the biggest market for DENT with approximately 50-60m DENT being used each day. How much of those DENTs have been bought in comparison to the DENTs earned through referrals or the offer wall?

A: The biggest market on the Exchange changes almost daily, but yes, Indonesia is very active. Users in countries like Indonesia don't necessarily have the same penetration of PayPal or credit cards compared to some other large countries. Due to this, most users are happy to play a few games or watch an ad, and get paid for their work performed in DENT. It's a happy symbiosis 🙂

Mikko Linnamaki, [12.02.19 12:14]
Lot of people have interest in Afterburner, we will provide more detailed information later in this quartern when it gets launched

Mikko Linnamaki, [12.02.19 12:14]
Q: How do you plan to deal with price fluctuation in regards to the afterburner program? As The price of Dent rises, the cost of membership also rises. Will rewards be added, or will number of Dents required decrease?

Mikko Linnamaki, [12.02.19 12:14]
A: We will announce more details as Afterburner launches, but it is our intention that the Afterburner Vault requirements will adjust at a regular interval, based on the trading price of the DENT token. Users who participate in the program unlock features across the different Afterburner tiers and these features have real-world value.

Mikko Linnamaki, [12.02.19 12:14]
The accuracy and alignment of the Afterburner Vault value and those reward values is an important objective.

Mikko Linnamaki, [12.02.19 12:15]
Q: Right now, Data packages sold through Dent are not price competitive when compared to Data bought directly from the provider, do you have plans to decrease the hefty premium people pay in order to use the app?

Mikko Linnamaki, [12.02.19 12:15]
A: The market prices on the Exchange are defined by supply and demand. If the price is too high, users will wait til it drops, and traders need to lower their prices to stimulate demand. In time, as competition of traders increases, the prices will level out. Already happening.

Mikko Linnamaki, [12.02.19 12:15]
We also appreciate your interest in DENT Exchange, and many have asked these questions

Mikko Linnamaki, [12.02.19 12:15]
Q: How long does it normally take to verify KYC on DENT Exchange?

Mikko Linnamaki, [12.02.19 12:15]
A: Some have had theirs approved in a few working days, some have had to wait longer. More importantly, our Support is quick to correspond with users for requests for more/different documentation in order to process their KYC application.

A Reddit users asked:

Q: When can we expect to see new trading pairs on the exchange? Will the new trading pairs use DENT or BTC? (just to be sure)
A: As you can imagine our dev team has been quite occupied making sure the Exchange runs as smoothly as possible, putting ETHScanr on the backburner for the time being. It’s a cool project, albeit a small one and not business-critical, yet we are proud of and continue to develop, just at a different pace compared to DENT World Telco & Exchange.

A: We don't have a timeline for any new additions or trading pairs. We are actively looking, but not in a rush to add new tokens/coins as only few projects have anything to show in real world business and use case. We will add a few hundred telco-related pairs soon, as you will see in the roadmap.

Q: When can we expect higher KYC levels?
A: We are working hard with the implementation of higher KYC levels, and should have them available in the next couple of weeks. We want to be sure to do things correctly.

Q: how is the ethscanr going?
Mikko Linnamaki, [12.02.19 12:17]
A: As you can imagine our dev team has been quite occupied making sure the Exchange runs as smoothly as possible, putting ETHScanr on the backburner for the time being. It’s a cool project, albeit a small one and not business-critical, yet we are proud of and continue to develop, just at a different pace compared to DENT World Telco & Exchange.

Mikko Linnamaki, [12.02.19 12:18]
So for us its all about focusing on the right things, hope the answer helped you a bit. Lets get a peek to our plans for the next 18 months:

Mikko Linnamaki, [12.02.19 12:18]
------------------------------------------------------------------------------------

Mikko Linnamaki, [12.02.19 12:19]
[ Photo ]

Mikko Linnamaki, [12.02.19 12:19]
So lets start with a picture that shows what this whole thing that we do looks like:

Mikko Linnamaki, [12.02.19 12:19]
[ Photo ]

Mikko Linnamaki, [12.02.19 12:20]
DENT Wireless is creating a marketplace for mobile data and mobile assets

Mikko Linnamaki, [12.02.19 12:21]
At the top you see the Clients that can access the Exchange, iOT devices in the near future, TELCOs with their own traqding desks, then our https://dent.exchange , which you can already use and which has been behind the apps all the time since launch

Mikko Linnamaki, [12.02.19 12:21]
Mobile Clients , all our 11 Million users on Android and iOS are using the DENT Exchange wehen they interact with us
**** DENT Token is THE CURRENCY for this whole ecosystem

At the bottom are tre tradeable asset classes, Data Packages, DENT eSIM (in future) Prepaid Credits, International Voice Minutes (soon) and B2B elco Capacity

As Blockchain we use Ethereum, its today the best platform , most mature one.

You know, I have been around the block in the last 25 years, and have seen PC and mobile operating systems come and go, and there is no way that 10 Blockchains can survive, I would bet maximum 3, which will take all the Blockchain apps.

Okay, lets look at Q1, this quarter
DENT Afterburner
Loyalty Program


The long-awaited Afterburner loyalty program, which will allow users to benefit from locking up tokens for 30 day period

Payment - And Carrier Billing Payment
We will add carrier billing to the apps

PLDT Trading Start
PLDT data trading will go live this qarter

Add Dent Exchange to CoinMarketCap

Launch World Telco

Thats Q1, I need to speed up a bit

in Q2 our big ,ilestone

:aunch Global Voice Telephoney in China using DENT Apps
Welcome China!

We will enable calls to and from China to DENT Apps in the next few months

Thats Q2 2019

Our target is to reach 15+ Million DENT usrs in 55 countries and 185 operators

4 Million to go to that target

Q3

launching Telco Trading Desk & Backoffice for DENT Exchnge

We will also make DENTs interchangeable with other loyalty programs

To increase trading volume, we ill enable the mobile users to trade with the same assets as you, yet with a simple interface

DENT Exchange with all the mobile users, already has more active users like as OKEX, only Binance and Coinbase have more than we do

We increase DENT VOice telephony to 80 countries

new offer wall, Andee created a cool idea to reward users for daily check-ins, so we increase our ad inventory and keep users active, well done Andee!

So thats Q3 2019

eSIM, the Digital SIM card will be revolutionizing lot of things at Telcos, especially travel

We will have 3 asset classes live for trading: Mobile Data, Prepaid Topups and Voice Minutes

Voice Minute packs will be tradeable just like data packs, and they influence users directly

End of this year: We target to have 25 Million users, thats more than any other cryptocurrency have today, could be even more than Bitcoin and Ethereum

Thats 2019

Q1 2020
DENT eSIM available in 30 countries
We want this market.

So imagine, you land in TOKYO, and the DENT app notices your location and offers you:
Welcome to Japan, do you want an NTT Docomo eSIM?
No more expensive roaming
You just clisk and add a local japanese SIM to your phone.

Second Big thing in Q1 2020
India
After China and 100 other countries, we will finally launch calls in India

Thats Q1 2020

And the last quarter in this session, Q2 2020


Many people are talking about a missing thing in our Apps, community features. You are right!

We will fix it by building DENT messenger into the apps
DENT 4.0 will have a Messenge integrated for chatting, but also for remittance

So here you chat with another DENT User

She will ask if you can send her DENTS
https://t.me/dentcoin/560234

And you can send all asset classes, DENTs, Mobile Data, Prepaid Topups and even a SIM card in form af an eSIM

just type in the amount of DENTs you want to send and boom!

Christine received the DENTs on her account. Simple as that

In Summer 2020, our target is to have 40M + Users and become the most used cryptocurrency by the number of people


The whole roadmap is available today on our website, with more details and screenshots, I hope you got an overview of what DENT is up to, and look forward to have you all with us the next 18 months to see this baby become a monster

NEW ROADMAP Website:
https://www.dentwireless.com/roadmap



submitted by vasilispasparas to dent [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]

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