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BackMore information about the CoinMetro Bond, progress with new partners, altcoin news and an interesting selection of crypto market news — all in This Week in Crypto!
Crypto Market News Highlights
Unlicensed, synthetic derivatives. They should have halted some time ago, but now they are being forced to. This means they probably got another letter.
Japan cracked down on FX 6-7 years ago, and they set laws that are equivalent to what the US has. Essentially, “if you are not regulated in this country, you can’t solicit or bring on retail business in this country”. And Japan started to enforce it. They haven’t enforced it as much as the US, when it comes to the CFTC, futures and commodities trading. But they do enforce it. It makes sense — they have a law, BitMEX is supposed to follow it. And they don’t.
They did it with Bitcoin, and Kevin remembers how everybody lauded it on Twitter. He had to be the one voice of reason and say “guys, the only reason they’re classifying it as legal property is not because they like it, it’s so that they can legally seize it as part of a property seizure”.
In conclusion — this is not necessarily bad news, but the motives are not pro-Ethereum, just like they weren’t pro-Bitcoin.
There are lots of papers out talking about Central Bank Issued Digital Currency. It is going to happen, 100%. Things like the Coronavirus and Libra may have propelled it into the conversations, but it has been in the conversation since at least 2016. That’s the first time that Kevin talked with someone specifically about these digital sovereign fiat currencies on chain.
The ECB has to do it, France can’t do it alone. If France and Germany decide to do it, then the ECB probably would follow. But at the end of the day, it’s going to happen. So, will it happen in Europe first? Probably not. But will it happen in Europe? Most definitely.
Kevin would say, “buyer be aware”. Don’t rush into things.
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Live Questions – CoinMetro updates and Cryptocurrency News Today
Product updates
[28:36] What does “Instant Buy Crypto with CC” mean on the Q2 Roadmap?
This means you can be on the CoinMetro GO! Dashboard, select that you want to buy some Bitcoin, and it charges your credit or debit card — and you’re done.
[28:48] How are crypto-to-crypto swaps different from trades?
Swaps will allow trades on the Dashboard between pairs we don’t have listed for trading. Let’s say LINK to BAT. Or, better yet: shitcoin to shitcoin, without leaving the Dashboard.
[29:18] Updates about GBP, AUD, SEK?
On track. Kevin expects that we roll through the rest of the onboarding process with the banking provider for AUD/SEK next week, and then get the APIs set up. Their lead time is 2-3 weeks. All on schedule.
[31:10] So what news about USD?
We’re in the process right now to figure out this Banking-as-a-Service platform is the right service for us, if they can onboard us, if pricing makes sense. That’s ongoing. Kevin expects to have some feedback on that by next week, but we’re moving forward.
[40:44] When are we going to get SWIFT back?
Working on SWIFT. Two or three of the payment gateways/partners/banking partners that we are currently looking to onboard, have SWIFT capabilities. So, working on it. Probably looking at the end of May or early June.
CoinMetro updates
[30:13] How big is your marketing team at this point?
We have three people in marketing. And the marketing is working closely with Product. We had a brainstorming session the other day about renewing vision and mission statements and things like that, as we revamp the brand image. We had department heads from every department, Kevin was involved as well.
[39:56] Did you find a copy that works in marketing?
Still in the testing phase. Will be ongoing for 30-45 days, at least.
CoinMetro bond
[36:35] The CoinMetro bond is interesting. I think you guys are creating very unique and interesting investment opportunities. I can’t wait till this platform grows so we can make some serious money.
Kevin thinks the bond is going to be interesting. We’re trying to figure out the best way to structure this. One of the ideas right now is like a combination of an option call for XCM, plus a bond.
Basically, you buy one bond token at — let’s say, €50 — you’re given a coupon rate, 10% annually, but paid quarterly, over the course of two years. So you make a little more than 20%. At the end of those two years, let’s say initially we had one million EUR put up in that bond, and sold 20 000 tokens of 50 000 each. On the day of issuance of that bond token, we lock up XCM. Say at, 20 cent per XCM. That means we’re going to put 5 million XCM into a vault.
At the end of those years, the redemption happens into XCM. This means that if XCM is higher than 20 cents, you can make a significant return on that bond, aside from just the coupon. If it’s lower, well, then you take the risk.
Future plans
[38:43] Tokenized real estate?
One of the first projects we’ll put through the CSD and then for trading in CoinMetro Montenegro is a tokenized, small ski resort in Northern Japan. It will encompass a bond for that ski resort, which will basically pay for the construction.
Once the property is built, you will have the ability to trade out of that bond token to a revenue share token. Therefore, it will have the potential to pay more than the fixed coupon on the bonds. Holders of the revenue share token will at some point have the ability to transfer into an equity token. This will actually be able to make money on the capital gains of the property.
Both the revenue share and the equity token will get bonus tokens every year that are issued and then are burned in that same year, that gives them user access. So a certain amount of use tokens equates to days inside the property itself.
[40:03] What about Montenegro?
We got the official notice on Monday, but we are waiting for the English release. So, it’s officially official, that it will be extended to two years. Both CoinMetro and Ignium have been officially accepted as the first companies inside of that sandbox.
[46:17] How many issuances will be added?
In the sandbox, we will limit ourselves and probably end up with 5-10 issuances throughout the first year. Depending on how we see the first year, we may add some more in year two. These are real projects, raising real money, doing real things. But it is still a test to prove the hypothesis that retail money exists in pockets around the world that simply doesn’t connect to issuers who need the money, because there is no real viable way to do that. From a regulatory angle, and from just an awareness angle. So, it’s about proving that point.
Crypto Education
[48:00] Once you get through your next funding round, you should spend more money on getting a proper CoinMetro Academy.
Yes, talking about education is something in our core values, mission statements. Education is definitely core. What we’re doing right now is education. We will continue to do that, but we just need to find a better way to push out that education.
Academy specifically, there are already many of those online. At least in the short term, we’re probably going to focus on creating a kind of school-like atmosphere. And having more video content about specific contents and honing in on what people are searching for.
You can find some educational content in for example CoinMetro’s Help Center and the CoinMetro Glossary!
[1:02:50] Is CoinMetro profitable?
CoinMetro is not yet profitable. We do have revenue. But we are not yet at self-sustainability. And we are about to do our first marketing campaign!
Without doing paid marketing, we have an idea of what our cost of acquisition is. Based on what it costs us what it costs to onboard. We think we can get the cost to a certain level that our current business model would be quite profitable. In conclusion, the metrics all work, it’s just about getting new clients, and getting new clients means marketing.
[24:48] “Kevin Explains Crypto” Term: IOTA’s Tangle
Now that you are up to date with crypto market news, let’s focus on crypto education.
IOTA is a cryptocurrency. It is not built on a blockchain. It’s what’s called a DAG. A DAG is a Directed Acyclic Graph. Blockchains inherently have a latency issue. When each new block is agreed to, you have to agree to the longest chain. So as that chain gets longer, it’s taking more time. It’s hard to scale blockchains — off chain solutions, sidechains.
Think of a DAG as a mesh. Instead of a long chain of data, the data can be all over the place. And the communication lines between that data, can be multiple. So instead of dealing with one straight line, you’re dealing with multiple ways to connect with all that distributed data.
Interested in learning more? Have a look at the video where Kevin explains “IOTA’s Tangle”:
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That’s a wrap for this week’s crypto market news with CoinMetro Founder Kevin Murcko! Please join us next week for more CoinMetro reports, Bitcoin news updates and Ethereum news! We’ll be live with fresh crypto market news on CoinMetro’s Facebook and YouTube Channel at 1 PM (UTC). Make sure you submit your questions to the CoinMetro subReddit!
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