Crypto Market News – “This Week in Crypto” May 22, 2020
Crypto market news about regulations, Telegram’s TON, BitMEX lawsuit, bullish sentiment, and a wide variety of questions covering CoinMetro’s ongoing progress — all in This Week in Crypto!
Crypto Market News Highlights
TON is Telegram’s ICO. Riddled with issues since the beginning. Famously caught the eye of SEC in 2019, and now they’ve decided that they can’t move forward, and asked buyers if they want to quit right now for a 72% refund. Kevin thinks that some people will be complaining about only getting 72% of their money back, thus opening them up for more civil litigation, and potential criminal litigation from the SEC.
This is a civil litigation, and inside the civil litigation somebody is alleging that BitMEX was racketeering. But Kevin thinks this is only one person or one company.
The point is that eyes are on BitMEX now, in the US court system. This could potentially lead to an investigation being officially opened by the CFTC, SEC or other organization.
We’ll have to see. But this is definitely not good news for BitMEX.
Coinbase paid “well-to-do” famous lawyers to be on their side, because well, they had the money to do so. It’s not really all that interesting that now one of those guys is being called up to potentially work with the regulator. Why? Because again, Coinbase has deep pockets, and when they go to find a lawyer who can potentially help them do battle with the regulator, they look for the same type of qualification that the regulator looks for when they’re hiring new people.
So Kevin doesn’t think this necessarily means that the new head of the US banking regulator may be bullish on crypto.
Check out our Medium post to read more crypto market news!
Live Questions – CoinMetro updates and Crypto Market News
We did most of the tech work for Faster Payments, but we are waiting on live API credentials from the provider. We will have those before the 1st of June.
The ability to buy crypto without depositing first is not going to be in the first iteration of the Dashboard, but we are working to get that live before the main marketing is deployed, which is scheduled for sometime late June.
[52:17] Margin posting still in the Q3 roadmap?
Kevin is just thinking out loud here: when we give the margin to the client that allows them to trade on CoinMetro’s Margin platform, CoinMetro makes that interest. And that’s a big revenue stream for us. Bringing in margin posting, where other clients can put up margin, allows some passive income back to those margin posters. Which is great. But it lowers the overall CoinMetro revenue. But, it could enable more traders to trade more, which potentially would give more income to CoinMetro.
So Kevin thinks that the best way to go about this is to focus on getting more volume on margin. Once we get to a point where it becomes more attractive for a margin marketplace, is when we release it. That will also allow CoinMetro to pull some of its capital out, and invest in other things, while giving the clients some passive income, and allowing CoinMetro to scale and give more leverage to clients.
So before we can get to that stage, we need to expand the current user base.
CoinMetro’s roadmaps are published on Medium, and CoinMetro’s Q2 Roadmap is full of exciting new development!
[55:55] When GBP and virtual IBANs?
We are waiting on live API credentials from the provider. Probably next week. We usually do these types of updates over a weekend, and then make the announcement into the next week. So, the first week of June.
[57:19] Any updates on USD? Stablecoin?
Kevin had a conversation this week with a provider that is going to give us an offer for USD. Will give an update on that next week. The other provider, a Banking-as-a-Service platform in the United States, still back and forth with their compliance.
CementDAO hasn’t gotten back to us since our last call. Kevin will reach out to them again. Once we get through GBP listing, then a USD stablecoin is probably one of the next things to go live.
[1:00:42] Any new use cases for XCM in the pipeline?
Yes. We’re always looking for new ways to add more use cases for XCM. As you see new things like the debit cards roll out, you will see more use cases for XCM.
[44:11] With the sandbox up and running, does that mean CoinMetro could potentially list any crypto asset including tokens that would be considered securities?
Yes. Through our Montenegro sandbox, which will be accessible through the CoinMetro website, we will be able to list almost anything. Whether it’s considered a security or not.
[50:55] Any idea when you will be back in Montenegro to finalise the CSD?
Kevin doesn’t need to be back in Montenegro to finalize the CSD. We would’ve probably already launched, but it’s really about the Montenegro government doing some PR and we can ride the coattails on that, and come out with our first issuance. It has given us time to make a few more feature sets on both CoinMetro and Ignium.
Kevin thinks the first issuance will be in July, and the CoinMetro bond by the end of July.
[34:20] Any news about LHV? Can you add any coin you want?
We are pursuing different relationships with different providers, Banking-as-a-Service providers and other banks and PSPs, that don’t require us to go to them every time we want to list something. So rather than dealing with LHV, we are going another route. Which we’ve been successful at. Kevin thinks we’ll be able to list what we want, when we want, in June.
[36:55] Updates on marketing strategy?
Strategy hasn’t changed. We’re still testing. Kevin would be a bit worried if we were changing strategy week to week. Most of the testing is still happening with Google in the US. We got prices back from Twitter for Europe, as well as some other mediums. We are also looking at revising the Ambassador setup a bit, so we give some money upfront. So instead of giving that money to Google, most people would probably prefer that money to be given to the client, and to the client that was referred. Just makes more sense.
CoinMetro’s referral system offers a tiered commission system, and 50 XCM for each referral!
[42:26] What open positions are on the CoinMetro team?
UI/UX designer. Customer support. That might be it for right now. We will be hiring a Head of Risk.
Open job listings can be found on CoinMetro’s LinkedIn.
[33:45] Any updates on the merchandise store?
No updates, Kevin hasn’t had any time this week for the merchandise store.
[29:24] If the CSD project went ok, have you thought of taking that to China. The profile of CoinMetro as a fully regulation compliant digital company, would be something that the chinese govt would be comfortable with. ~ Yesus123321
Have we thought about going to China? Sure, of course. It’s one of the biggest markets in the world. Everybody should. But thinking about China and actually getting something done in China, is about as different as black and white can be. There’s a massive difference. It’s not a country you can just walk in and say “Hey China! I’m here. Let’s do this”. It takes lots of planning, and you need trustworthy people on the ground, and it can still lead to a nightmare for someone who isn’t familiar with how the Chinese system operates.
At the end of the day, we are thinking about getting access to the Chinese market. But not necessarily establishing inside China. Asia is on the radar, that’s for sure.
“Kevin Explains Crypto” Term: bitcoin vs. Bitcoin
Now that you are up to date with crypto market news, let’s focus on crypto education.
In the original Bitcoin whitepaper, the term blockchain was never mentioned. The terms block and chain were mentioned. Block chain with a space was mentioned. But it was never referred to as the name of the underlying protocol. It was simply a description of the underlying protocol.
The underlying protocol was called Bitcoin, with capital B. Bitcoin referred to the network that underpinned the entire system. Lowercase b, bitcoin was the unit of value. The actual token or coin that sat on top of the Bitcoin network, was bitcoin.
Interested in learning more? Have a look at the video where Kevin explains “bitcoin vs. Bitcoin”:
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 feed, Altcoin prices and Ethereum news! We’ll be live on CoinMetro’s Facebook and YouTube Channel at 12 PM (UTC). Make sure you submit your questions to the CoinMetro subReddit!
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