This Week In Crypto – April 24, 2020
Crypto market news covering regulations, bullish indicators and crypto scams. Questions about marketing, Bitcoin price news, the CSD, updates and more — all in This Week in Crypto!
Crypto Market News Highlights
Funny enough that YouTube has been banning all these different “crypto influencers”. For instance, Tone Vays and The Crypto Lark. Yet, Ripple is suing YouTube because they can’t take down the scammers.
It’s interesting to see how Ripple is trying to aggressively protect their brand. Obviously, Ripple is in partnership with many banks. Banks tend to get a little weary and skittish when some guy on YouTube is saying you’re a scam. Especially if that guy has got a lot of viewers.
You should defend your brand, of course. Kevin would do the same. However, many crypto brands wouldn’t go the legal route. They would get another influencer to say something else. Yet, because Ripple is in a kind of gray area, they went the legal route.
It will be interesting to see how YouTube handles this suit, considering they already don’t have the best relationship with the crypto community. Let’s see how they treat the scammers.
Bitcoin news feed is covering Latin America. In certain Latin American countries — like Argentina, Venezuela, and other key countries — you could literally buy cans of sardines as a better preservation of wealth than leaving your assets in the underlying fiat currency of the country.
In times of very country-specific inflationary crisis, Bitcoin has proven itself. That is one thing that Kevin won’t deny.
This is Decentralized Finance. Lots of people are coming into Ethereum. Currently, Centralized Finance is kinda getting a kick in the ass, mainly because of stablecoins and Corona.
Check out our Medium post to read more crypto market news!
Live Questions – CoinMetro updates and Crypto Market News
[30:57] Has CoinMetro started to earn profit? How is marketing?
We have revenues, but we are not yet profitable. Our first goal is self-sustainability, and it’s the hardest goal in a startup. With marketing, we will first inch our way, then push our way, and eventually be running towards self-sustainability.
With any marketing goal, the goal is to get user acquisition cost down. Our goal is to get user acquisition to around €5. That could be different in some avenues, and easier in others. Even if the acquisition cost would be €10, €15, or €20 — we could still make it work, it would just take longer to get the initial push in marketing.
[33:41] Is the marketing plan complete? What is the plan?
Firstly, Google Ads, Facebook and Twitter are all part of our plan. More focus on “reader-worthy” content and SEO, both locally and externally. Reusing that content in mainstream media, crypto media, influencers. More focus on content like Kevin Explains Crypto and the AMA.
We have made a lot of content. Now it’s time to let that content shine.
You can find CoinMetro’s social media channels at the bottom of this AMA summary.
[34:39] Any update regarding increased leverage?
In the coming few weeks, we should see the first increase in leverage and collateral.
[43:53] News on GBP and cards?
We recently got the nod from one of the initial providers. A pretty well known one. We’ll release the name once we have the contract signed, most likely in a week or two. This will allow us to very quickly launch cards and GBP.
Why GBP before EUR? It’s a UK based company and they want to test initially with GBP. This is because they have stronger systems and it’s easier for them to test. 2-3 weeks after GBP, we should be able to launch Euro and Euro cards.
Kevin would say that, conservatively speaking, by the end of May: GBP will be active, GBP pairs will be active. Mid-June to late-June, you will have a GBP card in your hands.
[45:50] It was the first week, but how effective was marketing?
You can see some new people on Telegram. Kevin has seen more new alerts inside of Slack as KYC-stuff comes through. Compliance and support has definitely been more busy. We have seen more signups.
Going forward, Kevin will make sure to get an update every Friday morning from our marketing team once the real marketing has begun.
[47:03] Any further news on getting USD?
Kevin has a call on Monday and we should have some updates next week.
[51:20] Is the new banking partner on board?
One of these partners is the entity that will be providing us with the cards. Therefore, yes. That contract is coming.
[51:41] What are the revenues like?
Revenues are currently low. Yet, in terms of per-client, they are rising. Active clients are becoming more active because of fine tuning of the platform. And that’s rising, which is great.
Overall, most of our money is made out of margin. And right now, with our current burn rate, our revenue is less than 5% of our burn rate. Which may seem super low, but it’s all about metrics. And the metrics are looking quite good. Currently, it’s just about user acquisition.
[52:28] New Dashboard?
Approximately two weeks from today, we’ll probably see the new GO! Dashboard come to life.
[56:15] Are there still talks of using XCM as collateral for TraM?
Yes! 100%. It’s a process to get there. Growth in the user base is the process.
EUR and BTC can be allocated to a TraM (Trade Mirror) at this time. See how to Follow a TraM to get started on your passive crypto investments today!
[56:27] Why are you rebranding at this point?
Well, companies tend to rebrand. Sometimes you don’t notice it, sometimes it’s just the logo. For CoinMetro, it’s a two way street, in Kevin’s opinion. Internally in the company, we’ve been looking at the same branding – the cityscape – for almost three years. We haven’t done marketing which means we haven’t seen explosive growth, and it can be almost slightly demotivating that people think it’s because of the company. A rebranding can internally get people excited and involved in creative thought. From the outside, we have 55 000 people on an email list that came and did something with the platform at some point. They haven’t unsubscribed but probably care what we’re saying anymore.
So, rebranding, both visual image and image, can help spur some interest. Going into the first marketing campaign, it’s almost a gift to our new marketing team to allow them to propel us into the next step.
[59:25] When will marketing start?
The marketing process has already started. Firstly, you will start to see ads in the coming 1-3 weeks. Secondly, in the next 6-8 weeks, you will see a full marketing campaign come to life. So the first campaigns will be small and have different copy. We will be testing to see acquisition costs, to see where people fall out of the onboarding process, and optimizing along the way.
[1:06:05] Where can I use the GBP card? Can I use the card internationally?
You can use the GBP card anywhere. It’s just denominated in GBP. In addition, you can apply for the card outside of the EU.
[1:07:01] Any update on the mobile App?
Big mobile update is coming. Structure is becoming lightyears better. Above all, the next big update will be huge.
You can download CoinMetro’s mobile App for both iPhone and Android!
[1:07:29] What ever happened to the stablecoin listing?
Kevin will get back in touch with those guys. They got stuck on some development aspects and then we got stuck on some development aspects. We will most likely be listing a USD stablecoin in the coming two months or so. That might be USDC. We need a liquid one, and Kevin is not going to list Tether.
[1:08:49] Do you think XCM could ever be in the market cap of billions?
It is possible, sure. Kevin thinks that would happen more with an equity token, which we will eventually have. There will be swapability between the XCM token and the equity token. But for the ecosystem itself — the company already has a valuation of 50 million. The next valuation step of that will be multiples of that. Having a billion valuation is not unheard of, and Kevin thinks it will happen at some point. In conclusion, it depends on how big this market potentially becomes. And with that, there would be a lot of people using the platform.
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[1:10:37] Do you envision being headquartered in Estonia forever?
Headquartered – no. However, offices – yes. In the EU, we would most likely be headquartered in Western Europe. For instance, Netherlands, Germany or the UK.
[1:10:46] Have you considered an XCM-cashback for the cards?
Yes, considered. We have to see how intricate we can integrate with the APIs. For the first card issuance, this MVP issuance of 5000 cards, it won’t be happening. But once we get into a larger program, it’s definitely something we’re already talking about.
Reddit Questions – CoinMetro progress and Crypto Market News
[24:51] I know an FO that has been adding BTC here. I figured you guys must be doing well. But it’s super quiet in here. This is your moment, but it seems you have dropped the ball. What happened? Where’s the volume and liquidity? Why would we want to use CoinMetro with so many other alternatives? – naturalshort
We have been in a position where we have been building, building, building. We received some additional funding in November. Since then, the building has been finetuned and tweaked around optimization of onboarding, and optimization of Dashboard. Now we are moving into the marketing phase.
Every time something happened in the past two years — not just Corona, but small bullruns and so on — everybody says “this is your time, the perfect opportunity”.
In this business, not just crypto but in the finance platform business — there is always a new crisis. And this crisis is not going to lead to any more Bitcoin buying or selling than any other crisis would lead to, even though it’s this macro. Why? Because the population that actually deals in highly speculative assets generally do it with money they can afford to lose. Thus, if they don’t have money to lose right now, because of this macro crisis — then they’re not coming in. And those who already deposited in, they don’t need that money unless this is a very significant crisis.
CoinMetro’s moment is coming. Whether it’s now, tomorrow, or in 5 months — the moment is coming, and we’re gearing up. We’re doing everything we need to do to make sure that we do it correctly. This is not 2017, you can’t just get lucky, and have good timing to blow up. You need to be better than the competition, more focused than the competition. In conclusion, we need to do things that separates us.
People confuse volume and liquidity. We have lots of liquidity in and behind the book. And that liquidity updates multiple times per second. Volume is obviously the transactional volume. Volume is about getting growth. And we’re about to get into the growth phase through marketing.
There are many alternatives. Probably less now than there used to be. We are positioning ourselves to be a better place than most, in several aspects. One of the main responses in our recent survey about attraction to CoinMetro: pricing, customer support and service, and the different offerings we have on the product side. For instance, exchange, margin, TraM.
We already can position ourselves with the top guys, maybe not with volume. And moving forward with the debit cards, virtual IBANs, potentially ACH in the US — we will only get better.
In short, we might be an underdog now, but we are an underdog that is poised, smart, and getting ready to attack.
[22:04] “Kevin Explains Crypto” Term: DeFi
Now that you are up to date with crypto market news, let’s focus on crypto education.
DeFi is short for “Decentralized Finance”. One of the big buzzwords of crypto is decentralization. Most organizations in the world have a centralized point of power. For something to happen, some centralized authority has to make a decision — your bank, your government.
However, decentralization means that it is no longer the case. There are consensus mechanisms, and ways for the network itself to make a decision based on the collective ideas, thoughts or voting of others, and thus make that decision decentralized.
Interested in learning more? Have a look at the video where Kevin explains “DeFi”:
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 on CoinMetro’s Facebook and YouTube Channel at 1 PM (UTC). Make sure you submit your questions to the CoinMetro subReddit!
As always, we’re available to answer any questions you may have on our Telegram Group 24/7. You can also find CoinMetro on other channels: Twitter, Instagram, Medium, Reddit and LinkedIn.