Market news covering Libra, tightening regulations, market movements, and some great insight regarding Biz Dev, marketing, and more — all in This Week in Crypto!
Crypto Market News Highlights
This is one of those moments where Kevin can say, “I told you so”. Facebook Libra will be done, but in a completely different manner than Libra 1.0, because Libra 1.0 was a sovereign currency. No government was going to allow them to create that. They are now changing it and structured it completely differently.
Libra 2.0 will likely not be pulled off exactly the way it’s designed today, but Libra will be released. The center of this is that instead of being backed by a basket of fiat currencies, it is basically backed by a bunch of other digital tokens. Which are denominated in different underlying values.
As crypto regulations come in, four things can happen: closure, mergers, sold in pieces, or bye-bye.
So as regulations come in, many operators can’t adapt. Others don’t want to adapt. This is common, not just cryptorelated. Especially in unregulated markets that introduce regulations. The bigger you are, the harder it is to go back and get yourself clean. And the smaller you are, the harder it is because you don’t have money to do it.
If you start off on the wrong foot, no matter if you grow yourself to a behemoth, or you are still too small to pay the bills: this is not a good thing for you, and it leads to one of those four scenarios.
This basically means that they are not a third party in the transaction, so there is no reason for them to get licensed. Also keep in mind that you don’t need a license in Singapore unless you process more than $35m per year.
Check out our Medium post to read more crypto market news!
[39:12] Do you think people should pay more attention to PARSIQ on CoinMetro? Low price and volume, but they have lots of good news lately.
Kevin thinks that long-term, PARSIQ is a great business. They have been focused on partnerships, but should be moving into more PR. Everybody is suffering from some liquidity issues, everybody is raising funds.A great project. But not saying to dump all your money into PRQ. But eventually, they will get the exposure they deserve.
You can trade PRQ/EUR with CoinMetro!
[40:25] How do you feel about the April 20 marketing campaign?
Kevin is excited for a new chapter for the business, where we move forward into the growth phase. We have our digital manager and a new content manager. Oliver is also working on the marketing campaign. So, excited to move into the next realm, that’s for sure.
[41:20] Any updates on Faster Payments for GBP?
Got word back from the provider. They have altered their own risk policy, so they can now onboard us officially. Waiting on board approval, sometime next week, and then we should be onboarded. Pound should be rolled out about 2 weeks after the onboarding date. Shortly after that, Euro, in the new system. And we will also start the journey down the debit card road. Possibly also Australian Dollar and Swedish Krona.
[43:00] Any news about the new banking partners?
We have several new partners that are coming onboard over the next 1-5 weeks. Banks, PSPs, EMIs. One of Kevin’s major focuses.
[43:16] What’s the latest on Biz Dev?
Kevin is having a call tonight with a company in the US that does Banking as a Service, to try and get USD, ACH deposits setup for the US market. That would be quite huge.
Also having discussions openly with different partnerships and platforms for integration, as well as a few other things to enable us to get some more viewership.
A lot of these things start with NDAs, unfortunately. That’s good for us and them, even though we can’t talk all about it. So, a few things in the works, and more of these things will kick off once we have more clients.
[45:13] What are your thoughts about the Bitcoin price right now?
One of the things you learn over time as an investor, especially when you hold an asset, is to not look at the price all the time.
So we are over $7000. Kevin would say to be very cautious, and that the price increase is more and more a sign to sell. Would be looking for spots to enter to sell, not to buy. Kevin thinks that people don’t understand the implications so far of this pandemic. People are starting to realize, but they don’t even see the tip of the iceberg yet. And that iceberg is quite massive. Depending on how governments handle this, it can lead to a much bigger mess.
Kevin would not be on the buyside right now. If you have money in Bitcoin right now, and you are a maximalist — at some point you need to eat. If your income dies out, your consulting gigs, whatever — for people that can generally work from home, it hasn’t yet affected them. The longer this goes however, more and more companies begin to be affected.
[47:18] What are your expectations in volume for the end of 2020?
Kevin would like to see 500k-1m in sustainable daily volume, to a minimum. Will adjust that once we go along. After the first 30 and 60 days of advertising, and Kevin can see the numbers, we will have a pretty good and accurate idea of where we will be at the end of the year.
[51:28] Can I use the debit card internationally? Can I use Euros on the debit card, because I don’t want to spend my XCM.
Yes, to both.
[52:15] Any new projects/IEOs on the horizon?
Not currently, no. We are not focusing on that at the moment. Marketing might bring us some interest from issuers.
[52:30] What do you think were your biggest 2 mistakes?
Biggest mistake would be that we didn’t convert all of our ICO funds into Euro faster. We had always planned to do it, but it just took us longer to set up bank accounts. We should also have focused on opening up multiple PSP accounts, so we could have gotten to Euro quicker.
The other one was probably, communication. Outwards communication to our clients, understanding what they wanted, and not having delays. Inwards communication without getting silo’d, so everyone knew what everyone else was doing.
[53:30] What if marketing won’t be enough? Game over?
Marketing will be enough, at one point. Kevin ran FXPig with only two people for six years. Kevin can run CoinMetro with minimal people, if he has to. We can keep most of the staff that we have right now, and just maybe downsize a bit in development, and downsize a bit in support, and simply push.
There is always a way. CoinMetro is like Kevin’s life, like Kevin’s baby. Kevin did not give up on FXPig during tough times. Not a guy who gets into a business with a strategy to sell it for billions, nor getting into a business with the idea to give up if things get tough. We had a year with no funding, and we made it through.
[56:15] Any news on the sandbox licensing?
We haven’t gotten the official word on the approval in the sandbox licensing. Kevin had a discussion with the president of the CMA, just recently. He said that things are a bit slower, everybody is working from home, but that the approval is essentially done.
We are pushing to get the sandbox extended to two years, which is big news. It will make a huge difference in the type of assets we can offer: we can do equities, convertibles, because we have more time to offer those types of assets.
Might have some news by next week.
[58:02] When will I be able to invest in assets in the sandbox?
As soon as the sandbox goes live. CoinMetro may go at it alone, just to do some secondary market on already existing STOs that need secondary market exposure. Haven’t started those talks, but will do once we receive the official letter from the CMA. Kevin would say latest by June.
[58:57] Are you satisfied with the CSD developers now working for CoinMetro? And what have they done so far?
Right now they are working on cleaning up all the front-end code inside of our GO! Dashboard. Now they are working on a complete redesign of the Dashboard. After that, they will move onto Deposits/Withdraw flows, and probably TraM.
So, so far so good. They are very well organized and they work well with our team.
Sneak peeks of the Dashboard can be found in our CoinMetro’s Feedback channel on Telegram!
[59:49] Any more updates on the Dashboard? Or increased leverage?
No update on the Dashboard yet. Increased leverage is on the to-do list, and is in progress.
[27:00] “Kevin Explains Crypto” Term: Oracle
An oracle, when talking about DLT/blockchain, is essentially a piece of software that basically communicates outside information and makes it readable to a smart contract. A smart contract is nothing more than a “IF this, THEN that”.
One of the more famous companies that deal with oracles, is Chainlink.
Interested in learning more? Have a look at the video where Kevin explains “Oracle”:
That’s a wrap for this week’s AMA with CoinMetro Founder Kevin Murcko! Please join us next week on CoinMetro’s Facebook and YouTube Channel at 1 PM (UTC) for another round and 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.