“This Week in Crypto” Summary for August 30, 2019
In this week’s summary: news about Montenegro, sandbox, Margin Posting and CoinMetro’s sustainability.
Check out our weekly “This Week in Crypto” summary in our blog post or watch the full video here.
Crypto Market News Highlights
There are many assumptions made from various data. Dominance is definitely large, is it 90% – who knows – Bitcoin is the most traded asset in crypto, which also means it’s the most manipulated, most washtraded, has the most fake volume, – Kevin believes it’s high – but has no reason to believe it’d be over 70%. 70% is ridiculous in terms of market saturation for one asset.
Sure, if you buy into the fact that scarcity alone will increase the value of an asset from where it is today – and that the value of where it is today, hasn’t already priced in the scarcity.
A hard thing to speculate. Scarcity in any market should mean, as long as there’s demand, that price increases. That doesn’t mean that demand will always increase. Demand at sometimes falter. It faulted at 20k.
Africa got a lot of systemic issues, many people without IDs, not knowing their birth names, – that has happened in every place of the world, in the US, in Europe. When you go back to the origins of any of these systems, there were flaws.
Africa is just now starting to deal with some of these flaws. Shows that there’s definitely some real use cases for blockchain.
The whole reason behind Bitcoin – democratize finance, not make it worse. Here we see that the divide between the “1%” and the rest, is extremely larger than the traditional market.
Hopefully, maybe, we can rectify that in the future. But we failed on that part so far.
It wasn’t really a $1.7 billion ICO. Much more akin to an IPO. There were allocations all around the world, vast majority bought up by private allocations between VCs and fund to funds, and they were given 400% discounts on average. So that price could tank.
There will probably be a lot of retail interest initially, just because it’s Telegram. But, that $1.7 billion, what did they spend it on? What do they tie to the token value?
Live YouTube Questions
What are your views on the news that countries are planning to issue their cryptocurrency?
Most currency in the world already is digital. When you send a wire transfer, use a debit card, make a transfer – you are making a digital transfer of money, in a digital form. Every country will eventually issue currency on a digital ledger technology. It makes sense from their perspective because they will have the ability to track better. The goal is to get rid of cash, and then the governments will have full control.
Are there any plans to create tax reports directly with CM instead of using some third-party service?
Having better exportable reports so that you can easily file your local taxes is definitely something that we will do.
What’s new on funding?
Still in discussions with the guys in Brazil, and we have until next Friday to sign an MoU (Memorandum of Understanding), which will outline what their commitment is and when it’s flowing in. Being drafted today, they will get the MoU and then discussions next week, probably Wednesday.
Any development news?
Everybody is focused on TRAM, that’s the first thing that’s coming out, and is on target.
Second is the XCM utility intertwined into the ecosystem, followed by the API and probably the website remake, and then Margin Posting.
Is the Montenegro sandbox project planned to be put into motion in other countries or is this the first?
Montenegro is a first step, we’re not saying that we want to launch, stay and do everything in Montenegro. It’s a very global scale, with regional pieces in many different parts of the world.
Any African countries in the pipeline?
A prince from Africa is actually someone we’ve been talking to, he has access to several different countries in Africa. Once we get our MVP established in the sandbox, it’s one of the first places we’re going to look.
How’s the debit card status?
Progressing in the background. We’re not really involved until the last step – designing the card, implementing it on our side. We’re getting close to where the program should be greenlit on the other side, and then it’s on us.
Would it be possible to add Digi-ID as an auth method to CoinMetro?
It’s possible that we could add Digi-ID, Kevin will reach out back to those guys and see what we can work on together, not just for listing. Eventually, Google and other things will be added as well. Agrello was simply the first, because we worked on something else with them and they asked us if we’d be willing to add it, so we added it.
How is progress on getting USD?
CementDAO is basically an aggregated USD stablecoin, so that will give us the ability to list some USD-based assets, and allow withdrawals inside this mix token.
USD as fiat is going to take a bit longer. It’s hard to estimate. One bank is about to offer USD into the overall platform that we’re using, but we need to get secondary approval for CoinMetro, and it can’t happen before they get their primary approval.
How is the progress on the CSD? Have you assembled the teams required yet?
We have a team of five people, very senior individuals – everybody has at least 15-20 years of experience. Experience in cryptography, high throughput systems, building financial ecosystems.
Ready to roll, and next Monday we will sit down with the chief architect and create the entire scope of the project timelines.
How is the Montenegro project? Any foreseeable problems that will derail the project?
There’s always foreseeable problems, no matter how confident you are in this world. Shit always happens.
August 28, the redacted version of the sandbox framework which we’ve been working on with the Montenegro CMA, was adopted into their bylaws. So the sandbox is now legal, up, and ready to roll. We’re waiting on a finalized application to come through from the CMA, probably early next week, and CoinMetro will begin to submit its application to get into an MTF sandbox in Montenegro.
Kevin will be in Montenegro on the 16th and 17th for a government forum, and will be sitting down with the prime minister, the head of the central bank, the head of the CMA, among others. One of the major topics will be about the sandbox.
Any plan to make IOTA tradable?
Yes, IOTA is on the list.
Any insights on how many ICO contributors never claimed their XCM? Could this affect supply numbers?
No, actually. Claimed is a hard word to define. Almost all have their XCM inside of a wallet inside of CoinMetro. The amount contributors that have actively traded, there’s also a percentage gap as well. There probably are some contributions that the person has forgotten about, but no numbers on that. Wouldn’t affect supply too much.
In one of the previous AMAs you guessed that API could increase revenue up to 5x. With TRAM in the making, still valid?
Yes, 100%. It was always about TRAM, since most of the algos that will be using that API, will probably end up using TRAM as well, because it allows them to trade with more money than they have on their account.
Will everyone be able to become a TRAM manager?
Yes. However, leaderboards and things like that, will only be there for TRAMs that have passed a certain amount of prerequisites.
Any numbers how many coins you plan to list in 2019?
We will list things that fit a certain business metric, few or none eur on/off ramp, decent volume, utility token in nature (for now) – and then there are cool products we might list because it will get us some users, and if we can do some business development with those companies, it would push us in that direction as well.
What are the different ways CoinMetro will make money. I’m just trying to figure out how CM will sustain itself in the future.
Margin trading – we make money on allowing people to use our capital to trade with. We make substantially more money doing that, than we do with our exchange.
Then when you bring in things like TRAM – managed accounts for crypto – those TRAM traders will only be trading on margin. So again, inducing more volume on the margin platform, inducing more fees towards CoinMetro.
Our CoinMetro Direct platform – the reiteration of the ICO Express – we’re talking about listing fees, getting a cut of raised funds on that platform, and adding new instruments which obviously adds more liquidity back into the platform.
We are looking to, and we will, launch products that don’t necessarily have to do with trading, like merchant capabilities. That’s going to come after we get all our products listed in our whitepaper, out into the market.
Will there be any limitations on Margin Posting? If someone who has a lot of XCM, like 400k, can they post everything?
There will be no limitations.
Do you think (based on your experience), when Margin Posting goes live, there will be enough demand for that?
With lower volume, not all might be “sucked up”. But the more users we get, the more platforms we add, the more the systems will be used.
There will be a lot of offers that aren’t taken at first, that’s true. Overtime, those offers will start to be accepted.
What are the statistics for Margin Trading, how many users use it?
One of the most used platforms, right behind the Trade platform. Simple and Trade are also picking up on users. Intermediate has the least amount of users, which is why it’s getting redone.
Is there any other options to earn money with CoinMetro?
There will be other ways to passively earn income, but that’s not going to happen until TRAM and Margin Posting are out.
“Kevin Explains Crypto” Term: Network Effect
Originates from Metcalfe’s law – the value of the network depends on the size of that network. Every new user that comes in gives an additional value to every old user on that network.
Want to know more? Check for more details in the video below.
Listen to Last Week’s TWiC on the Go
Get the complete scoop by tuning in to our audio version of last week’s TWiC on SoundCloud. Happy listening!
Well, that’s it for this week’s AMA with CoinMetro Founder Kevin Murcko! Please join us next week on CoinMetro’s Facebook and YouTube Channel at 12:00 (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.