Overview of crypto market news, updates about the future of CoinMetro and status of new products.
Check out our weekly “This Week in Crypto” summary or watch the full video here.
Crypto Market News Highlights
Kevin has talked about this before – there may be some regulatory pushback on this at some point. It’s a very grey area. Hasn’t been any yet, so right now a lot of companies are trying to push down this way. To make a monetary policy function, you usually need to reward people who are putting their money at risk, or at least not actively using their money.
Kevin thinks staking is a good thing, but that there needs to be more regulatory clarity.
That shouldn’t take too long! What do they need to study? It’s been out for 10 years, and one thing that it has proven is that it can be used for cross-border financing. Obviously there needs to be some tweaks rolled out. Come on China, you don’t need to throw too much money at that question.
Sounds like big news, but there’s a lot of banks in Germany, probably over a thousand. Private banks, which the government isn’t going to listen to so much. We already have digital Euro, and we have E-money licenses since 2006. The Euro has already been digitized.
If you want to decentralize Euro, that’s a whole other story. Digital Euro is done. Crypto euro would have been a bit better ask. This refers that 200 German banks don’t know what they’re talking about.
What they probably wanted was to say that they want some kind of Euro based on blockchain. That’s coming anyway.
Bitmain famously tried to do an IPO in Asia. People invested over a billion in them. They didn’t get the IPO done, they cancelled it. Bitmain still hasn’t refunded all the investors, and now they want to do one in the US. That’s probably just because they don’t want to refund all the people, and want to find a place to issue stocks.
If the SEC knows about the failed IPO attempt, they might not allow them to do it in the US.
Kevin has said this before. Every company that you know, large, small, medium sized company will eventually tokenize something. Uber has had an E-money license for years. It makes it easy for them to move money, for instance when you pay Uber, they have to make a payment to the driver.
Now they’re rolling a digital wallet out. This probably means they’ll have some type of digital currency in there. Why not – they’re paying massive fees to merchant providers, Visa, Mastercard. Why not make their own digital currency, and allow that to be inside their infrastructure for Uber Eats, to pay drivers, to allow people to get discounts. It just makes sense. Nice to see, and we’re going to see a lot more of this.
Is TraM pushed back again?
Not pushed back. All our frontend workload went to the website to push it live today. TraM and final GUIs is more or less on track and should be out by next week.
What’s new on BizDev?
A lot of the BizDev right now is fixated on the CSD. Mainly because it’s a new project and it needs some connections, some support in some areas. Chainlink, PARSIQ, and perhaps Quant. Those discussions might flow over to CoinMetro, as we actually list all three of their tokens. Getting some access to their community and some support on the CoinMetro side.
Kevin’s focus has been on getting these fundraising deals closed, and as soon as they’re closed, Kevin will start to push harder on some BizDev that was put on the backburner over the past few months.
Have you found a new marketing lead yet?
Not yet. Still looking! If anybody out there has a lot of marketing experience and wants to come on and work at CoinMetro, give us a holler.
For this round of funding, are you getting the 7 figures?
Yes, we’re already in the 7 figures and we’re working to see if we can get more so that we can accomplish some additional ambitions.The goal for any funding is to get into sustainability.
Is there any way you could publish data on the website about the total margin longs and other data?
We will have the transparency page on the new website and that page is dedicated for things like this. The idea since the inception of the transparency page was to have as much data about CoinMetro there as possible.
You’re very welcome to share all ideas about what could be on the transparency page in our Telegram feedback group!
Now that you know money is coming in, when will you pull in the market maker?
As soon as we have ink on paper. Ink on paper meaning signed agreement and a date for transfer of funds.
Do you think we’ll manage to get margin posting this year?
It’s possible. We still have TraM and MAP. About a week or two left for TraM. Expecting 4-6 weeks for margin posting development. If we can get TraM and MAP out before mid-November, there’s a chance that margin posting could happen before the end of the year.
CSD is a separate company. It can take on other exchanges as clients. Do they pay XCM for the CSD use? What is the use case of XCM in the CSD?
CoinMetro is a regulated entity. The CSD however is a highly regulated entity. No tokens at the CSD, mainly because it just makes it harder to sell the idea to regulators.
How does it affect XCM? CoinMetro will more than likely be the first MTF in Europe that gets connected to the CSD. It becomes the liquidity hub. Other exchanges will need to come to a provider for liquidity on the assets that are settled in the CSD. That means that a lot of volume will flow through CoinMetro, meaning that much more fees will be converted to XCM, meaning XCM will have higher demand.
We will probably pre-sell liquidity, we could have connection fees, and that can be paid in XCM for a discount. But at the end of the day, fees will be converted to XCM.
How many managers do you have lined up for TraM?
We’ve been in talks with three different companies, and one is onboarded. One is in process, and one is in negotiations right now on how they want to connect.
From launch, one or more, not sure on that. At the most we’ll probably have 10 on a promoted list, all of which have passed some type of vetting. These are TraMs that we will actively promote. In terms of private TraMs, there can be any number. Anyone can open a TraM and advertise it using their own link.
What are you going to do in Islamabad? Pakistan is greylisted by FATF!
If we can help them not be greylisted, imagine that. If we can help them build a foundation where they can bring in FinTechs to clean up their financial system, imagine that.
Kevin will be going to Islamabad to see what they think of crypto, what they think it is and what they think it’s used for. Kevin hopes to dispel some of the rumors that they probably have in their head. It’s about education but also business interest.
Do you think 2020 will be the CoinMetro year?
2019 was in many ways the CoinMetro year. We’re still here, we’re still putting out products. That can’t be said for many of the exchanges that came out around the same time. Kevin thinks 2020 will be as well.
When can boomers buy tokenized shares on CoinMetro?
Once we get the CSD up and operational and our MTF license, we will definitely tokenize equity for CoinMetro, that’s for sure. Within the next 12 months realistically.
When can we reasonably expect USD, CAD, AUD, JPY on-ramps? You have mentioned previously that USD would be difficult, would CAD, AUD, JPY, etc be any easier to achieve?
We’re working on all these currencies right now, except for USD. We’re simply waiting for the bank to connect their system to the provider’s system. We should see this before December 15th, because once December 15th hits, most large financial institutions are pretty much shut down until probably the 10th of January.
USD is difficult because it has to flow through the Fed in the US, and the corresponding banking system in the US is atrocious. If anyone in that intermediate banking relationship decides that they think the transaction may be linked to something illegal, they can block it. And with crypto or any third party money transfers that aren’t regulated in the US, that happens quite often. We will get USD, but probably not before the end of the year.
Is it true that Europe is actually a very small crypto trading hub in relation to other regions such as North America, Asia, etc?
When it comes to real volume, Europe is more or less on par. Looking at other companies based in Europe, like Bitstamp, Kraken that have offices in Europe and do a lot of business in Europe, their volume isn’t huge compared to Binance. But if you compare with Gemini and Coinbase in terms of trading volume and exclude simple exchange volume, those volumes aren’t quite that large compared to what Binance reports – because the volume is real. For the most part.
Kevin says Europe is a major hub. It’s not bigger than the US or Asia, but it’s still a major hub with a lot of untapped potential as it’s still an underserved retail market. That market is also underserved in the US and Asia.
You’ve talked about Chinese exchanges dominating Forex, back in its wild west phase, and then getting regulated out of the market. Then you predicted a similar fate is coming to Chinese crypto exchanges. Now that the Chinese government is suddenly embracing crypto, do you still hold to this prediction?
Kevin still holds this prediction – 100%. They aren’t embracing crypto, they’re embracing blockchain and DLT. They’re looking to use that technology to underpin their own currency because it makes sense.
Crypto and national currencies on a blockchain are seperate. The underlying technology doesn’t matter. What underlying technology does digital money sit on now? Does anybody know? No. Does anybody care? No.
“Kevin Explains Crypto” Term: Gwei
It’s not the smallest measurement for Ethereum, but it is a measurement. One Ether equals one million Gwei. Most of the time, you will see this unit when paying for gas.
Interested in learning more? Have a look at the video where Kevin explains “Gwei”:
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 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.