“This Week in Crypto” Summary for November 22, 2019
Latest crypto news, updates regarding new products, funding and future plans.
Check out our weekly “This Week in Crypto” summary or watch the full video here.
Crypto Market News Highlights
1) “OpenVASP”, a way for crypto exchanges to get around the travel rule, in compliance with the FATF
OpenVASP is probably going to be structured similar to SWIFT, the way messages are sent back and forth. A protocol may make it more standardized automated. It’s not really needed but they’re making one. There will be a standard at some point. Whether that’s going to be OpenVASP – we’ll see.
2) Google branches into personal banking, a threat to Bitcoin?
All these major tech providers – Google, Apple – they already have equivalency of e-Money licenses. They have the infrastructure – Google Pay – so why not? They’re seeing Facebook move into payments, so Google flicked the switch and moved into payments. They were already in payments.
Is it a threat to Bitcoin? No, of course not! What Bitcoin has is decentralization! That is Bitcoin’s claim to fame.
3) Hackers inject ‘coin-stealing’ malware into official Monero cryptocurrency wallet
Bummer for Monero. And it’s anonymous – so they can’t track who stole the money.
4) Binance to launch fiat-to-crypto services in India after acquisition of Mumbai-based crypto exchange
Kevin says this is risky. India hasn’t officially taken their stance on crypto but Kevin knows their stance. Binance obviously can add a myriad of more clients to this Mumbai-exchange. Binance is also a different owner, and perhaps hasn’t been KYC’d yet by these gateways – PSPs (Payment Service Providers), banks, etc opened by the Mumbai exchange. When money starts to flow in much higher quantities, and from different parts of the world – these gateways have to re-KYC the owners – and they might have an issue.
5) UK Law Panel Defines Crypto Assets as Property, and smart contracts as enforceable agreements
They define crypto assets as property. So did China. They define it as property so that they can legally seize it and tax it. Probably along the same lines here. Classifying it as money requires a lot more hurdles than classifying it as property. Almost anything can be classified as property. At one point in history, people were classified as property!
What’s new on funding?
Agreements signed. Funds have started to roll in. First wire transfer has hit our books. Expecting all transfers to be in by next week. So – it’s done! Next week we should have everything on hand.
When are market makers coming in?
Not sure exactly how long it will take to turn it on. The market makers will have to move funds in place and run some tests on the live system. Next week is possible, either way it’s definitely in motion now.
Updates on MAP, TraM, XCM fees, debit cards?
Oliver is in charge of MAP, it’s up to him if he wants to share something on that.
TraM – small, final fixes on the UI. Expecting it to be out next week.
XCM fees – should be live just after TraM is out.
Debit cards – same provider as the 25 currencies. No update yet. Should have an update by next week.
When will IOTA be on the platform?
Kevin will be pushing LHV to get the self-assessment done before the next board meeting, which is on the 12th of December. Part of CoinMetro’s strategy will be a listing strategy. We can now bring on market makers and we will bring on things that people want to trade. IOTA is in the Top 20, so it’s a good chance.
What was the amount finally finalized for funding?
The number that was shared in previous AMAs, it’s slightly larger than that. It’s runway for us to scale up, spend a decent amount of money on marketing and cover our burn rate for roughly 7 months. The goal within these 7 months is self sustainability. Self sustainability will allow us to bring on debt to fund all the other licenses and everything else we need for expansion. That’s the goal.
Ideas for CMO and COO positions?
Ideas, yes. We know who we’re looking for. People lined up – no.
Any more IEOs this year?
We’re talking to one right now. Once we get a little further down the line, we’ll release some information on it.
How’s the CSD going?
Development going as planned. We’re on sprint 5 of 8. It’s moving along. Kevin is supposed to be in Riga on Thursday next week, to sit down and discuss the development.
When it comes to potential candidates for IEOs, do they approach CoinMetro or are they approached by CoinMetro?
Both. We don’t really approach anyone, but in Kevin’s circles and CoinMetro in general, IEOs are mentioned in some cases and we can offer them a platform.
What’s after margin posting?
Once margin posting is up, we’re going to clearly start focusing on the challenger bank aspects. Fine tuning more payments, different services. There’s a use case in Pakistan for freelancers, they don’t have a way to be paid. That’s something we’re going to tackle.
Kevin was in talks with someone from CoinMetro’s Telegram group about a specific platform that provides accounting and other services to FinTechs, and it may fit perfectly into that challenger bank aspect. it’s going to require some different UIs, some new techniques on how we transact, and likely an EMI-license. We’re looking to acquire an AR-license of an EMI or a payment institution in the UK. That’s probably going to happen Q1 next year. Then we’ll look to enhance that into our own license to get away from the AR model.
Mobile definitely requires some attention. Dashboard updates. Making SimplEX part of the wallet system. We’ll start condensing, improving, and build out challenger bank infrastructure.
Any news on the stablecoin CementDAO?
Waiting for legal to finalize, and we also need approval from LHV. Either we’ll have it done with the self-assessment guideline, or we’ll have to draft out new tokens for their approval.
With funding done, will you hire more devs?
Yes, we’re looking to hire some additional people in development. Once we get through all our main product builds, we can start focusing on auxiliary services and put people on individual tasks.
What are the ideas for marketing? How many users can we expect in the next 6 months?
The channels used for marketing – everybody uses them. It’s about how you use them. Focusing on USPs (Unique Selling Points). On our next board meeting we will be discussing how to move forward with initial tests.
Before we spend 6 figures on marketing, we need to fine tune our strategy and the content we will be using. 5-10k spent on testing content over a month or two. Finding the content that gives the highest ROI (Return on Investment) and spending more money on that content. Gradually building up to the point where more and more is spent but also getting more and more ROI.
Some local marketing in local markets, and some global markets like Google, SEO focus, branching out some different SEO strategies, paid marketing through socials. Probably pushing some more viewership, possibly morphing the AMA into some other type of show. Looking for opportunities to get on to other media.
In terms of 6 months, we’re looking to gain roughly 70,000 new clients.
“Kevin Explains Crypto” Term: Mainnet
Similarly to programming outside of blockchain, there are different environments – production, testing, sandbox. Before putting a new piece of software or code live, you want to test it. So you put it in a clone of your production environment. You don’t want to move real money when you’re testing, what if it’s broken or causes a bunch of losses? So you put it in a test environment. In blockchain, you have a testnet where you test. You can move coins and tokens, test for throughput, transaction volumes – but at the end of the day, none of the transactions are real. On the mainnet, this is your production environment, and you’re doing real, irreversible transactions.
Interested in learning more? Have a look at the video where Kevin explains “Mainnet”:
Listen to Last Week’s TWiC on the Go
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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.