“This Week in Crypto” Summary for October 25, 2019
Progress on the new website, funding and CSD.
Check out our weekly “This Week in Crypto” summary in our blog post or watch the full video here.
Crypto Market News Highlights
Kevin has been talking about this in many of the AMA sessions. Many of these unregulated exchanges will be putting the brakes on many things that they’re doing, because they’re going to get more heat from national and international regulations.
We’ve started to see a trend with the larger unregulated institutions: Bittrex, Binance, Bitfinex. They’ve quickly started to change the way they do business, and that’s more than likely because the US is starting to send out letters. Not surprising, but a good sign overall for the market. It’s starting to clean itself up.
Sounds cool, although it was probably pretty small to begin with. This shows that there is more awareness. A lot of that awareness comes from bad press. Bad press has been much more prevalent around Bitcoin and crypto in general, but it still gets into people’s households and they research about it.
Crypto Capital was essentially a company that provided PSP – Payment Service Provider between large crypto exchanges that couldn’t get bank accounts. Bitfinex is probably their biggest client, Binance used them as well.
They’re the guys that basically froze the $850m that Bitfinex had, and then they did a $1b token sale to cover it up. This guy is in a lot of hot water. Kevin thinks they found him so that they can give him immunity (or close to it), and to get the actual guys behind the entire scheme. Noble Bank, Bitfinex, Tether – all these guys. They’re basically putting together a racketeering charge, like a mafia case. They get all the little guys first, they offer them deals, and the little guys give the names and testify against people.
It’s Bitcoin – price volatility. Remember that miners aren’t your friends. While they do process your transactions, they dump all the time – they have to keep up with their major mining operations which costs a lot of money. Most of the time they sell via OTC, but sometimes OTC doesn’t work.
The word stablecoin is incorrectly used all the time. It depends on how they’re structured. Smart token is actually a term that means a pegged asset, which is much more stable than a “stablecoin”. If you create a stablecoin based on a basket of securities, then it’s a security. If you create a stablecoin based on gold, different currencies, it’s a commodity-based security.
A stablecoin backed by reserve in a fiat currency is not a security at all.
Now that funds are due to come in, will you pull in the market maker?
Yes, we will. 100%. Will come in once the funds hit the books. One of the first things in terms of spending money.
What’s new on the website and TraM?
The website is 95% complete. Potentially end of next week it could be pushed out.
We still have about a week more of TraM, the internal target is still set to the first week of November.
Can you tell something about MAP?
MAP is Oliver’s baby. You’ll have to ask Oliver about that one.
Essentially MAP connects a lot of different services we use, and gives us a cross-selling platform and gives you the ability to see where other people are utilizing XCM.
Scheduling the next IEO?
We’re in communication with one right now. Cool project. Definitely different than PARSIQ. It has a rather unique use case. More information coming over the next few weeks.
How will you be rolling out increased leverage for margin trading?
We don’t have enough data/volume to understand where our risk lies. We need to put up the capital to cover that margin. Generally it’s not necessary to lock up 3x all the capital sitting on the platform, it’s not in use all of the time – a lot of trades cancel each other out, etc. we still haven’t had enough data. As we get more people trading, we’ll know how to increase.
How is the CSD development increasing?
Going well, on schedule. 6 weeks in now, of a 16 weeks process to get in to the sandbox. We’re exactly on course. We need to have the product just about ready before we can apply to Montenegro, the application for CoinMetro is still pending. Kevin will have a call with the president of the CMA on Saturday on an unrelated matter, and Kevin will ask if they need any additional information.
Any news on funding? Marketing?
A group of investors right now going through documentation phase. Signing of agreements, due diligence, source of funds, expecting that to conclude sometime next week, and then funding to come immediately thereafter.
What we may do at first is likely bring on a marketing agency to help us structure the first big push, and then we can work with them to create copy, to test copy, and find the different marketing materials that work.
Within 60 days of the funds coming in, we’ll likely have our first marketing campaign rolled out.
Any news on 25 currencies and debit cards?
The provider is waiting on their primary banking partner to finalize some API calls on their end. They didn’t have a specific date. Their large banking partner in Germany is working on it, and they expect it soon. That’s the word they used.
Kevin can’t put a date on it, but Kevin would say it has to happen before December, because otherwise it wouldn’t happen before February.
What about CementDAO?
Pretty much ready to roll. We have some GUI integrations, some design that needs to take place and will happen after TraM. Not a lot of work, two weeks max.
What will be released before the end of the month?
It’s possible for the website to be released, but more likely in the first week of November.
Some of the XCM utility and TraM also in the first week of November. A lot of updates and adjustments to platforms here and there. Some mobile updates as well. Stay tuned.
It seems as if CoinMetro could function just as well without XCM. Small and big investors keep CoinMetro running with their investments. They believe in the future of CoinMetro. Why aren’t they massively loading up on XCM instead? Was XCM created only to attract retail money? Is the overall crypto token model obsolete?
Investors have bought the token as well. Most investors that came in with equity also bought the token. Some only bought the token.
The first use case of any ICO is to raise funds. Just like an IPO. Utility tokens have to give some type of benefit to its users. XCM does that. XCM at the end of the day, is our branded utility token, meaning that we can advertise that token, it becomes synonymous with the brand.
There’s definitely an unlimited ceiling of where the token can go, and a very limited floor. If you truly want to get behind a company, putting money in equity helps them grow, which should help your additional investment into the asset tied to their growth.
As we scale it out to provide utility to the people who hold the token. Giving them discounts, early access, and as we create a bigger ecosystem, there will be more and more utility added.
Could we have done this without a token? Of course we could. Any company can create anything without a token. Tokens however are becoming a new type of economy, and companies will tokenize themselves to raise money, to give away benefits. This is just the first step of that evolution.
Is the Brazilian LOI cancelled at this point?
Not cancelled, but pending.
If you have funds to finance the CSD development why not finance the CM operations also rather than selling XCM to an already saturated market?
CSD development was going to be funded by Kevin and co-founder, talking roughly $250,000 each. Could Kevin put those $250,000 into the development of CoinMetro? Yes. But it’s 2,5 months worth of runway, or a relatively small marketing campaign.
Spending that amount on 2,5 months worth of runway, or on a marketing campaign that may or may not succeed over the course of a few months, rather than getting this other product off the ground that we need to have a tokenized market – which CoinMetro needs in order to provide tokenized securities in Europe.
Kevin had to make a decision, and this decision made more sense. Kevin knows that CoinMetro will get the funding it needs, and will be able to do marketing. Kevin has also, and will continue, putting his own funds into CoinMetro. But if we wait to get the CSD development off the ground, it slows down one of the biggest markets that CoinMetro can penetrate as well – tokenized securities on mainland Europe. It’s not just underserved, the market doesn’t exist yet.
We do have funds that are lined up for the CSD as well, but until they come in, self-funded.
“Kevin Explains Crypto” Term: Solidity
Solidity is a programming language that pulls pieces of C++, Java, Python, few other known programming languages. Solidity is the main language to build smart contracts, on Ethereum specifically but also on other blockchains, such as private blockchains built on the Ethereum core.
Interested in learning more? Have a look at the video where Kevin explains “Solidity”:
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!
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