“This Week in Crypto” Summary for September 13, 2019
PARSIQ IEO, future licenses to acquire, Crypto Academy news, and more.
Check out our weekly “This Week in Crypto” summary in our blog post or watch the full video here.
Crypto Market News Highlights
They’re adopting AMLD5, which means crypto exchanges have to adhere to these policies, and any crypto exchange that are actually soliciting or servicing clients in the Netherlands, will have to follow the same legislation, and will need to register as a financial service provider inside of the Netherlands.CoinMetro is already in this process.
Kevin has said this before. Any country that has a central bank that can commit to policy, or is linked to a bank that can commit to policy like the ECB, is not going to like the way Facebook’s Libra is structured in the whitepaper.
Why? Because it’s structured like a central bank, that basically hoards fiat, creates tokenized fiat, and earns interest on the back of the fiat that they hold, and are basically able to do quantitative easing inside of a stablecoin.
Just like everybody else, welcome to 2019. Capital market infrastructure needs primary markets, that are structured and regulated. There are lots of IEO platforms, most do nothing to mitigate the risk that happened during the ICO bubble.
Just as traditional secondary markets, there will be players that have a hold on a region, have a hold on certain types of assets, and so on.
The company that Binance “partnered” with, is registered with FINCEN. To get registered with FINCEN, you fill out a form. The only thing Binance really is doing, is limiting pairs. They are not registered as MSBs in the 50 states like Coinbase is. They do not have a BitLicense. This is as close to a failure as you can get, without actually falling.
Creating a derivatives platform doesn’t drive adoption of an underlying asset. It doesn’t. It drives speculation into the underlying asset. It drives volume and makes somebody some money, and that’s it.
They call themselves the true Bitcoin, the payment vehicle, the P2P payment vehicle – and they want to drive adoption by creating, probably a synthetic, derivatives market? It’s stupid.
Live YouTube Questions
Will the XCM burn mechanism be implemented across Margin Posting, Margin Trading and TRAM?
The XCM fee mechanism is tied into every single transaction that happens in any one of our platforms. When it comes to margin trading and TRAM – yes. When it comes to margin posting – no, but with the trading that happens with the posted collateral, yes.
Are you going to make a new video to explain TRAM since the video from 2018 is obsolete?
Yes, we probably will do it as a tutorial type video.
Will the PARSIQ IEO require people to buy using XCM?
No. It’s something we will implement over time, but for our first IEO, it doesn’t make sense. If people are buying with XCM, it means the underlying project is receiving XCM, and XCM could be more volatile/illiquid than the rest of these other crypto assets, and we want them to be able to swiftly move in and out with the money, rather than having to sell back XCM to cash out funds.
When margin posting?
We will start work wholeheartedly on this once TRAM is released. TRAM is coming, a few days left, final testing. The timeframe for margin posting is 4-6 weeks dev time. A lot of the UI/UX work is already done.
How is the search for Head of Marketing and when is the IEO marketing kicking into full gear?
Search is still ongoing, haven’t seen any new interviews. We’re looking at bringing on a few auxiliary pieces to the marketing team, in lieu of finding someone to run the team, and also someone with a background in sales/conversions.
PARSIQ has already started their IEO marketing, and CoinMetro will release a press release early next week.
When are you releasing the crypto academy?
We had content made, unfortunately some of that is a bit antiquated, and some was reviewed by our Head of Legal and needs to be revamped. We got a quote to revamp it, and we haven’t gone through with it yet.
February next year, might happen before.
Have you considered the same use for XCM as Kucoin did for their KCS? They pay dividends on daily volume.
That’s illegal and would make us not a utility, but a security. We can’t do that, at all. It’s possible that once we get through the MTF license, we could release some type of offer like that.
Does CoinMetro use the PARSIQ platform for analysis?
We’ve been working with their beta version, we haven’t fully integrated everything yet. We’re working with them to refine the product so it’s perfect for us.
The CSD will use it too.
When were liquidity providers expected and for which pairs?
We’re working right now to finalize an agreement with a liquidity provider. They were supposed to come onboard this month, but they got delayed on their side, so we’re looking at an early October. We’re putting together a bigger list for our banking provider, 10-12 assets, and the same liquidity provider will pick those up. Basically all tokens we have, maybe not XCM.
Which licenses are CoinMetro trying to acquire? Are there more besides MTF and CSD?
EMI – Electronic Money Institution, PI – Payment Institution – either of those depending on which country we’re in, which allows us to do debit cards and payments outside of the system, challenger bank services.
So, crypto related licensing, and electronic/payment institution type licensing, and MTF(Multilateral trading facility).
When are we introducing the USD stablecoin?
Also in the works. We just got an update from them, CementDAO. We don’t have a specific date, likely in October.
You’ve hated stablecoins in the past, what’s different with this one?
There are three tokens inside the CementDAO. Governance, mix and risk. What triggered Kevin on this, was the risk token. It essentially bears the risk. The governance token governs what stablecoins go into the contract, allocations, and delegates fees. The risk token, if any token goes to zero, defaults, fall to 20%, the risk token holders take the hit. The risk holders take on the risk, because they get paid with a percentage of the fees.
It’s a model that follows traditional markets, and it makes sense.
How SOON™️ are debit cards?
The debit card provider expects that by October 15th, they will have most of their infrastructure done. Kevin expects that before the 1st of October, that CoinMetro will push the designs to MasterCard. That process takes up to 8 weeks.
How are the talks/discussions going with Ripple regarding xRapid partner? Have you ever spoke with Brad G?
Haven’t rekindled those talks yet.
Any opinion on ECB’s negative rate policy?
Economies 101, negative rates doesn’t mean the world is going to blow up. The reason behind negative interest rates is simple: so people spend money. Central banks either limit or extend, the amount of currency in circulation.
The only reason interest rates go low, is so people will borrow money to spend it. That is the only reason. Corporates, people. They want people to take money, and spend it.
When interest rates are high, people start saving, but not taking loans and spending.
With negative rates, people start spending money, and that means individuals – but more importantly, companies, Fortunate 100s, spending money. They aren’t going to put their billions in the bank and pay 1% per year to hold the money in the bank, so they invest it.
Have you applied for the Montenegro sandbox yet?
Not yet, we haven’t gotten the full application package yet, as they’ve not finished it yet.
If I margin post XCM, do I get a percentage of the original EUR stake each year, or would I get the increased volume percentage of the XCM I tie in. Similarly with XCM in TRAM. Or do I get more or less XCM invested or the EUR equivalent?
When you margin post, in whatever currency or asset that gets used by a client and they’re able to use that posted margin to buy on basically credit, inside our margin trading platform. When they do that, they buy based on a EUR equivalent margin.
So, your collateral you post, and the margin they’re able to trade with, will change based on the value of that currency at the time of their trade, and you are paid a percentage in EUR; no matter what you post. In terms of TRAM, your profitability will be paid back in EUR. Down the road, this will be paid in your preferred currency.
“Kevin Explains Crypto” Term: Fungibility
Fungible coins are identical to any other coin. They’re all the same. There is nothing that can be done with one coin that can’t be done with another. A dollar bill for example.
Non-fungible tokens are specific and have unique information tied to them.
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.