Autor Cointelegraph By Brian Quarmby

Miami and New York City coins tank despite Mayoral endorsements

Miami and New York City coins tank despite Mayoral endorsements

Uverejnil používateľ | máj 17, 2022 |

Despite being publicly endorsed by the respective mayors of both cities, MiamiCoin (MIA) and NewYorkCityCoin (NYC) have plunged 90% and 80% since their all-time highs.According to data from CoinGecko, the price of MIA has dropped 92% since its ATH of $0.055 on Sept. 20 to sit at $0.004 at the time of writing. While NYC’s value has fallen by 80% since its March 3 high of $0.006 to trade at $0.0014. With investors getting burned across many other crypto assets of late, demand for MIA and NYC coins has almost completely dried up. Trading volume for the duo over the past 24 hours has totaled a mere $70,190 and $45,663 respectively. In comparison, when MIA and NYC were at ATH levels, they generated $1.6 million and $260,000 worth of 24 volumes apiece. Miami mayor Frances Suarez has spoken about the potential use-cases of MIA on multiple occasions, and most recently announced in February that the local government had disbursed $5.25 million from its reserve wallet to support a rental assistance program. New York City mayor Eric Adams also welcomed NYC with open arms in November after he stated that “we’re glad to welcome you to the global home of Web3! We’re counting on tech and innovation to help drive our city forward.”The assets were developed by the CityCoins project, a Stacks layer-on blockchain-based protocol aiming to provide crypto fundraising avenues for local governments such as Miami and New York City, its two and only partners so far. A key incentive — despite potential regulatory gray areas — is that CityCoins’ smart contracts automatically allocate 30% of all mining rewards to a custodied reserve wallet for the partnered city, while miners receive the remaining 70%. As of January this year, the value of Miami and New York City’s reserve wallets had hit around $24.7 million and $30.8 million respectively according to CityCoins Community Lead Andre Serrano, suggesting there had been relatively strong community demand to mine the asset at the time. Related: ‘Philly is ready’ for CityCoins, says city councilHowever, while the governments have benefited from the partnerships, on the user/investor side of things it appears the share of mining rewards, and a supposed 9% annual BTC yield from “stacking” (essentially staking) the assets on the Stacks (STX) blockchain, is not enticing enough to drive strong demand. Michael Bloomberg, an urban technology researcher at Cornell Tech, recently suggested to Quartz that the coins could even become useless to the cities if extra utility isn’t added capture investor appetite:“People will stop mining the coin if they can’t make money off of it, and the only way they make money off of it is convincing greater fools to participate.”

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Crypto capital gains one of four key areas for Australian Tax Office

Crypto capital gains one of four key areas for Australian Tax Office

Uverejnil používateľ | máj 16, 2022 |

The Australian Taxation Office (ATO) has outlined crypto capital gains as one of four key areas of focus in 2022. A capital gain or loss refers to the price difference between the time an asset was purchased and the time it was sold. The percentage owed to the ATO varies between income brackets and duration of ownership, but in general, the rate is reduced for assets held longer than 12 months. The ATO, which has fired off many warnings to crypto investors over the past few years, has also directly mentioned nonfungbile tokens (NFTs) as an asset class it will be scrutinizing for correct tax reporting. According to a May 16 announcement, alongside capital gains from crypto, property, and shares, the ATO will also look at record-keeping, work-related expenses, and rental property income/deductions. With the prices of most crypto assets suffering from major losses in 2022, the ATO noted that any sold crypto asset, including NFTs needs to have a calculated capital gain or loss recorded with it, and will be “taking firm action” to deal with taxpayers who try to falsify their records ATO assistant commissioner Tim Loh also suggested that the taxation body already has a fair idea of people’s investment activity, but urged everyone to keep diligent records to avoid any penalties, stating: “While we receive and match a lot of information on rental income, foreign-sourced income, and capital gains events involving shares, crypto assets, or property, we don’t pre-fill all of that information for you.”Related: Aussie crypto ETFs see $1.3M volume so far on difficult launch dayLoh also went on to note that the ATO has seen a significant rise in local crypto investors who may not be aware of the correct reporting methods: “Crypto is a popular type of asset and we expect to see more capital gains or capital losses reported in tax returns this year. Remember you can’t offset your crypto losses against your salary and wages.” “Through our data collection processes, we know that many Aussies are buying, selling, or exchanging digital coins and assets so it’s important people understand what this means for their tax obligations,” he added.

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Vitalik: Terra should protect the smallholders, not the whales

Vitalik: Terra should protect the smallholders, not the whales

Uverejnil používateľ | máj 16, 2022 |

Ethereum co-founder Vitalik Buterin thinks that the beleaguered Terra (LUNA) project should prioritize small hodlers as part of any proposed reimbursement plan. As widely reported, the Terra eco-system suffered a death spiral around May 9 which resulted in LUNA tanking 100% and the Terra USD (UST) stablecoin losing its USD peg (priced at $0.16 at time of writing). With LUNA and UST investors reeling from substantial losses, the community is now looking at ways to reestablish the ecosystem and potentially offer relief to the many people who got burned financially. One such community proposal — assuming the UST dollar peg is eventually stabilized — is to first reimburse all of the initial deposits (not yield) of small UST holders to “greatly improve general morale and sentiment” while figuring out how to sort creditors and larger investors later. The payout is estimated to cost between $1 billion to $1.5 billion. Buterin showed support for the idea via Twitter on May 15, noting that the focus should be on the smaller investor who needs the money, before going a step further by suggesting that the whale hodlers should cop the loss: “Coordinated sympathy and relief for the average UST smallholder who got told something dumb about ‘20% interest rates on the US dollar’ by an influencer, personal responsibility and [sorry for your loss] SFYL for the wealthy.”While the Ethereum co-founder didn’t explicitly call for regulation, he did highlight that potential cover such as financial deposit insurance could be useful in these circumstances. “An interesting unrelated one is Singapore employment law. Stronger regulation for low-earning employees, and a more figure-it-out-yourself approach for the wealthier. IMO things like this are good hybrid formulas” he said. The obvious precedent is FDIC insurance (up to $250k per person)An interesting unrelated one is Singapore employment law. Stronger regulation for low-earning employees, and a more figure-it-out-yourself approach for the wealthier.IMO things like this are good hybrid formulas. pic.twitter.com/25XkfE8UVc— vitalik.eth (@VitalikButerin) May 14, 2022At this stage, it is unclear if the project will be able to rebuild, or if it will aim for a temporary resurgence to recoup investor losses, however difficult that may be. It is also worth noting that the proposal relating to Buterin’s comments was updated over the week, and is now weighing up paying out all users up to a per-wallet cap of $50,000.Related: Buterin donates $4M to Uni of NSW for pandemic detection toolAnother idea being floated around online is to develop a hard fork upgrade for the Terra blockchain dubbed “TERRA 2”, while also launching a liquidity pool to bring UST back to its peg. Binance founder and CEO Changpeng Zhao slammed this notion over the weekend, however, noting on Twitter that “forking does not give the new fork any value. That’s wishful thinking.” Prior to the LUNA and UST crash, the Luna Foundation Guard held around $2.7 billion worth of Bitcoin (BTC), and in reference to the pool idea to rebuild UST, CZ also questioned “where is all the BTC that was supposed to be used as reserves?” Personal opinion. NFA. This won’t work.- forking does not give the new fork any value. That’s wishful thinking.- one cannot void all transactions after an old snapshot, both on-chain and off-chain (exchanges).Where is all the BTC that was supposed to be used as reserves? https://t.co/9pvLOTlCYf— CZ Binance (@cz_binance) May 14, 2022

Terraform Labs founder Do Kwon — who resurfaced online late last week — has also proposed a reconstitution of the Terra blockchain to reset “network ownership” and distribute 1 billion LUNA tokens to the community.Kwon’s proposed “Terra Ecosystem Revival Plan” however has seen strong pushback from popular figures in the crypto community such as Dogecoin co-founder Billy Markus, who has called for Kwon to leave the sector and also noted:“If they wanna pay off the victims of their dumbass failed protocol, instead of using new money from new victims, they should use the money they already funneled from investors to pay them back.”

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Vitalik donates $4M to Uni of NSW for pandemic detection tool

Vitalik donates $4M to Uni of NSW for pandemic detection tool

Uverejnil používateľ | máj 13, 2022 |

Ethereum co-founder Vitalik Buterin has donated $4 million worth of USD Coin (USDC) to the University of New South Wales (UNSW) to support the development of a pandemic detection tool.The capital, which equates to roughly $5.3 million Aussie dollars, is part of Buterin’s self-described “moonshot anti-COVID effort” dubbed Balvi Filantropic Fund in partnership with the Shiba Inu memecoin project (SHIB) and Crypto Relief. The funds will further support the development of the OISNT-based EPIWATCH tool which utilizes artificial intelligence (AI) and open-source data to create early pandemic warning signs. Created by Kirby Institute Professor and Biosecurity Research head Raina MacIntyre the tool scans millions of items of publicly available online data, including social media and news reports to detect any changes that could suggest increasing health concerns.Buterin emphasized the importance of sharing data in a decentralized and open manner to speed up pandemic detection: “Open analysis of public data is an excellent alternative to more intrusive forms of monitoring, which are also often only available to governments and other high bidders but closed to the public.”“By contrast, an open-source and open-access approach that allows researchers, including members of the public, to work collaboratively across the world can be more easily improved and scaled to detect new pandemics wherever they begin,” he added.The funding will be allocated to the freshly named Shiba Inu Open-Source Intelligence (OSINT) Initiative led by UNSW’s Kirby Institute. #Ethereum co-founder @VitalikButerin has gifted UNSW $5.3 million in #cryptocurrency to support the development of a #pandemic detection tool designed by @KirbyInstitute’s Prof Raina MacIntyre.https://t.co/aYYhI1iQwR pic.twitter.com/Gy0l1xejel— Kirby Institute, UNSW (@KirbyInstitute) May 12, 2022Professor MacIntyre said the idea was to make the tool accessible at a “grassroots” level and make sure it covers enough languages to reach “villages and small towns around the world.”“Imagine if someone had detected COVID-19 before it spread around the world — that is our vision. Using AI and real-time open-source data, EPIWATCH does not depend on people making reports. It is a great equalizer and can overcome weak health systems and censorship.”Earlier this month, the Balvi Balvi Filantropic Fund announced its first round of financial support for various projects and organizations that are building COVID and pandemic prevention technology.Related: Buterin: L2 transaction fees need to be under $0.05 to be ‘truly acceptable’There were four recipients in total for the first round, including the open-source vaccine development RADVACproject, the Upper Room UVGI Project working on UV lamps that “zap viruses to death”, Active IAQ’s air filter initiative and Patient-Led’s long COVID symptom research.The future of bio-defense is decentralized, open, collaborative, and actually doesn’t require infringing on millions of people’s livelihood and freedom. But it does require dedicated smart people to be supported in their hard work on making these tech solutions happen.— vitalik.eth (@VitalikButerin) May 5, 2022

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Coinbase junk bonds tank amid market rout and creditors’ fears

Coinbase junk bonds tank amid market rout and creditors’ fears

Uverejnil používateľ | máj 13, 2022 |

The price of Coinbase’s junk bonds are tanking amid an underwhelming performance in Q1 and fears over what could happen in the event of a bankruptcy. According to bond trading data from Trace Bonds, both of Coinbase’s junk bond offerings have dropped roughly 17% and 5.2% since its Q1 report on May 10 to sit at $63 and $62.31 at the time of writing. Overall they are down 20% and 19% apiece since the start of this month. 10y coinbase bonds trading at 63 cents on the dollar pic.twitter.com/fqmKmiXk5E— state (@statelayer) May 12, 2022Junk bonds are a form of corporate debt issued by firms that do not have investment-grade credit ratings. Firms borrow a certain amount of money via the junk bond offering, and set a maturity date (date of return) and an interest rate that they will pay on top of the borrowed capital. As junk bonds have a lower credit rating, they command higher interest rates than investment-grade corporate bonds. In Coinbase’s case, it raised roughly $2 billion in September across two evenly spread offerings at 3.375% over seven years and 3.625% over 10 years. Notably, both junk bond offerings launched at $100 each, and have been steadily trending downwards ever since. The sharper than usual drop this month however suggests that investors are losing confidence in Coinbase moving forward. The price of Coinbase stock (COIN) has also dropped 20% since the date of its Q1 report, although investor sentiment was already bearish beforehand, with the price dropping a hefty 50% since the start of May. Bankruptcy proceedings disclosureThe major crypto exchange posted Q1 losses of $430 million alongside a 27% decrease in revenue compared to the first quarter of 2021. Shortly after the report had been released, concerns were raised over a disclosure in the Q1 report regarding the fate of user’s assets if the firm were to be “subject to bankruptcy proceedings.”The disclosure noted if the company were to go bankrupt, user’s digital assets held on the platform may “be subject to bankruptcy proceedings” and could see them treated as “unsecured creditors.” Not your keys, not your crypto. This is from coinbase. pic.twitter.com/CaIzQBYQ38— Richard Heart (@RichardHeartWin) May 11, 2022

This appeared to cause fears on two ends of the spectrum, as users were concerned that they may not be able to retrieve their assets if Coinbase were to dissolve. But bond hodlers appeared concerned by the idea that user’s could still have some claim on Coinbase’s assets as they expect to be ahead of them in t line.Coinbase CEO Brian Armstrong attempted to squash fears however, after he noted on Twitter that “we have no risk of bankruptcy, however we included a new risk factor based on an SEC requirement called SAB 121.”Related: Crypto-associated stocks hammered as COIN and HOOD drop to record lowsEarlier today Armstrong also shared a note concerning the past week of events.The CEO called for calm despite admitting how “it can be scary to see our stock price down with associated negative headlines,” as he suggested that the firm can handle the current market downturn: “In times like these we need to step back, and zoom out. Nothing about Coinbase changed this week, we are the same company we were yesterday, or a year ago. If anything, we are in an even stronger position given our balance sheet.”“This last bull cycle has generated tremendous profit and cash that adds to our resiliency, and we have built an incredible team with some of the best talent in the world,” he added.

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