Top Ripple Execs Spark Controversial Debate Over XRP and Taxes
A debate has arisen among prominent figures in the cryptocurrency world regarding the tax implications of using XRP for cross-currency payments. The discussion centers around XRPL pathfinding and its potential effects on taxable events. Fredo Ayala, an accounting and finance consultant, initiated the conversation and stated that if an XRP settlement occurs within a single ledger without price fluctuations, taxable implications would apply only to the customer. However, if price shifts occur during the pathfinding process, both increases and decreases in taxable events may arise. Ripple's CTO, David Schwartz, emphasized that any profit or gain generated during the process should be considered taxable income for the party responsible.
Survey Shows Majority of Cryptocurrency Investors View Memecoins as High-Risk Assets
According to a recent survey of 1,503 global cryptocurrency investors, 73% believe that investing in memecoins is akin to gambling due to their viral nature and potential for quick profits. Many investors do not conduct thorough research before investing in these high-risk assets, leading to skepticism and concerns about their legitimacy and long-term viability. While 53% of respondents expressed optimism about the profit potential of memecoins, 70% believe they carry inherent risks and may even be considered scams.
US House Committee Passes 'Keep Your Coins Act' to Protect Right to Self-Custody Crypto
The US House Committee on Financial Services has passed the Keep Your Coins Act of 2023 to protect the self-custody of cryptocurrency. The bill, introduced by Congressman Warren Davidson, prohibits federal agencies from restricting the use of convertible virtual currency by a person to purchase goods or services for their own use and protects a person's ability to self-custody digital assets using a self-hosted wallet or other means to conduct transactions for any lawful purpose.
Tether's Management Team Reportedly Profits from Simple and Low-Risk Model, Despite Potential Challenges in the Future
The creators of Tether, a stablecoin with a market value of $83 billion, have profited greatly from their creation. Despite the overall decline in cryptocurrency value, Tether has remained successful due to its low-risk profit-making model. Tether's top executives could become billionaires if the company is sold for an estimated $9 billion, but regulations and demands for money market returns may pose challenges in the future. Forbes reports that stablecoins are now yielding between 4-5%, and at least one US company plans to create a regulated stablecoin with money-market-like returns this year.
New Cryptocurrency Offers Free Tokens for Eye Scanning Verification in Kenya
Kenyans are showing interest in a new cryptocurrency called Worldcoin, which rewards users with free WLD tokens for scanning their eyeballs to verify their humanity. The tokens can be transferred to a crypto exchange and used to purchase other cryptocurrencies. Quickmart Outlets in Nairobi have seen an influx of young people eager to scan their eyeballs and receive the free tokens. Worldcoin aims to provide access to the global market by offering a verified digital ID, free crypto tokens, and a cryptocurrency wallet, using retinal scans to create personal identification codes stored on a decentralized chain. However, the Office of Data Protection Commissioner has warned against sharing sensitive personal data before receiving proper information about how it will be used.
US Congressman Patrick McHenry Advocates for Bitcoin and Blockchain as the Foundation for the Next Internet Technology Revolution
US Congressman Patrick McHenry believes that the next internet technology revolution will be based on Bitcoin and blockchain. He advocates for cryptocurrencies, particularly Bitcoin, as a game-changer that could redefine the financial landscape. McHenry warns that without sound regulation and continuous innovation, the US risks falling behind in the dynamic and rapidly advancing crypto economy. The quest for lucid regulation of the crypto industry in the US remains underway, with McHenry emerging as one of the prominent voices championing this cause. While Bitcoin occupies the highest echelon of the digital asset market, other cryptocurrencies continue to encounter regulatory hurdles and have yet to fully secure the regulators’ nod.
Bitcoin Traders Favor Long Exposure Despite Low Volatility, Positive Funding Rates
Bitcoin has been trading sideways with low volatility, but traders are favoring long positions. The cryptocurrency currently trades at $29,700 with a 0.7% loss in the last 24 hours and a 2% loss in the previous week. Data from Block Scholes via Deribit shows that Bitcoin and Ethereum traders have been seeking long exposure to these cryptocurrencies, coinciding with a decline in delivered volatility. However, it is unclear why traders are willing to pay a consistently high rate for long exposure despite low expectations of volatility.
Investors Flock to Meme Coins as Blue Chip Cryptocurrencies Remain Stagnant
Bitcoin and ether are currently trading within recent intra-day ranges, while crypto markets are ignoring positive economic data that boosted hopes of a "soft landing" for the US economy. Instead, degens are focusing on volatility and short-term gains in the meme coin/shitcoin market. Some of the top-gaining Ethereum-based coins of the day include Pegasus SniperBot, Scarab, and Ascend Coin, but potential investors should be cautious of the 5% buy and sell tax and other provisions in their smart contracts. Investors looking for a better alternative to shitcoins should consider promising presale projects like BTC20, which offers the opportunity to purchase bitcoin at its 2011 price of $1. However, investors should be aware that cryptocurrency is a high-risk asset class and this article does not constitute investment advice.
UK Gang Jailed for £4.6m Drug Operation Laundered Through Coinbase
A UK court has sentenced a gang of 12 individuals to a combined 88 years in prison for running a £4.6 million ($5.2 million) drug operation and laundering profits through Coinbase. The gang's leader, Amir Khan, converted £1.65 million ($2.1 million) of the funds into cryptocurrency, making it difficult to recover some of the funds. One of Khan's co-leaders, Joshua Billingham, received a 14-year, eight-month sentence, while Stacey Challenger, who laundered £300,000 and conspired to turn it into cryptocurrency, received just one year in prison. The case is one of the first in Gwent where cryptocurrency was used to launder money.
Bitcoin Rally Expected as Next Halving Approaches
As bitcoin's next halving event approaches in less than nine months, excitement is growing for a potential rally to fresh all-time highs. The reward rate for miners will be halved from 6.25 BTC to 3.125 BTC when the blockchain adds its 840,000th block on April 21, 2024, resulting in a halving of the inflation rate of the bitcoin supply. According to ChatGPT, a leading artificial intelligence chatbot, Bitcoin's price could potentially double or triple the pre-halving price, reaching $60,000 to $90,000. Additionally, a new token called BTC20, which operates on an eco-friendly, low energy consuming Proof-of-Stake Ethereum blockchain, has been generating a lot of buzz. BTC20 aims to raise up to $6.05 million by selling tokens at $1 each and has already raised over $4.25 million in just over a week.
