Day: March 11, 2021

Congressman Warren Davidson Re-Introduces Token Taxonomy Act 3.0

by Btcmanager

U.S. Congressman Warren Davidson (R-OH), has reintroduced the Token Taxonomy Act. The bill was previously floated in 2018 and 2019 but failed to see the light of day under the Trump administration. If it makes it this time around, altcoins will be exempted from U.S. securities law and crypto-to-crypto transactions will no longer attract taxes.

Rep. Davidson Not Giving Up Just Yet

Not giving up on his fight for the implementation of amenable regulations in the United States blockchain ecosystem, Congressman Warren Davidson, a former military officer who’s now Representing Ohio, has reintroduced the Token Taxonomy Act.

It will be recalled that the bill was previously introduced in 2018, but the proposal was never voted upon and in 2019, Davidson reintroduced a revised version of the bill. However, it still could not see the light of day.

With the crypto-hating ex-president Trump administration now over, Davidson and his other forward-thinking colleagues, including Ted Budd, Darren Soto and Josh Gottheimer, are now looking to give the legislation one more trial.


Enter Token Taxonomy Act 3.0.

The Token Taxonomy Act 3.0 has exactly the same objective as the one proposed in 2019. It aims to amend the U.S. Securities Act of 1933 and the Securities Exchange Act of 1934 in a way that removes digital tokens from their purview, exempt cryptoassets held in retirement accounts from taxation and put in place tax exemptions for crypto-to-crypto transactions, among others. 

Commenting on the Token Taxonomy Act 3.0, Davidson reiterated that the United States is gradually losing the opportunity of taking the lead in the rapidly-evolving cryptospace, and now is the time to act.

In his words:

“The window is closing. If we don’t act quickly, the UnitedStates will be left behind. Other countries have found ways to regulate blockchain projects and, in doing so, have made themselves more attractive to entrepreneurs. By establishing the appropriate regulatory environment, we can make sure that the opportunities and advancements that blockchain innovation promises will happen here in the United States, for the benefit of Americans.”

Indeed, the growth of the U.S. crypto industry is being stifled by regulatory uncertainties, as residents cannot access a vast array of legitimate crypto-linked investment vehicles.

In a bid to enlighten financial regulators in the country and make them understand the importance of cryptos, the Blockchain Association has scheduled a meeting with the U.S. Treasury Secretary Hellen Yellen, who recently said bitcoin’s primary use case is for illicit transactions.


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Solana Price Pumps on Tether Stablecoin Addition

by Decrypt

Tether (USDT), the top stablecoin by market capitalization, became available on the Solana blockchain today.

After the announcement this morning, Solana (SOL) tokens went from a low of $13.81 to $16.06, a 16% increase, according to market data from Nomics. It later corrected slightly.

The price of Solana on March 11. Image: Nomics

In addition to the Ethereum blockchain and now Solana, USDT tokens can already be found on Algorand, EOS, and Tron as well as on a handful of other protocols and networks.

Solana is a proof-of-stake blockchain network that markets itself as a “high speed and low cost” alternative to Ethereum. The Ethereum network is struggling to contain high transaction costs and congestion due to the popularity of decentralized finance (DeFi) and non-fungible token (NFT) applications, many of which are built atop the blockchain. 

NFTs are digital assets—often in the form of virtual trading cards or cute collectibles—whose ownership and authenticity can be verified via a blockchain.

Stablecoins such as Tether are designed to bypass the price volatility of most cryptocurrencies; the price of USDT is pegged to the price of the US dollar. 

Once purchased from an exchange or otherwise minted, stablecoins can be used to transfer funds between tokens and blockchain-based platforms without using a bank. That makes it easier for people to participate in DeFi. For instance, some networks pay interest to those who lend out their stablecoins.

DeFi is an area Solana is trying to capitalize on. Decentralized finance describes blockchain-based applications that allow people to lend or borrow money, swap assets, or speculate on prices without going through a bank or other centrally controlled body.

The network added stablecoin functionality in May 2020 and then integrated Tether rival USDC in October. In between, it created a bridge to Ethereum so that projects on the senior network could migrate to Solana, either permanently or temporarily, during times of high congestion.

According to Tether’s announcement, Solana users can “exchange USDt at speeds greater than 50,000 transactions per second, often for as little as $0.00001 per transaction.” It envisions the addition helping spur DeFi development on the Solana blockchain.

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This Crypto Asset Could Be the Most Undervalued Project in DeFi, According to Coin Bureau

by Dailyhodl

The digital asset portal Coin Bureau says one cryptocurrency is trading well below its fair value relative to other tokens in decentralized finance (DeFi).

In a new video for his 497,000 YouTube subscribers, the pseudonymous host of Coin Bureau says Ren is currently one of the “most underrated and undervalued cryptocurrencies on the market” despite the protocol placing itself in the “perfect position to be the interoperability layer of the cryptocurrency space.”

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Ren is a cross-chain liquidity protocol that essentially allows non-Ethereum assets, such as Bitcoin, to be utilized on the Ethereum blockchain via 1:1 backed ERC20 tokens.

“Ren is one of the few cryptocurrency projects that’s been tackling interoperability head-on. The market cap of Ren’s wrapped Bitcoin token on Ethereum (renBTC) has grown to over $1 billion over the last few months. And the Ren protocol has expanded to support other chains…”

The cryptocurrency educator adds that Ren is continuing to add support for more blockchain ecosystems and is being listed on a major exchange.

He anticipates that platform will continue expanding, and obtain partnerships with the Serum decentralized exchange (DEX) and decentralized finance-to-real world bridge OpenDAO.

“Ren will also be supporting the Avalanche blockchain. Ren also announced that they had partnered with MyEtherWallet to make it possible to mint renBTC using BTC in the MyEtherWallet mobile app.

In January this year, Ren officially made it possible to use Dogecoin on Ethereum as renDOGE. Ren’s integration with openDAO also makes it possible to mint dollar-pegged stable coins using renDOGE as collateral… Ren will soon be supporting the Solana blockchain and will also be integrating with the Serum DEX.”

Though the cryptocurrency educator is quite bullish on Ren, he highlights that his biggest concern with the asset is its lack of decentralization.

The pseudonymous analyst reveals that 2% of his cryptocurrency portfolio is invested in the token.

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Foundry Digital’s Bitcoin Mining Pool Is Welcoming Institutional Clients

by Bitcoin Magazine

Foundry Digital, a subsidiary of Digital Currency Group, announced today that it is seeking institutional businesses that want to participate in bitcoin mining to participate in its Foundry USA Pool, according to a press release sent to Bitcoin Magazine.

The announcement came alongside a statement that Blockcap, Inc, a North American bitcoin mining company, has joined the pool and is mining with roughly 10,000 latest generation mining rigs contributing more than 0.91 exhashes of computing power.

The release highlighted the range of services that Foundry’s bitcoin mining pool provides to appeal to institutional clients.

“Foundry USA Pool is focused on institutional mining businesses and is seamlessly integrated with DCG-owned cryptocurrency prime broker Genesis Trading to provide users with various treasury management services, including high-security custody, bitcoin-collateralized lending, yield earnings on BTC holdings, derivative products and seamless liquidation,” according to the release.

Foundry’s opening to these clients offers a new avenue for North American institutional investment into bitcoin mining.

Since its creation in 2020, Blockcap has become one of the largest bitcoin mining operations in North America, and its addition to the Foundry USA Pool enhances the pool’s ability to compete in a Chinese-dominated industry.

“Mining on a pool that is made and based completely in the U.S., and offers institutional miners payouts at par with the world’s biggest pools was an obvious choice on our mission to make North America a global hub for digital-asset mining,” stated Darin Feinstein, Blockcap’s executive chairman, according to the release.

Growing interest in bitcoin mining in the United States has been matched with continued investment, and this announcement may precede further entries into the mining pool. The accumulation of clientele could contribute to more widespread desires to join, and it is this momentum which Foundry Digital doubtlessly hopes to capture in competing with China-based mining pools.

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Tokenized Ownership of Beeple Art Trades at a Premium

by Cryptobriefing

Key Takeaways

  • A crypto token representing part of Beeple’s most expensive artwork almost doubled in price after its historic auction.

  • Metapurse sold partial ownership of 20 select pieces of Beeple’s work as a crypto token on Ethereum.

  • The total market valuation of the 20 pieces, plus the related digital museum, is now over $150 million.




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Following the iconic $70 million auction of Beeple’s digital artwork today, a crypto token representing partial ownership of the auctioned collection surged by 89% in less than 30 minutes. 

Metapurse Acquired 20 Pieces

A piece of digital art called “Everydays: The First 5,000 Days” was auctioned for $69.34 million at Christie’s this morning. The NFT token represents the ownership of a collage created by digital artist Mike Winkelmann (aka “Beeple”) over 5000 days.

Metapurse acquired 20 pieces from the collection made on Jan. 1 each year. Later, the firm issued a combined token, B20, representing joint ownership of the collection, including the digital museum that houses the collection. Metapurse said that it is “fractionalizing ownership, not the assets themselves.”


The firm spent $2.2 million on Beeple’s auction and $1.3 million on the design of the virtual museum, for a total of $3.5 million.

Price of B20 Token Has Surged

There are 10 million B20 tokens in circulation. Metapurse retained 59% of the ownership and transferred 2% to Beeple. The firm sold 1.6 million B20 tokens for a total amount of $576,000 in a public sale. The remaining 23% was allocated to partners of Metapurse.

The price of the B20 token rose by 89% in a flash surge this morning thanks to a whopping $70 million valuation during the Christie’s sale. B20 surged from $14.60 to $27.70 around 10 am EST.

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B20 token price chart. Source: CoinGecko

Prices quickly fell, however, as owners booked profit. The B20 token was worth about $19.58 at 2:00 pm PST.

The total market capitalization of the token is now over $190 million, more than twice the amount that the entire set sold for.

Disclosure: The author held Bitcoin at the time of press. 

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How Are Non Fungible Tokens (NFTs) Taxed?

by Forbes

The popularity of Non fungible tokens(NFTs) has spiked in the past couple of months. Today, the Beeple NFT was sold for $69.3 million setting a record for the most-expensive NFT ever.

NFT Tax Overview

NFTs are taxable property similar to cryptocurrencies like bitcoin. How taxes work on NFTs depends on how you interact with them. There are two ways you can be involved with NFTs: You can create and sell NFTs in a marketplace or you can buy and sell NFTs as an investor.

How Taxes Work For NFT Creators

Creators are taxed at the time they sell NFTs. Say Sam created an NFT art and sold it for 2 ether (ETH) valued at $2,000. He would report $2,000 as ordinary income. If he is in the trade or business of creating NFTs, he can also deduct business related expenses to reduce the tax bill. 

How Taxes Work For NFT Investors

Investors are individuals who buy and sell NFTs for speculative purposes. Most people fall into this category.

For NFT investors, taxes work very similar to crypto trading. Both purchasing a NFT using a cryptocurrency like ether and selling them later for a profit create taxable events for the investor. Profits are subject to capital gains tax rules. 

Say, David purchased a NFT valued at $2,000 (1 ETH) in January 2021. To make the purchase, he used 1 ETH purchased at $200 several years ago. When he purchases the NFT in January, he would incur a long-term capital gain of $1,800 ($2,000 – $200). This is considered long-term because he held the ETH for more than 12 months before disposing of it to purchase the NFT. Long-term cryptocurrency capital gains are taxed at either 0%, 15% or 20% tax rates. The cost basis of the NFT purchased would be $2,000. 

If David were to sell this NFT in March 2021 for $10,000, he would have a short-term capital gain of $8,000 ($10,000 – $2,000). In this case, the gain is short-term because he only held on to the NFT for less than 12 months before selling. Short-term gains are taxed at your ordinary income tax rates. 

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High Income Earners May be Subject To a Higher Tax Rate on NFTs

One interesting item to highlight is that some NFTs could fall under the definition of “collectibles” according to § 408(m)(2) of the tax code. This leads to a somewhat unfavorable tax treatment on long-term NFT capital gains for high income earners (single filers with over $441,450 of taxable income & married filers with over $496,000 of taxable income). These high income earners will be subject to a 28% tax rate on collectible NFT gains vs. the highest 20% tax rate on regular cryptocurrency and stock long-term capital gains. People who are below these income thresholds won’t see a difference in tax rates between NFT gains and regular cryptocurrency gains. 

Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.

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NFT bonanza sends Chromia (CHR), Rarible (RARI) and Lukso (LYXE) price higher

by Cointelegraph

Nonfungible tokens (NFT) have risen in popularity over the past couple of months as stories of record-setting multi-million dollar auction sales begin to emerge on a daily basis. 

While projects like Cryptokitties, Axie Infinity (AXS) and Aavegotchi (GHST) are some of the well-known NFT tokens in the space, several new platforms have burst onto the scene in recent weeks and established new all-time highs.

CHR/USDT vs. RARI/USDT vs. LYXE/USDT 4-hour chart. Source: TradingView

Chromia (CHR), Rarible (RARI) and LUKSO (LYXe) are three projects that have all broken out to new highs in recent days as NFTs take center stage and look to head higher as blockchain increasingly becomes mainstream.

CHR/USDT

Chromia is a public blockchain platform that currently operates on top of the Ethereum (ETH) network and is powered by a new blockchain language called Rell.

Data from Cointelegraph Markets and TradingView shows that the price of CHR has rocketed more than 900% over the past 4 days, going from a low of $0.66 on March 7 to a new all-time high of $0.668 on March 11 with a record $1.76 billion in 24-hour trading volume.

CHR/USDT 4-hour chart. Source: TradingView

Movement for the token was kickstarted after it was announced on March 9 that the ALICE token, the native token for the multiplayer game My Neighbor Alice would be listed on Binance beginning March 15. The game is actually built on Chromia and this could be one of the bullish catalysts behind the most recent surge.

The game combines the play experience of popular games like Animal Crossing with the functionality of the emerging decentralized finance and NFT sector, including offering a staking yield, collateralized NFTs and NFT rentals.

RARI/USDT

Rarible is a creator-focused marketplace and issuance platform for NFTs that utilizes the RARI token to reward engagementwith the protocol. The platform bills itself as the “first community-owned NFT marketplace” that allows users to “create, sell or collect digital items secured with blockchain.”

Data from and TradingView shows that the price of RARI has risen 200% since reaching a low of $12.92 on Feb. 28, establishing a new all-time high of $40.52 on March 10 as interactions on the Rarible platform increase by the day.

RARI/USDT 4-hour chart. Source: TradingView

Scrolling through the project’s Twitter feed shows that while the Rarible community has been quite active for some time, it was the March 1 announcement that Rarible had listed on Product Hunt that kicked off the latest rally to a new high.

A renewed wave of optimism for the token came on March 7 when Taco Bell, a popular American fast food restaurant, introduced its own custom NFT that was only available on the Rarible marketplace. The announcement led to a surge in trading volume that helped lift RARI to new highs on March 10.

LYXE/USDT

Lukso is a blockchain infrastructure that claims to offer “a series of standards and solutions for physical and digital consumer goods” that foster transparency and create “new forms of responsible production and consumption.”

The Lukso multiverse is a blockchain network that connects fashion, gaming, design and social media into one centralized venue where the general public can interact with blockchain via decentralized applications.

Data from and TradingView shows that the price of LYXE has increased from $6.94 on March 1 to a new high at $23.82. This 240% rally was accompanied by a $15 million bump in trading volume.

LYXE/USDT 4-hour chart. Source: TradingView

Trading activity for LYXe actually began to increase on Feb. 26 as the project’s participation in the Crypto Fashion Week came to a close.

The event included big-name partners like Vogue Germany, which is now dipping its toes into the world of NFTs and looking to combine the world of blockchain and digital fashion.

Since the conclusion of Crypto fashion week, LUKSO’s Twitter feed has received increased engagement from those interested in learning more about the future of digital economies and the various use cases for NFTs.

The explosion of interest in NFTs has brought new life and enthusiasm to the cryptocurrency space just as the DeFi sector entered a cooling-off period which has seen many of the top tokens consolidate as traders shift their attention toward Bitcoin price and NFTs.

With new projects and mainstream companies starting to get involved with the creation of digital memorabilia, NFT related projects like Chromia, Rarible and Lukso are well-positioned to see further growth as mainstream adoption increases.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.