News on funding, a CSD project, CoinMetro in a year’s time from now, and more. Here’s our summary of last week’s “This Week in Crypto” episode and live Q&A with our CEO and crypto guru, Kevin Murcko.
Read the summary or watch the full episode here – whatever you prefer!
1) KuMEX (Kucoin) Cryptocurrency Derivatives Trading Platform Will Go Live
Unregulated derivatives platform, UK already making moves to restrict derivatives trading in crypto. Kevin thinks they should due to derivatives being relatively complex trading instrument, trading on very high leverage. In an unregulated setting, there is no one to track the correlation to the underlying asset, if there even is a correlation. Similar market to what happened to FX trading until clients realised these guys are making money on our losses. These types of things does not necessarily help with price discovery. Kevin thinks this is bad news for the industry.
2) 18,000 Jobs Cut By Deutsche Bank As They Delve Into Bitcoin
20% of an overall infrastructure isn’t news per se. The numbers are just higher with a company of this size. Deutsche Bank is having a lot of issues right now, they are going to continue or get split up. This might be the first move of a split up. Everybody is trying to get into crypto but Kevin doesn’t think these two are correlated.
3) Bitfinex and Tether (USDT) in Trouble: NYAG Calls LEO $1B IEO a Securities Offering, Bitfinex served US customers longer than they claimed
Not a surprise. Their $1b offering is just flipping off the Attorney general’s office in New York, and these guys you don’t want to mess with. There’s going to be trouble there. We’ll have to see how this affects the market. Tether wouldn’t necessarily go to zero, which is odd, but this is what happens with a decentralized market. Kevin thinks Bitfinex is going to have a hard time keeping their operations afloat.
4) Venezuela: Maduro Orders Country’s Largest Bank to Accept Its Petro Cryptocurrency
Kevin thinks Petro and Maduro is a waste of time. This type of news is not good for the market if we’re trying to tell the regulators and governments that there’s benefit in cryptocurrency, when people like Maduro try to do the same thing. It doesn’t really lend credibility.
5) Spanish Police: Bitcoin ATMs a Blind Spot for Money Laundering Laws
They’re 100% correct on this one. A crypto ATM in Estonia shut down recently. Due to weak KYC, people can come there with a ton of cash and get Bitcoin without being really known.
Is there a target volume that could be a be a break-even point for CoinMetro to cover operational costs?
It depends on how much we’re paying to makers, if every order that gets filled hits a maker, it’s different. Roughly 3 million Euro daily for fees to cover operational costs. Keep in mind that we’re working on other types of business development that will bring in revenue and will lower that number.
Hi, any plans or ETA to have XCM correctly listed on Delta app? Also on CMC? Would be great for the token visibility. I know it shows on CoinGecko but it doesn’t show the total supply and market cap.
We did submit information to Delta about the wrong price, but they haven’t got back to us. Continuously in contact with CMC, I think you’ll see so on CMC rather shortly.
Total supply and market cap will be fixed within two weeks.
Is there any news on funding?
We now have the CSD project, that is part of CoinMetro – not a CoinMetro brand, but part of, and CoinMetro likely will own a piece of it.
So, we have two products/projects – CSD and CoinMetro. We’re waiting on a greenlight from Montenegro to run the MTF/CSD sandbox in Montenegro. Sent two high level documents to the Montenegro CMA, outlining how the sandbox should be created, who it should modelled after, changes, and a document about current capital markets, and how we would solve these problems.
The CSD has been a driving force, definitely.
Another thing – officially got the ball running on the debit card. Multi currency cards, sending card designs over next week. Should be able to launch the card within the 8-12 weeks, also working for NFC payments at the same time, will see how it pans out. More information coming!
Public API, IBAN launch (currency support)? And does IBAN and coming currencies also mean new FIAT — crypto pairs?
Public API: Will get an update on that over the weekend.
IBAN launch: We now have initial pricing on this, not that great – underlying infrastructure has to go through two different providers. We’re streamlining that in the next 2-3 months, maybe less, to have only one – and only have competitive market fees, .5% in/.1% out. Still cheaper than credit cards, but higher fees than Kevin would like. Waiting ~2 weeks for some progress on the providers’ APIs.
Fiat/crypto pairs: Yes, new fiat/crypto pairs – will not do 25 new pairs before we get more volume, but for at least the majors we will be able to offer lots of fiat pairs after demand thanks to our infrastructure from FXPig. Same USD market makers would be able to offer synthetically in other currency pairs.
Will new assets will be added soon?
Waiting on the bank – they had their first risk meeting last Thursday, after not having one for a month due to vacations. Didn’t get any feedback yet, hopefully next Thursday. Kevin is scheduling a meeting on other topics next week with the bank, and if no feedback yet, Kevin will specifically ask. Will push our own legal to try and get many opinions in succession to try and speed up the process more.
What is the timeline for XCM fee burning implementation?
Was in discussions today – actively looking at, once we get a final decision on how the system should function, it will be implemented. Over the next coming weeks.
Have you plans to list on Open Market Cap?
Not necessarily, but why not. CMC is obviously taking their time, maybe OMC will move a bit quicker.
Will the fees through the MTF be paid through XCM like crypto trading fees or is it decoupled?
Yes, same basic methodology.
How is progress going on the new website?
While traveling Kevin saw the initial 3-4 pages, and it’s coming along faster than thought. Coming along quite nicely!
How will the debit cards be rolled out?
They’ll be rolled out worldwide, under the CoinMetro brand, all at once (except for restricted countries).
How long do you expect the development of the CSD to take? 6 months? 1 year?
Initial development for the MVP (test) 3-4 months, after that, 2-3 months in order to finalize and go live, roughly.
What is the role of CoinMetro in each country CSD. I suppose CSD is owned by the authority, instead of owned by private entity?
Owned by a private entity 100% – a licensed entity. Where we are going right now, there are no public held CSD. Definitely exists in the world. The CSD in Montenegro is a private institution. CoinMetro’s role wouldn’t have a role in each of these CSDs, but would be partial owner in the parent entity – so exposure in terms of profitability, revenue shares – things like that, between all those CSDs. But in terms of operations, there would be no connections, but it allows CoinMetro as an MTF to gain access to all these different tokenized securities that get listed on all those regional CSDs, and all assets would be listed on our exchange, and CoinMetro would be one of the liquidity hubs. It gives CoinMetro a role as the frontend to that backend basically.
How is progress going in Mexico? There was some issue there with the central bank if I remember correctly.
Kevin hasn’t had 100% clarity on this yet – still within the timeframe before the end of the summer. The Central Bank of Mexico doesn’t consider any of the crypto assets under regulated assets, and the licensing that was created by the CNBV said that to trade in crypto, you need to have a license, and be regulated assets. The Bank of Mexico said there are no regulated assets. Still a gray area.
So there will be a global CSD that each of these regional CSDs are connected to, is that correct?
That is correct, there will be a global hub allowing every regional CSDs to connect to the global hub, giving them access to all the liquidity and all of the assets in every other region, and allow transferability of assets/ownership in real time through every region, through that central hub. The central hub is basically the company that will handle the infrastructure/regional hubs, and an IP entity will hold the IP.
Where do you see CoinMetro in a year’s time from now?
We’ll still be here!
In a year from now, Kevin thinks that CSD will be a major play, CoinMetro will have listed security assets, be one of the places to go in different regions to list those assets. Kevin expects to have a challenger bank up competing with the likes of Revolut, TransferWise, etc. CoinMetro will be a well-known entity in terms of regulated companies within crypto. We’re already getting there, we really do get a decent amount of exposure in terms of those regulated guys, we’re starting to make a name for ourselves.
It’s onwards and upwards.
Had candidates for the marketing / copywriter jobs yet?
We do, we have a few candidates with some interesting profiles!
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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.