Progress on funding, TraM and CSD.
Check out our weekly “This Week in Crypto” summary in our blog post or watch the full video here.
In Kevin’s opinion, Telegram absolutely knew that the SEC was going to come after them, and they’re playing it quite artfully. The SEC hadn’t come forward to file anything against Telegram, because Telegram never actually linked TON (the issuer) to the parent company which owns Telegram.
And just ten days ago, Telegram linked TON to Telegram inside their ToS. Within the next 48 hours, the SEC filed their initial papers against Telegram/TON. Why would they wait to make the link? Because their product wasn’t ready, so they waited as long as possible to link them together, because a regulatory issue would allow them to extend the deadline (31 October). So they bought themselves more time to deliver their product.
They knew they were going to get hit by the SEC. They’ll refund the ~$500m raised from US investors, they will claim no guilt, the SEC will claim victory, and Telegram will claim victory. That will take 1-6 months to unfold, so we’ll see if Kevin is right.
Coinbase already has an E-Money license in the UK. This is probably their Brexit strategy. Most companies end up going to Lithuania. Before Lithuania became “the place” for E-Money licenses, Ireland was the place for many big companies to get the license. Google, and a few other of the big FinTech companies.
It’s not about European foothold, it’s a Brexit strategy. They already had a European foothold, through licensing acquired in the UK.
An ETP, “Exchange Traded Paper”. A paper-based right that represents some underlying asset. You can create ETPs based on a mirage of things. Other assets, commodities, there are ETPs for gold, silver, property, funds.
So BNB has an ETP. SIX is looking to regionally do what CoinMetro is doing globally with the CSD/MTF. To do that, they need to show that they’re savvy when it comes to crypto products. BNB is one of the supposedly most traded crypto products, so for SIX, it’s just about progressively moving forward.
Surprising that a regulated stock exchange chose BNB.
Binance reported a daily volume of a billion for at least the past year. With their fees, the math doesn’t add up. Not only the daily volume, but also listing fees, mergers etc. This rumor about some of Binance’s trading volume being fake, seems to be entirely true.
Kevin said this on Twitter – everybody that says Bitcoin will be worth a quadrillion dollars in the future because there’s a limited supply, aren’t thinking clearly. As the price rises, people have less of an opportunity to buy 1 Bitcoin. Most people can’t even do it today.
People can buy a fraction of a Bitcoin, because Bitcoin can be fractionalized into a 1/100th million of a Bitcoin, a Satoshi. The price can continue to rise until it hits a ceiling, when the amount of people that can buy in due to adoption, is going to mean they’re going to buy the smallest unit possible. Once that smallest unit possible becomes too expensive to buy – remember, roughly a billion people make less than $1 a day – the adoption would have to be global, at the same time you would have to hit a ceiling at some point.
How long do CoinMetro’s funds still last?
This question seems to come in every week. It’s always the same answer. We’ve always had funds on tap that bring us from one to two and a half months in the future, and that’s how we’ve run the company since December.
The funds we’ve just about confirmed, will give us runway for several multiples of that, and we’ll be able to start doing actual aggressive marketing as well as expand the team in certain key areas.
Any updates regarding the debit card/new currencies?
IBANs in the UK are done, debit card integration is done. They’re waiting on their main underriding bank to finalize the tech integration on their side. No time frame on that right now, the bank doesn’t want to give a time frame.
How much has PARSIQ collected so far in their IEO sales?
We’re sitting around 80-95K Euro.
Why did you increase the XCM order limits?
The reason why they were put there in the first place, was to limit people coming in and market-buying and end up seeing slippage, and not understanding what slippage is.
The goal is to get an active market where the book is more mature on both sides.
Any updates on LHV’s self-assessment guidelines?
No update yet. Hoping for an update soon.
Once funding rolls in here, we’ll pull in the market makers and we will have liquidity on these other pairs, and we’ll put more pressure on LHV. For now, it doesn’t make sense to add more assets.
Will we notice big changes in terms of CoinMetro updates/development after funding in comparison to now?
Certain pieces within the organization – marketing, support, compliance – will be beefed up. We will more than likely pivot to focus on some other services that we haven’t focused on yet. Development will need to be built out a bit as well.
You will slowly start to see changes. Just because funding comes in, we can’t go “now we have this much money we can burn”. We will continue at about the same rate, and increase over time.
How is progress in Montenegro?
CoinMetro’s application was submitted last week. We were told that it would take roughly 2 weeks to get the application processed. Still within that time frame.
When do you think funding will be confirmed?
Before the end of the month.
Do you have enough funds for November or will you sell some XCM to get through the month?
We should have funds on tap through November, or for most of November. Kevin thinks we’ll close a deal before selling any more XCM would be necessary.
What about TraM/new website/other features. They seem to get pushed back?
First week of November is the internal target for TraM. The new website is close, could be as soon as next week. A few things to iron out. XCM vaulting, and fee conversion are also technically ready to go, simply waiting for TraM.
Because of the November date, we’re trying to get the first version of MAP out around the same time, because MAP is going to help TraM, and will allow cross-marketing.
When do you think we can finally get this snowball rolling?
In many aspects of the company, we’re now getting to the point where we’ve been pushing the snowball up a hill, and a few times it rolled back over us. We’re getting to the top here, and we’ll very quickly be able to pick up lots of speed and momentum.
You guys have been with us this long. Hats off to everybody who’s been with CoinMetro since the beginning.
Can you give us more information on the passive income algorithms?
TraM offers passive income, and is where an algorithm trades for you. If the algorithm makes money, you make money. ETCF is also a passive income feature, you’re just picking a basket based on industry/risk profile, and it will be managed for you. Margin posting is also passive income, basically staking your collateral and making money on a daily basis.
We’re working on something that links all those things together. Automatic buy-ins on a weekly/monthly basis for a certain amount. This amount will be distributed the way you want – a percentage towards margin posting, a percentage towards TraM, with an easy way to track it and set goals.
We’re building a lot around the passive income model.
Does CoinMetro want to be an online e-wallet like PayPal?
In the future with an e-Money license or Payment Institutions license, yes – we will offer similar services to what PayPal does. That’s not the goal of the company, but it’s one piece of the ecosystem.
There isn’t much of a use case yet with crypto payments. Cryptocurrencies are inherently slow and don’t scale very well, yet. Just not made for payments.
Have you ever disclosed how much of CoinMetro’s XCM holdings were sold through normal trading on CoinMetro?
Roughly 20-25 million has been sold, but not all of it via market – some via OTC, some sold to shareholders, some of it vested. That’s partially why we’re still here. Apart from fundraising and shareholders investing more money, XCM has kept us here.
Why did you change your profile picture on Telegram?
With the CSD, CoinMetro, and Kevin starting to speak more about capital markets, Kevin wanted to make his profile more ambiguous.
Tell us more about the funding. Brazilians, what other groups are there?
The Brazilian group has changed. The main guys are still there, but one party left and two/three other parties are in discussion with them. The new guys, three funds and several individuals.
We’re in the final push to get things done. We haven’t signed an NDA, but obviously these things are somewhat private matters. It’s a few groups that have come together, they’ve made investments as a group before, and they are coming in together to CoinMetro and the CSD.
We’ve pretty much come to a deal, now it’s about formalizing that deal on paper.
Who is the potential CSD crypto partner besides Chainlink? How are the talks with Chainlink?
It’s not necessarily a partnership. We’re trying to see if Chainlink and their oracle system will work for two specific pieces of the CSD infrastructure. Especially in phase one. As we start to move and get more decentralized, it may become less of an issue, but for phase one and possibly phase two it seems like it makes sense.
There are a lot of different blockchains we’ve talked directly to, and about. Algorand is one of them, there are a few others. Most of this stuff we’re creating inhouse. In phase one, we’re probably going to use Ethereum.
A margin call essentially means that you’ve used up your available equity, it has zeroed out in comparison to the amount of market exposure.
A margin call happens before the stop out. If you don’t add in more margin very shortly, you will get stopped out. It’s called margin call because the broker used to call you in the early days.
Interested in learning more? Have a look at the video where Kevin explains “margin call”.
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.