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Yesterday some Coinbase users became billionaires. Well, not really. It just appeared that way.
Users were reporting their accounts showing their balances in the millions, and some even in the billions.
Coinbase quickly made an announcement on Twitter that there was a display issue for some users, but trading was the same as usual.
The problem was quickly fixed, but for some, it must have been an exciting few minutes.
I just hope none of them sent their boss a nasty text in that time frame.
In the U.S. it’s the end of the year, which means taxes are coming too soon.
The IRS has released a new version of its 1040 form and updated its question about crypto from last year.
Last year it said, “At any time during 2020, did you receive, sell, or otherwise acquire any financial interest in any virtual currency?”
This left some people wondering if that also included buying currency — and did you have to report every purchase?
In March, the IRS added to it’s frequently asked questions section “if your only transactions involving virtual currency during 2020 were purchases of virtual currency with real currency, you are not required to answer yes to the Form 1040 question.”
This year they are making it clear that holding does not require to say yes.
However, if you are receiving crypto as payment; airdrops; exchanging crypto for crypto; selling; and receipt from mining, staking or hard forks would require the taxpayer to answer “yes” to the crypto question.
More news from Robinhood. They have acquired the Chicago-based crypto trading platform Cove Markets.
Robinhood’s goal from the acquisitions is to allow its customers to manage their crypto accounts more easily.
The COO of Robinhood Crypto, Christine Brown, was quoted saying, “[Cove’s] wealth of experience in trading execution and crypto market infrastructure will help us build more powerful trading capabilities, bringing the benefits of better competition in the crypto markets to our customers.”
Of course, this leaves me wondering if Robinhood really has had wallets ready or if they weren’t being totally honest with their customers and this acquisition is the quick solution to get them there.
Despite all of the news lately with Robinhood, they are still trading lower recently — although that is something we are seeing across the board.
In other news, two big names in US banking, HSBC and Wells Fargo, have announced they will be using blockchain technology for foreign exchange transfers.
They are going to do this by using the FX Everywhere platform that was launched by HSBC in 2018.
HSBC has only just begun to include other banks in this service after it has settled about $2.5 trillion over three million intrabank transactions on the platform.
Global Head of FX Partnerships & Propositions at HSBC, Mark Williamson, said, “The platform enables participants to efficiently settle bilateral cross border obligations across multiple onshore and offshore currencies, coupled with the added flexibility of extended settlement windows to optimize PvP risk reduction opportunities.”
By using blockchain technology, it will lower transaction fees, as well as reduce settlement risks that are often associated with FX transactions.
Now it’s time to shift our focus over to the world of NFTs.
I feel like I can’t get away from Bored Ape Yacht Club recently.
They have teamed up with Hong Kong-based Animoca Brands to develop a play-to-earn blockchain game after the huge success of the collection.
A Yuga Lab Spokesperson said, “We’re excited to work with Animoca Brands to grow the BAYC universe and expand the utility and benefits offered to all Bored Ape NFT holders.”
The project is expected to launch in Q2 of 2022, and the game (of course) will feature play-to-earn rewards, although no further details have been given out yet.
If you are a fan of cannabis, Higher Life CBD, has created a shop in the metaveres that allows for a digital shopping experience that results in a real-world product delivered to your doorstep in all U.S. states.
Their CEO, Brandon Howard, said, “The COVID-19 pandemic has forced many companies to think about safe alternatives when it comes to communicating with employees and customers. For some, that means looking beyond the physical world and thinking outside of the box.”
“We see great potential in the virtual reality world. VR and AR have changed the game on how we will go about buying things in the future. Shopping in the metaverse and then being able to receive your items on your doorstep is groundbreaking and the next big thing. It’s a place where NFTs, cryptocurrency, and the cannabis world will coincide.”
Why do I get the feeling this is going to lead to a future Snoop Dogg story?
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Resources:
Coinbase mistakenly told some customers they were billionaires
IRS posts finalized 1040 form with revised crypto question
Robinhood Snaps Up Crypto Trading Platform Cove Markets — Report
Bored Ape Yacht Club Announces Play-To-Earn NFT Game
Buy Cannabis On A Blockchain Metaverse And Get It Delivered To Your Real Home: Now It’s Possible
