Stratis (STRAX) Gains over 200% Following Announcement of Sky Dream Mall Metaverse and Stablecoin

Audy Castañeda
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Stratis (STRAX) Gains over 200% Following Announcement of Sky Dream Mall Metaverse and Stablecoin

STRAX price bucked the entire market downtrend by rising 200% after the team revealed its plans for a British pound stablecoin and a new metaverse.

Bear markets can be incredibly harsh for projects that have low adoption or lack an applicable use case, but projects that are dedicated to building regardless of market sentiment tend to do well in the next market cycle.

One project that has seen a noticeable boost in volume, despite the broader market downtrend, is Stratis (STRAX), a Blockchain development platform designed to help businesses set up their own Blockchain in a streamlined way.

Data from Cointelegraph Markets Pro and TradingView shows that after hitting a low of $0.365 on June 15, STRAX price has risen 220% to hit a daily high of $1.20 on June 29, amid a growing 24-hour food volume.

Here are three reasons why STRAX price is rising this week as the broader cryptocurrency market continues to struggle.

Metaverse Launch Draws Volume

The Metaverse was one of the hottest topics during the 2021 bull market and the concept continues to be a driving force for mass adoption in the cryptocurrency space.

Before the recent STRAX price rally, the team behind the protocol teased the upcoming launch of Sky Dream Mall, a metaverse project that is powered by the Stratis Blockchain.

On Twitter, user @Polycarbongame posted that, “Sky Dream Mall, a metaverse powered by Stratis Blockchain Coming soon!”

The protocol has seen growth within its non-fungible token (NFT) and GameFi communities, thanks to projects like the Astroverse Club and Trivia Legends.

Stablecoins and NFTs

Along with growth on the Metaverse front, Stratis could also be getting a boost from its plan to launch a Great British Round Token (GBPT) stablecoin.

The GBPT stablecoin is being developed in conjunction with Price Waterhouse Coopers (PwC), which is helping Stratis complete the Financial Conduct Authority (FCA) registration process. PwC will also provide future auditing services when the GBPT stablecoin is finally launched.

Outreach in Uganda

A third factor contributing to the price of STRAX is the ongoing development of a blockchain innovation hub in Uganda, which aims to increase knowledge and awareness of blockchain technology.

The project began after Stratis entered into a long-term partnership with the King Oyo Foundation, the current monarch of the Kingdom of Tooro in Uganda.

On Twitter, user @Stratisplatform posted that, “The foundations have been laid for the Stratis blockchain innovation center in Uganda as part of the Stratis global expansion.”

Construction of the center began on May 24 and the most recent project update was released on June 27, showing that the center’s foundations are nearly complete.

By Audy Castaneda

Factors Leading the Price of Bitcoin to Drop Further or Recover Its Bullish Trend

Alexander Salazar
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Factors Leading the Price of Bitcoin to Drop Further or Recover Its Bullish Trend

June closes with the price of Bitcoin at its worst monthly level since 2011, with a decrease of 37%. If the US Federal Reserve controls, the markets and the economy will resume the boom.

At the end of the first half of 2022, there is an accentuated bearish outlook in the Bitcoin (BTC) market. June closes with the highest monthly losses (37%) since 2011, while the price has dropped by 58% since January.

Despite that significant drop, analyst Scott Melker suggests some factors could intensify the crypto winter. However, he also mentions some catalysts that may help the Bitcoin market recover its bullish momentum.

In his latest market newsletter, Melker refers to the predictions of Tom Loverro, a former Coinbase director. Loverro estimates how long the crypto winter or bearish phase of the Bitcoin market will last. He states that the cryptocurrency market will continue to fall in 2022 and improve in late 2023.

According to Loverro, the transition from an all-time high to the bottom in the Bitcoin market usually takes around 12 months. The specialist explains that this pattern should also repeat itself in this opportunity, with some variations. He cites that the reigning extreme fear is one factor delaying the arrival of the price bottom. Since cryptocurrencies are not in the headlines and tourists have left the market, this process can take months.

Trader Aurélien Ohayon says this first half is among the worst for the S&P 500 index, with the high correlation between the Bitcoin market and stocks. Since the beginning of that indicator in 1877, a first semester as bad as this one has happened four times. However, after the four semesters with negative returns, the second half produced positive returns.

Some Factors That Would Contribute to Bullish Momentum

Scott Melker also mentions some catalysts that would help the current bearish momentum to change. He says that the days become shorter when the market weather is frigid, and it seems that the hot weather will never return. Therefore, he thinks it is time to consider potential catalysts to return to the bullish territory.

The analyst first refers to the US Federal Reserve (Fed) strategy to reduce inflation rates. Melker says that the market and the economy will resume an upward trend once inflation is under control. Secondly, he points out that there is a recession and a possible official announcement of the exit from it in the short term.

The results in red for two quarters in a row indicate that there is now an official recession. Besides, leading financial institutions like Deutsche Bank and Citigroup estimated the probability of a global recession at 50% within the next 12 months.

BTC is trading at around USD 20,079 and has accumulated a 1.4% loss over the last 24 hours. While its daily trading volume is above USD 20.29 billion, its market capitalization is about USD 383.29 billion, according to CoinGecko.

By Alexander Salazar

The CTO of Tether Believes that Hedge Funds Are Attacking USDT

Alexander Salazar
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The CTO of Tether Believes that Hedge Funds Are Attacking USDT

The executive defended himself by saying Tether had improved transparency by releasing reports on its USDT reserves. With a market capitalization of above USD 67 billion, USDT is the third-largest cryptocurrency, following Bitcoin and Ether.

Paolo Ardoino, chief technology officer (CTO) of the firm Tether, recently said that hedge funds are attacking the stablecoin USDT. He believes those companies want the cryptocurrency to lose its parity with the US dollar by spreading false information about its reserves.

Ardoino stated on Twitter that hedge funds had created a coordinated attack against USDT after TerraUSD (UST) and Terra (LUNA) crashed.

The attackers have reportedly argued that reserves do not back 100% of USDT. The entrepreneur said this is false, maintaining that USDT is 100% backed and has never failed to account.

According to the CTO, their detractors rumored that Tether held reserves in shares of Evergrande, the second-largest Chinese real estate company. He said they had received accusations of causing an economic crisis like the one in 2008 due to defaults on their debt for nearly a year.

The CTO commented that Tether has never had exposure to that real estate company or Chinese securities (commercial papers). He even stated that their objective is to reduce the securities reserves to zero and transfer them to US Treasury bonds.

USDT Detractors Want to Take Advantage of Its Price Drop

According to Ardoino, hedge funds seek the fall of USDT as they have made short bets against the price of the stablecoin.

Short positions refer to bets on the price of an asset to the downside. For example, a trader asks for a loan in USDT to bet and then sells it in US dollars. If the price drops, he buys back the USDT at a lower price, returning the original amount to profit on the drop.

The CTO commented that hedge funds take advantage of the unfounded fear in the cryptocurrency market due to the fall of TerraUSD. That wave of distrust affected UDST since it slightly lost its parity but recovered again.

According to data from CoinMarketCap, the disparity of USDT with the US dollar occurred within two hours. That peg is essential for the stablecoin, which seeks to prevent exposure to the volatility of other crypto assets like Bitcoin (BTC) and Ether (ETH).

It is not the first time Tether has had to give assurance about its reserves of USDT. In early 2021, they released a report on their funds, claiming to have more than USD 35 billion. However, some specialists doubted the reliability and convertibility of those coins, alleging that cash does not back all of them.

USDT keeps its parity with the USD and has accumulated a slight 0.2% loss over the last 24 hours. While its daily trading volume is above USD 53.79 billion, its market capitalization is about USD 67.00 billion. It occupies 3rd place in the cryptocurrency ranking, according to CoinGecko.

By Alexander Salazar

Russian Duma Passes Bill to Remove VAT Lower Income Tax Rates on Digital Asset Sales

Audy Castañeda
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Russian Duma Passes Bill to Remove VAT Lower Income Tax Rates on Digital Asset Sales

Russia is turning to Blockchain technology in an effort to counter economic isolation brought on by sanctions imposed due to its invasion of Ukraine.

The State Duma, the lower house of the Russian legislature, has passed a bill on the taxation of digital assets that exempts their sale from value-added tax (VAT) in the Russian Federation. Some other services of digital asset exchanges will also be exempt, according to the state news service RIA Novosti.

About the Bill

The bill establishes tax rates of 13% for Russian exchanges on the first 5 million rubles (currently about $93,000) of the annual tax base, 15% on amounts exceeding that limit, and 15% in general for currency traders. The current tax rate for companies is 20%.

Taxation of digital assets under the bill is analogous to taxes on securities, reports RIA Novosti. The government noted in the bill that a separate tax procedure for digital assets is key to creating an efficient and competitive digital economy.

Russia has moderated its skeptical stance on cryptocurrency as the country has increasingly felt the pressure of Western economic sanctions stemming from its invasion of Ukraine. Major Russian banks have been blocked from the SWIFT system and G7 countries have banned the purchase of freshly mined or refined Russian gold this week. These measures, along with a series of other sanctions, led to Russia defaulting on foreign debt service on Monday.

Russian Banks’ Action Plans

The Russian bank Sber is preparing to launch a stablecoin, and the first deputy president of the Russian Central Bank, Olga Skorobogatova, stated in an interview on June 23 that tests of a digital ruble will be brought forward from 2024 to April 2023. Currently, a pilot project involving twelve Russian banks is underway.

“I believe that every state worth its salt will have a national digital currency within three years. […] We must be ready as soon as possible. Also, this will solve the problem of the blocking of SWIFT, because this integration will make SWIFT not necessary,” Skorobogatova said.

In regards to Sber plans, on June 15, Anatoly Popov, deputy chairman of Sber’s board of directors, revealed that the bank has been struggling to register its digital asset issuance platform, which was initially expected to launch alongside its stablecoin Sbercoin in spring 2021.

Additionally, Popov noted at the time that the bank was committed to exploring the technology. He explained that,

“We are closely watching the development of new technologies such as distributed ledger technology. We are studying how blockchain technologies are developed. Our platform has already passed acceptance tests and the first transaction will take place within a month.”

Notably, in May this year, Moscow began to take a positive stance towards digital assets after its invasion of Ukraine triggered a strong response from Western nations in the form of sanctions.

Ivan Chebeskov, who heads the Financial Policy Division within the Russian Ministry of Finance, has actively considered bringing crypto payments on board. “The idea of ​​using digital currencies in transactions for international settlements is being actively discussed,” he said.

Support for the legalization of cryptocurrencies seems to come from all segments of the Russian government. According to Trade Minister Denis Manturov, Moscow plans to legalize cryptocurrency payments “sooner rather than later.”

By Audy Castaneda

CoinFLEX Suspended Withdrawals and Now Desires to Issue $47 Million Worth of Tokens to Fix its Problems

Jenson Nunez
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CoinFLEX Suspended Withdrawals and Now Desires to Issue $47 Million Worth of Tokens to Fix its Problems

The crypto exchange platform specializing in physical futures found a solution to its withdrawal problem: launch a new token.

CoinFLEX, a crypto derivatives exchange that revealed last week that it was stopping withdrawals, is looking to address its ongoing liquidity issues with a new token.

The Hong Kong-based platform highlighted on June 23 that it was suspending all withdrawals due to unfavorable market situations and uncertainty surrounding a specific counterparty.

The unrevealed counterparty, which CoinFLEX described, was not the struggling crypto hedge fund Three Arrows Capital or any crypto lending firm. This counterparty had reportedly entered unfavorable fields by being unable to comply with $47 million in debt.

Now, the exchange has new strategies to release an innovative token to raise funds in a bid to restart withdrawals for its customers. All after the mystery customer couldn’t pay off the massive debt.

CoinFLEX Finds a Solution

In a blog post on Tuesday, CoinFLEX explained that it had found an improving solution to its struggle: tokenizing debt. The company revealed the creation of a new digital asset valued at USD 47 million that will give its holders a juicy annual yield of 20%.

According to the whitepaper highlighted by Crypto Briefing, CoinFLEX customer debt repayments would get converted to USDC, and rvUSD holders would convert their tokens to USDC on a redistributed basis as new refunds get done. Available only to exclusive investors outside the US, rvUSD will start its circulation this week.

CoinFLEX explained that it would automatically liquidate insolvent positions, but the trader had a clause in their account that did not allow this action to take effect.

The entity refused to name the investor but they said the investor is a good person with cash-strapped issues linked to the recent downtrend affecting the markets and with significant holdings in various private unicorn entities.

Insolvency Struggles in the Sector

By dealing with the new rvUSD tokens, CoinFLEX hopes to raise enough funds to cover the deficiency on its books left by the investor and resume withdrawals for users. Although the plan focuses on the expectation that the investor will pay, it is something that would not happen, as CNBC highlighted.

In an interview with Bloomberg, the platform’s CEO had shown confidence that the trader will pay the entity in the future. Likewise, when asked about the possibility of bankruptcy, Lamb said that he is not afraid of such a panorama since customers can withdraw their funds once the new token fundraising reaches its completion.

Lamb also said that CoinFLEX intends to increase transparency for future positions, the notional value of accounts, and margin. It will use a third-party auditing firm to do so. The exchange expects to resume withdrawals on June 30 but is still up to receiving funds.

By: Jenson Nuñez

Experts Advise How to Stay Up to Date with Cryptocurrency Income Tax Declaration in Spain

Audy Castañeda
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Experts Advise How to Stay Up to Date with Cryptocurrency Income Tax Declaration in Spain

Some tips on how to keep up to date with cryptocurrency tax declaration in Spain.

Despite the recent drop in the price of cryptocurrencies, the crypto asset market continues to attract investors every day and moves billions of dollars around the world. With the expansion of this market, regulators have also set their sights on the cryptocurrency ecosystem.

Therefore, in most countries around the world, cryptocurrency investors must declare their assets to the government and eventually pay taxes on profits made from digital assets. This occurs even in countries where the government has not yet approved comprehensive and clear legislation on cryptocurrencies, as is the case in Brazil, the European Union, and even the US.

In the case of Spain, the same thing happens and even without the country having a specific regulation for cryptocurrencies, it is still necessary for crypto investors to pay taxes on the profits from their operation in the crypto market.

Types of Taxation in Spain

In Spain, investors are subject to three types of taxation, according to the legislation in force in the country. The first of these is the Personal Income Tax (IRPF). In addition, any natural person who owns cryptocurrencies and whose assets have a value greater than the minimum established by their Autonomous Community (the limit is usually around 600,000 euros) must file the Wealth Tax.

“When asked if cryptocurrencies are taxable, the clear and direct answer is yes, they are taxable on the income statement. However, not all transactions made with them are subject to taxes”, highlight the TaxCripto experts.

Regarding capital gains or losses derived from transfers and income from movable capital, Taxcripto explains that the return, when up to 6 thousand euros is obtained, investors must pay 19% tax on profits, 21% from 6,000 to 50,000 euros, 23% between 50,000 euros and 200,000 euros and 26% in the case of income over 200,000 euros.

As for profits or losses from operations not derived from transfers, the rate is unique: 47% on income.

From the National Securities Market Commission (CNMV) in Spain, they think differently from the position of the Bank of Spain

“Finally, we find the category of income from economic activities, which includes, for example, mining operations (set of processes necessary to validate and process cryptocurrency transactions and receive a reward in exchange) and negotiated sales to third parties. This is the simplest way to tax cryptocurrencies, as it makes no difference from the taxation of any other economic activity. To do this, we must be registered in a certain section of the IAE (model 036 or 037), registered in the RETA, and present quarterly (130) and annual (347) models, “says the company.

The second is the Wealth Tax. Taxcripto highlights that for this tax it is necessary to fill in form 714, without the need to add VAT. Specifically, it is section Q, under the heading “Balances in virtual currencies”.

Finally, there is the Inheritance and Gift Tax (ISD). In this case, Taxcripto explains that the number of units and the value of the cryptocurrencies received must appear on the date the donation or death occurs. At this time, the treatment for DSI purposes will vary depending on one case or another, for example, if whoever is doing the donation is a natural or legal person, among other cases.

By Audy Castaneda

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