Taxing Virtual Currencies: An Overview of Tax Treatments ... - cyptoranking.com

2024-05-02

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According to Kaiko experts, ETH's underperformance is most likely due to the ongoing impact of the bear market, which has historically seen investors turn to BTC, the oldest and largest crypto asset. ETH spot trading volume has remained mostly stable over the past two months, rising above $2 billion only a handful of times. During the cross-examination of FTX co-founder and former CTO Gary Wang, Bankman-Fried's lawyer, Christian Everdell, faced interruptions from Judge Kaplan when he persisted with repetitive questioning. Taxing Virtual Currencies: An Overview of Tax Treatments ...Disclaimer: The text below is a press release that is not part of Cryptonews.com editorial content.IntroductionThe negative trend in crypto fundraising persisted during Q3 2023, with decreasing investment volumes and only a few significant deals. Investor concerns and uncertainty resulted in the stagnation of crypto fundraising for the year. This report from the CryptoRank team examines the key trends, narratives, and statistics of the crypto fundraising sector during Q3.Key Highlights:Crypto startups raised $1.61B in 222 deals in Q3 2023, down 31.5% from Q2 and 75.8% from Q3 2022.Blockchain services were the most popular category for investors in Q3 2023 ($515 million in 73 deals in Q3).Binance Labs and Coinbase Ventures were the most active Tier 1 investors in Q3. Both funds focused on investing in the DeFi sector.Investors preferred to invest in early stage projects in Q3.Q3 Fundraising Landscape in NumbersCrypto startups raised $1.61B in 222 deals in Q3 2023, a 31.5% decrease from Q2 and a 75.8% decrease from Q3 2022. These figures clearly indicate the downward trend that crypto fundraising is facing in 2023. Following market stagnation and regulatory uncertainty, the amount raised by crypto companies is also decreasing.Blockchain services were the most attractive category for investors in Q3 2023. Startups developing various services and blockchain tools received $515M in 73 deals in Q3. CeFi projects surprisingly became the second most popular category, raising $300M (BitGo's $100M funding round was the largest one), ahead of GameFi ($215M) and DeFi ($178M).Data source: cryptorank.io/funding-analyticsQuarterly Focus: Notable Funding RoundsDespite the downward trend in crypto fundraising, there are still interesting projects that are receiving funding from leading crypto VC firms. In this article, we will take a closer look at the top 10 startups that received investment from Tier 1 crypto funds in Q3 2023.Data source: cryptorank.io/funding-roundsLet's take a closer look at the top-3 leaders:Flashbots, a research and development organization formed to mitigate the negative externalities posed by Maximal Extractable Value (MEV), raised $60M in a Series B round led by Paradigm. Flashbots' mission is to enable a permissionless, transparent, and sustainable ecosystem for MEV, using the following approach:Illuminate: bringing transparency to MEV activity.Democratize: democratizing access to MEV revenue.Distribute: enabling sustainable distribution of MEV revenue.Futureverse, a leader in revolutionary AI and metaverse technologies that enable open, scalable, and interoperable apps, games, and experiences, raised $54M in a Series A round with participation from Ripple. The FuturePass Smart Wallet SDK enables simple, fast, secure, and password-free onboarding of users to web3 applications, games, and experiences.RISC Zero, a crypto startup dedicated to building a developer-friendly, scalable blockchain based on zero-knowledge proofs, raised $40M in a Series A round led by Blockchain Capital. The RISC Zero zkVM, released in April 2022, can prove the correct execution of arbitrary code, allowing developers to build ZK applications in mature languages such as Rust and C++.It is worth noting another project that received the largest investment in Q3 2023. BitGo raised $100M from undisclosed investors in August at a valuation of $1.75B. BitGo is known as the custodian of WBTC. Its focus on being licensed and regulated has helped it stand out in the uncertain legal landscape for digital assets. The funding, received entirely from new investors, will be used for strategic acquisitions, with two deals already in progress. BitGo's previous investors include Goldman Sachs, DRW Holdings, and Galaxy Digital Ventures. Investors Movements: Key HighlightsBinance Labs and Coinbase Ventures were the most active Tier 1 investors in Q3. Both funds focused on investing in DeFi projects (5 deals from Binance Labs and 3 from Coinbase Ventures), while other participants preferred Services as their main investment sector.Balaji Srinivasan, the former CTO of Coinbase, is on the list of the most active investors in Q3. Balaji's favorite category in Q3 was social projects (3 deals with his participation).Data source: cryptorank.io/funding-analyticsInvestors still prefer to support projects in the early stages. In Q3, VC firms participated in 75 seed rounds with $405.6M invested.Data source: cryptorank.io/funding-analyticsOverall, seed rounds account for 33% of the total number of deals since the beginning of the year.Data source: cryptorank.io/funding-analyticsInvesting in early-stage projects can be a profitable strategy if the companies receiving investment successfully develop their products and enter the market. However, supporting early-stage crypto startups is also risky since there is no guarantee that these projects will succeed in the rapidly changing crypto environment. Most Popular Jurisdictions for FundraisingDespite regulatory pressure, the US remains the most active crypto venture hub. In Q3 2023, US-based crypto startups raised $743.1M, equal to 46% of the total amount raised in Q3. Surprisingly, India became the second most popular jurisdiction for crypto investment: companies based in the country raised $76.1M in Q3. Hong Kong, with its crypto-friendly policies, came in third, attracting $35M in investment. France became the most popular jurisdiction among EU countries, with over $30M invested in crypto projects.Data source: cryptorank.io/funding-analyticsClosing ThoughtsThe crypto fundraising sector is far from optimal conditions in 2023, and the negative trend continued in Q3. The amount of investment in crypto projects is steadily decreasing, falling by 75.8% (YoY) in Q3. However, the improvement of market conditions and the start of a much-anticipated "bull run" may quickly change the situation and boost crypto fundraising.Investment funds are actively supporting various projects developing blockchain-related services and tools that improve, scale and simplify the work of the crypto industry backbone, blockchains. The development of such services is crucial for the further expansion of blockchain technology and the mass adoption of crypto in people's everyday lives.Projects are typically funded in the early stages of product development, an investment strategy that can be very lucrative for venture capital firms, but also risky given the rapidly changing crypto landscape.The US remains the largest venture hub for crypto startups, despite a hostile regulatory environment. However, if regulatory uncertainty is not resolved, the US may lose its position in favor of new emerging crypto hubs such as Hong Kong.dYdX Stumbles as Bitcoin settles around $27,600 and InQubeta reaches $3.4 Million Bankman-Fried has pleaded not guilty to fraud charges, and his lawyers say the involvement of company counsel in loan arrangements suggests that he didn't realize it was improper. Judge Lewis Kaplan has previously ruled that arguments over the advice received from counsel could confuse or prejudice the jury, and can’t be made in the defense’s opening statement.

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Support Levels: $0.9 and $0.8 Finally, Hong Kong's journey to embrace retail stablecoins will be a crucial factor in establishing its place in the emerging global banking scene. Finding the appropriate combination of innovation and regulation will be critical to its long-term success as a major financial hub in the digital era.LIVE: Caroline Ellison, Ex-Alameda CEO and SBF's Ex, Takes the Stand 4 tips for safely buying and selling cryptocurrencyUsers will still be able to engage in trading activities in other available liquidity pools on Binance Liquid Swap. In his characteristic manner, billionaire entrepreneur and majority owner of X, Elon Musk, has revealed plans to hide interaction buttons associated with posts on the social media outfit.

Source: PixabayOptimism-based decentralized crypto lender Exactly Protocol suffered a bridge exploit as it lost as much as $12 million worth of ETH earlier today.Blockchain security firm De.Fi reported that the hacker used an exploiter contract on Ethereum that transferred deposits to Optimism before ultimately bridging stolen funds back to Ethereum.The total value locked on the protocol also took a nosedive shortly after the bridge exploit.Protoco’s TVL plummeted from $36 million to under $26 million, according to data from DeFi Llama.The protocol's native governance token (EXA) also fell by more than 15% following the bridge exploit as it currently trades at $4.91,Due to its relatively new technology, cross-chain bridges have emerged as a prevalent target for hackers, with over $2 billion reportedly lost to bridge-related hacks last year, Chainalysis revealed. The Defi protocol acknowledged the hack and put out a tweet saying that they're actively investigating the security issue within the protocol. “To ensure user safety, the protocol is temporarily paused (you can still withdraw assets). Our team is on top of this and will share more details asap.”DeFi Hack Coincides With Overall Downturn in Crypto Market. The hacking incident comes at a time when there is an overall downturn in the broader cryptocurrency market, leading altcoins including XRP, LTC, and BCH experienced substantial double-digit declines. The leading cryptocurrency Bitcoin also slumped to as low as $25,200 briefly before making a slight recovery earlier today.Nearly $1 billion worth of positions were liquidated within a span of 24 hours as the entire market witnessed the bloodbath. The ongoing cross bridge exploits have become a major concern for the crypto industry. As reported earlier, Hundred Finance, a lending and borrowing DeFi protocol on the Optimism [OP] network, also suffered a major hack on 15 April. The hack led to the exploitation of $7 million worth of crypto assets.DeFi Value Locked Reaches Nearly $42 Billion as Token Market Experiences Significant Growth – Here's the Latest Floki teased Valhalla gameplay and outlined Q4 developments whilst showing stability amid challenges. Binance exchange to close its crypto services in SingaporeIn contrast, the Israel-Palestine conflict presents a unique scenario with its deep-rooted historical, religious, and geopolitical challenges. Juan Agustín D’Attellis Noguera, a director of Banco Central de la República Argentina, the country’s central bank, publicly supported the Minister of Economy Sergio Massa in his promotion of central bank digital currency (CBDC) as a remedy for the national economy. Giving commentary on local television, Noguera expressed his belief that the “digital peso” could help stabilize the Argentine economy as soon as 2024. In the official’s opinion, the key feature of the CBDC is its traceability, which would help the government to collect taxes: “By having traceability of operations with a digital currency because it is not known who does them, but there is evidence that they were done, you broaden the tax base. This will allow you to raise more without having to raise taxes and even lower them.” The CBDC will also help to solve the nation’s monetary problem, as the unstable local currency, the Argentine peso, often competes with the United States dollar even as a payment method, according to Noguera.Related: Buenos Aires to issue blockchain-based digital IDNoguera spoke about the digital peso in a very definite manner, assuring that the CBDC would be introduced gradually, coexisting with cash, with a complete replacement of paper fiat currency happening at the final stage of the project. On Oct. 2, Massa, who is also a presidential candidate, pledged to launch a CBDC if elected to “solve” Argentina’s long-lasting inflation crisis. According to election polls, Massa is slightly trailing Javier Milei, a pro-Bitcoin (BTC) and anti-central bank candidate who wants to adopt the U.S. dollar as Argentina’s currency.

Amazon Web Services, which debuted in 2006, has come to prominence as one of the world's largest cloud service providers. AWS provides a wide range of cloud computing services, such as computing power, storage solutions, and a variety of tools for developers and companies. AWS is able to provide reliable and scalable services to millions of customers thanks to its enormous worldwide network of data centers known as Availability Zones. General Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.ALGO Could Rally Significantly During the Bull Market: Influencer Bitcoin & Crypto Wallet Online For Free - CEX.IO WalletThis is because of activity that has been present in the network for a long period of time. More specifically, CTSI has experienced high transaction volume, a high number of active addresses, and a large number of whale transactions. When the trade closes, the asset’s value is referred to as the “tagging price.”

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