Bitcoin and cryptocurrency investors, feeling bullish amid a broad post-coronavirus crash rally, are seeing massive gains from some smaller cryptocurrencies.

The bitcoin price, under pressure since its latest attempt to breach the $10,000 per bitcoin level last week failed, is stuck on a downward trendbut other digital assets are soaring.

Following its launch just this week, decentralized finance protocol Compounds comp token has surged over 200%, giving it a market value of around $2 billion, according to some calculations.

The bitcoin price has added some 30% so far this year but bitcoin's recent rally has stalled-even as ... [+] some smaller cryptocurrencies are making massive gains.

Users of the Compound lending platform began earning comp tokens this week, with the cryptocurrency getting a boost from major U.S. bitcoin and cryptocurrency exchange Coinbase announcing it will begin listing the token.

"Once sufficient supply of comp is established on the platform, trading on our comp-USD and comp-BTC order books will start in phases, beginning with post-only mode and proceeding to full trading should our metrics for a healthy market be met," Coinbase said in a blog post.

Comp has this week become the 25th most valuable cryptocurrency, according to CoinMarketCap data, with its price surging to over $200 per token, up from around $60 at the beginning of the week.

Some early calculations, which are inconsistent due to comp's immaturity, have put the total value of comp's combined tokens in circulation at a little over $2 billion.

Others, that count fewer comp tokens in circulating supply, put the cryptocurrency's value at around $500 millionin comparison bitcoin's market capitalization is just over $170 billion.

Comp, a so-called governance token that allows holders to influence the Compound protocol, are awarded every day to users of the decentralized finance platform.

Comp is currently only listed on a handful of smaller cryptocurrency exchanges, prompting some bitcoin and crypto market watchers to warn the sudden price surge could be short-lived.

"Most of comps price fluctuations are a function of the tiny float. I wouldn't read too much into the current price," Haseeb Qureshi, managing partner of Dragonfly Capital, told bitcoin and crypto industry news outlet Coindesk this week.

As the bitcoin price treads water, the comp price has soared almost 250% since it began trading ... [+] earlier this week.

Decentralized finance, often known as DeFi, has emerged as a popular growth area for bitcoin's blockchain technology, sparking a frenzy of speculation that echos the 2017 cryptocurrency and initial coin offering bubble.

DeFi platforms, blockchain-enabled systems that are often based on the ethereum network, allow for the lending and trading of cryptocurrencies and other digital assets without the need for centralized intermediaries like banks and exchanges.

"DeFi is hitting its stride and the space will continue to accelerate," research firm Delphi Digital wrote in a report out this week.

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As Bitcoin Struggles, This New Crypto Has Soared 250% To A Massive $2 Billion Valuation - Forbes

Akon City, a futuristic cryptocurrency themed city founded by famous singer Akon, is ready to begin construction, with a plan to use the akoin cryptocurrency exclusively. Phase one of Akon Citys construction will include roads, a hospital, a mall, hotels, and a school. There will also be parks, universities, a stadium, and an industrial complex.

The $6 billion city in Senegal billed a futuristic cryptocurrency themed city, founded by Senegalese-American star and philanthropist Akon, has awarded its building contract to KE International, a U.S.-based engineering firm. Akon City announced earlier this month:

Akon Citys phase 1 is expected to complete by end of 2023, and will see the construction of roads, a Hamptons Hospital campus, a Hamptons Mall, residences, hotels, a police station, a school, a waste facility and a solar power plant.

Akon, whose full name is Aliaume Damala Badara Akon Thiam, is a famous singer, songwriter, actor, and record producer. He has sold over 35 million albums worldwide and received 5 Grammy nominations for The Sweet Escape, Bartender, Konvicted, I Wanna Love You, and Smack That.

Akoin is a cryptocurrency powered by a marketplace of tools and services fueling the dreams of entrepreneurs, business owners, and social activists as they connect and engage across the rising economies of Africa and beyond, the projects website details. According to Thursdays announcement:

Akon City phase 2 will run from 2024 to 2029 and will end with a complete cryptocurrency city running exclusively on akoin cryptocurrency.

For Akon Citys first and second phases of building, KE International has secured $4 billion from investors. Dubai based Bakri & Associates Development Consultants will lead the architectural designs of Akon City under KE Internationals guidance.

Akon City will be located near Mbodime, a small coastal village in the west of Senegal, West Africa, less than an hours drive south of the new Blaise Diagne International airport in Dakar. Aimed to be a tourist city with a cryptocurrency-based economy, Akon City plans to have parks, universities, schools, a stadium, hotels, and an industrial complex fully completed by 2030. Akon first announced his plan to build Akon City in 2018, stating at the time that he was working with the Senegalese government on the project.

The city plans to exclusively use the akoin cryptocurrency, which has been described as a stablecoin built on the Stellar payment network. The akoin cryptocurrency is also to be used in Mwale Medical and Technology City (MMTC), a green city based in Western Kenya, which KE International is also building. Commenced in 2014, the construction project is 85% done and expected to complete in December this year. Recently, it partnered with the Akoin platform for its blockchain-based digital transactions. Akon hopes his akoin crypto will be used all over Africa where a significant portion of the population remains unbanked but smartphones are widely used.

What do you think about Akon City exclusively using the akoin cryptocurrency? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Akon City: $6 Billion Cryptocurrency City Set to Begin Construction | News - Bitcoin News

Almost a month after announcing its proposal to migrate to the Solana Blockchain, the Kin cryptocurrency project announced Friday the move had been approved by its board and community, and a transition plan would be released in the coming weeks.

The Kin Foundation said in a press release the move to Solanas blockchain was in response to a growing user base, which was hitting limitations on the Stellar blockchain fork the cryptocurrency is currently built on. According to the firm, the cryptocurrency currently has over 3 million active monthly spenders and has been integrated into 57 different, mostly mobile, applications.

App developers, node operators and the Kin Foundations board members (Ted Livingston, who founded the Kik messaging app and is the face of Kin, and William Mougayar, an author who hosts the annual Token Summit conference) voted on the proposal, which was released on Github last month.

They had already been pushing against the limits of the Stellar fork, Mougayar said

He said a rise in users meant that the Kin cryptocurrency needs to be able to process more than 100 transactions per second, which is the upper limit on the Stellar fork.

According to Anatoly Yakovenko, Solanas co-founder, the blockchain can handle up to 60,000 transactions per second on its current mainnet.

In addition to speed, Solanas natural ability to scale turned out to be a major determining factor in their (Kins) decision, Yakovento told CoinDesk.

This is also not the first time the cryptocurrency has changed blockchains. Launched by Kik in 2017, Kin was originally built on the Ethereum blockchain, but a few months later it announced that it would use Ethereum for security and the Stellar blockchain for transactions. Then in May 2018, Kin announced that it would fork Stellars blockchain to create its own.

According to the firms emailed statement, as part of the cryptos transition to Solana, the blockchain firm has also promised to give 1% of all of Solanas token supply (amounting to $3.5 million) as grants to the Kin Foundation.

Even as Kin continues to expand its user-base, the regulatory troubles it faced in the past have continued to persist.

Kin is not getting much recognition in the marketplace, unfortunately because of the SEC [U.S. Securities and Exchange Commission] darkcloud, Mougayar said.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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From Ethereum to Stellar, to Solana: Cryptocurrency Kin Confirms Blockchain Migration - CoinDesk

New York, 19June 2020 Eight technology companies in developing and emerging economies will receive investment from the UNICEF Cryptocurrency Fund (CryptoFund) to solve local and global challenges.

The CryptoFund will invest 125 ETH in the eight companies from seven countries to develop prototypes, pilot, or scale their technologies over six months: Afinidata, Avyantra, Cireha, Ideasis, OS City, StaTwig, Somleng and Utopic.

All investees have previously received up to $100,000 from UNICEFs Innovation Fund and are now receiving cryptocurrency to continue the development of their open-source and digital public goods.

Within the scope of their technology, several investees are working to mitigate the hardships of COVID-19 on children and youth around the world. They are collaborating with national governments and local partners to send vital messages on COVID-19, track the effectiveness of rice delivery to vulnerable communities, improve childrens literacy through remote learning, treat pandemic and isolation-related anxieties, and other vital solutions.

We are seeing the digital world come at us more quickly than we could have imagined and UNICEF must be able to use all of the tools of this new world to help children today and tomorrow, says Chris Fabian, Senior Adviser, co-Lead, UNICEF Ventures. The transfer of these funds to eight companies in seven countries around the world took less than 20 minutes and cost us less than $20. Almost instant global movement of value, fees of less than 0.00009% of the total amount transferred, and real-time transparency for our donors and supporters are the types of tools we are excited about.

Selected from almost 40 startups that have graduated from the UNICEF Innovation Fund, these eight companies have undergone technical evaluations, quality assessments of their open-source tech solutions, evidence of impact and more. They join three other grantees that received the Funds first cryptocurrency investment last year.

Besides funding, investees receive business growth mentorship, product, and technical assistance, open-source and UX and UI development, access to experts and partners, as well as opportunities to showcase their solutions.

The UNICEF Innovation Fund and CryptoFund currently have an open call for blockchain solutions to apply for funding (up to $100,000 and cryptocurrency combined) and mentorship. More details here: http://www.unicef.org/innovation/applyBlockchainCrypto

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Prototypes of software, platforms and applications are available, demonstrations can be arranged upon request.

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UNICEF Cryptocurrency Fund announces its largest investment of startups in developing and emerging economies - UNICEF

Technically, Bitcoin is to cryptocurrency what US dollar is to fiat money

In Bitcoin Halving, the number of Bitcoins rewarded for processing transactions is cut down to half

Crypto investors have already made millions through bitcoins

The situation was no less than an edge-of-the-seat thriller for crypto investors and enthusiasts on 11 May as they witnessed a remarkable event, perhaps, since the inception of Bitcoin. Though a leap year-like event, the recent Bitcoin Halving has been phenomenal because it took place with the economic backdrop akin to the Great Recession of 2008 which eventually gave birth to the cryptocurrency. It barely came as a surprise that Bitcoins value doubled from mid-Marchs approx. $4,944 to more than $9,900 as the halving date neared.

Technically, Bitcoin is to cryptocurrency what the US dollar is to fiat money. Its prices and trading volumes are used as a benchmark to gauge the performance of other cryptocurrencies. In practice, it functions like gold and is used as an investment instrument to balance the portfolio. But how does halving affect the Bitcoin and, by extension, the cryptocurrency market? Let us try and understand.

In a typical scenario, the demand-supply of fiat currency (such as the US Dollar, Euro, or INR) determines its value. It is further controlled by the regulatory policies and dependent on government reserves. Almost the same phenomenon works in the case of cryptocurrencies in a different format.

Their value is mostly determined by what people are willing to pay. It makes them susceptible to fluctuations and supply-demand dynamics. Since Bitcoin is a digital distributed ledger system, it is neither printed anywhere nor controlled by a particular sovereign body. It is mined using computational powers by miners who are then rewarded for solving complex mathematical problems. The Bitcoins blockchain, however, regulates this reward leveraging the halving method.

For the uninitiated, whenever a set of digital transactions take place forming a block on the blockchain, the individuals successfully verifying these transactions are rewarded by the network. The reward which is the main force behind the operation of the entire system comes in the form of additional Bitcoins. This is much like printing of fiat currency by a central bank. However, by design, Bitcoins blockchain cannot have more than 21 million Bitcoins. This aspect itself makes it a prized commodity.

In Bitcoin Halving, the number of Bitcoins rewarded for processing transactions is cut down to half which helps in maintaining the fixed supply of Bitcoin. Therefore, the process of halving is significant as it underpins the value of cryptocurrency.

The process is a leap year-like event that occurs after approximately 21 Mn blocks, reducing the reward supply by 50 per cent every time in a geometrical progression. Halving has taken place thrice since cryptocurrency came into being, including the recent event. The block reward before the first halving was 50 Bitcoins. The most-recent Bitcoin reward was 12.5. The third and the latest has now decreased the reward further to 6.25 coins.

From an economic perspective, cryptocurrencies like Bitcoin are the best hedge against fiat currencies which have an unlimited supply. When the supply goes down, scarcity makes the price shoot up. The principle works on similar lines of Gold but is governed completely by coding. Consequently, a parabola in Bitcoins price can be observed every four years.

From a historical perspective, each time the halving took place, it has raised the price of Bitcoin to an all-time high. The first event that occurred in November 2012 saw a surge from $11 to $1,000, while the second incident in July 2016, significantly helped to increase its value from $700 to $20,000. Both of the events indicate that while the supply of Bitcoin decreases during the process, the demand remains the same, which pushes the price up.

Despite a near-two-fold return in two months, this years halving event is expected to have its true impact when the economy recovers, thereby pouring more liquidity and driving the investor sentiments. It must be noted that these appreciating numbers come at a time when, year to date, bitcoin is performing better than the traditional commodities of investment. The assured hike in figures is mainly due to investors continual interest in bitcoin as an asset class. This steady increment could draw new players into the crypto ecosystem.

However, with rewards cut to half, the current value of $9,195 (at press time) may prove insufficient to keep less-efficient miners operating in the long run. This may result due to a shift in market dynamics.

Right now, the world is undergoing a major financial shift. Due to the pandemic-induced black swan event, the cryptocurrency has too witnessed its share of brief volatility. However, if the price of any fiat currency falls, the value of Bitcoin rises for that currency. Hence, at present, people are also leveraging bitcoin as a hedge investment to protect against the devaluation of fiat currency, which includes cash, bank savings, mutual funds, and so on.

Crypto investors have already made millions through bitcoins and the digital currency continues to attract institutional investors who perceive it as a store of value. Given the current market condition, it wont be surprising to see the bitcoin ecosystem grow further and give rise to a new class of millionaires.

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Cryptocurrency, Bitcoin Has Halved: What It Actually Means? - Inc42 Media

NEW YORK, June 18, 2020 /PRNewswire/ --Ernst & Young LLP (EY US) announced today the launch of EY CryptoPrep, a cryptocurrency application that assists with US tax filings. This new Software as a Service (SaaS), web-based product is a fully automated, enterprise-grade crypto tax engine offering step-by-step guidance through the crypto tax process.

EY CryptoPrep supports many major cryptocurrency coins and exchanges. Aggregating and reconciling transaction data, it applies appropriate tax rules to deliver a detailed account of cryptocurrency capital gains or losses. It then provides a completed Form 8949 for all applicable tax years. The core technology and service are also available to clients as a managed service through EY TaxChat and the EY Blockchain Analyzer.

"Our clients increasingly hold and trade crypto assets, creating the need for an innovative solution to address the evolving complexity around filing crypto taxes," said Marna Ricker, EY Americas Vice Chair of Tax Services. "TheEY Foundry, our internal corporate venturing unit, created EY CryptoPrep to modernize the crypto tax accounting process."

Cryptocurrency transactions trigger tax filing obligations on the basis of the resulting capital gains or losses. EY CryptoPrep calculates crypto responsibilities for the current tax year and even enables users to submit amended returns for prior years to reconcile previous tax liabilities.

"EY CryptoPrep expands our innovative portfolio of successful new digital businesses," said Chirag Patel, EY Foundry Leader. "EY CryptoPrep is another great showcase of our commitment to address the evolving needs of our clients."

About EY

EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. For more information about our organization, please visitey.com.

This news release has been issued by Ernst & Young LLP, a member firm of EY serving clients in the US.

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EY Launches First-Of-Its-Kind Cryptocurrency Reporting App - PRNewswire

The government of Kazakhstan has set a goal to attract $738 million from investments in cryptocurrency related mining activities over the next three years.

According to the Astana Times on June 16, Kazakhstans Minister of Digital Development, Innovation and Aerospace Industry, Askar Zhumagaliyev, revealed the plan in an address to the upper house of the Kazakh Parliament.

During the parliamentary session discussing a possible ban on the issuance and circulation of cryptocurrencies, Zhumagaliyev highlighted the progress of countries like the United States, Sweden, and South Korea in the field of cryptocurrency and digital mining.

He added that this sector was also growing in Kazakhstan as the country currently has 14 cryptocurrency mining farms that have brought approximately $201.7 million of investment.

According to the report that we have prepared with international experts, we expect another 300 billion tenges (US$738.4 million) in the next three years, claimed Zhumagaliye.

The bill under discussion during the parliamentary session did not prohibit cryptocurrency mining activities in the country.

In December 2019, Cointelegraph reported that Kazakhstan lawmakers will not be taxing income generated from cryptocurrency mining as tax liabilities were only applicable to the income made in real money. This was because Kazakhstan did not consider crypto mining as an entrepreneurial activity but as purely technological progress.

It was also noted that mining farms that used mining hardware to offer crypto mining services were still susceptible for taxation in the same manner as data centers.

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Kazakhstan Seeks to Attract $740 Million Crypto Investment in Three Years - Cointelegraph

Regulated cryptocurrency futures bypass the default short-term, long-term capital gain tax rules applicable to cryptocurrencies. It allows you to treat 60 cents of each dollar of profit you make as long-term gains, irrespective of the holding period of the asset. For the savvy day trader, this can yield up to 24% of tax savings.

A futures contract is an agreement between two parties to buy or sell an asset on a given future date for a specified price agreed upon today. When you buy a futures contract, you do not own the underlying asset; you simply own the legal contract which gives you the right to buy or sell the underlying asset at a future date on a set price.

In the crypto world, many futures contracts are cash settled. This means that there is no physical exchange of bitcoin or other cryptocurrency between two parties at the contract expiration. Instead, on settlement, you get the price difference between the position entry and exit prices. The price difference is reflected on a line item labeled as PnL or Profit/Loss on most exchange interfaces. When it comes to taxation this is the amount you need to pay attention to.

PnL shown on Kraken exchange dashboard

For example, on June 18, 2020, lets say Jennet bought a futures contract which granted her the right to buyone bitcoin (BTC) at $10,000 on June 30, 2020. Then on June 30th, the price of 1 BTC is $20,000. In this case, Jennets cash settled futures profit would be $10,000 ($20,000 $10,000).

Note: if the futures was to be physically settled instead, the counterparty to Jennets contract would have to send her 1 BTC on June 30th. Then Jennet could do whatever she wants with the bitcoin, including immediately selling it at the current market price and profit $10,000. Physically settled crypto futures are very rare at the moment.

Cryptocurrency exchanges facilitate the whole process described above and charge a fee for creating a meeting place for buyers and sellers.

The majority of the cryptocurrency futures products offered in the market right now are considered to be unregulated because they are not governed by a regulator like Commodities and Futures Trading Commission (CFTC). Unregulated contracts do not get any favorable tax treatment and work similar to buying/selling regular cryptocurrencies. If you make a profit by selling an unregulated crypto futures contract after holding it for 12 months or less, it is taxed as short-term capital gains. If you make a profit after holding a position for more than 12 months, it results in a long-term capital gain (lower tax rate).

Regulated Futures Contracts have a more favorable tax treatment under IRS Code 1256. When you trade regulated contracts, 60% of the profits are taxed as long-term capital gains and 40% of the gains are taxed as short-term capital gains, irrespective of how long you keep the position open. Essentially, trading regulated contracts allows you to convert 60% of your profits into long-term gains and get taxed at a much lower rate than short-term gains. Note that this is highly beneficial for day traders.

Continuing with the example above, Jennet could save 24% more in taxes by trading regulated contracts compared to unregulated contracts (assuming Jennets ordinary income tax rate and long-term capital gain tax rates are 25% and 15%, respectively):

Tax savings between regulated crypto futures Vs. unregulated crypto futures

Keep in mind that if you are trading cryptocurrency futures and generating tax savings, you will want to ensure that you are tracking these transactions in a reputable cryptocurrency tax software that keeps track of futures trades.

Disclaimer: this post is informational only and is not intended as tax or investment advice. For tax or investment advice, please consult a professional.

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Day Traders Can Use Regulated Crypto Futures To Save Big On Taxes - Forbes

16 June 2020: Rapper Akon has agreed on a $6 billion deal to build a futuristic new crypto city in Senegal.

Akon City, which will be built just outside the capital of Dakar, has been in the works for several years, with the musician announcing back in 2018 that he planned to construct a real-life Wakanda.

His ambitions look set to become a reality, as news emerges that Akon has awarded a construction contract for the metropolis.

Details are limited, but Akon City will include a hospital, mall, police station, school, and houses and hotels all designed in futuristic style, based on the renders Akon shared via Instagram.

The musician is also planning a solar power plant, suggesting the new city will prioritise green energy. Inhabitants will buy goods and services using Akons own cryptocurrency AKoins, which will form the basis of Akon Citys economy.

Reports suggest the first phase will be completed by 2023, with a second phase finishing in 2029, by which point the city is expected to be up and running.

[Via Highsnobiety; h/t CNN]

Credit: Hussein Bakri/BAD Consultant/Semer Group

Credit: Hussein Bakri/BAD Consultant/Semer Group

Credit: Hussein Bakri/BAD Consultant/Semer Group

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Akon is planning to build a cryptocurrency-powered city in Senegal - The Spaces

Stablecoins are all the rage right now when it comes to digital assets. Governments around the world are already discussing stablecoins as viable replacement options for the current paper money.

Tim Akinbo is an experienced bitcoin developer and very knowledgeable about the cryptocurrency industry.

SEE ALSO:StableCoins See 800% Growth YoY with USDT Tether Dominating 2020 Charts, Latest Study Shows

The Blockchain Society of Ghana has organized an online discussion with Tim to help African viewers understand this new asset class and its use cases.

In this chat, Tim walks the viewers through the following questions:

and many more

DETAILS:

DATE: June 20th, 2020

TIME: 8.00 9.30 pm (+3 GMT, Nairobi Time)

REGISTRATION LINK:https://bit.ly/EVENT-StablecoinsAfrica

About Stablecoins

Cryptocurrencies have this somewhat undesirable property of being volatile. This volatility arises because the market is still trying to determine the price of the asset as measured against a well known currency like the US dollar. Most of the times, the volatility occurs because the asset isnt as liquid as most other currencies or asset classes.

Stablecoins are designed to track the value of another (mostly) well known currency or asset. They are able to achieve this either algorithmically or via a backing by the underlying asset. When the peg is determined algorithmically, trading bots are employed to trade the asset such that they are able to maintain the required peg.

When there is the backing of an underlying asset, then the value is determined by the ability to redeem the stablecoin for the underlying asset itself. If such were backed by US dollar cash reserves (for example), then it is believed that the value will mirror the convertibility of the stablecoin for US dollars.

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[EVENT: JUNE 20TH, 2020]: Introduction to Stablecoins - A Chat with Ghanaian Cryptocurrency Developer, Tim Akinbo - bitcoinke.io