TL;DR: Welcome to In Case You Missed It (ICYMI), a daily crypto news update. IRS sends a second wave of letters to crypto investors. Ripple grants 1 billion XRP to fund Coil. Paxful’s bank transfers grow 70% in a month. Trade war might be making Chinese crave crypto. Alleged Dash dominance in Venezuela could be just marketing, and LNBIG centralizes 50% of the funds in the Lightning Network.
IRS Sends More Letters to Cryptocurrency Investors
US tax agency, the IRS (Internal Revenue Service) is now sending a new wave of letters to cryptocurrency investors to inform them about tax discrepancies. This follows a first wave sent during in July, urging cryptocurrency traders to review their tax records. But now, the letters are expressing the IRS has info regarding investors’ tax inconsistencies. “We received information from a third party that doesn’t match the information you reported on your tax return,” the new letters state.
Ripple Funnels 1 Billion XRP to Fund Coil Community
Ripple, the company behind the XRP cryptocurrency, is sending a big grant to relatively new subscription-based Coil, a payment processor to fund online communities. Coil is a platform that will let users pay $5 dollars a month for their favorite online content, getting tipped for each visit. The amount of XRP ($265 million) will come from Ripple’s funds directly. Coil CEO Stefan Thomas declared, “Our dream is that you get one subscription and can browse the whole web and support the creators you enjoy without ads or paywalls.”
Trade War and Fiat Weakness Raise Crypto Demand in China
The current trade tensions and the manipulation of the Chinese yuan to keep losing value is taking investors to seek refuge in cryptocurrency, according to an article published by Reuters. Several sources informed there has been an increase in demand for cryptocurrencies, as investors seek to transfer yuan to bitcoin or other cryptos. The OTC market, where most of the big trades are made, has been recently experiencing some unusually high activity. Earlier this month, the US announced new tariffs for Chinese goods, and declared China was a “currency manipulator.”
Paxful Bank Transfers Grow 70% From Institutional Customers
Paxful, a peer-to-peer cryptocurrency exchange, just announced an exponential growth of 70% in the number of bank transfers used as payment for cryptocurrencies. While Paxful is known for its trading origins, they also offer other services dedicated to institutional investors, commonly paid with bank transfers. Ray Youssef, Paxful CEO declared this was the result of “smaller, entrepreneurial financial institutions” being onboarded through the platform. In some areas like South Africa, bank transfers grew 669%, and 2,000%+ in Indonesia.
Dash Might Not Be the Most Accepted Cryptocurrency in Venezuela
Gente en Venezuela, ¿cuál ha sido la situación más rara/incómoda que han tenido usando crypto?
Mi #1 es cuando fui a un foodtruck que "aceptaba Dash" para mostrarle a una amiga lo rápido que era pagar con crypto y me terminaron cobrando 1 hora más tarde porque no sabían cómo. pic.twitter.com/KT5jc37YZT
— CriptoDiana (@criptodiana) July 25, 2019
Dash, a very popular cryptocurrency in Latin America, is widely believed to be the most accepted cryptocurrency in Venezuela, but newer investigations point this could be just marketing. Some businesses that supposedly accept Dash have zero experience actually using it, or really are not accepting it at the moment. Despite having some big franchises as Church’s Chicken accepting Dash, it seems that the Dash Merchant team, who managed to onboard 80% of the merchants using Dash, had some difficulties training people to manage it on the merchant side.
LNBIG Still Holds 50% of Lightning Network Liquidity
The Lightning Network, the second layer protocol of Bitcoin, has often been criticized for its cumbersome approach to peer-to-peer transactions, but now it is also being criticized for centralization. As of Just, LNBIG, an anonymous LN operator, held 473 BTC of liquidity (almost 50% of the funds available on the whole network). However, even with 200 transactions each day, the operator only manages to win earn around $20 monthly in fees, an amount not sufficient to maintain any kind of hardware or costs behind the operation.
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