AMA Summary — 01.06.2018
IN THE NEWS
- Blockchain is not mature enough
- No technology is reliable and stable enough at this time.
- Banks are looking to include blockchain tech, just not now.
- We don’t want a bank to adopt too early, when it’s bug prone, and then spread bad words
- Most large scale banks are looking at Crypto, some banks are going the gimmick route.
- Banks looking into cryptocurrency is a good thing!
- A lot of talk, execution matters.
- Let the banks mess up and we’ll learn from them.
- The more good actors come into this space
- All markets start out as immature markets.
- The cycles are starting to speed up.
- We’re in an interesting transition in the crypto space.
- If you go through a token sale and use that money for a commercial venture, it’s a security.
- All tokens are securities.
- What we’ve never seen before is a single product that can morph through different assets.
- A token can be a security, and then morph into something that isn’t.
- There are some clear-cut definitions that make something a security (e.g. dividends)
- There is no licensing that deals with tokenized securities anywhere in Europe.
- The Singapore regulator is showing their teeth here, but at the end of the day they haven’t given enough guidance as to what is defined by a security in regards to tokens.
- There is no underlying guidance anywhere in the world but Switzerland has clearer guidance, but it still doesn’t cover all possible avenues.
- Someone has to take the fall in order for those gray areas to be defined.
- In the crypto world right now, it’s more ask for forgiveness, instead of permission
- CoinMetro isn’t planning on listing anything with dividends at this time- because it’s obviously a security at that point.
- Everyone in the crypto space takes risks (whether they’re good or bad actors) because there’s nothing set in stone yet.
Japanese exchanges delisted privacy tokens, how does it influence CM? Regarding such regulations how does CM stay compliant in all countries?
- The Japanese regulator stance on privacy coins is probably the same stance every other regulator will take, at least for now.
- From the regulator’s standpoint, they’re trying to understand everything they can from this market, and they’re not going to become privacy, blockchain and token experts all at once.
- On CM there will be no privacy tokens initially.
- There’s a clear connection on what privacy coins are trying to “push”.
- CM has no issue talking to regulators, we’re going to be compliant from day one.
- The countries where CM are based is the first place they need to be compliant.
- In the FX market, FX is classified as a future in the US. The CTFC will not allow non-registered, non-regulated broker/dealers from taking on US clients.
- Canada and Japan have similar laws.
- Some countries ban FX locally, but they don’t necessarily stop other clients from onboarding.
- Part of compliance’s job is to stay up to date, follow KYC and AML laws, and continue expanding compliance and regulatory issues as additional jurisdictions are added.
CM’s ambition — millions of users- how can we scale the customer experience with many users?
- We obviously can’t use the same methodologies when scaling CM compared to FXPig.
- Using technology, a mix of tech and non-tech, to automate a lot of the processes.
- Producing great content is another way of connecting with the community.
- We’ll be launching the CoinMetro Crypto Academy, where there will be lessons and tutorials for beginner, intermediate and advanced market participants.
- Make sure the live chat, while can’t be super personal, to make it as effective as possible. All done in balance to make sure that GDPR is followed.
How do we plan to bring back the tight knit community of old (less “when moon”, “exchanges”, “lambo”)
- There’s no exact science to this.
- Staff is being transitioned to ensure that more people can be personalized and added to Telegram.
- Sometimes the CM team has to guide the discussion. Pull the responses from the community.
- CoinMetro wants to lead the culture of the crypto space.
- Try and lead the conversation where it needs to go.
Why isn’t XCM tradable right after beta launch?
- Demo phase, live beta, production (XCM will be tradable here).
- What the team needs to ensure is to allow people to trade on both sides (buy and sell).
- There is still a possibility to add a few flash sales a few days before XCM is tradable.
Can we have an updated roadmap with dates?
- There is an updated roadmap on coinmetro.com
- Roadmaps generally are just a guide, they’re not written in stone.
Is CM going to support iDEAL (Instant Online Bank Payment) the deposit method from Netherlands?
- Yes, we plan on doing this from the start.
Are there plans to implement a Point of Sale service?
- We’re trying to create an all-in-one fintech crypto platform.
- eMoney licensing, crypto-to-fiat exchange licensing, eWallet systems
When the beta comes out will there be a feedback system
- Yes! We will be running a bug bounty as well!
Will we be able to short sell coins?
- Initially no, but once we adopt OTC trading, yes you’ll be able to short sell. It will require a minimum balance and some type of margin, but there are no numbers to report now.
Will there be derivatives trading?
- We’re not going to create our own derivatives, but there are talks with liquidity providers that are trying to do just that.
- It’s not something we can give a date on at this time.
- Again, CM is aiming to be an all-in-one platform, so all products and services are considered.
Are you considering partnering with Talenta group?
- We haven’t heard of Talenta group, we’re open to see what they’re offering.
- Nothing that involves manipulation.
What percentage of total XCM raised are US contributors?
- No percentage available at this time, but it’s around 20%, but in actual contributors it is lower.
- We have solutions in place for Accredited and Non-Accredited contributors, but they will have to be revealed as we get closer to the minting of XCM.
- We got about 9 legal opinions.
How much of the funding is being held back by KYC for US contributors?
- Roughly under half a million
Will US contributors be able to trade tokens at the same time as the rest?
- Yes, that’s the goal. There’s no additional information to this at this time, because it includes some of the legal work that is being worked on.
Will US Accredited contributors get Airdrop tokens?
- There’s no info on this at this time.
- The goal is to have everyone access them.
- The new GO! dashboard will be launching in the near future with a support feature built in.
Can you extend the 2.5% referral bonus to all subsequent contributions?
- We can’t do that because the rules of the ambassador programs were clear.
- We’re working on other ways that referrers are happy with solutions.
Is the exchange beta release still on time?
- Yes, 15th June for the demo version, a few weeks after we do live trading.
When will the bear market be over?
- 2018 was going to be a losing year for crypto, per Kevin’s prediction. He calls it a correction, not ‘bear’ territory yet.
- The correction will last throughout 2018 and into 2019. Kevin believes this is mostly due to regulatory concerns.
- Kevin’s outlook is ‘bullish’, overall.
When the exchange demo comes online will there be real money trading?
- Paper trading initially, demo mode to try and break the platform and find bugs.
- Feedback from the community will be essential in order to facilitate and accelerate the process and move towards the live beta.
- Kevin’s been working on liquidity talks, 7–8 liquidity providers, 2 of which Kevin feels good about.
- There are many new hires, and an offer has been sent to a potential COO candidate.
- Lots of logistical stuff in Tallinn.
- The team is working on adding fiat-to-crypto licenses for GBP, AUD, USD, etc.
FACEBOOK LIVE AMA QUESTIONS
How’s the fiat to crypto licensing coming?
- The team has the license in Estonia, approved on 9th May.
- Moving into London and Australia to move more into licensing.
- Lawyers on the ground in Nigeria, and the team is looking for crypto licensing for Africa as a whole.
When will the coins be minted?
- The team needs to have the exchange functional.
- There are no upsides to have them traded on DEX’s.
- Mint, launch and trade on the day they can be traded on CoinMetro’s platform.
- If we do this, 3 days before the tokens are minted, 3 flash sales, 24hours each, three tiers. Token launched 0.15 EUR on CoinMetro.
Vesting period 3–6 months- will that vesting period be affected.
- No- we will adjust the vesting period once the token periods are scheduled to be minted.
Where can we get a CM shirt?
- Maybe soon!
Is the crypto fiat wallet ready to accept deposit?
- Demo for 2–4 weeks, paper trading.
- We don’t want to limit the interaction on the platform.
- We want to stress test the whole thing
- Once live trading is open, yes, the Euro SEPA zone will be available. Working on AUD and GBP. USD is a little trickier.
Custodial Accounts can you briefly explain why they’re needed?
- An approved custodian is someone who can hold funds.
- In some regulations they’re needed, because they provided a level of security.
Most exchanges don’t have any complex order types. OCO (One Cancels the Other).
- Complex order types will be added at a later date, but they won’t be available from day one.
Will you keep in touch with us after the CoinMetro launch?
- Of course! Kevin enjoys speaking with the community and it’s important to maintain a relationship with the community.
Why is licensing in different regions so time consuming and expensive?
- Governments! *mic drop*
- It’s never easy to deal with governments. Regulators have a job to do and they try to do it correctly.
- The industry itself doesn’t help regulate.
- CM wants to lead the charge and ensure that we’re doing the right thing and are willing and capable of following KYC/AML laws.
- It’s expensive because it requires structure. (Offices, employees, lawyers, etc…)
- If the regulation wasn’t there, we’d be in a bad place.
- Consumer protection is paramount, and CM wants to ensure that they have a hand in shaping the regulations for the crypto space.
What are you doing in Switzerland?
- Working on business development, since there are a lot of exciting things happening in Switzerland.
- Marketing will center on certain regions of the world so that the team is #1 in those regions first. Then use that power to expand.
- Out of the box marketing to help facilitate the plans for the marketing structure.
- 750k EUR for Year 1 Marketing.
How many employees does CM have so far?
- 54 people
- 12 in Tallinn
- The rest are in 6 continents around the world.
- Plan to have upwards of 150 employees by year end.
Do you see more crypto companies moving to Europe if your model is successful?
- France, Germany & Spain are the top countries for crypto in Europe.
- Europe will be a hotspot for Crypto for sure.
- Georgia has a good environment for Crypto.
There will be contests running during the CoinMetro Demo.
- Real prizes and swag!