The biggest news in the cryptoverse for Oct 19 includes the IRS classifying NFTs as digital assets for tax purposes, Cardano NFTs becoming the next gold rush, Blockchain advocacy groups filing a motion to supporting Grayscale in lawsuit against SEC and top 10 metaverse tokens collapsing as interest wanes.
US Tax Watchdog Classifies NFTs as Digital Assets for Tax Purposes
The US Internal Revenue Service (IRS) has classified NFTs as digital assets alongside stablecoins and cryptocurrencies.
The implication is that investors will need to report their NFT income for tax purposes.
Terra LUNA Classic community reduces tax burn to 0.2%
The LUNC community approved a proposal to reduce the tax burn from 1.2% to 0.2% and set aside 10% as tax revenue.
Binance had burned around 11 billion LUNC tokens early and agreed to apply the 0.2% burn tax at the next burn epoch.
Cardano NFT Touted As The Next Gold Rush After ‘Ford Edwards’ Sells For $65,000
The Ape Society collection is the top NFT project on Cardano as “Ford Edwards” was sold for $65,000.
With Cardano NFT sales increasing in recent weeks, many NFT investors believe that Cardano could be the next chain for the NFT boom.
Israel moves to tap into government bonds via blockchain
Israel’s Ministry of Finance has partnered with VMware and Fireblocks to experiment with issuing and clearing government bonds through blockchain technology.
The central bank will digitize and disburse its bonds to participating financial institutions and expect to receive the assets at the government’s wallet address.
Blockchain Advocacy Groups File Motion to Support Grayscale in SEC Lawsuit
Four blockchain advocacy groups filed an amici curiae to show support for Grayscale in its lawsuit against the SEC for rejecting GBTC’s Bitcoin spot ETF application.
The group accused the SEC of being discriminatory in approving futures ETFs, without due consideration of spot alternatives that offer more protection to US investors.
Madeira Island Nation Hopes to Copy Bitcoin Success in El Salvador
Madeira’s government showed its support for Bitcoin after it established a panel in May to work on integrating Bitcoin infrastructure into the local economy.
Despite resistance from the EU, a panel discussion at Bitcoin Amsterdam shows that the Madeira Bitcoin project is seeing significant adoption. The island nation is working to boost its economy just like El Salvador.
Top 10 metaverse tokens pile up as interest dwindles
Data from CryptoSlate shows that major Metaverse tokens have significantly decreased in price over the past 30 days, indicating less interest in Metaverse real estate.
Land prices in the metaverse have also decreased by 85% since the November 2021 peak. The average land price in Decentraland decreased from $37,238 to $6,600, while the Sandbox fell sharply from $20,000 to roughly $ 3,000.
Bitcoin, DeFi space see light, NFT market falls in Q3
According to Coingecko’s Q3 report, the global crypto market capitalization recovered to a local high of $1.2 billion in August, after bottoming out at $903 billion on July 19.
The DeFi market saw the most significant increase of up to 31%, while the NFT market decreased by 77% over the period.
Bitcoin reportedly outperformed traditional assets in the stock market, except for the US dollar index.
Carolyn Wilkins of the UK Financial Policy Committee calls for better governance and trust in the crypto industry
Carolyn Wilkins argued that crypto protocols are not as decentralized as they claim, given that their decision-making process is still heavily influenced by a few major stakeholders.
Wilkins called on the crypto industry to improve its governance structure, in order to increase transparency to help retain investor confidence in the system.
Bitcoin mining could help curb climate change
A recent Whitehouse report on crypto mining suggests that mining Bitcoin with methane may have positive implications for the climate.
It is estimated that Bitcoin mining could help mitigate the effects of methane pollution by 63% and reduce global warming by 2%.
As Bitcoin works to achieve carbon neutrality by 2024, it could emerge as an effective tool to combat climate change.
News from around the Cryptoverse
UST Restitution Group looking for Do Kwon
UST Restitution Group is a collective of aggrieved retail investors who lost money from the fall of the Luna ecosystem.
The Financial Times reports that URG members are collaborating to share any useful clues that may lead to the location of Luna’s founder, Do Kwon. They are currently looking for him in Dubai, Russia, Seychelles and Mauritius.
Former Celsius exec joins JPMorgan
Former Celsius head of policy and regulatory affairs Aaron Iovine has joined JPMorgan as its head of cryptocurrency regulatory policy, according to Bloomberg.
a16z Announces Launch of Crypto Startup School
Venture capital firm Andressen Horowitz “a16z” has Opened applications for the second cohort of its accelerator program, Crypto Startup School.
The 12-week program will be a full throttle with funding of up to $500,000 for each successful startup.
Bitcoin (BTC) declined -0.77% to trade at $19,205 in the last 24 hours, while Ethereum (ETH) trended down -1.3% to trade at $1,295.
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This post IRS classifies NFTs as digital assets; group of retail investors seeks to locate Do Kwon
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