Ari10 Weekly Newsletter #117 (Crypto Business Insights, Crypto Market News and Ari10 Company Update)

What happened this week in the crypto space?

GM! This is Mateusz Kara.

And you've just found the best place in the crypto space to know more about the blockchain industry. I'm also giving you updates on my biz.

In Today's edition:

1/ Mt. Gox: Creditor Reimbursements Begin

2/ Ethereum Introduces EIP-7732

3/ Bitcoin and Ethereum Prices Dropped

4/ Solana's Memecoin Boom

+ Crypto Business Insights & Ari10 Company Update

Sounds interesting? I think so.

Let's dive deeper into the crypto rabbit hole:

1/ Mt. Gox: Creditor Reimbursements Begin

After ten years of legal battles, Mt. Gox, the former bitcoin exchange, is finally reimbursing its creditors. Founded in 2010 and handling up to 70% of global bitcoin transactions, Mt. Gox went bankrupt in 2014 after losing 850,000 BTC in a security breach.

Reimbursements in bitcoin (BTC) and bitcoin cash (BCH) are now being processed via designated exchanges, with 47,288 BTC already transferred. Creditors must verify their accounts to receive compensation.

This development has triggered significant market disruptions, causing $675 million in liquidations in 24 hours due to the sale of the reimbursed BTC, increasing selling pressure on bitcoin's price.

2/ Ethereum Introduces EIP-7732

Ethereum developers have proposed EIP-7732, aiming to revolutionize block validation by splitting it into consensus and execution phases. Supported by Vitalik Buterin, the Enshrined Proposer-Builder Separation (EPBS) involves a consensus proposer and an execution proposer, with the Payload Timeliness Committee (PTC) managing timings.

This initiative aims to reduce validators' computational load, enhancing transaction efficiency and speed, with confirmations now taking between five and twenty seconds. This advancement, requiring a complete network upgrade and community approval, could significantly boost Ethereum’s competitive edge.

3/ Bitcoin and Ethereum Prices Dropped

Last week, the crypto market experienced a sudden crash, with Bitcoin dropping 8% and Ethereum over 10% in a few hours, resulting in $580 million in liquidations. This was exacerbated by Mt. Gox's $2.7 billion bitcoin transfer for creditor reimbursements and Germany's bitcoin liquidation.

Traders, already jittery over macroeconomic uncertainties and the upcoming US presidential elections, reacted by selling off massively, causing significant losses. Increasing volatility plunged the fear and greed index to alarming levels, threatening the market's short-term outlook.

4/ Solana's Memecoin Boom

Solana's memecoin sector is booming, outperforming expectations and surpassing Ethereum by 800% this year. Solana has attracted talented developers, fostering a thriving memecoin environment. Cryptos like Dogwifhat (WIF), Bonk (BONK), and Billy (BILLY) have soared, with Dogwifhat rising 12.34% in 24 hours and Billy's market cap increasing by 97% to $117 million. Community support, technological innovations, and endorsements from celebrities and investors have driven Solana's success, giving it a 9.64% market share in the memecoin sector.

Crypto Business Insights ??

Payment with Cryptocurrencies for Goods and Services. Whose Bank Account Should Be Used for Payment?

It is worth noting that payments can be made through any bank account. The obligation to transfer funds can thus be fulfilled even in an account shared by several people. Generally, an entrepreneur who is an individual can also use a bank account that is not formally used for legal purposes. However, caution should be exercised when using an account for payment that does not belong to the entrepreneur but to an entirely different entity. Tax authorities may, in such cases, require proof that the payer only acted as an intermediary in the transaction. They may also question the inclusion of this expense in the costs of obtaining revenue. According to tax law, for an expense to be included in business costs, it must be related to the business activity and must not have the characteristics of a private expense.

Penalties for Cash Payments

Failure to fulfill the obligations related to bank account payments is theoretically not subject to any penalty. The entrepreneur does not bear criminal or fiscal liability. However, there may be negative consequences in tax law. According to Article 22p of the PIT Act, taxpayers conducting non-agricultural business activity do not include in the costs of obtaining revenue the expense to the extent that the payment related to a transaction specified in Article 19 of the Entrepreneurs' Law was made without the use of a payment account.

If, despite this, the payment is included in the costs of obtaining revenue, taxpayers are obliged to reduce the costs of obtaining revenue, or if it is not possible to reduce the costs of obtaining revenue, to increase revenue in the month in which the payment was made without the use of a payment account. Similar provisions can also be found in the CIT Act.

In summary, taxpayers will pay significantly higher income tax. For amounts exceeding several tens or even hundreds of PLN, this issue can have a very significant impact.

ARI10 COMPANY UPDATE ??

Summary of June at Ari10! ??

Calling last month intensive is an understatement. We made numerous product improvements while maintaining our emphasis on brand building.

Here's a recap:

1/ Participation in the AML Forum

2/ Ari10 Sponsoring Enea Poznań Open

3/ New Functionalities in Ari10 Exchange

4/ Crypto Education at Speedway Event in Pi?a

5/ New ARI Token and Redeployment to BASE

6/ Presence at Krypto Silesia and Women Invest conferences

What's next? Although the bar is set high, at Ari10 we are hiring more people and working hard together to accomplish everything we have planned for 2024 ??

(Read more here: https://bit.ly/3zvP0oD )

P.S. Don't forget to take advantage of our promotion: only 3% commission on crypto purchases up to $25k at Ari10 Exchange!

3 Ways to Encourage Innovation in Your Web3 Team.

1) Embrace failure

Don't fear failing or burning money. 100% of undeveloped ideas fail. Try and see what works.

2) Fail fast

Design simple MVPs. Test quickly. It's the cheapest way to innovate.

3) Hire talent

Top talent develops ideas efficiently. Save money by testing business ideas before over-developing.

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How does your team encourage innovation?

Follow along for more insights on building successful Web3 ventures!

And that’s all for today. Thanks for your time, investors & Crypto Geckos! ?? ????

Please rate this newsletter with a reaction

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Thanks for your feedback and see you next week!

Mateusz Kara