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Crypto Wants a De Minimis Tax Exemption in the U.S.

The leaders of the Senate Finance Committee, Sens. Ron Wyden (D-Ore.) and Mike Crapo (R-Idaho) published an open letter in July asking the crypto industry to weigh in on crypto tax issues, including loans, staking, mining, constructive sales and wash trading. These comments were due earlier this month.

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Terra Validator Opposes USTC Burning, Pushes Alternative Plan To Regain Dollar Peg

A Terra Classic community member with the X handle Rexyz has kicked against burning USTC tokens to enable the stablecoin to recover its dollar peg.

According to the X post made on September 18, Rexyz outlines an alternative solution that may lead to USTC being re-valued $1 as well as push Terra Classic (LUNC) price to reach the $1 price mark.

Since the collapse of the Terra ecosystem in 2022, the USTC stablecoin has lost its dollar peg and now trades at 98.8% below the $1 mark. 

Following this catastrophic event, members of the Terra Class community have continued to submit various proposals to burn more USTC contains as a deflationary mechanism that could result in the stablecoin recovering its dollar peg. 

Currently, the Terra Classic community is voting on a proposal that aims to direct the Binance exchange to start burning 50% of USTC every month. It is believed that if the world’s biggest exchange aids in reducing the circulating supply of USTC, it could significantly boost the token’s rise to $1.

A Reverse Split Is More Efficient Than Buring Tokens, Community Member Says

According to Rexyx, burning USTC tokens may not be the best way of regaining the stablecoin’s dollar peg. The Terra Classic community member explains that there are currently 9.8 billion USTC tokens in circulation, and users will need to burn massive amounts of USTC to record any significant rise in value.

Alternatively, Rexyz proposes that the Terra community implements a reverse split of the USTC token, which leads to a revaluation of the stablecoin, albeit at some investment cost.

In this proposal, Rexyz gives an example, stating that if 100 USTC is the current equivalent of $1, a 100/1 reverse split would convert 100 USTC to just one USTC token, which will now be valued at $1. Through this mechanism, USTC holders retain their holdings’ current value, and there is no need to burn more tokens. 

However, Rexyz notes that a reverse split would erase all existing network debt. This means that USTC investors will have to forfeit whatever losses incurred during the collapse of the Terra ecosystem. 

Could A USTC Reverse Split Rescue The Terra Classic Ecosystem? 

Interestingly, Rexyz also stated that the revaluation of the USTC token could initiate a recovery of the Terra Classic network. The community member explained that once USTC regains its dollar peg and the LUNC-USTC swap mechanism is tested with the implementation of improved capital controls, investors can start burning trillions of LUNC.

Related Reading: USTC Surprises With Nearly 60% Rally – What’s Going On?

Rexyx believes this will lead to a massive rise in LUNC’s value, and the altcoin may even record new all-time highs. Rexyz advises the Terra community to implement the reverse split of USTC and “pin” their hopes of recovering past losses by investing in LUNC, which also lost 99.9% of its market value in 2022.

However, the Terra classic community member states this initiative should executed upon research and approval by the relevant experts.

Terra

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Shiba Inu Team Member Reveals What Investors Should Do If They Want SHIB Burns

A prominent Shiba Inu team member “Lucie” has shared insights on the highly anticipated Shiba Inu token burn through Shibarium, Shiba Inu’s Layer 2 blockchain, and has revealed what investors should do if they want the Shiba Inu token burns.

Shiba Inu Team Member Tells Investors What To Do

The content marketing specialist for Shiba Inu took to X on Monday, September 18, 2023, to address the Shiba Inu token burn questions coming from the community saying that SHIB burns are set per transaction, not based on tweets about burns.

Lucie told the community that when will Shibarium initiate the SHIB burn is the wrong question and “The real question is, ‘when will you all migrate from exchanges and start using Shibarium?’”

Lucie further explained that the Shiba Inu token burns through Shibarium is a collective effort from both the community and the Devs since the burns are based on transaction activity and real engagement from within the platform. She told the community that expecting burns to happen solely through transactions without active community participation is unrealistic.

The marketing expert went on to highlight the security features of choosing Shibarium as an alternative to centralized crypto exchanges. She guaranteed SHIB holders that assets stored on the platform are just as safe as they would be on centralized crypto exchanges. 

She also stated that centralized crypto exchanges can be fragile using the case of the bankrupted centralized crypto platform FTX to back up her claims.

So far, Lucie has urged the millions of SHIB holders to support this movement using Shibarium as an alternative to centralized crypto exchanges since each transaction on the platform contributes to the SHIB token burns. 

She also added that transaction fees are pretty low on the platform, but might increase in the future along with the higher traffic, which would translate to a higher number of SHIB being burned.

Shiba Inu price chart from Tradingview.com (SHIB burn)

Lucie also stretched her opinions to one of the most popular NFT marketplaces Opensea, inviting them to consider integrating Shibarium on the platform.

Shibarium is a layer 2 blockchain built on the Ethereum network. It is a decentralized finance (DeFi) platform that was designed to serve as an alternative to centralized crypto exchanges which aims to provide a more sustainable and scalable infrastructure for Shiba Inu transactions.

SHIB Price Predictions Following Shibarium’s Success

For years now, Shiba Inu has been one of the most notable cryptocurrencies in the crypto market. The famous meme coin is likely to experience an upward trajectory if Shibarium becomes a success since it could catalyze a larger adoption and popularity of the SHIB tokens.

SHIB token is expected to reach $0.00001038 from its current price of $0.0000073 by the end of 2023 with expectations of another crypto market rally. However, with the success of Shibarium and the new development on the platform, the SHIB token could grow up to $0.000050 by the end of 2023.

Nevertheless, if the SHIB token manages to maintain this trajectory, during the next bull market the token could beat its all-time high price of $0.00008845 achieved in the 2021 bull market.

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Bitcoin Rally Driven By Coinbase Users? Premium Would Say So

The Bitcoin Coinbase Premium Gap has been positive during the past few days, implying the surge above $27,000 may be driven by the platform’s users.

Coinbase Users Have Been Participating In Aggressive Bitcoin Buying Recently

In a new post on X, the CryptoQuant Netherlands community manager, Maartunn, has pointed out how there appears to have been buying going on at Coinbase recently.

The relevant indicator here is the “Coinbase Premium Gap,” which keeps track of the difference between the Bitcoin prices listed on the cryptocurrency exchanges Coinbase and Binance.

The former platform is more popular among US-based investors (including large institutional holders), while the latter receives more global traffic. As such, the Premium Gap’s value may provide insight into how the behaviors of these two audiences differ.

When the value of this metric is positive, it means that the price on Coinbase is greater than that on Binance right now. This would imply that the American investors have either been applying a higher buying pressure or a lower selling pressure as compared to the global users.

Now, here is a chart that shows the trend in the Bitcoin Coinbase Premium Gap over the last few days:

Bitcoin Coinbase Premium Gap

As displayed in the above graph, the Bitcoin Coinbase Premium Gap had been negative earlier in the month, implying that Coinbase users had been selling more than Binance users.

The metric had turned especially deep in the leadup to and during the plunge towards the $25,000 level, suggesting the selloff was driven by the American holders.

During the recovery that had followed, the Premium Gap had turned positive, but only after a delay, implying that the US-based investors didn’t initially contribute towards the surge.

Since then, however, the indicator has remained at notable positive values, meaning that the platform’s user base has been constantly accumulating the cryptocurrency.

From the graph, it’s visible that the buying on Coinbase appears to have only ramped up during the past couple of days, as the Premium Gap has observed a sharp spike.

The timing of this surge could indicate that the US-based investors are the ones helping the asset’s recent growth beyond the $27,000 level. This is a good sign, naturally, as strong buying pressure from the US institutional holders could provide the appropriate fuel for the cryptocurrency to retest higher levels.

It now remains to be seen whether the Bitcoin Coinbase Premium Gap would continue to remain at positive values in the coming days, or if buying would cool down on the platform.

BTC Price

Bitcoin had observed a sharp drop from the $27,200 level to $26,600 yesterday but has since made a swift recovery back to the mark, as the below chart displays.

Bitcoin Price Chart

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XEC Token Spikes Over 17% In The Last Week, Can It Sustain Rally?

XEC has continued its uptrend today, September 19, following a sharp spike from $0.000022 to a high of $0.000028 on September 18. This price move represents a nearly 23% increase.

Although there’s been a slight pullback, its price remains around $0.000027. In the early hours of today, XEC traded at $0.000027, with a 15% 24-hour price increase. 

But as of the time of writing, XEC traded at $0.000026, with a 4% decline in the last 24 hours. Nonetheless, its trading volume remains up by 311% in the last 24 hours, depicting increased network activity. 

Interestingly, the ongoing uptrend has persisted over the past seven days with an over 17% increase in its price. The bullish momentum has allowed XEC to retain most of its past month’s gain, with an 8% 30-day price increase. But what’s driving it, and how long can it last?

What Is Driving XEC’s Rally And How Long Will The Rally Last?

The eCash ecosystem has witnessed exciting developments that sparked massive investor interest in the past few weeks. These developments might be the driving force behind XEC’s impressive performance. 

One such innovation is the eCash Mainnet integration with RocketX, a crypto-swapping platform. This integration helps users easily swap several cryptocurrencies, including BTC, ETH, and Cosmos, with the XEC token, thus increasing network activity. 

Furthermore, on September 13, eCash developers announced that PayButton, an online vendor payment portal, now supports XEC. The upgraded PayButton, initially launched in February 2019, will make it easier for online vendors to monitor their payments. 

According to the developers, the goal is to increase eCash usage online. Also, they aim to achieve increased adoption by making eCash user-friendly. 

The upgrade has likely spiked the interest of investors, given the rise in the global relevance of e-commerce. According to Santiment data, eCash witnessed a 270% uptick in social volume in the last three days. Also, network development has increased by 120% over the past seven days.

While these developments boosted XEC’s price these past few days, the ongoing rally’s longevity remains uncertain, given the market’s unpredictable nature. However, the following analysis could provide hints.

XECUSD price chart

Buyers Show Dominance On The Daily Chart: Will Their Charge Sustain XEC’s Rally?

A close examination of the daily chart suggests the bulls are determined to facilitate more gains for XEC. Their strong market dominance is evident in the formation of the large green candle on the daily chart.

While the token’s price remains below the 200-day Simple Moving Average, the upper wick of today’s candle has a charge above this price level ($0.0000277). This suggests that the bulls intend to sustain the rally for longer.

Nonetheless, XEC is bullish on the short term as the buyers have sustained its price above the 50-day SMA. This observation also confirms an ongoing accumulation of the tokens, leading to the prevailing price surge. 

Given these technical indicators, the uptrend will continue if XEC closes above the 200-day SMA in the coming days. Moreover, the Relative Strength Index (RSI) at 64.2, approaching the overbought area, confirms buyers’ dominance.

Additionally, this setup depicts an accumulation phase as more traders open new long positions ahead of further price gains. The ongoing rally will likely persist until XEC attains an overbought condition when buyers reach saturation. However, a retracement after it enters the overbought zone is still possible.