 Welcome to Digital Asset News to get top stories and cryptocurrency and digital assets and bring on a bite-sized piece. So today I want to do something a little bit different. We're going to go over what's going on in the market, and I'm going to try to correlate that with what is going on with the stories to see if things actually match up. So first, this is what's going on in the market right now. Everything's down just a little bit, but not too much. So we're going to talk about what's going on with Cardano. Take a look at Polkadot, VTC or RAP VTC, Chainlink and their new partnerships that are happening. Theta mainnet 3.0 launch and the Voyager conference call for all their shareholders. And surprise, surprise, they are almost quadrupled their assets under management. So we're getting all that. But first, let's take a look at the market. So today is March 2nd, it's high noon Houston, Texas time. And that's why things look a little bit different because we're in the Houston home just doing wrapping up some things and all that good stuff. So Bitcoin down a little bit, 47 below 48,000. So why is that? Well, like we talked about in this channel, you have to understand that people like to take profits at round numbers, 45,000, 48,000, 50,000. It seems like the bigger the rounder number, the more they take profits. So 50,000 has been a little bit of resistance because people like to take profits at that they have their limit orders set. So just so you know, once we have 50,000, we can bounce above that and maintain things should do pretty well. But that I think is what is going on. And people will say, you know, dumping and manipulation, sure. But again, as an investor, not as a trader, just have to look at that and go, what's changed with Bitcoin? Nothing. Ethereum down a little bit. But they're having a lot of problems with the deals with the prices of gas fees. And this has been plaguing them for quite a long time. Now, you know, Ethereum 2.0, hopefully can get legs under it and kind of move forward. But it's a ways away. I think that's why Cardano is right at its heels. And that's why it slipped in that third spot. So Cardano, I'm not going to play the video, but it's fantastic. I'm going to link it at the very end. It's two and a half minutes. And this talks about, you know, this very hard fork and what's going on. And it has a nice little graphical representation of, Hey, we're going to do decentralized finance, we're going to do smart contracts, native assets, and it's going to be good. And this is what's going on with Cardano. We covered this a couple of videos ago. But again, watch this two and a half minute video. It really gives you just a little bit greater detail and simplifies everything. All right. So then that's Cardano, Binance Coin down a little bit that had rocketed up because of the Binance chain and people were able to do decentralized exchanges instead of using Ethereum, Uniswap and all those things. Now I can use Binance Coin for their decentralized and swap for token. So of course, it's going to go up meteorically, but it's going to fall a little bit. But Binance Coin was below 100 bucks and just in like a week or so above 236, I think it almost touched 300. Tether's Tether doing pretty good after that settlement with the New York Attorney General. So we'll see how that works out. Polkadot up a little bit, we're 24 hours, but down, which is kind of odd, because if you took a look at Polkadot in their Twitter feed, they talked about how they're launching Polka BTC, which what is that? Well, that's kind of like wrapping Ethereum. What's Polka BTC? It's the trustless Bitcoin Polkadot bridge. It allows users to mint one-to-one Bitcoin backed assets on a Polkadot and use it across a wide range of apps, including decentralized exchanges. So Polkadot is doing what it's supposed to be doing, which is interoperability. And that is great if you want to do something to swap. So now you have Binance Coin, as far as Ethereum as well. Now you have Polka BTC wrapping it, using it for decentralized exchanges. That's great news. So let's see what else we got. XRP down a little bit. Hey, hopefully they can come to a conclusion with the SEC lawsuit. I think they might be, I'm not even going to speculate. I can't even say they're close, whatever else, because I've been through lawsuits and they dragged on forever. So, sorry, it's what it is. Chainlink is up. Hey, look at that. 8% for 24 hours, half a point last hour. What's going on here? Well, for Chainlink, as reported by their channel, they're doing two things. First of all, they're integrating with Fuse. Fuse is looking to make payments better, better than Venmo between peer-to-peer people. Great. And of course, they're going to use Chainlink so it can trigger the USD minting when USDC is locked in Ethereum and provides up-to-date reference data on collateralization. So instead of just having it like Tether, just kind of like up in the air, like, yeah, you know, we're backed by this, Chainlink is going to verify. Don't trust verify, right? And then down here was pretty cool. They also had synthetic asset platform Jarvis is using Chainlink for price feeds on Mainnet to secure the minting and exchange of synthetic tokens. So again, using Chainlink to actually have utility. And you know, on this channel, I'm big on if a token has utility and actually has a use case, probably do pretty well. What else we got? So we got Chainlink, Bitcoin Cash, Stellar. What is it? USD? Ah, it's just a stablecoin. Uniswap. NEM is up 11%. And this was actually one of our picks for yesterday for Trinity Trading, just on the sentiment alone. And just so you can see this, let me just do this. So you can actually see it. So with Trade the Chain, I like what I like about it is that I can, and we had Alex do it and he kind of demoed the whole thing for us yesterday. I'll link the video at the very end. You can go up here, do a projected range. And with 90% accuracy, I don't know what this is. Redcoin, sure. 2%, it's going to go up with, there's a 90% assurance and all the way up to 15%. That's huge. Theta token, when we're talking about a little bit, it's either going to go up about 2% or 5% in the next hour. Curve, same thing. Komodo, NEM is going to go up. So again, I don't really know in detail these projects. I'm not giving you financial advice. I'm just saying this is what Trade the Chain with sentiment analysis is actually showing us. So to jump back, we'll just talk about the other two things actually. So the reason why Theta is going up, I believe is because of this. Let me just switch it over. So there's a Theta mainnet 3.0 launch. If you don't know Theta, it's one of my holds. And just so you know, super biased on this channel, I usually talk about the things that I invest in, just how it is. Sometimes I don't. Sometimes I talk about other things, but usually these types of things. So Theta is one of my big holds because what are you doing right now? You are watching me talk about cryptocurrency. What do a lot of you, maybe you yourself watch this video. Do you work from home? Do you watch a lot of YouTube videos? Do you do a lot of streaming? That's what Theta is here to solve. They are putting the unused bandwidth that are being used by all the stakes and nodes, and they can actually use that to incorporate that into what people actually use. So instead of competing with YouTube, they're working actually in conjunction with them to make streaming better. And actually, one of their advisors is Mr. Chen, who is also the creator of YouTube. So this is why I like Theta very much. So Theta mainnet 3.0 launch is in April, so we'll see how that works out. I have actually staked on Theta with my Guardian node. You don't need 10,000 tokens like you used to, not only 1,000, and you can earn Tfool. So there's a video over at DanTeachersCrypta.com, 100% free education website and cryptocurrency. Check that out. It's in module five, How Do I? So we have that last piece I want to talk about. This was interesting. The earnings call for the shareholders for Voyager. Just so you know, Voyager, the broker app, it is a publicly traded company, so they had to report to the SEC and also do shareholders earnings reports. This is what came out yesterday. This is pretty big. The preliminary revenue went from December to February, 1.7 million to 20 million. You had a pretty much a 10x or 12x somewhere around there. Net deposits went from 28 million to 40 million. Asset center management, this is a big one, went from 230 million to 1.7 billion asset center management. Trades per day, new funded account, new verified users, principal value traded all up, up, up, up, up. So again, as Voyager, the company takes off. Voyager, the token will also take it off because it has utility. Once they release the Voyager loyalty program, which I think is 30 or 45 days from now, you're going to see a massive gain. I was the one that talked about Voyager on January 7th, the VGX token. It was 29 cents. My prediction was it's going to go with 30. It was the most outlandish prediction I've ever given. I'm pretty reserved and conservative. I think Bitcoin's only going 150,000. Ethereum was only going up a little bit. Uniswap, I was actually wrong. I thought I was only going to 20 bucks and it's way past that already. But this one, I think that it's going to go with 30 bucks because the utility. Look at Binance token, look at Globi token, look at OKX, look at Swissborg. Those have gone up exponentially because they have utility and people actually use them. When the Voyager loyalty program comes out, 7% staking. Also, it's going to be able to be used for crypto to stock purchases. I don't see how this one could fail. Who knows? I could be wrong. But again, not financial advice. That's what's going on in the market in a nutshell. Then let me know what you think in the comments section. I know there's a lot of different things going on. But again, when you look at these types of assets, just think to yourself, is it going down because there's been a fundamental shift or is it just because the winds of the market, the news cycles and what's going on behind the scenes. Anyhow, let me just think of the comments section. Let's move on to our last piece. Last piece. I just want to talk about, this was a complete US tax guide. If you are not from the United States, thanks for stopping by. Appreciate it. You can still hang out. That's fine. But it's only for US taxes and there's just two things I want to go over. One was what is considered a taxable event and the other one is what would you do if you get a airdrop? Would you be taxed? The first one is this. The one right here where it says, receiving cryptocurrency from an airdrop or any crypto interest earnings from DeFi or decentralized finance lending. If you take a look at that and you say to yourself, shoot, what's going to happen? Am I going to be taxed for that? Right when it actually comes in because these are taxable events. The answer is when it comes in is when you're going to have that taxable event. The bigger question is what happens to those airdrops as they appreciate or depreciate in value. What I'm going to do is I'm going to have Sheehan come in and answer this question on top of some more down here. This is a great example. They talk about if you're offsetting crypto for other taxable events. The other one was, oh, this one, losses from exchange hacks with that. I was only impression that if you got screwed out of your money by some hacker it was gone and you couldn't write it off. But that's not the case. And then also, as you know on my channel, you know that I lost 20,000 ADA because during the test net days I wrote the mnemonic phrase down on some scrap piece of paper somewhere that I had. I thought I had it all together and it just disappeared. So that's why I'm always recommending that stonebook, link in the description, obviously. But I thought it was just gone. And then Sheehan's going to talk to us about regular losses versus abandonment. So let's just jump in and have him talk to us about this article, about what we can actually do and not do. All right, everybody. So we just talked about that article, kind of scary stuff. And there were some things that were kind of confusing. So of course, I don't have all the answers. So I brought in Sheehan Chandrasekhar. He is a certified CPA and he specializes in cryptocurrencies and digital assets as they pertain to taxes. So Sheehan, hey man, thanks for coming on. Really appreciate it. Yeah, thanks for having me again. Yeah. Well, you're like my go-to guy for all these questions because I'm like, I don't know what's going on. So let's let's just jump into it. There's like three questions I have for you and we might have to delve into a little bit more. So let me share my screen right quick and we'll go back to the article. So there was so in the very beginning here, it talks about, you know, there's there's certain parts or time references when things actually get taxed. And a couple of those confuse me. The two were receiving cryptocurrency from an airdrop and any crypto interest earned from DeFi. So Sheehan, the question is, do I have to pay like as soon as those airdrops hit or can I wait for a couple of years and then pay taxes or how does this all work? Yeah, yeah. So this question about airdrop, like it's kind of counterintuitive to a lot of people, unless they're working like taxes like us. So the rule is that, you know, if you're getting anything free, like especially like a token, you had to pay order income taxes at the time you receive that token into your wallet. So last year, we had a couple of, you know, big airdrops in a uni airdrop was huge. And then the spark airdrop, which is I think it's still in progress. So the rule is that as soon as you get those tokens, you got to figure out the value and that value is taxed as order income. And the other question that people ask is, okay, I receive a token that's at $10 and tomorrow it goes down to $2. Can I write it off? No, you cannot because, you know, until you sell that token for $2, you cannot write off that $8 difference as a loss. So yeah, unfortunately, you got to pay taxes at the time you receive it. And then if the on the subsequent date, the price goes down, there's no tax write off. And if the price goes up, you could sell it and you would pay capital gain taxes on the difference between the sales price and the price it had at the time it hit you wallet. Here's a perfect example. Uniswap was last year. And I remember receiving that I thought it was awesome. And then it went up from $4 to let's say it went up to it doubled $8. I always forget. So let's say on December 31, it was at $8 for 2020. So for 2020, am I going to owe the $4 or $8? I never sold it. I just kind of let it I still have it actually, I probably never not never, but I'll probably one sell it for a long time. Yeah, so you just had to pay a taxes on that $4 multiplied by how many, you know, whatever the tokens you got. Okay, so it's like as soon as it hits the wallet, whatever that that that price is unless you sell it. Okay, so Spark is not gonna work with too much in the beginning. I think I should be okay. All right. So that is that part. Thanks my man for answering that. Then there's a couple more. And let's see Oh, so the example here, which is pretty good. So Bob has Bob has stocks in crypto, his stocks go to 10,000 for for a game, but he loses 14,000. So, of course, that would offset the total capital gains loss for the stocks. And he's got 4,000 left over on his personal taxes, he can deduct up to $3,000. And then that that 1000 carries over does that 1000 carry over just for that year or can it go to infinity, you know, as long as he wants it goes to infinity. Okay, so that's pretty simple. Great, because I got a ton of losses for all the stupidity that I did back in the day. So great. I'm good with that. And then, and actually, this actually is one of the things I do with XRP. I had a huge loss. I sold them all. And then I bought them right back because crypto is not, it's not a security yet. And then, of course, it will be considered property, correct? Yeah, correct, yes. Fantastic. And this is the big one. And this is the one that gets really tricky, I think for everybody, even you. So I was on the assumption that if I lose crypto or it gets hacked, that I could not claim it as a loss because there was a change to the federal law. And you can only do it if it was in a federally declared disaster area. So, but now it sounds like you can actually claim it as a loss. So tell us about claiming as a loss versus abandonment versus personal and all that good stuff. Yeah, yeah. So in the eyes of the IRAs, you know, there are different types of losses. I mean, for us, everything is a loss. But for the IRS, there are different types of losses. And knowing those types are important because those different types of losses have different ways of reporting it, different requirements that you need to need to deduct them. Okay. So, you know, before 2017, if you, you know, if you, you know, lost something, your property or something else, you could have taken that loss as a casualty loss because it was sudden and you didn't expect that. And, you know, it's just a casualty loss. Right. And in 2017, after the TCNJ Act, Tax Cuts and Job Act, that change. So the IRS said, you can only take a casualty loss if you, if it's related to a federally declared disaster area. And it's really hard to attribute like a losing crypto to a federally, you know, declared disaster area. So a lot of people couldn't take that deduction. And as a matter of fact, that federally decided the casualty loss, those are for like, you know, if your house get damaged by, you know, hurricane and stuff like that. I think I know why they did it is because they consider crypto property. So probably the people that wrote the law were just like, oh, it's property. So we'll just roll it into that, even though it's not physical property. Right. I mean, I think that's one of the mentality and that's the whole thing with these people in power that actually passed the bills. They need to know a little bit more about what's going on. I think that's just an assumption. Who knows? Yeah, we don't know. But there's a possibility. So anyway, but again, as I mentioned before, so there's other ways that you can take some of these crypto scam and exit losses. So those falling into two categories, it could be either investment loss or abandonment loss. Okay. So in the article, it's saying that it could be treated as an investment loss, but if you look at the definitions and details, to claim an investment loss, like you had to give up, you know, you had a transfer property to somebody else and you had to get something in return. Right. In a typical investment loss, like, you know, let's say you have a thousand bucks worth of crypto and then you're just giving it to somebody and it's just value is like pretty much useless. It's like one dollar that that would be an investment because you're getting something back. Right. Yeah, there's an exchange of two things. Right. And then the third thing, again, this is, I'm a proponent of like, let's say like you lost your ledger or something like that, you could treat it as abandonment loss because, you know, that asset money value, you have abandoned it. Again, just don't go by my word. You need to talk to your CPA because it depends on the facts and circumstances, you need to meet certain criteria to actually create, not create, actually meet the criteria of claiming an abandonment loss and there's additional tax forms to be filed. Right. But the summary is that, yes, depending on the case, you might be able to get some type of tax relief if you lose your crypto through a scam or if you go to like exit scam or they get stolen or stuff like that. Right. So a couple of things to unpack here. First of all, these are laws that were just put in place not too long ago. So it is open to interpretation. So obviously you have to check with your CPA to make sure that you guys and gals are comfortable with how you are filing your taxes because we can't say you should definitely do it like this because it is so new. And of course, everybody's circumstance is different. So make sure that you check with your CPA. Another thing is if you don't have a CPA, a man she hand here is open for business. I will link his information in the description below. You can talk to him about these things as he is a CPA and also has delved extensively into crypto. But the thing that was interesting to me was that this, we talk about abandonment and losing things. So as everybody on the channel knows, I lost 20,000 ADA. Why did I lose it? Because I was careless and I had my mnemonic phrases from the test net. And it's somewhere in one of these houses I have no idea or probably in the trash. I have no idea. So I've lost that. So if we're talking about this, I'm going to talk with my CPA and talk if we can claim it as an abandonment and go that route. So we'll go from there. All right. So yeah. So again, she and thanks for coming on to a couple more things. As we all know, first of all, is that the things that we just talked about are only for the United States citizens throughout the entire globe. We don't know what your tax regulations are. So check with your local jurisdictions, check with your tax attorney or tax professional to see what they recommend. But just so you know, the IRS, this is one of those years that they're going to transfer over as we heat up. So does the IRS. And they're transitioning from education to enforcement. And this is this is from a former division chief of the IRS. On top of that, there's also they pushed this nice little question to the very forefront of the 1040. If at any time, did you receive sales and exchange or otherwise acquire any financial interest in any virtual currency may leave it open to interpretation. And lastly, just so you know, one of our subscribers actually a couple have already been audited. And they're going through a 2018 audit because of my Coinbase 1099K form they used. So just so you know, if you didn't talk about that before, just know that this could actually happen again as Coinbase or your exchange actually starts to file things late. So that is what is going on. All right. So that is it. Sheehan. Thanks for coming on. I appreciate it. And let's jump back. All right. So I hope that helped. As promised, here is Sheehan's information. You can find that link in the description. Go ahead and hit them up for any questions that you might have. And then also we're going to be doing a live AMA in two days. Today is Tuesday. We're doing this on Thursday, 9.30 AM Central Standard Time. So any tax questions that you possibly have, come on, hit us up and we'll answer. And really anything else you want for us to answer, we'll do our best. So that's Sheehan's information on top of if you were looking for a program to use to calculate all your tax gains and losses. This is one that I've used for the last two years. Cryptotrader.tax works out fantastic. This is my second year using it. The time to actually put all the information in and send it over to my CPA. It took me 30 minutes. Very easy. Save me a lot of time, money, and heartache. So there's two ways you can do things. In the link in the description, you can find this site where they're going to do an enter to win for a $300 value unlimited tax report. This puts your first name and email. Enter to win. Great. Or if you don't want to wait and say, well, I don't think I'm going to win that much. In the link in the description, all viewers of Dan get 20% off for Cryptotrader.tax. And that is it. So if you've made this far, I just want to say thanks so much for watching the entire video. If you liked it, go ahead and give it a thumbs up. That always helps out the channel tremendously. Also consider subscribing because a lot of things we talk about are time sensitive, especially with the news stories we just talked about. And that is all. I'll link the other two videos we talked about previously. After this video, I'll let YouTube do its magic. And that is it. So thanks for watching. I appreciate it. And I'll see you on the next one.