 Welcome to Digital Asset News, the top stories in cryptocurrency and digital assets, and break them down to bite-sized pieces. So today, let's talk about what's going on with this dip in the market, and we'll take a look at what has happened in the past, what is happening right now, and just to realize that it's really just more par for the course. On top of that, we'll take a look at a new public earnings report, which is put out by Coinbase ahead of their April 14th IPO. And then we'll finish up with a couple of great stories. One is from StormX, and we had Simon Yu on the channel over there at Alex Masioli, what he talked about, and what is happening behind the scenes. And then finally, just as a quick update, IRS is catching crypto tax sheet via summons. So that's always fantastic when you hear this great news, and we'll go over what you can do with all that. But first, let's take a look at what is exactly going on today. So right now, it is April 7th, it is almost 10 a.m. El Paso, Texas time. And hey, the market just took a little bit of a dip, huh? So we lost like 100 billion market cap, but not a big deal. And I say that with the most amount of respect and assurance. I know if you're new to this space, you're like, what the heck just happened? Well, crypto just happened. That's just how it is. So yeah, we won over 2 trillion, then we dropped down to 1.8, 1.86 billion or something like that. 1.86 trillion. And these things happen. So don't be alarmed. That's just what it is. And we'll take a look in a bit. So let's just break it down to actually what is happening. Let me blow this up so you can see it with Bitcoin in general. So Bitcoin topped out around $61,000, now we're at $56,000. Ethereum has dipped below the $2,000, Binance Coin through $76,000. Even though Binance Coin is up in seven days, 22%. XRP up 68%. But over the last 24 hours, everything is pretty much down. There's some things that are up. But I mean, for the most part, that's what it is. Theta is up 7%. That's crazy. Good for them. 18% for Solana and so on and so forth. So yeah, this just happens. And that's just pretty much how it is. And real quick on the projected range, if you're a big trader, this obviously is trade the chain. You can take a look below for a link to use the sentiment analysis. So look at digital note, Harmony, StormEx, Raiden Network, Bau Finance, Linear, and Solana as over the next hour or so. You could look at 13%, 5%, 4%, 5%. Gains based on sentiment analysis. Anyhow, that's what's going on the market. Let's just jump into exactly what we have as far as the history. So the history, and I like to always bring this up because I know when people are especially new or even if you've been around for a while, you're probably looking at these things like, man, I don't really think this is right. Should this really drop this much? Yes, it should. And here's a quick little snippet that I've been saving about from the last bull run. So just remember in 2016, 2017, everything goes in four-year cycles for the last eight years. Now, past performance does not equal out to present day what could happen. But over the last eight years, this is what's been going on. And we've had things drop down 38%, 38%. 33, 38, 36.9. As we took that big, huge parabolic run up in 2017 when Bitcoin hit a measly $20,000, the market cap was a paltry $840 billion somewhere around there. And Alts had a little bit of a spur, which now seems almost laughable. Can you imagine right now if we went down to less than a trillion dollars, people would lose their minds? Me personally, I'd be like, well, thanks for the sale. I'm pretty happy. I appreciate that. And I'll buy some more. But that's what's going on in the past. And of course, we just had a bit of a dip again. And just like this is a nice little chart right here from early December, January 2021. And we see 20% dips, 18% dips, as we just continue to elevate. So here's the thing. Again, if you're new, this is very scary, but just calm down. This is in the traditional markets. We are expecting these things. And usually when things go like this, we say to buy the dip. That's very hard. If you went all in when it was doing this, it's very hard to do that. And that's why I say don't do that. So what I want you to do are actually, I can't give you financial advice, I'm sorry to even say that. But what I do is I dollar cost average. And I have a set amount and every day I buy a certain amount of cryptocurrency and that's pretty much it. And then over time, I've been doing this for the last since 2017. And it seems to work out pretty well over time. Now, if you're in it for a get rich quick, there are no get rich quick schemes. I mean, you can pick the right one and kind of ride that train. But it's very risky. And that is not me. But there's plenty of YouTubers you can follow. And they'll tell you all day long about which 1000 X gems are out there and go follow them. But for me, it's just slow and steady, usually works out just trying to be an investor, keep level headed. And then off I go. The big thing for me is I don't really care about today. I don't really care about these dips, because I know, or I think I know, or I think I have a good understanding of where things could potentially go. I just look at the past for your dips, having all time I dip reset this from 2012. Then again, 2016 to 2019, same thing. And 2020 is going to repeat. Now, is it going to go all the way up? I have no idea. Is the bear market going to last for two years or so? I have no idea. But I can tell you this, 2021 is going to be a fantastic year. There are so many institutions, so many people coming out. There are so many people getting into this space. This is, you can never give guarantees, but it's looking pretty good. Anyhow, let me just think about that in the comment section. Let's move on to our next piece. So next up, congratulations Coinbase. That sounds funny coming out of my mouth. I'm not a big fan of Coinbase because as you get into the market, you start to realize the fees that are pretty crazy. And for some people, they realize that. But I have to always take a step back and look at, it's not just about me, it's about everybody. And a lot of people who are coming in Coinbase is the easiest option. It is the simplest. There are no bunch of graphs and charts and market prices and set limits, everything else is just buy and go. Super simple. And everybody seems to agree that sometimes with simplicity, you have to have that price. And that's just what it is. So Coinbase is going to go public. They're having their IPO on April 14th. So they have to start to report these different metrics. And one of those is they just said this, and I'm just going to, I'm going to skip over all the text because a picture is worth 1,000 words. And this is what we've got right here. Let me blow this up so you can see this. This is potentially just it. This is all you got to really know. So in quarter one, this is in 2019. Look at this all the way to the left. 66 million in quarter one 2019. Remember, 2017 was like the big year. And look at that. 66 million. Quarter two, 211, 159, 98, 191. Quarter two, 2020, 186, then almost doubled in Q320. Q4, 2020 was monstrous. I'm sure when they went from 315 to 585, again, almost a double. So they went from 186, 315 to 585. They're like, wow, are we doing better? Look at Q1, 2021. 1.8 billion. That's all you got to know for this entire article. They are crushing it. They are crushing it. And of course, yes, you're going to say that they are crushing it based on everybody's fees and what people are paying for. And you would be correct. But it is what it is. So when people talk about Coinbase and how good or bad it is, this is what we actually have. What's wrong? Let me jump back. So really just to finish up this article, I just talked about a couple of metrics. This was from CEO Brian Armstrong where he says, hey, on our Q1 earnings call on Tuesday, we announced 56 million verified users for Q1, 2021. So that's just the users that they have all signed up and are actually there in the system. That's not the monthly users. Coinbase says it has monthly transaction users of 6.1 million. So I know when people talk about, they reach out to Coinbase and they try to get customer service and they don't get anything. Maybe it's because they got so many people on there. And that is a lot more than I thought they actually had. But again, that is no excuse. If you're making that much money, you can afford to hire people and get them going. But I will tell you this, I've never made over a billion dollars, not yet. But if I had all that money, it's still be very difficult to get all the people in there, all the people train the right way, answer the questions correctly and get them on track to up to speed where they need to be to answer all your questions. So again, growing pains and we're seeing a lot of that, especially with Voyager. And I know there's a lot of different issues going on. And we're trying to get Steve on the show again, and hopefully he can answer what's going on there. And that is what's going on with Coinbase itself. And April 14, they say is going to be a catalyst for the cryptocurrency market. I tend to think that anything after IRS taxes really starts to set things up. That's why you always see like April, not is a pretty good month towards the end and then May. But of course, in the US, we've been pushed from April 15 tax deadline into May 15. So I think May and May June will be a pretty great year after this IPO. So I'm interested in the comments section. Let's move on to our last two pieces. So next up, StormX. So if you're on the channel, I'd like to invest into people. I mean, projects are great. You have to have good projects or you have to have a good working use case. And there's a lot of those out there. But I like to invest into people. And we had Simon Yu from StormX over on Alex Massioli's channel. I'm going to link this, the video to what we talked about. And it was great. And he had a lot of great answers and a lot of things that they're trying to do as far as like pushing things forward. And these are not a fly by night type of operation. They've been in business since 2014. If you don't know StormX, it's pretty great because what it can do essentially is just save you a bunch of money and give you crypto back for all the things that you buy. And when you go to the website, there's a section there to actually download the Google Chrome or Brave browser extension. You can also get the app on your iPhone and Android. And what's great about it is, is like when you go to different places, like I'm going to go, let me go to Adidas. That's the easiest example I can take. Right. So when you go to any kind of these websites, this little thing will pop up and I'll say like up to 2% crypto cashback activate now. And then you just activate it whatever you buy, you get cashback and crypto and things really do add up after a while. And I think it's a pretty cool thing, especially since it's very global. I mean, it's global and it's going to be out there. The problem is, is that it took a big dump yesterday. I thought it was a great interview. I thought, man, maybe that interview kind of sucked. What the hell happened? And then I realized that nice little tweet today says, we are so sorry for me that Walmart is no longer available in StormX. Starting at 10pm today, we're going to bring them back online in the future. But so look, when you're out there, and I reason I brought this up, is because when you're out there and you're looking at all these different low-cap gems, 1000X, 100X, just make sure that the project actually does something. It has a working product and actually is functioning and can do things. And like Simon was talking about on the show, he's like, look, 90% of crypto can't do squat. You can't do anything right now. It's just a speculative market. He goes, with our token, I mean, yeah, you can stake it. And then of course, you get more cashback rewards, the more tokens that you have. He's like, we've been in business since 2014. We have over 750 and I was like, you know what, I like that. And so I talk about charity and giving back and giving more money to the users, makes sense to me. So when you're looking at these things out there, just look at, does the project actually do something? Have they been around for a little bit of time? And how does everything work as far as the project itself and everything that encompasses? So just take a look at those. And that is the thing with StormX. Let me know what you think about that in the comments section. And let's move on to our last piece. And really quickly, I will just say this. The IRS wants your money. This is in the United States. I know a lot of people are from Australia, Loassi's, UK, India, and some and a lot of parts of Southeast Asia and, and Sub-Saharan Africa. So this is just for the United States. This is what's going on. But if you don't realize, we're printing a ton of money like it's going on a style. And this is the easiest way to get that some of that money back. Is the tax live in tar out of every man, woman, even, well, every man and woman out there. So what's going on here? So the IRS is actively hunting for crypto tax cheats by demanding crypto exchanges release user information through John Doe Simmons summons. On March 30th, 2021, a John Doe summons was issued to Kraken. On April 1st, it was also issued to Circle. The John Doe summons issued to Kraken, Employee X require exchanges to release user information from 2016 to 2020 on accounts with at least $20,000 in transaction value in any of those years. Across the IRS commissioner, Chuck Reddick, the John Doe summons is a step to enable the IRS to uncover those who are failing to properly report their virtual currency transactions. We will enforce the law where we find systemic non-compliance or fraud. And just so you know, tools like John Doe summons authorized today send the clear message to taxpayers that the IRS is working to ensure they are fully compliant in their use of virtual currencies. And last thing, taxpayers who have properly filed their crypto taxes during the years under investigation 2016 to 2020 should not be concerned. So let me just say this. If I read that and your heart started to skip a beat because maybe you didn't do something. Maybe you didn't report whatever it is. It's okay. It's going to be all right. So let's get you on track. I know there's always going to be some of the comments that say taxation is theft and you don't have to pay taxes and da-da-da. Sure. I'm not saying you don't have to pay taxes. I mean, yeah, I am. I'm saying you have to pay taxes. That's stupid. So I mean, if you don't want to pay taxes in the US, there's a lot of options, I guess, for you. But if you want to go through an audit like I did, have fun with that. It's pretty awful. So what I did is I reached out to David, a camera. He is the co-founder over there at CryptoTrader.tax just to see what's going on and how he can help us. So just so you know, I use CryptoTrader.tax personally. I've used it the last two years. I trust them thoroughly. I, from the time I started it up to actually got done, took me 30 minutes except for Voyager. So they had to get that CSV stupid file. But everything else was an API integration, very smooth, sent it over, everything was good, done. If you want to go through a lot of different documents and something like that, go right ahead. And if you don't have just a few transactions, you don't probably need CryptoTrader.tax. This is for somebody who's got like 50, 100, 200 transactions. They don't want to deal with all the things. So let's talk to David real quick and he can fill us in about what's going on with taxes. Everybody, I want to welcome David Kemmer. He is one of the co-founders of CryptoTrader.tax. David, thanks for coming on and talking to us about these issues. Like the article we just talked about, it seems like people are, it concerns me greatly as the IRS starts to really pull their resources together to really focus in on just a little guy, you know, just a little guy investing. So just talk to us about what you've seen over there, over there CryptoTrader and what do you think is coming down the pipe? Yeah. Yeah. It's not a surprise, right? We've seen crypto like explode in value over the last 12 months, which is great, right? And it fuels the space and companies like ours and just everyone in the space is doing well. And the IRS sees that and sees, hey, there's not much 1099 information reporting that's happening in terms of, you know, the Coinbase is in the crackings of the world, reporting on customer information, which is very common in the equities world, which you could parallel to kind of how crypto is taxed. So the IRS sees that as this huge tax gap, right? They see that there's millions and millions of people in the U.S. who are investing in likely making significant amount of money on crypto. And then they see on tax returns that, you know, a very small percentage of people are reporting that they had any type of crypto income on their tax return. So there's that gap. And Chuck Redding is actively trying to close that gap and he's becoming very aggressive about it. Of course, we see that again with the subpoenas now to Circle and Rumored to Crackin. Exactly how they went after Coinbase in 2015, I believe is how they're going after the new folks. So it'll get sorted out in the courts and it's likely that Circle and Crackin will have to turn over some amount of customer records to the IRS just like Coinbase had to. But yeah, they're getting serious and they have been for a while, right? It's not a secret. Yeah, see, because like I remember just a couple of years ago, oh, maybe it wasn't even last year, where they were sending out, no, I think it was the last two years, they were sending out letters and going, hey, Rob, we think you may have unreported some things. So, you know, wink, wink, nudge, nudge, because you just give us an information. And it was like no big deal. But now it's more like subpoenas going out, going, well, I mean, subpoenas are the exchanges. But I think what's going to happen coming on the pipe is that, look, we're doing a ton of quantitative easing. There's a lot of money being pushed out and printed. And there's really one big way to get that revenue back. And that is just a tax to live in tar out of people like you and me. So this is why I always talk about unportedism in your taxes. I know nobody wants to, there's only one assurance, no debt and taxes. But like I said before, I did this last year, I did this again, the time that I actually popped open the website and put all my information in with the API, took me about 30 minutes, sent over to my account, everything was done. The only one I had to wait for was Voyager, but that was because they needed to do that CSV file. So yeah, you guys can't really help with that. But I've already introduced you to Steve, so maybe something like that will come on the pipe. Yeah, it's actually already better now. So I've connected with Steve, he's a great guy. And so that's more streamlined now. But yeah, you're right. It's not something that we want to do, anyone wants to do, but I do think it's smart to cover your bases. Perfect. And then real quick, I get this question a lot, which is about staking and how that works out with taxes. Because first of all, do we have to pay tax on the staking? And second of all, how does crypto trader do that? Can they do that? Can it be reported or we have to do it manually, which would suck? Right, exactly. So it very much depends a little bit on how the staking actually happens for some pools and incentive programs. It happens differently where the staking reward is a crew, but they're not actually available in your wallet. But let's say in a traditional example where I'm staking assets and I'm getting dripped staking rewards into my wallet. Every time that you receive staking rewards, that's just treated as income at the fair market value if you're in the US in US dollars at the time you receive it. So if I'm staking, let's say Ethereum on the new 2.0, and I receive a staking reward of one Ethereum today, which wouldn't happen, but I would recognize around $2,000 of income today. And then that's added to your taxable income. Now that income becomes your cost basis moving forward. So now for that one Ethereum that I received, that's I have a $2,000 cost basis. So let's say I eat skyrockets in price and goes to $4,000. If I sell that Ethereum, I have a $2,000 basis, I sell it for $4,000. So there's also a $2,000 capital gain on the sale of the property. So that's kind of how staking works. And with Crypto TraderBot Tax, there's so much development activity, new protocols, new governance models launching really every day, which is great for the space. Makes it gives us a tough job for my team, but we're scaling up fast now. So we're actively hiring if anyone in your audience wants to check out our career page. But in terms of just deeper integrations, you and I offline, we're talking about Carvedano, the staking rewards there. So we don't support that right now, but all of these things are on our roadmap, and it just takes time. So if you're receiving staking rewards from things like directly on Coinbase, you can now crack into, we pull that in no problem right now. If you're on Uniswap doing liquidical stuff, we rolled out Uniswap a couple months ago. So we're just going to keep doing that. We're going to keep doing what we do, rolling out more and more integrations so that there is no manual work. And you can just click a few buttons and we'll spit out your necessary stuff. So that's our job. And the next nine months, there's a lot to do. But it'll be good. Yeah, it'll be good. Yeah, thanks for not making me do more work. I mean, no one likes my work, so thanks. We appreciate it. And then just real quick, I know we talked about how like if they're staking on the exchanges, you guys pretty much cover that as far as the whole spectrum, right? Yeah, exactly. Because that's just a little bit easier. We already consume all the exchanges, APIs. So they just made that available. We can pull in staking reward, classify that under your account in our system. It's not as difficult as like going out to the blockchain data, like Cardano, right? Ethereum's a little easier. But this is technical jargon. Yes, for the exchanges, no problem. That's, we've got that covered. Perfect. And then the last thing I want to talk about is what's coming down the pipe with you guys? Yeah. What's happening that can really like propel crypto trader like the next level? So the first answer is more the same, right? We have a model that's working. And so we just want to do more of that. So hire more people to build more integrations, to build better features that are just going to do exactly what you and I have said. No manual work, super simple, you know, tax reporting for any use case in crypto. Outside of that, we do want to move into a lot more portfolio tracking type capabilities. So, you know, real time P&L across all of your platforms. And that's a little bit more on the future, but it's going to be awesome once we launch that. And that will be like completely free to use for fun, like, you know, downloading your tax reports. So there's a lot of ways we can go with it, but those are the two big things, right? It's just more and more and more integrations, DeFi margin, right? All this stuff. And then moving into portfolio tracking, real time tracking. Perfect. Well, David, thanks for coming on the show. We all appreciate it because no one likes to do taxes, so there's just a couple of things. If you look in the description below, there's going to be a link to crypto trader.tax. Everybody who is a viewer of Dan, they get 20% off. On top of that, there's a video where I show you exactly how to use crypto trader.tax. It's very simple, API integration, pulls all your information in, very slick. Unless you got Kucoin, that was my only one that I had a problem with because they had like three transactions, but it doesn't really matter. So on top of that, there's also a nice little thing going on with crypto trader. They are doing a weekly giveaway for a tax or an unlimited tax report, $300 value. Just put your first name and email, enter to win, David always draws it, and then emails those people. So those are the two big things. I will also link what David was talking about as far as the information to work with crypto trader, the careers page, link that in the description as well. And that is it. David, any last words for us? No, I love your channel, Rob, and it's a pleasure just jumping on and chatting with you. So thanks for having me on. Great, thanks for coming by. All right, so I'm glad David got my message to wear his classic tee. I'm just kidding, he just wore a tee shirt. And that is it for today. So look, if you found a value in this video, please give it a thumbs up. That helps tremendously. Also consider subscribing because that always is great. A lot of things we talk about are time sensitive, and I will link everything below in the description, pin a couple things at the top so you can find easily. And that's it for today. So thanks for watching, I appreciate it, and I'll see you on the next one.