Clinton Donnelly and Dr. Christiane Williams, the Director of Business Operations at CoinTracking, discussed the challenges of determining NFT prices, handling sidechains and bridging between blockchains, and how CoinTracking is navigating the dynamic cryptocurrency market. (TCDS-15)
Clinton Donnelly recently interviewed Dr. Christiane Williams, the Director of Business Operations at CoinTracking, a leading crypto gain calculation service. Dr. Williams shared valuable information about CoinTracking's strategies for determining NFT prices, handling sidechains, and bridging between different blockchains. Moreover, she shed light on the company's expansion into the government sector and its strong commitment to user privacy.
Challenges in determining NFT prices.
One of the major challenges faced in the cryptocurrency market, particularly with NFTs, is determining their prices accurately. NFTs are often written on decentralized platforms, and the price associated with them is not always linked to the NFT itself. Dr. Williams explained that CoinTracking overcomes this challenge by leveraging benchmark data from opposing coin trades. If an NFT has been purchased in a trade, the opposing coin's value serves as a benchmark for determining the NFT's value. However, if no information about the NFT is available, users have three flexible options to set their cost base for tax purposes.
Handling sidechains and blockchain bridges.
When it comes to sidechains, Dr. Williams clarified that CoinTracking treats them similarly to the main chain. The coin's asset price and holding period remain unchanged, regardless of whether it is on the main chain or a sidechain. However, things get a bit trickier when users bridge between different blockchains or wrap coins. CoinTracking has introduced a specialized transaction type called "swap trade" to handle these scenarios. It allows the transfer of cost bases and holding periods from the original coin to the new one, ensuring a seamless transition without triggering taxable gains or losses.
CoinTracking's expansion into the government sector.
Surprisingly, Dr. Williams discloses a secret plan of CoinTracking's expansion into the government sector. Some European tax agencies are already using CoinTracking's software to manage and verify crypto users' data for tax purposes. While this niche market offers intriguing opportunities, she emphasized that CoinTracking will never compromise user privacy and will only disclose data if subpoenaed by a German court. The company's German origins and adherence to strict privacy laws provide users with added confidence in the protection of their information.
User-friendly support and AI-based tools.
Despite CoinTracking's comprehensive capabilities, some users may find it initially challenging to navigate the platform due to the vast array of choices it offers. However, the company provides extensive support through videos, FAQs, and personalized assistance via tickets. Moreover, CoinTracking is exploring the potential of using AI-based tools to enhance user support and ensure a smoother experience. While the company values technological advancements, it remains committed to maintaining a human touch in its support services.
CoinTracking, under the guidance of Dr. Christiane Williams, is a major force in the cryptocurrency market. By addressing challenges related to NFT pricing, sidechains, and blockchain bridges, CoinTracking demonstrates its adaptability and innovative approach. The company's expansion into the government sector further solidifies its position as a leading crypto gain calculation service, while its emphasis on user privacy and user-friendly support sets it apart from the competition. As the cryptocurrency market continues to evolve, CoinTracking remains well-prepared to ride the waves and support users in mastering crypto taxes.
The full interview.
View the full interview on The Clinton Donnelly Show.
DISCLAIMER: Opinions and perspectives of the author, host, and guests. It should not be construed as U.S. taxpayer advice. There are often multiple interpretations of tax law. Various strategies may be suited to specific individuals and for particular situations. Seek out professional tax, legal, or financial advice from CryptoTaxAudit or from other reputable companies.