Charles Hoskinson Criticizes the US Cryptocurrency Tax System, Implying Dirty Crypto Projects
Cardano’s creator is criticising the United States’ cryptocurrency taxation scheme, as well as insulting cryptocurrency projects with sex-related names.
Charles Hoskinson, founder of IOG and the Cardano blockchain, took to Twitter to express his views on the current US system for taxing cryptocurrency. He shared a meme referencing the US Internal Revenue Service, cryptocurrency project CumRocket, and “NFTittities,” as well as a potential rugpull that results in the loss of 90% of invested funds.
CumRocket profit gains invested in NFTitties are tax-deductible.
The meme contains a letter to the IRS from a tax payer explaining how they lost 90% of their cryptocurrency funds after earning 6,900% on staking $7,000 worth of CumRocket (a cryptocurrency project ranked 863 on CoinMarketCap), investing the earnings in NFTitties (an NFT project depicting women’s breasts), and then losing almost all of it after the devs pulled a rug on their investors.
The author of the letter in the meme inquires if the IRS has any objection to deducting the minting fees and the remainder from the tax on short term capital gains.
At the present, Bitcoin is considered taxable property by the IRS. Investors are taxed on the difference in price between their purchase and sale. For cryptocurrency kept less than a year, investors must pay between 10% and 37% in standard marginal tax rates.
In summer 2021, Hoskinson was one of the crypto industry’s heavyweights who spoke out vehemently against a stringent crypto taxation effort proposed by a group of US senators. The objective was to gather $1 trillion, which included more than $25 billion from cryptocurrency investors and dealers.
The trillion-dollar infrastructure bill was intended to fund building projects around the United States. Sean Lennon, John Lennon’s younger son, praised Hoskinson in a series of tweets. Sean Ono Lennon previously said on Twitter that “this measure will stymie advancement in the cryptocurrency business.”
Wallets