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Charles Hoskinson Criticizes US Crypto Taxation System, Mocking Crypto Projects with Dirty Titles

Sun, 01/02/2022 - 11:03
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Yuri Molchan
Cardano founder is criticizing the US system of taxing crypto, also mocking cryptocurrency projects with titles related to sex
Charles Hoskinson Criticizes US Crypto Taxation System, Mocking Crypto Projects with Dirty Titles
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Founder of IOG and the Cardano blockchain, Charles Hoskinson, has taken to Twitter to share his thoughts on the current US system of taxing crypto and posted a meme that mentions US Internal Revenue Service, crypto project CumRocket and “NFTittities”, as well as a potential rugpull that results in the loss of 90 percent of invested funds.

Tax deduction CumRocket profit gains invested in NFTitties

The meme contains a letter to the IRS from a tax payer who explains losing 90 percent of their crypto funds after earning 6,900 percent on staking $7,000 worth of CumRocket (a cryptocurrency project ranked 863 on the CoinMarketCap list), then investing the earnings in NFTitties (an NFT project that depicts women’s breasts) and then losing almost all of it after the devs made a rugpull, taking away their investors’ funds.

The question asked by the author of the letter in the meme is whether the IRS does mind deducting the gas fees for the minting and the balance from the tax on short term capital gains.

At the moment, according to a definition by the IRS, cryptocurrency is a taxable property. Investors are taxed on the difference between the price they buy and sell at. For crypto held less than one year, investors have to pay from 10 percent to 37 percent by regular marginal tax rates.

Related
Ethereum Co-Founder Vitalik Buterin Calls Bitcoin Cash a Failure

Hoskinson slams the crypto amendment in August 2021

In summer 2021, Hoskinson was one of the crypto industry leaders who was strongly against the tough crypto taxing initiative that a group of US senators attempted to pass. The goal was to collect $1 trillion, including more than $25 billion that the Senate was hoping to collect from crypto investors and traders.

The one trillion USD infrastructure bill was planned to be used to realize construction projects all over the United States.

John Lennon’s younger son Sean, known for his pro-crypto stance, supported Hoskinson in a series of tweets. Sean Ono Lennon back then tweeted that this bill would cripple progress in the crypto industry”.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.