Lukka Co-CEO Explains How Blockchain Data Saves on Taxes
Why is blockchain reference data important? How can it help save on taxes? Lukka co-CEO Robert Materazzi explains.
On July 30th, over thirty of crypto’s top minds gathered for the largest single-day livestream trading event of its kind. Nine star-studded panels included mainstream trading expert Jon Najarian, macro investors Mike Novogratz and Raoul Pal, and technical analysis specialists Erik Crown and Tone Vays, among many others. Head over to the Cointelegraph YouTube channel now to watch the full recording of Cointelegraph Crypto Traders Live!
The Cointelegraph Crypto Traders Live event was made possible by data company Lukka. Lukka focuses on processing blockchain and tokenized asset data to support normal business operations. Their website claims they are “the gold standard of digital asset data.” Lukka’s products range from DIY tax solutions and data valuations to a subscription-based digital asset content library.
Blockchain Data Simplified
During the livestream event, co-CEO Robert Materazzi gave a keynote presentation on how blockchain data can streamline business operations and save money on taxes. The presentation focused primarily on Lukka Reference Data and LukkaPrime, two of Lukka’s signature products. The usefulness of reference data quickly became apparent as Materazzi explained that there are no unique identifiers for crypto asset names/tickers. This means that exchanges, OTC desks, and other similar businesses can choose their ticker symbols. With over 6,000 cryptocurrencies now listed on CoinMarketCap, confusion seems almost inevitable. Lukka has therefore created a comprehensive master data set that maps entities, unique assets, and trading pairs. The total number of individual assets and trading pairs mapped is over 25,000 for both. Thus, the task of tracking assets across multiple independent entities is greatly simplified.
However, the complications don’t end there. Valuations of crypto trades can also get very messy because of “unique situations” that can arise during a crypto-to-crypto trade. Materazzi gives the example of a Bitcoin to Ethereum trade, where a fee for the trade is also denominated in a cryptocurrency. This information is essential when calculating the cost-basis for the trade — the value of the transaction at that point in time — which is used for tax and compliance purposes. This is where LukkaPrime steps in to offer pricing valuations on such transactions so companies can adhere to appropriate financial reporting standards.
Watch the full presentation above for more information on how Lukka uses blockchain data to benefit businesses.
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