- Why is my wrapped token not listed on ACCOINTING.com?
- How do I get the value of my wrapped token if it’s not available?
If you’ve ever had any of these questions, this article is for you. In this article, we will go over what pegged/wrapped tokens are, and how to get their proper value.
Pegged/Wrapped Tokens Explained
Before we start, let’s first learn about the differences between those terms.
- Pegged Token – is an asset that has its value linked to any other asset, crypto or not. An example of a pegged asset would be USDT, a token that is linked to the value of the US Dollar.
- Wrapped Token – is an asset that is linked to another crypto asset on a different blockchain. An example of a wrapped token would be BUSD-T, which is a pegged version of USDT on the Binance network.
So, as we can see, they are similar, but wrapped tokens can contain pegged tokens. CoinMarketCap might not list these kinds of tokens. Therefore, if CoinMarketCap doesn’t list them, our platform won’t either. Because of this, we will need to learn how to manage the missing tokens.
Keep In Mind
If the value of the Pegged/Wrapped Token is not the same value, you will need to follow this guide instead.
Classifying The Token
Tax laws and regulations regarding Crypto income and transactions are still being established.
There are a lot of grey areas in regard to classifying transactions and income types.
Therefore, it is up to the user to classify as they want, depending on how they chose to treat this kind of transaction.
Tax Stance #1: They are different coins (Taxable Transactions)
If you take this stance, then the coin is not on CoinMarketCap, then you will need to leave it as it is and then manually put in the value of it whenever you trade it in Accointing. Here is an article with more explanation.
Tax Stance #2: It is the same coin (Nontaxable Transactions)
When looking at pegged and wrapped tokens, we always know that their value is going to be the same as the original asset. Because of this, we can classify it as the original, if they’re based on an asset we support. To do so, we would just need to go to the “Unknown Currencies” section of our web app. Once there, look for the missing token, and classify it as the original. The following example shows what this would look like.
Example of an Polygon Wrapped version of ETH being classified as ETH
We can do this in the example because, as we said earlier, they based the value of Wrapped Ether on the Polygon Network as the same value of just normal ETH. Because of this, their value is the same and can be synced.
In summary, a pegged token is an asset that has its value linked to any other asset. A wrapped token is an asset that is linked to another token and made to work on a different blockchain. In either case, if they based the token in question on another token on our platform, then classify it as the one that is supported.