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Q: What is wrapping a treatment?
🅰️: Wrapping treatment involves converting a digital asset from one blockchain into a compatible token on another blockchain. This process allows the asset to be used within a different blockchain ecosystem while maintaining its original value.
For example, Ether (ETH), the native cryptocurrency of the Ethereum network, can be wrapped into Wrapped Ether (WETH). WETH is an ERC-20 token that can be used in decentralized applications (dApps) and decentralized finance (DeFi) platforms on the Ethereum network. For more information on wrapping treatment see: Bitwave Documentation on Wrapping Treatments
Q: What is Solana Associated Token Account program and how to validate these ATA balances ?
🅰️
The SOL balances in Bitwave tend to be higher than of onchain balance, it is due to ATA ( Associate token program), The cost of an Associated Token Account (ATA) on Solana includes an initial fee.When an ATA is created, the System Program transfers 0.00203928 SOL to the ATA. This amount is deducted from the account that initiates the transaction.
Here's a quick way to validate solana balances against the blockchain.
Grab bitwave SOL balance, subtract on chain solscan balance.
Go to 'token accounts' and multiple the number of token accounts by 0.00203928 (a fixed fee).
Q: Why does a transaction show a $0 FMV even though it involves a token with a known price?
🅰️:
If the transaction amount is zero, the Fair Market Value (FMV) will also be zero, regardless of token price. Ensure the amount field is correctly populated in the import.
Q: Why is Bitwave applying $0 cost basis to some transactions when using FIFO?
🅰️:
A $0 cost basis might be applied due to how staking rewards or imports are recorded. If these tokens are treated as "created property," they enter inventory with $0 cost basis, and FIFO will pick them first. Check your inventory lots to verify.
Q: Why are USDC transactions in Bitwave showing incorrect exchange rates, like $1.53?
🅰️:
This issue can occur due to a data or syncing error within Bitwave. USDC is generally a stablecoin pegged to $1, so significantly different exchange rates suggest a bug. Bitwave’s engineering team has investigated similar reports, and manual correction steps may be necessary until a permanent fix is released.
Q: What is “trade” and when should it be applied in Bitwave?
🅰️:
Trade treatment is used when a transaction behaves like a trade or exchange, especially when wrapping or converting tokens across blockchains. Applying trade treatment helps Bitwave process the transaction correctly for valuation and inventory updates.
Q: Why am I not getting fair market value when I restake the tokens.
🅰️:
This may occur if Bitwave has not yet integrated pricing for the restaked token. In such cases, you can request pricing by providing the token’s name, contract address, and pricing source (e.g., CoinGecko). Once added, Bitwave can calculate accurate fair market value for restaking events.
Q: How does Bitwave handle staking and mining rewards with a $0 cost basis?
🅰️:
If you're deferring income on staking/mining rewards and treating them as created property, you can upload rewards via CSV and set the cost to $0. This creates tax lots with zero cost basis, deferring gain until sale. Bitwave's CSV import supports custom cost inputs for this purpose.
Q: Can I adjust the value of a token disposed of during a trade in Bitwave?
🅰️:
Yes, to adjust the proceeds or FMV of the asset received in a trade, uncategorize the transaction, then use the pencil icon to change the using rate before recategorizing and saving it. This ensures gain/loss is calculated based on the received asset's value, not the disposed asset.
Q: Can I simulate a hypothetical liquidation scenario (e.g., sell $1M of crypto using FIFO) in Bitwave?
🅰️:
Yes, Bitwave's Gain/Loss tool allows for simulation of hypothetical liquidation scenarios using FIFO or other accounting methods. Ensure your transactions are categorized and inventory is accurate. If the report fails to generate, check for errors like missing cost basis or incomplete data.
Q: How Bitwave handles NFT acquisitions and disposals (e.g., as trades for crypto like ETH), and NFTs are marked to market using floor price or another method?
🅰️:
Since there is no reliable real-time pricing source for NFTs, Bitwave determines fair market value (FMV) based on actual trades — either acquisitions or disposals involving another token.
For example, if an NFT is acquired for 1 ETH (valued at $1,200 at the time), the FMV shown in the inventory view will be $1,200, which matches the cost basis. If the NFT is later disposed of for 2,000 USDC, Bitwave would reflect an $800 gain.
The FMV displayed on the inventory views dashboard is based on cost basis only, and not marked to market using floor prices or other data sources.
