TL;DR
Polkadot (DOT) and Elrond (ERD) underwent reverse splits. You need to enter these changes as SWAP (non taxable) transactions in CoinTracking. Use DOT → DOT2 at 1:100 for Polkadot and ERD → EGLD at 1:1000 for Elrond.
What happened during the DOT and ERD swaps?
Polkadot and Elrond executed reverse splits:
Polkadot: 1 DOT became 100 new DOT2
Elrond: 1,000 ERD became 1 EGLD
These swaps also divided the price by the same ratio. Some exchanges (like Binance) incorrectly imported these changes as INTEREST transactions.
How to properly enter or correct these swaps in CoinTracking
Step 1: Ensure correct tickers before the swap
All coins acquired before the swap should have the original ticker:
Use DOT for Polkadot
Use ERD for Elrond
This ensures the asset value is calculated accurately.
Step 2: Enter the SWAP (non taxable) transaction
On the day you received the new coins:
For DOT → DOT2: Enter a swap from 1 DOT → 100 DOT2
For ERD → EGLD: Enter a swap from 1,000 ERD → 1 EGLD
Dates may vary depending on your exchange:
Example: Binance applied the Polkadot swap on August 18, 2020
Smaller exchanges may show this as August 20, 2020
If your account shows INTEREST for this swap:
Go to the Transactions page
Find and Edit the transaction
Change the type from INTEREST to SWAP
Example:
You owned 100 DOT → Enter a SWAP for 100 DOT → 10,000 DOT2
Step 3: Ensure correct tickers after the swap
All coins acquired after the swap should have the updated ticker:
Use DOT2 for Polkadot
Use EGLD for Elrond
Why use SWAP and not INTEREST?
A SWAP retains your holding period and avoids misclassifying the event as income.
An INTEREST transaction could incorrectly trigger a taxable event.
Disclaimer: Please note that we are not tax advisors and are therefore not permitted to provide tax advice. The information contained here is for general information and technical support in using the CoinTracking software only. It does not constitute tax or legal advice. Please contact a qualified tax advisor with any tax questions.