In this article, we will explain how to enter token migrations or token rebrandings in CoinTracking.
Token migration occurs, when tokens move from one blockchain to another. It happens for reasons like improving technology, rebranding, or changing project direction. Holders swap old tokens for new ones during this process.
Additionally, to entering standard token migrations, we'll explain how to enter token migrations with different ratios.
Important: When entering migration transactions in CoinTracking, you have two transaction types available: "Swap" and "Trade".
For a non-taxable event, use the transaction type "Swap". For a taxable event, use the transaction type "Trade".
The decision on whether to use the Trade or Swap transaction type should be made in consultation with a tax advisor.
This article is divided into three sections:
1) Entering a migration with the transaction type "Swap"
2) Entering a migration with the transaction type "Trade"
3) Entering a migration with different ratios
4) Migration List
Please be aware, that all tokens before the official migration need to carry the old token ticker, and all tokens after the migration the new ticker. The new coin might have been deposited into your account with the transaction type Income, Airdrop or Deposit. In such cases, the transaction type needs to be changed into swap or trade.
Example of how transactions are correctly entered after a migration (Migration from GNT to GLM):
1) Entering a migration with transaction type "Swap"
To avoid capital gains or losses, as well as a restart of holding periods, we recommend using the transaction type "Swap". This will classify the operation as tax-free and transfer the cost base as well as the holding period to the new coin.
Example of Golem token (formerly GNT, migrated to GLM) migration using "Swap" as transaction type:
To enter a Swap, go to Transactions -> "New" and select "Swap (non-taxable)":
Add your transaction details and click on "Update".
2) Entering a migration with the transaction type "Trade"
If it's a taxable transaction, the transaction type "Trade" should be used. By using the transaction type "Trade" the holding periods will be restarted. Furthermore, your old coin gets removed from your purchase pool and the tax relevant value difference between its purchase and sale values gets calculated. The new coin begins its holding period on the day of the trade and adopts the asset value from that day.
Example of Golem token migration using "Trade" as transaction type:
To enter a Trade, go to Transactions -> "New" and select "Trade":
Add your transaction details and click on "Update".
3) Entering a migration with different ratios
Sometimes the ratio between your old and new tokens may change during a migration.
For example: The BitTorrent token (formerly BTT2) has migrated to the new ticker BTT4, with a 1:1000 ratio.
In this case, you need to adjust the amounts according to the migration ratio:
Trade:
Swap:
4) Migration List
Here you can see some known examples of migrations.
1. Please research before entering the migration to see if there was a specific ratio for the migration (see 3) Entering a Migration with Different Ratios).
2. You can check our tickers here to ensure that the correct tickers are used for the migration: Coin Trends
AGIX / OCEAN -> FET -> ASI
BTT2 -> BTT4
ERD -> EGLD3
RNDR ->RENDER
MATIC -> POL3
FTM -> S5