TokenOwl

TL;DR: TokenOwl modernizes tax reporting for a new generation of crypto traders. DeFi users and high-volume memecoin flippers can now use an AI assistant to calculate taxes with greater accuracy and find trends in their trade history.

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Hey everyone, we’re Colin and Amith. We’re building TokenOwl to save traders time and money. 💰

The problem:

Current crypto tax software solutions work fine for traditional buy-and-hold crypto users with dozens or hundreds of transactions per year, but they aren’t built for DeFi users and high-volume memecoin traders. They tend to mislabel these transactions which can lead to capital gains calculations being incorrect. The only way to fix such mistakes is for the user to spend hours–sometimes even days with enough transactions–troubleshooting their tax report. They also cost too much for users with thousands of transactions.
As the IRS increases scrutiny on digital assets, reporting crypto capital gains and income accurately will be crucial.

The culprit ($WIF):

Our solution:

LLMs are really good at processing large amounts of nuanced data (like complex DeFi transactions). We are building a solution that leverages LLMs to reduce breakage when generating tax reports and minimize the time spent on troubleshooting/understanding transaction logs. Users can also query their logs directly with natural language, to unlock new possibilities in analysis and review. This makes for a smooth experience for both experienced traders and occasional investors who need help parsing their portfolios.

Why now:

Users migrating to low fee chains like Solana and Ethereum L2s means way more people are trading at high volumes. Solana DEX volume alone has consistently been $2-3B daily in recent weeks. These traders are going to have a very tough time sorting this out with existing solutions (not to mention paying hundreds to thousands of dollars). The next million crypto users will look more like these DeFi farmers and rapid memecoin flippers than Bitcoin hodlers. They need a new way to calculate taxes and understand their portfolio.

How it works:

Connect your wallets and exchanges just as you would with a traditional tax reporting solution. You can then immediately start asking our AI assistant questions in natural language. This can be anything from reconciliation for tax purposes (“Is the transaction on June 12th where I provided ETH and USDC to a liquidity pool not considered a taxable event?”) to higher level understanding of your portfolio (“Why was June such an outlier for my capital gains?”). Once everything looks good, you can export your tax summary for TurboTax.

About us:

Colin was previously a technical lead at IncQuery. He studied decentralized finance under economist Cam Harvey at Duke.

Amith was previously at UChicago pursuing a Master’s in computer science, and a developer at Amazon before that.

Having traded crypto at high volume personally, we’ve dreaded tax season every year because of all the manual review it entails. We are building this to enable compliance for DeFi users, high-volume traders, new investors, and even businesses that want to explore managing their finances in DeFi responsibly.

Our ask:

Have you traded crypto on-chain? We’d love to help you save time and money on your crypto tax reporting. Sign up for early access at tokenowl.ai or contact us at founders@tokenowl.ai.