Echo is a platform that lets people invest in early stage startups and tokens. One of the most exciting use cases of crypto is enabling easy capital formation to invest in the next generation of companies.
To handle Echo investments inside of Awaken, there are a couple of ways to do it; we'll break down the two most common cases below.
Case 1: I invested and will receive a token in the future.
When you invest in Echo to receive a future token, you'll have a transaction that looks like you are just sending tokens (ex. -50,000 USDC). For transactions like this, you can label them as "Investment" using our labeling system.
You may then receive tokens in the future, and/or you may have them be vested to your wallet.
For the future transactions where you receive tokens, you'll want to do a few things:
Copy the transaction hash of the very first transaction you labeled "Investment"
In the notes of every transaction where you received tokens from that investment add both the hash and the date you received the tokens on.
Your notes on the transaction you received the tokens in should look something like this: "Received the tokens on April 1st, 2025. Purchased tokens on Jan 1st, 2025 (transaction hash: 0x0000...21).
Edit the cost basis of your tokens to the price you paid. Ex. if you paid 10,000 USDC and will get 1,000 tokens total. Each token will be $10. So for each transaction you received tokens in, multiply the amount received by $10 and edit the price to have that set.
Hover over the "More" option in Awaken, and edit the date to be the same date as your initial "Investment" transaction. That way your holding period will have the correct long/short term capital gains for when you sell the tokens.
Case 2: I invested and will receive equity in the future (SAFE to equity).
For this, you can label the transaction as an "Investment" in Awaken. And then when you receive equity at some point in the future (which won't be onchain), you'll have to prescribe the cost basis as the amount you spent originally. You may want to talk to a CPA about this to make sure your cost basis and purchase date are lined up with the date you sent the money onchain. The equity cost basis / taxes will happen outside of Awaken as it won't be equity in the form of cryptocurrency tokens.