Discounted Crypto purchase + 10,000x swap

Tax Questions
#1

Two questions in order to wrap up my taxes after a lot of effort, but thanks to Koinly it was actually possible. Thanks in advance for your help.

  1. I purchased discounted crypto with a USD stablecoin from a protocol team in order to help ensure liquidity when the protocol executed a token swap (i.e. burned a retiring token to provide users with a new token/ticker at 10,000x). Do I need to report the discounted purchase as a gain since the crypto had a higher market price then what I paid for it?

  2. I participated in the aforementioned token swap where the initial token I purchased was burned and I was given 10,000x newly minted tokens (new ticker) in the protocol changeover. The market price was much higher when I swapped then when I bought. I have the ability to label this a swap and it does not result in a gain. I am just not sure if I am supposed to consider this a gain. The gain would drive me from an overall loss position to an overall gain position. I read that this type of exchange should not be taxable, but there is no clear guidance, and it seemed even more up in the air if the exchange is at a multiple vs. 1:1.

#2

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