The Crypto Investors Protection Fund (CIPF) has been established with an INR 50 crore allocation, according to the announcement made by the Indian cryptocurrency exchange CoinDCX.
The business claims that in the exceedingly unlikely event of a security breach or other unfavorable occurrence, users will be compensated by the fund.
As stated in the release, a governance framework has been established to guarantee effective administration and transparency about the CIPF’s credit and usage.
Adding an Extra Layer of Security
Sumit Gupta, one of the co-founders of CoinDCX, stated that the company places a high focus on privacy and safety.
According to him, the company makes significant investments in “top-notch” security standards and adheres to stringent security measures to guarantee that the assets of our customers are safeguarded round-the-clock.
“The assets under management at CoinDCX are diversified across multiple vaults ensuring an added layer of security,” he further explained.
Wazirx’s Security Breach on the Backdrop
A significant security data breach occurred at the Indian cryptocurrency exchange WazirX a few weeks ago, which led to the theft of around $235 million worth of cryptocurrency assets. This new development comes after the incident occurred.
Subsequently, Cyfirma, which is based in the United States, discovered that the North Korean cyber outfit Lazarus outfit was responsible for this large crime.
From that point forward, the organization has been making efforts to retrieve the stolen assets; nevertheless, they have not been successful up to this day. WazirX had intended to socialize losses among users, however, they ultimately decided to abandon this strategy after receiving a significant amount of criticism from clients and the cryptocurrency community.
At this time, the company is looking for a capital injection and is collaborating with several authorities to retrieve a percentage of the funds that were lost by the clients.
As a further comment on the reasons behind the establishment of the CIPF, Sumit stated, “In the extremely unlikely event of a security breach or an adverse event, this dedicated fund will provide an additional layer of protection, ensuring that our customers’ assets remain secure and intact regardless of the circumstances.” In addition to growing the size of the pool over time, we have committed to contributing 2% of the broking income to the corpus.
“The size of the fund will continue to be monitored, and we will make sure that the balance is kept at a level that is sufficient to protect the assets of our users.” In addition, he stated that the CIPF will be the first of its kind and a crucial step towards establishing trust in the Indian cryptocurrency ecosystem over the long run.
The U.S. government recently imposed a substantial $4 billion fine on Binance, the world’s largest cryptocurrency exchange. This penalty was a consequence of confirmed serious protocol failures, including frequent violations of U.S. sanctions. Binance’s CEO, Changpeng Zhao, a prominent figure in the crypto industry, resigned on November 22 in the wake of these developments.
Binance – Changpeng Zhao (Founder and Ex-CEO), Richard Teng (Current CEO)
The cryptocurrency market, highly sensitive to even minor disruptions, was rattled by this news, impacting thousands of traders worldwide who utilize Binance for their crypto transactions, whether legally or not.
Changpeng Zhao attributed his resignation to acknowledging “mistakes” and acting in the best interest of the company. In Seattle, he pleaded guilty to violating the Bank Secrecy Act and agreed to a $50 million fine as part of a legal arrangement. In his statement on November 22, Zhao expressed the emotional difficulty of stepping down but emphasized its necessity for the community, Binance, and himself.
Richard Teng, formerly Binance’s Global Head of Regional Markets, was appointed as the new CEO. Zhao highlighted Teng’s extensive 30-year financial services and regulatory experience in Abu Dhabi and Singapore.
Despite stepping down, Zhao will remain a Binance shareholder, retaining significant influence over the company he founded in 2017. He plans to focus on Decentralized Finance (DeFi), potentially mentoring aspiring entrepreneurs and taking a break to spend time with his family.
Binance’s Legal Woes: A Closer Look at Charges
Binance faced charges for failing to maintain an effective anti-money laundering program, operating an unlicensed money-transmitting business, and violating the International Emergency Economic Powers Act. U.S. Treasury Secretary Janet Yellen revealed that Binance did not report suspicious transactions, allowing illicit actors involved in criminal activities, including terrorism, to transact freely on the platform. The settlement agreement with the Treasury’s Financial Crimes Enforcement Network and the Office of Foreign Assets Control imposed a total penalty exceeding $4 billion, marking it as the largest enforcement action in the Treasury’s history.
Binance has encountered various legal and compliance challenges across multiple countries, navigating them under Zhao’s bold leadership. The company has often proclaimed its commitment to regulatory support while disengaging from jurisdictions attempting to regulate or investigate its operations. Nevertheless, the U.S. Treasury accused Binance of falsely claiming its exit from the U.S. years ago and maintaining connections with the country, including retaining U.S. users.
In June of this year, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance, alleging the commingling and diversion of customer assets to a third party linked with Zhao. The exchange was accused of violating federal securities laws by “illegally conducting unregistered offers and sales of securities to U.S. investors.”
The impact on crypto investors and the sector is significant. While U.S.-based individuals are now prohibited from using the Binance platform, the enforcement of this policy under the next CEO remains uncertain. Binance has been instructed to entirely withdraw from the country and will be closely monitored moving forward. The native cryptocurrency of the BNB blockchain ecosystem, BNB, experienced a more than 10% decline to approximately $234 following Zhao’s resignation but began a gradual recovery.
As regulatory pressure on crypto exchanges serving U.S. customers increases, these platforms may choose to comply with the country’s registration requirements, even if only on paper, or opt for a complete exit. Some exchanges may attempt to evade legal action by establishing headquarters in foreign tax havens. For crypto investors seeking to avoid monitoring by centralized authorities or the U.S. government, the riskier DeFi route or transactions through non-regulated decentralized exchanges (DEXs) could be explored.
In a noteworthy turn of events, Zhao, in December of the previous year, publicly criticized the collapse of the FTX crypto exchange led by Sam Bankman-Fried. Zhao drew attention to the alleged “reprehensible misuse of customer funds” at FTX. However, almost a year later, he issued an apology for his own actions and stepped away from Binance, a crypto exchange facing severe condemnation from U.S. regulators for criminal practices. This serves as another example of how swiftly the illusion of stability can fracture within the volatile crypto sector.
Indian Minister’s Lesson and Government Skepticism
As Changpeng Zhao (CZ) stepped down from his role as the chief executive of Binance, the Union Minister of State for Electronics and Information Technology, Rajeev Chandrashekhar, highlighted a crucial lesson to be gleaned from the situations involving Binance, FTX, and other crypto companies.
In a statement on X, the minister emphasized that utilizing new technology to break the law does not categorize one as a disrupter; rather, it designates them as a criminal. He added that the skeptical stance of the current government towards crypto speculation has safeguarded countless Indians from potential crypto meltdowns and losses.
The legal action against Binance unfolded nearly a year after another major exchange, FTX, faced a meltdown, resulting in significant losses for crypto investors globally. Investigations by the Department of Justice and other authorities in the US and various jurisdictions had probed Binance for years over alleged malpractices and violations of local financial laws. On Tuesday, a US court charged Binance with violations of anti-money laundering and sanctions laws, imposing a hefty settlement of $4.3 billion, marking one of the largest settlements in the country.
As part of the deal, CZ will individually pay $50 million and step down as CEO after being found guilty of violating the Bank Secrecy Act in a Seattle court. Binance was additionally accused of lacking a proper anti-money laundering program, running an unlicensed money-transmitting business, and violating sanctions laws, as detailed in court filings. The minister’s tweet, coupled with India’s already cautious stance on the cryptocurrency class, hints at potential upheaval in the domestic market, according to industry insiders.
Indian Crypto Landscape: Regulatory Scrutiny and Investor Shift
Taxation on Cryptocurrency Explained
Unocoin’s co-founder and CEO, Sathvik Vishwanath, noted that CZ’s resignation and the anti-money laundering violations might heighten regulatory scrutiny of crypto activities in India, prompting authorities to reevaluate and strengthen the regulatory framework. This, in turn, could increase compliance pressure on domestic stock exchanges in India. Sumit Gupta, co-founder and CEO of CoinDCX, added that the impact on Indian investors could be significant, given that many have shifted to foreign exchanges like Binance for trading, especially following the implementation of a 30% capital gains tax and 1% tax deducted at source by the Indian government last year. A recent study by the ESYA center revealed a notable shift of 3-5 million Indians and over 90% of the traffic to offshore exchanges.
Manhar Garegrat, the Country Head for India and Global Partnerships at Liminal, a platform specializing in wallet infrastructure and custody solutions, remarked on the departure of Zhao, the CEO of Binance. According to Garegrat, this marks a crucial moment in the global crypto landscape, signifying a shift towards enhanced transparency and a commitment to regulatory compliance.
As the predominant offshore digital assets exchange, Binance has been under intense regulatory scrutiny in various jurisdictions, particularly in the United States. The decision of CZ to step down and pass the CEO baton to Richard Teng serves as a clear indication that Binance is taking these regulatory concerns seriously. The exchange is demonstrating its commitment to collaborating with regulators to establish a more compliant operational framework.
This strategic move is positive for Binance and the entire crypto industry, showcasing that even the largest and most influential players are accountable to the law. It is expected to inspire other exchanges to follow suit, contributing to the legitimization of the crypto space and paving the way for broader adoption. Furthermore, Zhao’s departure is likely to address concerns about the leadership structure within Binance. By entrusting leadership to a new figure, Binance is signaling its dedication to a balanced leadership approach, not relying solely on any individual.
Shivam Thakral, the CEO of BuyUcoin, India’s second-longest-running digital asset exchange, reported that the crypto market has rebounded following the recent regulatory actions against Binance, aligning with the overall recovery of the crypto market. In the immediate aftermath of CZ’s (Changpeng Zhao) announcement of stepping down, the digital asset market experienced a significant downturn, with the overall crypto market cap dropping below the $1.4 trillion mark. However, the market has since recouped most of its losses, spearheaded by BTC and ETH, leading to the crypto market cap swelling to $1.42 trillion.
Looking forward, the change in leadership at Binance has the potential to bring a fresh management perspective, guiding the crypto giant toward a more mature phase of growth. Nevertheless, short-term market volatility is anticipated as traders closely monitor the unfolding developments between Binance and the Department of Justice (DOJ).
Global Crypto Landscape: Maturation and Accountability
Richard Teng, the newly appointed CEO of Binance, boasts an impeccable track record in financial services and regulatory compliance. His expertise positions him well to assist Binance in addressing regulatory issues and fostering a more compliant environment within the organization.
In summary, this event holds significant weight for the global crypto landscape, signifying the industry’s maturation and a growing sense of accountability to stakeholders. This positive development is anticipated to result in increased transparency, heightened regulatory compliance, and a more widespread adoption of digital assets.
FAQs
Is Binance under threat?
Yes, Binance faces several threats, including regulatory scrutiny, legal challenges, and stiff competition from other cryptocurrency exchanges.
Did the owner of Binance lose money?
Binance is set to pay $4.3 billion in one of the largest corporate deals in US history. As part of the deal, Zhao will pay a $50 million fine and step down as CEO.
What is the biggest risk in crypto?
The biggest risk in crypto is its volatility and regulatory uncertainties. Cryptocurrency prices can fluctuate wildly, and there is no guarantee that they will always go up.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations.
Indians are slowly and steadily considering Cryptocurrency as a safe mode of investment. Mostly the younger generation is taking interest in Cryptos. According to some reports, the average age of crypto investors in India is around 24 years. However, there are still many speculations about crypto trading and many investors are not comfortable with Crypto trading still. This is why the Bangalore-based startup, CoinSwitch Kuber was formed in 2017 to make crypto trading simpler for Indian Investors.
The startup enables trading in several cryptocurrencies, including Bitcoin, Ripple, Ethereum, Litecoin, Dash, and many others, using INR. You just need to download the CoinSwitch Kuber iOS or android app and start trading. In this StartupTalky article, we are exploring more about CoinSwitch Kuber, the story behind the startup, and what the startup is offering, which includes CoinSwitch Kuber website, CoinSwitch Kuber reviews, CoinSwitch Kuber deposit, CoinSwitch Kuber investors, CoinSwitch Kuber login, CoinSwitch Kuber fees, and how it is growing!
CoinSwitch Kuber is a cryptocurrency trading platform that aims to simplify investing in cryptocurrencies. CoinSwitch Kuber aggregates liquidity across major Indian and global crypto exchanges. The platform’s order matching engine provides the traders the best rates at the click of a button, thus making trading simpler than ever.
“We discovered that the price of crypto swings between exchanges based on supply and demand when trading in crypto ourselves. Choosing the correct exchange is crucial if you want to obtain greater profits from the market. “We created an aggregator of various exchanges that offered us real-time data on which exchange is the best to trade at any particular instant to obtain the highest return,” co-founder Ashish says explaining the idea behind the startup
CoinSwitch Kuber lets users trade across 100+ cryptocurrencies. Users can buy cryptocurrency using a credit or debit card at competitive prices on the CoinSwitch platform. After completing the KYC/AML processes, customers may use the pooled liquidity of India’s top exchanges to receive the best rate and trade instantly.
The CoinSwitch Kuber mobile app comes with a simple user interface that makes crypto trading a breeze.
While customers from over 200 locations in India invest in crypto through its platform, tier I cities account for 40% of its users, while tier II (36%) and tier III (24%) make up the majority of its clientele. On CoinSwitch, the average ticket size per user is 9,000 per month, however, this varies by city. The average ticket size in Tier I is Rs 11,600, compared to Rs 6,600 in tier II and Rs 3,500 in tier III.
What’s interesting or concerning, depending on one’s perspective, is that the average age of a crypto investor on CoinSwitch is 24 years, and Singhal claims that crypto is the first investment in any asset class for 65% of his customers outside of savings bank accounts and fixed deposits!
CoinSwitch Kuber’s tagline says, “Buy, Sell, Trade.” CoinSwitch Kuber has launched a new campaign with the catchphrase “Trade Kar, Befikar.”
CoinSwitch Kuber – Founders and Team
CoinSwitch Kuber was founded by Vimal Sagar Tiwari, Govind Soni, and Ashish Singhal in 2017.
Founders of CoinSwitch Kuber
Ashish Singhal
Ashish Singhal is the Co-founder and CEO of CoinSwitch Kuber. Former Amazon employee who interned at Microsoft, Ashish Singhal, is a computer science graduate from Delhi’s Netaji Subhas Institute of Technology. Besides handling various technical roles in companies like Livspace.com and Reap Benefit, Ashish founded startups like CRUXPay (an open-source protocol for blockchain naming services) and Urban Tailor, which is the first of its kind at home tailoring services. He left the position at Urban Tailor in September 2016, but continued with CRUXPay, before stepping down from that too in April 2020.
Govind Soni
CoinSwitch Kuber Co-founder and CTO,Govind Soni was also a former Amazon and Livspace employee. Besides CoinSwitch Kuber, Govind co-founded CRUXPay along with Ashish and Vimal. Soni was also a student of the same college as Ashish, where he studied Computer Engineering, and served as the Co-founder and CTO also at CRUXPay, before stepping down from it in January 2021.
Vimal Sagar Tiwari
CoinSwitch’s Co-Founder and Chief Operating Officer (COO), Vimal Sagar, worked with organizations like Zynga and Accenture. He graduated from the Jaypee University of Information Technology. Vimal is also a Co-founder of CRUXPay, and is still retaining the positions of Co-founder and COO at CRUXPay.
The CFO, CBO, and SVP quit their roles to start up a new initiative that will offer insights to web3 investors. Sarmad Nazki, Sharan Nair, and Krishna Hegde of CoinSwitch Kuber haven’t finalised the name of the startup yet, as per news dated July 8, 2022. Nazki has served in the position for a little more than a year. Nair joined CoinSwitch Kuber just after the company was launched in 2017, and held numerous positions during his long stint, whereas Hegde joined the unicorn crypto company in September 2021. CoinSwitch Kuber confirmed that the positions of CFO, CBO, and SVP will be taken up by Ramesh Bafna, Rishav Dev, and R Ventakesh. The trio has already been talking to Web3 focused-investors to raise a seed round ahead.
The CoinSwitch Kuber team has an employee count that somewhere ranges between 501-1000, as per its Linkedin profile.
The origin of CoinSwitch Kuber can be traced to the realisation of Govind, Vimal and Ashish, all of whom were computer engineers and friends, when they discovered that the price of cryptocurrency is dynamic. It varied slightly across all the prominent crypto exchanges, based on the demand and supply. Therefore, they thought that if the users wanted to get better returns from the market, especially when it comes to scale, they needed to choose a good cryptocurrency exchange. This is what made them decide to create an aggregator of crypto exchanges. Here, their main aim was to provide real-time data on the best prices and exchanges for cryptocurrencies to be traded.
Ashish, Govind, and Vimal, who are all in their early thirties, have been friends since their college days when Ashish and Govind were batchmates, and Vimal was a mutual friend of theirs. They were also tech whizzes who competed in hackathons as a group. Almost every big hackathon in India was won by the trio, including the ones organised by Sequoia, Google, Amazon, and LinkedIn. Surprisingly, CoinSwitch was inspired by a hack that the trio subsequently made public.
On one occasion, the founders-to-be of CoinSwitch created a simple crypto exchange aggregator in a hackathon, but little did they know that the hack would later turn into a full-fledged company.
CoinSwitch Kuber was founded in 2017, and as soon as it launched, the startup started to take users on board at a rapid scale. The users “needed simplicity in the crypto world”, said Ashish, and this made the simple and intuitive nature of the product work. The only goal that the founders of CoinSwitch had while working on the product was to make crypto easy to understand and accessible to the masses.
However, soon after CoinSwitch was launched as a product, RBI’s announcement came, where the body signaled a ban on the cryptos by asking the banks to refrain from supporting these currencies in 2018. This made the founders take their product, which was then simply known as “CoinSwitch”, to the global market.
Eventually, Sequoia Capital backed their venture, thereby making the CoinSwitch foray into success. Though the platform turned successful indeed outside of India, the hearts of the CoinSwitch founders were set only on their country.
This turned real when Supreme Court intervened, overruling the previous RBI ban, thereby making it an open season for the crypto-based businesses like WazirX, ZebPay, CoinSwitch and more. This was more than a silver lining for them. They soon launched CoinSwitch Kuber app just for the Indian market.
CoinSwitch Kuber – Mission and Vision
The CoinSwitch Kuber team believes in financial inclusion, which means that wealth, investment, and financial education should be accessible to all people.
CoinSwitch Kuber’s mission statement says, “Our Mission is to challenge the status quo. We believe that our platform democratizes cryptocurrency investment so the everyday man can make his money work for him – without a fancy degree or a boatload of money.”
The company’s vision is to make crypto trading simple and transparent.
CoinSwitch Kuber – Partnerships
NDTV and CoinSwitch Kuber have established a strategic collaboration to provide comprehensive and best-in-class cryptocurrency programming in August 2021. NDTV will create unique crypto destinations on gadgets360.com, ndtvprofit.com, and ndtvindia.in as part of this relationship. This bridge expansion includes a refreshing show on NDTV 24X7 and NDTV India every other weekend.
The need for trustworthy and accurate information is more important than ever as cryptocurrencies become more mainstream and more individuals begin to evaluate this asset class. With NDTV’s credibility and confidence, as well as CoinSwitch Kuber’s subject expertise and powerful trading platform, this collaboration aims to bridge that gap.
CoinSwitch Kuber Partners with Startup Karnataka for Blockchain Hackathon
The Blockchain Hackathon, Building Future Cities, an initiative decided by Startup Karnataka of Karnataka government, and Tejasvi Surya, Bengaluru South MP, will also have CoinSwitch as its partner. This initiative is aimed to recognize blockchain-based solutions and bring them to the citizens from across the country, in order to dissolve the everyday problems they face. Sequoia India will also be backing this hackathon.
CoinSwitch Kuber – Business Model and Revenue Model
CoinSwitch Kuber is one of just a few cryptocurrency companies currently functioning. Users may acquire shards of various major cryptocurrencies on the crypto market. On CoinSwitch, for example, a user may buy bitcoin and other currencies in tiny sachets for as little as 100 Indian rupees ($1.30), which proves really profitable for the users. Besides, where other crypto exchanges came up with products for the traders who are acquainted with the order books, and are well-versed with buying/selling orders, CoinSwitch distinguished itself by targeting the users who hadn’t see an order book before, and wasn’t aware of what it was.
CoinSwitch Kuber presents itself as an aggregator and don’t charge the users, in contradiction to other crypto exchanges, which usually charge transaction fees from the users. CoinSwitch Kuber, instead, of a maker, negotiates with the crypto exchanges on transaction fees.
Speaking on the business and revenue model of CoinSwitch Kuber, Founder and CEO, Ashish Singhal said, “We give a fixed price to users and aggregate supply on the backend, Our execution engine is where the revenue comes from. But going forward, earning models may evolve as innovations and regulations come into play.”
CoinSwitch Kuber offers its users free trading, deposit, and withdrawal facilities for the first 100 days. After that, a fee is charged on each transaction made through the platform. As per the terms of the company, there is no fee for the transfer of digital assets to the CoinSwitch Kuber wallet, however, withdrawal of digital assets from the wallet may attract charges. The platform also charges for the transfer of fiat currency through credit/debit cards or net banking.
CoinSwitch Kuber – Growth and Revenue
CoinSwitch Kuber has managed to impress investors with its concept and performance. In addition to Tiger Global Management’s $25 million investment in April 2021, Sequoia Capital, Ribbit Capital, Paradigm, Kunal Shah, the creator of Cred, and others have backed CoinSwitch. With the recent fundingreceived from Andreessen Horowitz and Coinbase Ventures in October 2021, CoinSwitch Kuber reached Unicorn status with a valuation of $1.9 billion.
CoinSwitch Kuber boasts of witnessing the highest number of downloads among the crypto startups in India in 2021 when it was downloaded more than 6.1 mn times.
CoinSwitch Kuber is the most downloaded crypto exchange app in 2021downloaded
Ever since CoinSwitch was started and was taken global after the RBI ban, the company started seeing huge transactions through their app. Within just 2 years, CoinSwitch Kuber has seen more users onboard its app than any other crypto exchange in India. This growth has been mainly due to the simplified UX that the app brought in, and its decision to not provide the users with certain trading features.
Singhal points out that unlike other startups they did not knock on the investors’ doors.
“We did not reach out to Tiger Global for funding. They contacted us and expressed their willingness to invest in our company. Tiger doesn’t invest less than $100 million but we said we just need $25 million,” says Singhal.
Kuber claims to have over 15 million users in India, and the monthly active user count of CoinSwitch Kuber is over 7 million. It has also been disclosed that more than half of them are under the age of 25. CoinSwitch Kuber claims to have handled $5 billion in transactions in the last 11 months.
The firm intends to expand its operations outside cryptocurrency in the future.
“We intend to expand into traditional finance, such as equities, mutual funds, exchange-traded funds, and bonds, and provide a full portfolio on our platform to retail customers,” says the company.
“We are not a capex-intensive business, and don’t need too much money. Hence, our EBITDA margins are in the range of 60-65%,” reveals Singhal.
CoinSwitch Rolls Out the Web3 Discovery Fund
CoinSwitch has launched the Web3 Discovery Fund, which is a fund that will invest in and help incubate early-stage startups that are engaged in building blockchain solutions for the Web3 space. This Web3 startups funding initiative of CoinSwitch is currently aiming to help up to 100 Indian startups, as per the reports dated August 10, 2022. Ashish Singhal, the CoinSwitch Co-founder and CEO stated that the fund has already received an initial corpus of $10 mn and the company is further looking to raise some more funds from marquee investor partners ahead.
CoinSwitch: some of the major growth highlights are:
It has over 2 crore+ users as of February 2024
It is backed by some of the world’s leading investors including a16z, Tiger Global and Sequoia Capital India.
On November 22, 2023, CoinSwitch launched the multiexchange trading platform CoinSwitch Pro on November 22, 2023. This platform marks a significant advancement for cryptocurrency enthusiasts and traders. This cutting-edge platform not only provides users with a comprehensive view of multiple tokens across various exchanges but also empowers them to make informed decisions by comparing prices and selecting the most suitable options.
What sets this platform apart is its seamless functionality, allowing users to effortlessly trade crypto assets in INR across a multitude of exchanges, all through a single login. This streamlining of the trading process not only enhances the user experience but also signifies a pivotal step towards greater accessibility and user-friendliness within the cryptocurrency realm.
There is a variable transaction charge associated with using the cross-exchange platform, depending on the crypto exchange that is used. The CoinSwitch Pro platform stands out for its flexibility in serving various users and exchangers.
CoinSwitch Kuber – Funding and Investors
CoinSwitch Kuber has raised over $300 mn over 4 funding rounds. It is now counted among the unicorn startups of India, with a valuation of over $1.9 bn.
Date
Round
Amount
Lead Investors
October 6, 2021
Series C
$260M
Andreessen Horowitz, Coinbase Ventures
Apr 22, 2021
Series B
$22.7M
Tiger Global Management
Jan 13, 2021
Series A
$15M
Paradigm, Ribbit Capital
Mar 24, 2018
Seed Round
$1.5M
–
Andreessen Horowitz is a CoinSwitch Kuber investor, who invested for the first time ever in India in the $260 mn funding round of CoinSwitch, and was joined by Coinbase Inc., which turned CoinSwitch into a unicorn. Some other investors of CoinSwitch are Tiger Global, Paradigm, Ribbit Capital etc.
CoinSwitch Kuber – ESOPs
CoinSwitch Kuber recorded their first-ever ESOP buyback programme on March 21, 2022, worth $2.5 million. This buyback round was a mixture of funding that came from both the internal and external sources.
CoinSwitch Kuber – LayOffs
CoinSwitch in a recent move, has undertaken a strategic restructuring initiative, resulting in the reduction of its workforce by 8%. This decision translated to approximately 44 employees being laid off from various departments. Presently, CoinSwitch boasts a total workforce of 519 employees, as per their LinkedIn profile.
The impact of these layoffs has predominantly been felt within the customer support team, where the majority of the affected employees were stationed. While such decisions are often undertaken as part of broader efforts to optimize and realign company resources, they undoubtedly bring about significant transitions for both the organization and the employees involved.
In the official statement company spokesperson said, “we right-sized our customer support team to align with the present volume of customer queries on our platform. This impacted the roles of 44 members of our customer support team, who voluntarily resigned from their roles after a detailed discussion with their managers earlier this month.”
CoinSwitch Kuber – Competitors
To mention, the top 10 competitors of CoinSwitch Kuber are:
CoinSwitch Kuber employs over 120 people and has over 4.5 million users on its network. In comparison to other applications on the market, the app provides consumers with a clean UI and UX design. However, it was recently discovered that the app does not support UPI payments.
On April 21, 2021, the organization announced on all of its official social media accounts that INR deposits in the CoinSwitch Kuber App will be disabled. CoinSwitch Kuber said on Twitter that the firm has temporarily blocked all INR deposits owing to unforeseen problems with their banking partner. The issue was later resolved and now INR deposits are enabled.
Cryptocurrency is a murky area in India. Despite the legalization of crypto investments in India, there are many fears and doubts related to the topic. When it comes to difficulties, Ashish believes the company’s sole issue is teaching people in India about cryptocurrencies and the ecosystem.
CoinSwitch Kuber had got into trouble in association with the idea of lending feature with the SEC, and as a result, Ashish had to drop the idea. However, the founders still are of the opinion that they would be able to use the lending and stakes feature to utilise them for earning revenues in the future. They have already started working to make it possible by working with regulators and gaining their confidence.
As the trading of cryptocurrency lacks defined regulations, CoinSwitch Kuber temporarily paused crypto withdrawals.
CoinSwitch Received ED Notice in Association with FEMA investigation
CoinSwitch reportedly received a notice from the Enforcement Directorate (ED) along with some other cryptocurrency firms like CoinDCX in association with the Foreign Exchange Management Act (FEMA) investigation. Here, ED is determining whether or not these companies were engaged in offences related to foreign currencies. On this, CoinSwitch mentioned that it has received notifications from ED and is ready to comply with them, as per reports dated July 12, 2022.
CoinSwitch Kuber – Future Plans
CoinSwitch has revealed plans to build a cryptocurrency investment platform by June 2024 that is targeted at retail investors as per news report of March 11, 2024. Through the provision of user-centric technology, this program seeks to democratize access to digital asset trading and enable users to navigate investments with confidence.
FAQs
What does CoinSwitch Kuber do?
CoinSwitch Kuber is a crypto trading platform for individual investors that is available only in the Indian market via a mobile application. It enables trading in several cryptocurrencies, including Bitcoin, Ripple, Ethereum, Litecoin, Dash, and many others, using INR and is available as a mobile application (INR).
Unocoin, WazirX, CoinDCX, Instamojo, Glidera, ZebPay, SmartCoin, IPaxful, Bitxoxo Bitcoins, and Coinbase are the top ten competitors of CoinSwitch Kuber.
When was CoinSwitch Kuber founded?
CoinSwitch Kuber was founded in 2017.
Who founded CoinSwitch Kuber?
CoinSwitch Kuber was founded by Vimal Sagar Tiwari, Govind Soni, and Ashish Singhal in 2017.
What is the CoinSwitch Kuber website?
The CoinSwitch Kuber website is coinswitch.co
What are the CoinSwitch Kuber fees?
CoinSwitch Kuber doesn’t ask the users anything such as the CoinSwitch Kuber fees. It rather poses itself as an aggregator and negotiates with the crypto exchanges on transaction fees.
How is CoinSwitch Kuber login done?
The CoinSwitch Kuber login procedure is really easy where the users need to download the app of the company and then they need to first have an account to log in to the same, with the same login credentials.
What are CoinSwitch investors?
Some of the prominent CoinSwitch investors are Ribbit Capital, Andreessen Horowitz, Tiger Global, Coinbase Inc., Sequoia, Paradigm and others.
What was the CoinSwitch deposit issue?
CoinSwitch deposit of rupees was temporarily disabled, but it was fixed after 2 long weeks.
What is wrong with CoinSwitch Kuber withdrawals?
When it comes to CoinSwitch Kuber withdrawals, the company has announced that it has temporarily disabled the withdrawal of cryptocurrencies.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organisations. The content in this post has been approved by CoinDCX.
A massive increase in the number of internet users has reactivated virtual world concepts and spawned a new market phenomenon known as cryptocurrency to enable financial transactions such as purchasing, selling, and trading.
Cryptocurrencies are digital representations of precious and intangible objects that can be used in a variety of applications and networks, including online social networks, online social games, virtual worlds, and peer-to-peer networks.
In recent years, virtual currency has been widely used in a variety of schemes. It’s clear that cryptocurrencies are an important and rising element in today’s digital economy.
CoinDCX is a cryptocurrency trading site, which is famous as one of India’s biggest cryptocurrency exchanges. The company earned the unicorn status by raising $90 million on August 10, 2021, and turned into India’s first unicorn crypto startup.
Here we will delve deep into the CoinDCX company, where you will find all about CoinDCX, CoinDCX Founders, its Funding, Investors, Mission, Vision, Business and Revenue Model, Challenges Faced, Future Plans, and more. So, stay glued.
Billed as India’s largest and safest cryptocurrency exchange platform, CoinDCX allows users to legally exchange various cryptocurrencies. It is built for all types of traders, taking into account their trading background, risk tolerance, and trading frequency, allowing customers to trade their crypto assets according to their requirements.
CoinDCX is a company that is working on a cryptocurrency trading network. The business is focused on developing cross-border financial services that ensure a smooth and continuous flow of resources. The trading experience is quick, reliable, and effortless thanks to its liquidity, powerful wallet, and impenetrable protection. CoinDCX has given its traders access to a variety of industry-first products that enable them to trade using exchange liquidity.
Currently, CoinDCX Go offers a range of tokens in INR pairs such as Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Binance Coin (BNB), Chainlink (LINK), EOS (EOS), Tether (USDT), Cardano (ADA), Stellar Lumens (XLM), Ripple (XRP), Basic Attention Token (BAT), Matic Network (MATIC), Tron (TRX) etc.
CoinDCX announced its 3rd birthday on April 7, 2021. Three years ago, CoinDCX has begun an exciting journey of providing cryptocurrency trading and exchange services to the general public. The Reserve Bank of India (RBI) declared a banking ban for cryptocurrency and related entities around the same time. In addition, India’s crypto industry was in desperate need of a shake-up. It was enough to keep the momentum going, and CoinDCX began with a single goal in mind: ‘Cryptocurrency Adoption.‘
The services of CoinDCX are tailored to fit all styles of traders, taking into account their trading history, risk tolerance, and frequency of trading. The company’s mission is to democratise finance and make investing more accessible to the general public.
CoinDCX announced the launch of CoinDCX Go app on January 20, 2021. A future Bitcoin app that allows users to legally purchase Bitcoin and other common cryptocurrencies with a single click, CoinDCX Go stands as a simple, safe, and secure method to invest in cryptocurrencies.
CoinDCX – Industry
CoinDCX is a part of the cryptocurrency industry, which is growing at an unimaginable pace across the globe. Looking at the global cryptocurrency industry, we can discover that it reached a valuation of $1,782 billion in 2021. The same sector is predicted to grow at a CAGR of 58.4% and will reach $32,420 billion by 2027. While looking at the growth of cryptocurrency in India, the same industry is inching to touch a valuation of $241 million by 2030, as of December 2021.
CoinDCX – Founders and Team
CoinDCX was founded by Sumit Gupta and Neeraj Khandelwal in April 2018.
Founders of CoinDCX – Sumit Gupta and Neeraj Khandelwal
Sumit Gupta
Sumit Gupta is known as the Co-founder and CEO of CoinDCX. Sumit holds a B.Tech in Electrical and Electronics, and an MTech degree in Electronics and Signal Processing, from IIT Bombay. He served as a Data Research Analyst at Columbia Business School before joining Sony as a Software Engineer. However, he left the role after a little more than a year and co-founded ListUp before leaving it too and founding CoinDCX.
Neeraj Khandelwal
Neeraj Khandelwal is another Co-founder of CoinDCX, who also serves as CTO of the company. Khandelwal also is an alumnus of IIT Bombay, who completed his graduation in Electrical Engineering from the same university. It is Khandelwal who leads the technical development of the CoinDCX products.
The CoinDCX team created the entire platform from the ground up. Full-stack developers, blockchain developers, machine learning engineers, app developers, software engineers, and data scientists make up the 100+ members team, giving them the expertise to incorporate any innovative logic or functionality in our market. CoinDCX plans to have a workforce consisting of 200+ members soon.
CoinDCX – Startup Story
Sumit Gupta first learned about distributed ledger technology when Bitcoin mining was gaining popularity. This is when the concept of putting together different decentralised marketplaces and cryptocurrencies, which serve as the marketplace medium of exchange, stayed with him.
He then reached out to his friend Neeraj Khandelwal, with whom he worked to bridge the crucial market gaps between this emerging technology and global consumers. The duo realised that blockchain traders, who could keep track of thousands of crypto trades every second, lacked a single trading network. In April 2018, the IIT-Bombay graduates launched CoinDCX as a result of this.
The startup claims to have had a daily trading volume of more than $10M and a monthly trading volume of $400M since its launch. After researching the industry and the potential of crypto technology, they launched the DCX journey with a cryptocurrency exchange in 2018.
CoinDCX – Mission and Vision
CoinDCX mission and vision statement says,
“CoinDCX envisions to enable global financial inclusion of billions of people around the planet with a crypto-based financial services. We aim to make decentralized financial services accessible to the common man on their palms and tips.“
CoinDCX – Name, Logo and Tagline
DCX is a company based in Singapore that specialises in crypto-enabled financial services, and so the name ‘Coin’ DCX is a fitting add-on to let the company ooze of uniqueness.
The CoinDCX business model has established single-point access to trade all cryptocurrency instruments available in over 500 markets, according to the founders. It claims to have developed a highly scalable trade machine engine capable of processing one million transactions per second. Any transaction or exchange on CoinDCX incurs a transaction fee. Deposit fees (charged on exchanging currencies), withdrawal fees, trading commissions (0.01 percent of the overall transaction is normal on any exchange), and listing fees are how CoinDCX makes money, just like any other cryptocurrency exchange.
The trader will convert INR to Cryptos and vice versa on DCXInsta, gain by lending their holdings with DCXlend, and leverage trades with DCXmargin on DCXtrade’s 500+ markets. CoinDCX aspires to be the world’s best cryptocurrency exchange. Its patented liquidity aggregation model gives users access to liquidity from the world’s leading cryptocurrency exchanges.
CoinDCX – Growth and Revenue
CoinDCX is popularly hailed as India’s first crypto unicorn. Founded in 2018, CoinDCX brings easy investing and trading solutions for cryptocurrency-based products for all. This ISO-certified crypto platform, which is insured by BitGo, provides an array of products like CoinDCX, CoinDCX Pro, DCX Learn, Cosmex, and more. It is the only crypto startup in India that has raised 3 CoinDCX funding rounds in less than a year.
CoinDCX witnessed a 45.78% growth in its installed users between October and November 2021 alone. The growth of CoinDCX definitely depends on the innovative ideas on which CoinDCX was founded, its ability to battle with the challenges thrown in, the funding rounds it has witnessed, and the innovative and interesting marketing strategies that CoinDCX executes.
Some more growth highlights of CoinDCX are:
CoinDCX became the first crypto unicorn in India valued at $1.1 billion as of August 10, 2021, with the latest funding round where the former Facebook co-founder, Eduardo Saverin’s B Capital Group took part along with a bunch of the company’s existing investors – Coinbase Ventures, Polychain Capital, Block.one and more. CoinDCX was valued at $2.15+ bn last in April 2022.
CoinDCX has grown its user base from 150K to 400K in just 15 months and currently over 1.4 crores users.
The quarterly trading volume of CoinDCX is over 16,500 users.
CoinDCX has already crossed $10 billion in trading volume in February 2021
It has witnessed a 4X growth Q-o-Q in daily active users
It has listed 500+ coins and 1000+ trading pairs
CoinDCX Revenue, Financials and More
CoinDCX’s Indian business, Neblio Technologies, witnessed a remarkable growth in its net profit in FY21, which rose 9X YoY to become Rs 4.4 crore from Rs 45.6 lakh in FY20.
All of it started with the Supreme Court verdict of March 2020, which lifted the banking ban on the trade of cryptocurrency in India. CoinDCX started seeing quite a growth starting from August 2020 onwards. It noticed a 38% month-on-month (MoM) growth since its inception in 2018. This is due to the fact that more and more Indians started to show interest to participate in the global crypto economy.
The CoinDCX operating revenue surged by more than 527% YoY from Rs 6.2 crore in FY20 to Rs 38.9 crore in FY21.
The expenses also ballooned by more than 7X, which increased from Rs 5.7 crore in FY20 to Rs 40.7 crore in FY21.
CoinDCX Financials FY20-2023
CoinDCX Ventures
CoinDCX launched CoinDCX Ventures with an aim to establish its own venture investment arm on May 10, 2022. The venture investment arm of the Indian crypto-exchange unicorn, CoinDCX Ventures will help the company invest in early and late-stage crypto and blockchain startups. Rohit Jain, a Harvard Business School alum has been appointed by the startup as the Senior Vice President and the Head of Ventures and Investments to lead the CoinDCX Ventures which is designed to strengthen the digital asset ecosystem of India and give a push to the country’s digital economy. According to the Co-founder and CEO of CoinDCX, Sumit Gupta, CoinDCX Ventures is nothing short of a “great milestone”, and that the crypto exchange has plans to invest around Rs 100 crores in CoinDCX Ventures within the next 12 months.
CoinDCX “Earn” Crypto Yield Initiative
CoinDCX has announced the launch of its new initiative on May 26, 2022. This “Earn” crypto yield initiative that CoinDCX launched, will allow the crypto asset holders to earn interests on their crypto assets.
The platform will deploy the assets under ‘Earn’ among the wide array of yield generating options like lending, margin trading, and staking, in order to create returns. This new opportunity to yield income promises no lock-in periods and withdrawals at any moment, thereby offering the customers full flexibility and control over their cryptocurrency assets. However, the tenor must be of seven days.
CoinDCX grew considerably even during the pandemic, speaking about which, Sumit Gupta, the CEO and Co-founder of CoinDCX said in a statement, “This has been the most exciting year for CoinDCX. While the pandemic forced everyone indoors, CoinDCX scaled up exponentially and continues to do so. Our team tripled in number from 30 in March to 90 in December, and we are continuing to hire aggressively.”
If more investors looked into these emerging liquidity alternatives as a result of the global pandemic, interest in digital assets grew steadily. As institutional and individual investors adopt these emerging asset classes to diversify their portfolios, this trend is expected to intensify exponentially, according to analysts.
India is regarded as a developing market for cryptocurrencies, with retail investors aged 25 to 40 spending millions of dollars every day on cryptocurrency trading in the nation. In the April-June quarter of 2020, the exchange says it saw a 3X increase in total volume traded and a 4X increase in daily active users.
“In the end of 2020, interest in digital assets was growing consistently as more investors explored these new liquidity options. With the global events this year, we’re seeing this trend accelerate exponentially, as both institutional and individual investors embrace these new asset classes to diversify their portfolios,” Block.one’s CEO Brendan Blumer said.
CoinDCX – Funding and Investors
CoinDCX has raised around $245 million over 8 Coindcx funding rounds that the company has seen. The last (Series D) round of funding came in on April 19, 2022, and helped CoinDCX raise $135 mn. Pantera Capital and Steadview Capital led this CoinDCX funding round, which helped the crypto unicorn raise its valuation to around $2 billion. The previous round of funding helped the company raise $90 million, which turned the company into an Indian unicorn startup at a valuation of $1.1 billion on August 10, 2021.
The CoinDCX funding till date is as follows:
Date
Round
Amount
Lead Investors
April 19, 2022
Series D
$135M
Steadview Capital and Pantera Capital
August 10, 2021
Series C
$90M
B Capital Group, Coinbase Ventures, Polychain Capital and others
Dec 22, 2020
Series B
$13.43M
Block.one
May 26, 2020
Series A
$2.5M
Polychain
Mar 23, 2020
Series A
$3M
100x Ventures, Bain Capital Ventures, Polychain
Mar 20, 2019
Seed Round
–
Bain Capital Ventures
January 7, 2019
Secondary Market
–
–
March 30, 2018
Seed Round
–
–
CoinDCX has been funded to date by some of the famous venture capitals in the world of startups like Steadview Capital, Pantera Capital, B Capital Group, Polychain Capital, Bain Capital Ventures, and more, which have led to elevating CoinDCX to the position of the first crypto unicorn of India. However, little was known about the shareholding pattern of CoinDCX until now. This is why we have taken a dive into the shareholding pattern of the company.
Here goes CoinDCX shareholding pattern, as of April 29, 2022:
Owning Company/Individual
Percentage of Stakes
Polychain Ventures
19.40%
Block One Investments
18.52%
Neeraj Khandelwal
14.36%
Sumit Gupta
14.36%
Bain Capital
7.13%
Others
6.43%
Jump Capital
3.73%
B Capital
2.96%
Cadenza Capital
2.79%
Steadview Capital
2.38%
Coinbase
2.34%
Uncorelated fund
2.01%
Pantera Blockchain fund
1.46%
Choi Sung Ho
1.11%
Vivek Nagpal
1.01%
The shareholding status of CoinDCX shows that Polychain Ventures owns the highest stakes in the company whereas the co-founders of CoinDCX – Neeraj Khandelwal and Sumit Gupta, have 14.36% of stakes each. Reports say that the collective valuation of the co-founder is over $590 mn.
CoinDCX – Partnerships and Campaigns
CoinDCX Makes Amitabh Bachchan its Brand Ambassador
CoinDCX has seen quite some partnerships that involved Bollywood actors and more. The company didn’t see any brand ambassadors until it partnered with the veteran actor Amitabh Bachchan, who became the first brand ambassador of the brand according to the reports dated October 4, 2021. With this agreement, CoinDCX aims to boost the overall knowledge of crypto and popularise the currency as an emerging asset class. Furthermore, Bachchan is also deemed to be the new face of the latest campaign by CoinDCX.
According to CoinDCX, Bachchan’s personality matches the brand’s values. Amitabh Bachchan, who is always forward in his league, whether it is in movies or anything else, is the paragon of wisdom, which will help the company add more credibility. Besides, the veteran actor has been a crypto investor himself and has already been successful in launching his own NFT (Non-fungible token), thereby gathering a considerable amount of knowledge of the crypto space. “His knowledge will prove valuable in building trust and credibility amongst new users. We are certain that his association with CoinDCX will help bring greater visibility to the world of crypto and develop a strong brand recall for us,” mentioned Sumit Gupta, Co-founder, and CEO of the brand.
CoinDCX is yet to proceed with its ad campaign with Amitabh Bachchan as of October 15, 2021. The company has reportedly put the advertisement campaigns with the legendary actor due to the lack of clarity on the regulation and policy framework. On the other hand, Amitabh has also disclosed in a recent blog post that he will be reconsidering the advertisement campaign signed with the crypto trading major. He had also mentioned that he would be revoking his endorsement with the pan masala brand Kamala Pasand on the same blog.
CoinDCX Ropes in Ayushmann Khurana
The crypto unicorn has roped in celebrated actor Ayushmann Khurana for its new campaign titled “Future Yahi Hain” on October 18, 2021. This CoinDCX campaign is designed to address concerns surrounding crypto investments of Indian audiences.
#BitcoinLiyaKya Campaign
CoinDCX has launched a digital campaign titled #BitcoinLiyaKya, which is a humorous take on the inclusion of cryptocurrencies like bitcoins. This campaign aims to drive more audiences to use bitcoins via companies like CoinDCX.
HAPPY DAY REWARDS Campaign
CoinDCX launched the “HAPPY DAY REWARDS” campaign to fuel its crypto awareness campaign across the country and present crypto as a dominating asset class.
CoinDCX Happy Days
The campaign, which started on 19th September 2021 and ended on October 15, 2021, brought opportunities for numerous eligible new users to win up to Rs 1 lakh worth of Bitcoin (BTC) every day.
Some other partnerships that CoinDCX saw are:
The unicorn crypto startup partnered with BITS Pilani on March 8, 2022, to foster research, development, and innovation in crypto among the students in India.
CoinDCX partnered with Solidus Labs on February 19, 2022. This collaboration is aimed to enhance anti-money laundering protection.
Partnership with Onfido – CoinDCX partnered with Onfido. The UK-based company that has its headquarters in London, is recognised as a world leader in AI for identity verification and authentication and was partnered with by CoinDCX to help the company figure out whether the user identities of the users’ identity documents are authentic.
Partnership with BitGo – CoinDCX collaborated with BitGo in May 2020 to secure Indian crypto trader funds.
CoinDcx partnered with Cryptocurrency Exchange OKEx, with over 50 million users worldwide, OKX is a global spot and derivatives exchange for cryptocurrencies and the second-largest exchange by trading volume.
CoinDCX – Achievements
CoinDcx is rewarded with the following recognitions from industry leaders:
• Great Place to Work Award 2021 & 2022.
• Tech Start-up of the Year Entrepreneur Awards.
• Elite list of Unicorns in India 2021 by Tracxn.
• Next Hottest Product by Amplitude Award.
CoinDCX- LayOffs
According to reports, CoinDcx has decided to direct the company’s growth in the direction of profitability and sustainability; they have let go of 12% (or about 70 employees) of the total workforce. According to Sumit Gupta, CEO of CoinDcx, “…Today, some of our incredibly talented team members will be parting ways with the organization. We are deeply sorry for that and we want to share our thoughts and reasons for the same,”.
Additionally, he added, “As you all know, startups and businesses globally are going through challenging times due to tough macro conditions, more so in crypto because of the prolonged bear market and impact of TDS on domestic exchanges. These factors had a significant impact on our volumes and thus revenues. To adapt, we undertook several proactive measures, including direct cost optimization and investment in automation to drive efficiency and productivity”
CoinDcx underwent internal reorganisation earlier in January, but it denied that any employees were laid off as a result of the process.
CoinDCX – Challenges Faced
CoinDCX was launched in 2018, and in the same year, RBI announced a banking ban on the transactions of cryptocurrencies. This ensured the shutdown of cryptocurrency startups in many parts of India, however, CoinDCX was one of the exceptional players who contested this ban, which finally, in March 2020, was invalidated by the Supreme Court of India. This lifting of the ban helped CoinDCX grow its user base from 150K to 400K investors on its exchange.
As the price of Bitcoin, the world’s leading cryptocurrency, dropped dramatically to a multi-month low, Indian cryptocurrency exchanges WazirX and CoinDCX experienced hour-long outages. Bitcoin’s price fell 30% in a few hours to $31,000 on May 19th, 2021. Many investors tried to sell their crypto assets to prevent large losses when the price fell, but they were unable to do so because WazirX and CoinDCX’s servers crashed, denying those trades.
Other investors attempted to purchase cryptocurrencies when the price was low, but their purchases were unsuccessful, resulting in a loss of valuable time before Bitcoin’s price rebounded to $40,000. Several investors converted their cryptocurrencies to Indian rupees and requested withdrawals, but stated that the funds were withdrawn from their crypto wallets but not reflected in their bank accounts.
Due to high user traffic we are aware some of our users like yourself might be experiencing issues related to services on our website and our Apps.
We are thankful for your patience and regret any inconvenience this may cause to you.https://t.co/W6oS8yz55v
— CoinDCX: Making Crypto Accessible to Indians (@CoinDCX) May 19, 2021
Following an informal advisory from the Reserve Bank of India, many Indian banks have stopped providing services to Indian crypto companies (RBI). Despite the Supreme Court’s decision in March 2020 to overturn the RBI’s 2018 circular prohibiting banks from offering services to crypto exchanges, this is still the case.
The current accounts of crypto companies have been suspended by ICICI Bank, one of the last few large lenders to provide services to them. Payment gateways for merchants buying or selling cryptocurrencies have reportedly been told by the private sector lender to turn off its net banking services.
CoinDCX was Questioned by ED in Relation to FEMA
The Enforcement Directorate (ED) has been working on an ongoing Foreign Exchange Management Act (FEMA) to verify whether or not the Indian cryptocurrency companies are engaged in foreign currency offences. CoinSwitch Kuber has also been notified by ED in relation to the same. The ED has already questioned Sumit Gupta, the founder of CoinDCX, at its headquarters in Bengaluru. His statements were also videotaped, as far as the reports go.
Aims to get 50 million Indians into the cryptocurrency bandwagon this year.
Aims for widespread adoption among new crypto enthusiasts, especially millennials and Generation Z.
Strives to spread awareness about cryptocurrencies.
Looks forward to improve the company’s existing array of products.
Aims to strengthen customer retention campaigns.
Speaking from a development perspective of the app, Neeraj Khandelwal, Co-founder, CoinDCX said, “Most of the app users are in the age group 22 to 45. This app has been introduced to serve a simple purpose; remove the fear of technology, make the market numbers more understandable and provide the ability to make informed decisions in the crypto universe. A smart investor will regularly invest at least 1 percent of his disposable income for Bitcoins in his investment portfolio. People having faith in the future of technology should do the same. The app just makes the induction easy. Buying Bitcoin on CoinDCX Go will be as easy as using any of the popular apps such as WhatsApp, Instagram, Amazon, or booking your cab through Uber.”
The company invested $1.3 million in TryCrypto, its own project aimed at making blockchain and cryptocurrency more available to mainstream consumers, in yet another effort to accelerate mass acceptance of cryptocurrencies.
FAQs
How does CoinDCX work? What does it do?
CoinDCX is a platform that allows users to legally exchange various cryptocurrencies. It is built for all types of traders, taking into account their trading background, risk tolerance, and trading frequency, allowing customers to trade their crypto assets according to their requirements.
Who founded CoinDCX?
CoinDCX was founded by Sumit Gupta and Neeraj Khandelwal in March 2018.
Which companies do CoinDCX compete with?
Top Competitors of CoinDCX are UPHOLD, Binance, Coinbase, Poloniex, LocalBitcoins, HitBTC, Kucoin, C-Cex, Bitso, and WazirX.
How does CoinDCX make money?
Deposit fees (charged on exchanging currencies), withdrawal fees, trading commissions (0.01 percent of the overall transaction is normal on any exchange), and listing fees are how CoinDCX makes money, just like any other cryptocurrency exchange.
How is the CoinDCX funding?
CoinDCX funding is impressive. In fact, CoinDCX is also hailed as the only crypto startup in India to have raised three funding rounds in less than a year.
What is the CoinDCX transaction fees?
If you are wondering about the CoinDCX transaction fees, then you need to know that CoinDCX charges 0.10% commission from both the takers and makers.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Anchorage Digital.
The blockchain industry is booming, with an expected market size of $67.4 billion by 2026. With the blockchain market growing, financial institutions, fintech companies, and governments are looking for platforms to manage their digital assets, including cryptocurrencies.
Digital asset management is all about efficiently storing, organizing, managing, and transacting digital assets with the help of a robust infrastructure. Anchorage Digital is a US-based private company famous for offering digital asset financial services and infrastructure facilities.
This article highlights every crucial detail about Anchorage Digital: its startup story, founders, products and services, funding, investors, future plan, and more.
Anchorage Digital is a digital asset financial services and infrastructure provider that helps clients deal with holding, investing, and infrastructure for cryptocurrency and cryptocurrency products. In addition, the company offers a digital bank as a crypto-native bank and crypto strategies for leading institutions.
With offices in San Francisco, New York, Portugal, Singapore, South Dakota, and Asia, Anchorage Digital provides its offerings to a global roaster of institutional clients, including SEC-registered investment advisors, crypto protocols, asset managers, and venture capital firms.
Anchorage Digital – Founders
Diogo Monica and Nathan McCauley co-founded Anchorage Digital in 2017.
Diogo Monica
Diogo Monica – Co-Founder and President, Anchorage Digital
Diogo Monica graduated with a BSc and MSc in Communication Networks Engineering and a Ph.D. in Computer Science – Network Security from Instituto Superior Tecnico.
He commenced his career as a Platform Security Lead at Square Inc and then worked as Security Lead at Docker, Inc. Additionally, he held the role of Advisor at Airtable, StackRox, and Jscrambler.
Presently, he is working as the Founder and President of Anchorage Digital.
Nathan McCauley
Nathan McCauley – Co-Founder and CEO, Anchorage Digital
Nathan McCauley co-founded Anchorage Digital and is the company’s CEO. Previously, he worked as Technical Product Manager / Software Engineer at Arxan Technologies and Security Engineering Manager / Security Engineer at Square.
He has also been the Director at Docker, Inc and Board Director at Vendor Security Alliance.
Anchorage Digital has a team of more than 300 employees.
Anchorage Digital – Startup Story
Diogo Monica and Nathan McCauley founded Anchorage Digital in 2017 with its early investors, Andreessen Horowitz and Blockchain Capital. In 2019, Visa invested in the company and used it to provide cryptocurrency payment services. It added trading and financial services in 2020.
Later in 2020, Anchorage Digital established its first engineering hub in Porto, Portugal, and is the first cryptocurrency unicorn with a presence in that nation. Furthermore, Anchorage Digital Bank received its banking chart from the Office of the Comptroller of the Currency in 2021. It made it America’s first federally chartered cryptocurrency bank.
The same year, it entered into a contract with the United States Department of Justice to act as custodian for all digital assets seized or forfeited in criminal cases. Anchorage Digital was valued at over $3 billion in December 2021. In 2022, the company became the first federally chartered bank to custody an NFT.
Anchorage Digital – Mission and Vision
Anchorage Digital’s mission is to invent solutions for the future of capital. Moreover, its vision is to be the foundation upon which value can safely move in the new global economy and let innovation grow without bounds.
Anchorage Digital works with America’s first federally chartered crypto bank and Anchorage Digital Singapore (which offers equivalent security and service standards) to provide institutions with an unparalleled combination of secure custody, product breadth, regulatory compliance, and client service.
The company acts as a custodian of digital assets for financial institutions and governments. Moreover, it stores and secures cryptocurrency using biometric authentication and hardware security modules.
Anchorage Digital – Products and Services
Anchorage Digital serves as custodian of digital assets and also provides lending and trading of digital assets. In addition, it offers multiple crypto services, including security, risk monitoring, safekeeping, compliance, and fiduciary obligations.
The company launched Build With Anchorage Digital to link every business with crypto through its safe, regulated, and secure infrastructure.
Anchorage Digital – Funding and Investors
Anchorage Digital has undertaken 5 funding rounds and raised a total of $487 million. Its latest funding round – Series D Round, was conducted on December 15, 2021, and raised $350 million. 32 investors fund the company, of which 4 are lead investors, including Blockchain Capital Kraken, Golden Tree Asset Management, and Andreessen Horowitz.
Date
Round
Number of Investors
Money Raised
Lead Investor
December 15, 2021
Series D
19
$350 million
Kohlberg Kravis Roberts
February 25, 2021
Series C
6
$80 million
GIC
July 10, 2019
Series B
5
$40 million
Blockchain Capital
January 23, 2019
Series A
9
$17 million
Andreessen Horowitz
November 3, 2017
Seed Round
2
–
–
Anchorage Digital – Mergers and Acquisitions
Anchorage Digital acquired Merkle Data in 2020 for an undisclosed amount.
Anchorage Digital – Growth
The estimated annual revenue of Anchorage Digital was $63 million per year, with a $3 billion valuation in March 2023. Moreover, the monthly web visits grew by -21.08%, with 11,120 visits.
Anchorage Digital plans to use the bear market as a time to build with its institutional partners in the face of more macroeconomic uncertainty while paving the path for a safe, secure, and regulated digital asset ecosystem.
FAQs
What does Anchorage Digital do?
Anchorage Digital is a digital asset financial services and infrastructure provider that helps clients deal with holding, investing, and infrastructure for cryptocurrency and cryptocurrency products.
Who are the founders of Anchorage Digital?
Diogo Monica and Nathan McCauley co-founded Anchorage Digital in 2017.
The cryptocurrency market has found millions of investors in India over recent years. While people hesitated to invest in this relatively new asset class during the early years, the rising buzz and FOMO around cryptocurrencies made many join this bandwagon.
Unfortunately, this rapid growth didn’t attract investors alone. It also caught the attention of scammers. According to a report published by Inc42, Indians have been duped of over 72,000 crores by cryptocurrency Ponzi schemes.
The actual figure can be much higher since Bitconnect alone managed to scam people of over 80,000 crores. These figures are based on the investigative agency’s estimations and charge sheets filed against the key accused.
A significant problem with crypto scams is they are getting more sophisticated with time. Scammers are using varying modus operandi, like phishing, email scams, giveaway scams, etc., making it harder for people to secure their investments.
Although government agencies and popular crypto-exchanging platforms are trying their best to reduce such scams by spreading awareness, it hasn’t delivered the desired results.
Hence, this exhaustive guide has been prepared to help cryptocurrency enthusiasts and investors protect their investments. It aims to make cryptocurrency investors more aware of all the typical ways scammers use to dupe people of their cryptocurrency investments.
People investing in cryptocurrencies must be cautious about their investment storage. Since most investors store their cryptocurrencies in online wallets, hacking instances are likely.
But investors can reduce the risks by becoming more aware of the ways scammers use to steal cryptocurrencies. Scammers can come up with numerous methods to dupe cryptocurrency investors. Still, the most common ways include the following:
1. Social Engineering Scams
An example of the social engineering scam
Investors who are highly social online and spend a lot of time on the internet can often become victims of social engineering scams. These scams involve psychological manipulation and deceit to gather sensitive information like cryptocurrency wallet details from the target. Social engineering scams make people believe they are dealing with a trusted entity.
Scammers start by identifying easy targets online and then developing angles to hook them. Once this step is done, scammers take as much time as needed to win the victim’s trust. It is done to make the victim reveal critical information or make him transfer a certain amount of cryptocurrency to the scammer’s wallet.
Investors participating in several cryptocurrency-related groups, forums, or online communities should be cautious of these scams. If any newly made connection asks to make cryptocurrency transfers or share investment details, view it as a red flag and disconnect immediately.
2. Romance Scams
An example of a crypto romance scam
Romance scams are not new. They have been a tool for scammers for years. Be it dating sites or matrimonial sites; scammers have spread their presence almost everywhere. People fall for romance scams because of the nature of the websites they meet the scammer.
Very few people would think of encountering cryptocurrency scammers on a dating or matrimonial site, and this notion makes a scammer’s work easier. Such scams make the victims believe they are in a reliable relationship and manipulate their emotions to gain an advantage.
Once the victim starts believing the scammer, the regular conversations switch to lucrative cryptocurrency opportunities. Such discussions, paired with the scammer’s manipulative tactics, lead to an eventual transfer of either cryptocurrencies or the revealing of account credentials.
3. Ponzi Schemes
Often known as ‘get rich quick schemes,’ the Ponzi schemes have made Indians lose crores. These schemes are often presented in different forms but have the same objective. Scammers often trick gullible people into investing in a non-existent company or product that promises enviable returns.
The GainBitcoin MLM scheme is its perfect example. This scheme promised a 10% monthly return on investment in the form of Bitcoin. As more people started to invest in this scheme, the key accused secretively changed the contract terms and started offering pre-mined tokens called MCAP instead of Bitcoin. MCAP had no value and was not listed on any exchange platform.
But people kept investing in this Ponzi scheme till it was too late. As a result, investors collectively lost over 20,000 crores to this scam. If any scheme offers unreasonably high returns, investors should stay away from it.
4. Defi Rug Pulls
These are the newest types of scams in the cryptocurrency space. Under this method, scammers use social media and messaging platforms to increase NFT project prices or cryptocurrency. Once people invest their money into the cryptocurrency or NFT project, the creators disappear with all the money.
One of the most popular Defi rug pull scams was the one around a cryptocurrency created on the popular South Korean Squid Games theme. Surprisingly, the cryptocurrency had nothing to do with the Squid Games series creator, but the scammers made it appear that way.
It helped them attract investors. Hence, one of the effective, best ways to prevent being a victim of such scams is by investing in cryptocurrencies or NFT projects with reliable credentials.
5. Fake Crypto Investment Schemes
Fake crypto investment scheme example
Similar to a Ponzi scheme, investors are made to invest in companies or cryptocurrencies that don’t exist. Morris coin is a very recent example of this scam. The creators of Morris coin presented it as a highly sophisticated cryptocurrency built using blockchain technology.
The investors were promised huge returns against their investment. But once the creators collected enough investments, they disappeared. When Enforcement Directorate (ED) conducted raids and initiated an investigation, they found no such coin existed.
It is just one example of a fake cryptocurrency investment scheme, many more exist. Scammers can lure people into investing their money into a project they have no intention of creating. Such scams can also be conducted by offering an Initial Coin Offering (ICO).
6. Fake Celebrity Investments
An example of a celebrity investment crypto scam
Cryptocurrency enthusiasts and investors who follow celebrities online are more vulnerable to such scams. The incidence of scammers hacking the Twitter accounts of various known celebrities is still not old.
Under this method, scammers either hack a blue-tick-verified social media account or create a replica of it. In both cases, the scammers then ask the followers to transfer some cryptocurrencies to the shared wallet details in exchange for lucrative returns.
Since the message appears to be from a celebrity, many fall for this scam. They initiate a transfer, expecting a return. Accounts of eminent personalities like Elon Musk were hacked earlier, and by the time the authorities received the accounts, people had already lost millions to scammers.
7. Pump & Dump
An example of pump and dump crypto scheme
The pump and dump scheme is an age-old scheme wherein the project creators use illicit ways to raise the price of a worthless asset in a short period. Once the price picks up, the entire asset is sold off in the market for a massive profit.
Even though pump-and-dump schemes are considered illegal under securities law, they are very commonly used in the cryptocurrency world.
Investors should be careful of investing in a relatively new cryptocurrency that shows unrealistic price growth in a shorter period. Anything that appears way good to be true should be avoided to prevent falling victim to such scams.
8. Phishing Schemes
Example of a phishing scam
Phishing scams are widespread, especially in the cryptocurrency industry. Various sophisticated phishing scams are carried out almost daily to gain access to investors’ cryptocurrency wallet keys.
These are the keys required to gain access to the funds or purchased cryptocurrency stored in the wallet. To initiate phishing scams, scammers send emails or messages on social media and messaging platforms.
These messages contain links to landing pages asking people to enter their wallet keys or other sensitive information. Since most of these landing pages look authentic, some fall for them and enter their wallet details.
Once the hackers get this information, stealing cryptocurrency becomes easier for them. A great way to prevent such scams is by always inspecting the URLs of the website.
Cryptocurrency scams have been increasing over recent years. The only way investors can secure their investments is by being proactive. A significant portion of investors keeps their cryptocurrencies in the exchange’s digital wallet, which can get hacked.
There have been various similar incidents in the past that made investors lose millions. To prevent landing in a similar situation, relying on a cold wallet is recommended. These wallets look like USB drive and stores the investment away from the internet.
Besides using cold wallets, investors should also be careful about opening links from emails or messages from unknown people. Scammers often try to gain access to investors’ wallets by making them click on fraudulent links, so staying away from seemingly doubtful links is recommended.
Investors eyeing new ICO launches should always conduct deep research to ensure they don’t invest in scam projects. In a nutshell, the more cautious you are with your investments, the better.
Steps Taken by Government to Reduce the Crypto Scams
Currently, there is no strong legislation to regulate the cryptocurrency market, and scammers take advantage. However, the rising number of complaints and increasing scams have raised alarms, nudging authorities to take strict action.
To reduce fraudulent activities, RBI released a circular in 2021 addressing all concerned entities to carry out a due diligence process before allowing anyone to engage in cryptocurrency trading.
The due diligence has to be in line with the regulations governing the standards for Combatting Financing of Terrorism (CFT), Know Your Customer (KYC), Prevention of Money Laundering (PMLA), and Anti-Money Laundering (AML).
Besides asking entities to follow rigid regulations, the government is also trying its best to spread awareness regarding the different ways scammers use to dupe cryptocurrency investors.
The Ministry of Home Affairs of India runs a Twitter handle named ‘Cyber Dost’ to spread awareness of cybersecurity and safety issues. In 2021, this handle shared valuable tips to help investors secure themselves against rising cryptocurrency frauds. Some of the tips asked the investors to:
Not fall for offers that appear too lucrative
Be vigilant and carry out research before making any investment
Be careful of fake endorsements, etc.
Cyber Dost Twitter page
The awareness posts also asked investors not to make online payments to strangers via gift cards or online transfers. While the government may plan to come up with a bill to regulate the cryptocurrency market in the future, it will always rely heavily on organizing awareness campaigns to educate investors about the prevalent scams.
An informed investor is unlikely to fall for cryptocurrency scams, so the government is trying its best to educate investors. People can expect to see some strong laws in their favor in the future, but till then, they will have to exercise due diligence while dealing in the cryptocurrency market.
The above graph shows the number of times the crypto scamming websites were visited by Indians in millions
Securing Investment & Staying Vigilant Is the Way Forward
One of the best things that attracted people to cryptocurrencies was their decentralized nature. The option to transfer cryptocurrencies while maintaining anonymity was another magnetic feature. While the developers created these USPs to benefit investors’, scammers were quick enough to find ways to use them as loopholes.
Over the years, cryptocurrency investors have lost investments worth millions. These scams were in the form of Ponzi schemes, phishing scams, giveaway scams, and more. These scams are only getting more advanced with every passing day. Hence, the only way left for investors’ to secure themselves against such scams is by being vigilant and proactive.
Not getting attracted to ICOs that promise massive returns, not opening malicious links, and avoiding fake endorsements on social media are some of the ways investors can use to stay safe. Other than these, trading with popular crypto exchanges and using cold wallets to store cryptocurrencies can be used as additional safety measures.
Cryptocurrency has become a new way for investors to earn money while simultaneously it is also regarded as an alternative method to traditional currency. But the prime issue with cryptocurrency is that it involves cyber threats and cyber frauds as all the currency is in digital form only.
The article highlights the types of crypto scams in India and the things investors need to keep in mind while using cryptocurrencies. The article also highlights the steps taken by the Indian government to tackle such situations and lower the scam rate.
FAQs
What are the safest crypto sites?
Some of the safest crypto sites are Kraken, Gemini, Coinbase, Crypto.com, and Binance.
Can crypto be stolen from a wallet?
Yes, with the use of advanced technologies combined with needed knowledge, cryptos can get stolen from the wallet. Some of the most common examples are exchange hacks, exit scams, phishing attacks, etc.
How do hackers steal your crypto?
The hackers can steal the crypto by using their hacking knowledge in order to gain access to the user’s account and can then get it transferred or used as per their desire.
Can crypto be traced by police?
Few cryptocurrencies can be traced by the police by their transactions. But overall, digital currency is difficult to be traced due its digital pattern. The blockchain technology used by Bitcoin makes it much easier to trace the transactions of Bitcoin but it is quite difficult to identify the receiver or sender.
FTX is a cryptocurrency exchange that was founded in May 2019 by Sam Bankman-Fried and Gary Wang. It was built by the traders and for the traders. While it has its official headquarters in the Bahamas, FTX is managed from the US. Its biggest offices are located in Chicago and Miami.
FTX, along with its competitor, Binance, are international exchanges that process the majority of cryptocurrency trades around the world. Cryptocurrencies are, essentially, a publicly available blockchain that records ownership without the control of any central authority. Following this, FTX follows the bare minimum regulation that exists in the US. However, a bulk of its money flows through its books, unconstrained by regulatory requirements.
Comparison of Global Total Cryptocurrency Gains (2020–2021)
What Happened to FTX?
FTX’s own cryptocurrency is known as FTT. Sam Bankman-Fried, FTX’s co-founder, held billions of dollars’ worth of its own cryptocurrency, FTT, through his other crypto hedge fund, Alameda. This was a claim that appeared in CoinDesk, a crypto industry news service. It also stated that Alameda had been using it as collateral in other loans. This news triggered a crisis, furthering the thought at, if this being the case, a fall in FTT’s value would damage both businesses because of their shared ownership. Further, it prompted questions and fears about the validity of the whole institution, as FTT itself has no value beyond FTX’s longstanding promise to buy any tokens at USD 22.
What added to the burgeoning fear was a tweet by Binance’s Chief Executive Changpeng Zhao which said that his company was selling its FTT holding worth approximately USD 500 million because of recent revelations about FTX. Following this announcement, the value of FTT collapsed and immediately the firm suffered a withdrawal surge as customers began withdrawing funds. Within a period of three days, users withdrew USD 6 billion in crypto tokens from FTX.
Within a couple of days, Changpeng Zhao of Binance announced that his company had reached an agreement to bail out FTX by buying the company with the condition that Binance has the discretion to pull out of the deal at any time. The very next day, Zhao announced that his firm was backing out of the deal. He said – “The issues are beyond our control or ability to help.” Binance claimed that discovered discrepancies in the due diligence process, as well as the US, had launched regulatory investigations into FTX.
Future of FTX
According to Bloomberg, Bankman-Fried said his firm FTX, needed USD 4 billion to stay solvent with a funding gap of USD 8 billion. However, after Binance walked away from the potential distress deal, it is unlikely that FTX will find other backers.
Co-founder and Chairman of Coin Metrics, Nic Carter, said, “Sam needs to abandon his delusions of cobbling together some deal. There’s no one on earth that’s going to bail FTX out, unless the Fed is inclined to do it. It’s just not going to happen.” If FTX folds, it could have a serious and long-lasting negative impact on individual investors, venture capitalists and even other crypto businesses.
Carter continues, “There are going to be big victims here. There will be a lot of innocent victims, not just individuals but also other firms like fintech firms, crypto firms that were providing access to end users. There is going to be some extremely tough knock-on effects.”
The immediate effect of the FTX crisis has caused bitcoin to plummet from USD 20k a coin to USD 16.5k a coin with the wider market falling 5% according to CoinMarketCap. Companies and protocols that have FTX exposure are proving their liquidity. If the FTX exchange fails and closes, there is no clarity on whether any of the bitcoin that function on that protocol would be retrievable. It could lead to a loss of millions of dollars, overnight.
The value of the entire crypto market is currently at USD 800 billion from the last year’s November high of USD 3 trillion. The fall was the mixed result of crypto-specific events and macroeconomic issues. The industry, which has been struggling to convince regulators, investors and customers of its reliability and trustworthiness has suffered a setback that will take a long time to reverse if it does. The overall financial market is quite resilient to the ups and downs of the crypto market, which is a very insignificant systemic threat.
The Aftermath of FTX Downfall
Bitcoin Crashes as FTX Collapses
As unregulated as the crypto market currently is, this sudden collapse has triggered action and the rising concern of the need for a regulatory authority.
The Crackdown
Regulators are working towards freezing parts of FTX’s business, while other divisions file for insolvency or preparing for halting operations.
Scrutiny on Investors
Venture capital firms as well as investment funds which invested heavily in FTX are also facing inquiries.
Sponsorship Deals of Sports
FTX’s collapse has put sports sponsorships worth hundreds of millions of dollars at risk, right from the naming rights for an NBA arena to the patches on MLB Umpire’s uniforms.
Conclusion
Historically, cryptocurrencies have rebounded to new heights following every calamity. It seems to make other crypto ventures stronger. However, in the face of the current turmoil, investors might hold on to their crypto coins on exchanges for a much shorter period of time. They might also only use exchanges as transactional vehicles. The core principals of the other crypto ventures remain unchanged, as recent turmoil may represent a unique opportunity for bullish investors, but with different challenges. Time will tell.
FAQs
What is FTX?
FTX is a cryptocurrency exchange that was founded in May 2019 by Sam Bankman-Fried and Gary Wang. It was built by the traders and for the traders.
How did the FTX crisis affect bitcoin?
The immediate effect of the FTX crisis has caused bitcoin to plummet from USD 20k a coin to USD 16.5k a coin with the wider market falling 5% according to CoinMarketCap.
How much money did FTX need to stay solvent?
According to Bloomberg, Bankman-Fried said his firm FTX, needed USD 4 billion to stay solvent with a funding gap of USD 8 billion. However, after Binance walked away from the potential distress deal, it is unlikely that FTX will find other backers.
Cryptocurrencies have been gaining a lot of popularity lately, as more and more people are looking for ways to invest their money. However, before you jump on the crypto bandwagon, there are a few things you need to know in order to be able to safely invest in cryptocurrencies.
Here are just some of the things you need to keep in mind when investing in cryptocurrencies:
Do your research. Just like any other investment, you need to make sure you understand what you’re getting into before investing any money. For instance, if you want to invest in Kadena coin, you would have to first check out Kadena price and other dynamics involving the coin. This is the same with every other cryptocurrency. Make sure to do your research and only invest in cryptos that you believe have a bright future ahead.
Have a long-term outlook. Focus on long-term growth potential. By holding onto your investments for the long term, you’ll be more likely to see profits down the road.
Where can I find more information about cryptocurrency investment?
There is a lot of information available on the Internet about cryptocurrency investment. However, it is important to be careful about which sources you trust. It is always a good idea to do your own research and consult with a financial advisor before making any investment decisions.
Global Venture Capital, Private Equity, and Merger and Acquisition Investments in Blockchain and Cryptocurrency from 2018 to H12022
What are the benefits of investing in cryptocurrency?
One of the main advantages of investing in cryptocurrency is that it’s still a relatively new market. This means that there’s a lot of room for growth and development. So, if you invest early on, you could potentially see a lot of returns in the future.
Another benefit of investing in cryptocurrency is that it’s decentralized. This means that it’s not subject to the same rules and regulations as traditional fiat currencies. For example, governments can’t just print more money whenever they want to – which can often lead to inflation. With cryptocurrency, there’s a set amount of units that can ever be produced, so inflation isn’t really an issue.
Lastly, cryptocurrency is also quite secure and private. Transactions are often done through blockchain technology, which is very secure and difficult to hack. And because transactions are anonymous, your personal information isn’t at risk either.
What is the best way to invest in cryptocurrency?
First, it’s important to do your research and understand the risks involved before investing any money. Cryptocurrency is a volatile market, and prices can fluctuate rapidly. It’s important to have realistic expectations and be prepared for the possibility of losses.
Second, it’s generally a good idea to diversify your investments and not put all your eggs in one basket. This means investing in a variety of different cryptocurrencies, rather than just one.
Finally, it’s important to remember that cryptocurrency is a long-term investment. Don’t expect to get rich quick – patience is key!
Stay up to date on news and developments in the cryptocurrency space
There are a few things to keep in mind when trying to stay up to date on news and developments in the cryptocurrency space. First, it is important to be aware of the different types of cryptocurrencies that are out there.
Second, it is also important to be aware of the different exchanges that are available. Each exchange offers different benefits and drawbacks, so it is important to find one that suits your needs.
Finally, it is also a good idea to set up Google Alerts for key terms related to cryptocurrencies. This way, you will be notified whenever new articles or developments pop up that could impact your investment strategy.
When is the best time to invest in cryptocurrency?
The best time to invest in cryptocurrency will usually vary depending on your individual circumstances and goals. However, there are a few general tips that can help you make the most out of your investment.
First of all, it’s important to do your research and understand the risks involved before investing any money. Cryptocurrency is a volatile market, and prices can fluctuate rapidly. It’s important to have realistic expectations and be prepared for the possibility of losses.
Another thing to keep in mind is that cryptocurrency is still a relatively new technology, and there are always going to be some risks associated with early adoption. That being said, the potential rewards can be significant, so it’s important to weigh both the risks and rewards before making any decisions.
Finally, it’s also worth considering how much you’re willing to invest. Cryptocurrency is a long-term investment, and you shouldn’t put more money into it than you’re comfortable losing. Start small and then gradually increase your investment over time as you become more familiar with the market.
In short, only invest what you can afford to lose, and do your research before investing in cryptocurrency. Also, have long-term goals.
The EOS Coin has gained a lot of popularity in the crypto market. The crypto token had a very successful ICO of all time as it raised more than $4 billion.
Due to this many investors are closely looking at the EOS price.
But, is it really worth investing? Read this article till the end to find the answer to this question.
EOS is developed by Block.one and was founded in 2017. It was released as an open-source platform in 2018.
You must have seen many people comparing EOS to Ethereum. This is because EOS is also a blockchain ecosystem through which individuals can create and develop decentralized apps (dApps).
Like many other cryptocurrencies, EOS was created to solve flexibility, scalability, speed issues, and high fees in Ethereum and Bitcoin.
The whitepaper for EOS is written by Dan Larimer and Brendan Blumer and was released in 2017.
EOS wants to be the most powerful infrastructure for dApps. Block.one has provided all the necessary tools and resources to help developers make functional apps quickly. The user-friendly design is its highlighting feature.
Many investors believe that EOS will change how corporations interact by providing decentralized enterprise solutions which can significantly increase productivity.
Interestingly, the owners of EOS coins also have the right to vote on various issues. Using blockchain they can participate in on-chain governance. EOS is also supported by famous investors like Peter Thiel and Michael Novogratz.
What is Unique about EOS Coins?
In the crypto market EOS is a controversial crypto token. But, due to its powerful technology, it has long-term profit potential.
The blockchain technology behind the EOS.IO can empower many industries and businesses. It can change computer resources and how various applications work.
Due to all these impactful reasons, the value of EOS in the long term can increase. The most overlooked factor is that the Block.one CEO and EOS cryptocurrency token’s main developer is Dan Larimer.
He is the person who generated the concept of decentralized autonomous organizations (DAO) and invented proof-of-stake. No wonder he is known as Bill Gates of blockchain.
He was an integral part of the founding of companies like Steemit, Bitshares, and Graphene. Larimer’s involvement in EOS suggests that EOS will be in this race for the long term and its price can also increase.
EOS Price Analysis and Price Potential
To analyze the price potential of EOS we first need to check its history. EOS was traded at around $1 in 2017. But, by the end of the year, it reached a very high price of $11.39.
In April 2018 it skyrocketed and reached its all-time high of $22.89 but it eventually fell to $2.56 by December 2018.
In 2021 the EOS cryptocurrency had a price of $2.61 and increased to $8.72 in April. At the beginning of May, the EOS price spiked to $13.47 and then was fluctuating between $6.15 – $6.30 on 1st June.
Now, predicting the actual value of EOS is quite tough. This is because blockchain technology like EOS is new and still has many years left to show its true potential.
Many investors speculate that blockchain technology will upgrade more and revolutionize many industries. If this happens then EOS has the potential to break its all-time high price.
EOS will continue to jump up and down in the coming years. The analysis given below is by Cryptopolitan.
Note: These are all predictions and not actual figures. No one can accurately predict the price changes of EOS. With that in mind let’s see the predictions.
In 2022, the anticipated minimum price of EOS is $1.64. Considering the average EOS price prediction of $1.70, the price may go as high as $1.92.
In 2023, the EOS future price of EOS cryptocurrency can reach a minimum value of $2.37. The average price for EOS could be $2.45 with a maximum price of $2.85.
The minimum price of EOS in 2024 could be $3.57 and the average selling price can reach $3.67. It can touch a maximum price of $4.14.
In 2025, the cost of 1 EOS can reach $5.09. Throughout the year the coin will carry an average price of $5.28. The EOS price can go as high as $6.18.
The minimum price of EOS in 2026 is predicted to be $7.45 with an average anticipated price of $7.67. The coin can go as high as $8.64.
In 2027, the lowest price of EOS is predicted to be $10.86 with an average trading value of $11.25. While the highest price of EOS could be $13.12.
In 2028, the minimum price could be $15.89 with an average selling price of $16.34. The highest the EOS could reach is $18.99.
It is predicted that EOS in 2029 will reach a minimum price of $24.27 with the average price being $24.92. The maximum price of EOS in 2029 will be $27.76.
In 2030, the lowest the coin could reach is $34.17. EOS will have an average trading price of $35.17 and the highest price predicted is $41.52.
In 2031, EOS will have the lowest price of $49.33. The highest it can reach is $60.40, with an average prediction price of $51.09.
You need to understand that the crypto market is unpredictable and these predictions shouldn’t be your only deciding factor for investing in crypto.
Expert Views on EOS Coin
Jihan Wu, CEO of Bitmain said that the EOSIO protocol is a great example of blockchain innovation. Its performance and scalability can meet the needs of demanding consumer applications and will pave the way for mainstream blockchain adoption.
Galaxy Digital which is a crypto investment firm has made a huge investment in this project. Founder Michael Novogratz said that EOS had significant outperformance compared to the rest of his company’s portfolio.
Wallet Investor suggests that EOS can be a good long-term investment.
Edgar Fernandez, EOS Costa Rica Co-Founder said, “EOS has the potential to create millions of verified human EOSIO based accounts if there’s a use case behind it, whether that’s regulatory, in the private industry, or public sector. It could be anything from decentralised ID to efficiency in customs agencies, to issuing bonds on a blockchain, to tokenized fiat money, or the traceability of vaccines”.
EOS is a good investment in the long run. But, if you are looking for a short-term investment then EOS is not a good choice for you. Your investment decision will depend upon your price analysis, fundamental analysis, and future situations in blockchain technology.
The development in blockchain development and how it will replace a lot of things indicate that EOS has a bright future. Although there is no definite answer to this question. It depends upon your investment style and taste.
As you know the crypto market is unpredictable and we cannot advise you anything. How much risk investors should take will depend upon their comfort and income. But, as you have noticed through the EOS coin numbers and what other investors think EOS can benefit you if you make the right decisions at the right time.
FAQ
Who is the founder of EOS?
Dan Larimer is the founder of EOS.
When was EOS crypto founded?
The Alpha release of EOS crypto was in 2018 and the latest release was in 2020.
Is EOS a good investment?
According to experts and forecasts, EOS is a great long-term investment.
Bitcoin is a cryptocurrency all available digital-only. Bitcoin was first introduced in the year 2009 on Jan 03. From its start till now, there were many ups and downs faced by bitcoin to now become one of the major cryptocurrencies accepted in all places of the world.
Cryptocurrencies are different kinds of currency that do share some similar properties to money yet have great differences between them starting from their value to the method of earning. Cryptocurrencies were made with the thought of providing an alternate method for the online exchange of money in any form. For example to provide online payment or to buy an assessment without the tracking of a central system.
Difference Between Traditional Currency and Cryptocurrency
Traditional Currency
Cryptocurrency
They can be found in physical as well as digital forms depending upon the method you are using.
It consists of only one form, that digital form, and there is no physical form of cryptocurrency invented up till now.
Traditional currency is somewhere related to the government, banks, government organizations, etc.
It is nowhere related to government and does not comprise third-party involvement in its sales and purchases.
There are some original values assigned to each currency by its government that are difficult to change in a short period.
There is no fixed value for Bitcoin. As well as it is prone to get changed from time to time.
The currency value of each country is dependent on many factors. Factors like inflation, interest rates, trade, economical growth, etc.
The value of the bitcoin is dependent on the market conditions. The change in its value also majorly comes because of supply and demand similar to the share market criteria.
Traditional currency does not need any introduction to make.
Cryptocurrency still needs acceptance from more people to make it a basic type of currency and give it the title of globally known currency.
Global Crypto Users in Million For The Year 2021
What Is Bitcoin?
Cryptocurrency- Bitcoin
Bitcoin is a digital currency that relies on peer-to-peer cryptography software. It is somewhat similar to our traditional currency but with the difference of no interference by any third party in its transfer.
It is an open type of network as all the transactions made on it are available for the public to view on its site. It also allows its user to exchange cash in place of Bitcoin value. There are multiple methods used to get access to bitcoin currency and to use it for our general use such as purchasing a product.
Method for Exchanging Bitcoin Into a Traditional Currency by Debit Card
Bitcoin can be accessed through an online system only. However, there are multiple methods through which one can always convert digital bitcoin into traditional money.
Bitcoin is stored in a wallet, for it to be online money. The wallet needs to be on the same platform only. There are few specialized applications and software that can provide the Bitcoin user to keep track of their wallet digitally without worrying about their safety.
However, if you are looking out to convert your bitcoin into cash for paying up bills. Then using up the bitcoin debit card is the best option to look for.
Bitcoin debit cards are also sometimes referred to as crypto debit cards. The main aim of these debit cards is the same as our traditional debit cards. The only difference between them is the type of currency they provide. The only requirement to get a Bitcoin debit card is to own a Bitcoin wallet.
bitcoin.org Provides an Easy Solution For Creating a Bitcoin Wallet
Once you have your wallet in use, you can create your Bitcoin debit card easily without much fuss. Bitcoin debit cards are the most recent advancements made in the bitcoin field as it allows its user to pay with just a swipe even at the type of places which does not accept cryptocurrency normally.
There are many different types of Bitcoin debit cards available in the market. To select one, you should consider a few options before making a final call. As much hype as the crypto debit card has gained, there are equal amounts of precautions to be also taken to avoid fraud.
Advantages of Using Bitcoin Debit Card
Can work at even those places, where cryptocurrency is not accepted.
You can send money online without the need for the involvement of the government or any other organization.
Multiple options are available for one to select their debit card with the type of facility they like.
One card can support multiple traditional currencies to work for.
Disadvantages of Using Bitcoin Debit Card
It is an online service, hence can pose a threat of cyber attack.
The rate of cryptocurrency keeps changing, hence the use of debit cards needs to be done very precisely, or else you can run out of funds.
Does not have other significant use except for bitcoin.
Can charge an extra amount as the card fee.
Facts to Consider Related to Purchasing a Bitcoin Debit Card
An Example of a Crypto Debit Card or a Bitcoin Debit Card
Everyone is familiar with the functions of debit cards. However, when we talk about Bitcoin debit cards, there can be some confusion found in people. There are a few facts that one should consider before buying up a debit card. There are many debit card providing companies available in recent times, so one should also cross-check before taking a final call.
The purpose of the Bitcoin Debit Card is to provide the facility of purchasing products with cryptocurrency.
The important thing to look at before taking a debit card is to know which all currency a particular debit card can support and what are your needs related to that.
Another thing to consider is the fees related to debit cards along with the fees applicable on transactions, etc. All these factors should also be considered well.
Few other things to consider include options like the places where it can work, the rewards one can earn, the system they provide, etc.
After going through all these points and getting a proper consideration, one can then choose a single debit card from all the available options.
Today’s world is fully based on technologies and is making great advances in it. One of the most popular and successful technology is named Cryptocurrency (Bitcoin). It is an alternative method for a traditional currency that works only on digital platforms.
To enable the use of digital currency in the traditional currency, there is a facility provided named as Bitcoin Debit Card. Bitcoin Debit Card is a great tool one can consider using while working with cryptocurrencies.
FAQs
How do bitcoin debit card works?
A bitcoin debit card is almost similar to a normal debit card. The only difference it carries is that in Bitcoin debit cards, instead of the normal currency, Bitcoins are used.
How do you turn bitcoins into cash?
There is more than one way to convert Bitcoin into cash. One can prefer to sell them on the crypto exchange platform, or they can also prefer to transfer Bitcoin into a bank account on a specialized platform. Apart from these, one can also take the help of Bitcoin ATM machines that are different from the basic ATM machines.
Can we transfer money from bitcoin to a bank account?
Yes, Bitcoin can be easily transferred to the bank account with the help of an intermediate known as Wallet. Wallets are the ones responsible for storing the data and bitcoin in electronic form.
How can I get a crypto debit card?
One can get their own crypto card by getting a crypto wallet and then applying for the debit card through the wallet. Crypto debit cards are allotted by the crypto-focused platforms only.
Nitin Konde
