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Investors back in India’s cryptocurrency segment after top Court declares it legal

Caspian, Tagomi set crypto trading standards partnership

Investors are back in the ailing Indian cryptocurrency market after the Supreme Court lifted a banking ban earlier this month. It marks a sharp reversal in the sick segment, which witnessed weak investors sentiment after the Reserve Bank of India imposed a banking ban on the crypto-exchanges operating in the country two years ago on April 8, 2018.

With SC clarifying the legality of cryptocurrencies now, venture capital investors are once again looking for potential start-ups in the space. At least two Crypto trading platforms have raised funds in the last two weeks despite a lockdown situation in the country following Covid19 out-break.

CoinDCX, a leading cryptocurrency trading platform, and liquidity aggregator, on March 24, announced a $3 million in Series A funding from a clutch of investors led by Polychain Capital, Bain Capital Ventures, and HDR Group. The operator of BitMEX has also participated in the round. CoinDCX, a platform backed by angel investor Sanjay Mehta, plans to use the funds to bolster its next phase of development, including product and service enhancements, research and development, marketing activities, and human resource growth.

The exchange also has plans to develop a fiat onboarding solution in partnership with significant crypto projects, algorithm-based trading, as well as a crypto-to-crypto trading product in the pipeline for 2020.

Sumit Gupta, CEO and Co-founder of CoinDCX, said of the investment, “As the country’s largest exchange, we are in a position to drive national crypto adoption forward responsibly. This successful investment round will go a long way in funding our vision of accelerating India’s growth into a US$5 trillion economy. With a slew of exciting projects in the pipeline, the closure of our Series A is the first step in a new chapter in the CoinDCX story as we continue to drive the mass adoption of crypto assets in India.”

While CoinDCX is the first one to have raised funds to post the SC direction this month, last week, global crypto platform Binance and its India unit WazirX had announced a $50 million fund for the Indian crypto industry.

Binance that had acquired WazirX, a P2P trading platform in November 2019, has announced a fund aimed at sustaining blockchain development in India. It plans to use the new fund to make $100,000 to $5 million in investments to support universities and student organizations interested in setting up university blockchain technology incubators.

Several other platforms that entered the space recently or have re-started their operations have already started discussions with investors to raise funds even as the global sentiment in the virtual currencies is at an all-time high as equity markets plunge in the wake of novel Covid19 pandemic.

Bangalore-based exchange Unocoin is also looking to raise a bigger round in the next two-three months. Its founder Sathvik Vishwanath told IBS Intelligence that it plans to raise a Series A round soon as it plans a major expansion.

“We just re-started two weeks ago. Given the fact that crypto is seen as a hedge against collapsing economy and store of value in panic times, I think our industry stands the best chance to raise funds,” Vishwanath said. Founded in 2013, the exchange had last raised around $2 million in 2016.

Vishwanath added that globally the cryptocurrencies are gaining popularity even as equity markets are under pressure due to economic uncertainty caused due to the Covid19 pandemic.

Data from Coindesk, all major virtual currencies, were up. Bitcoin was up 14.45% to trade at $6,724, Ethereum was up 13 % at $140, and Bitcoin Cash was up 11% at $227.

According to CNBC, the total market cap the cryptocurrency market value has witnessed a massive surge to touch $14 billion in the last one day as investors are rushing to buy the currencies that are also being seen as a “haven” during a downturn.

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