Following the bankruptcy of FTX by trading volumes, Indian crypto exchanges claimed that they were taking steps to restore investor confidence by making the details of all their reserve funds completely transparent.
The sharp drop in FTX’s native FTT coin is believed to have affected around half a million crypto investors in India, who are now facing a devaluation of their invested capital of over 90%. Major crypto asset exchanges CoinDCX, CoinSwitch and WazirX were quick to issue statements regarding their healthy balance sheets and assured clients that the FTX bankruptcy had no impact on their operations after realizing the potential for widespread panic among Indian investors. .
It started with Changpeng Zhao, the founder of Binance, pledging to keep his promise to fully publish proof of the reserves he has to cover any future consumer withdrawals. Notably, Binance was an investor for FTX and pulled out of any ties with them after the FTX fiasco.
Now, CoinDCX co-founder Sumit Gupta has already announced on Twitter that the crypto exchange will release its proof of reserves by the fourth week of November after the collapse sent shockwaves through the crypto community. . Meanwhile, CoinSwitch co-founder Ashish Singhal has previously stated that the company’s crypto and fiat currency holdings are greater than the total amount held on behalf of its consumers.
Indian crypto exchanges have recognized the need for strong self-regulation and have so far operated efficiently, pending clarity on potential rules and regulations governing crypto assets in the country. CoinDCX reaffirmed its decision not to launch a native token like FTT for FTX, while WazirX reaffirmed that it works with one of the largest custody services in the world.
In fact, due to their low exposure to FTX and the FTT token, Indian cryptocurrency trading volumes have hardly been affected by FTX issues, which are a key driver. However, the impact of the recent crypto tax imposed by the Indian government and the flurry of negative news engulfing the wider crypto community is evidenced by the fact that monthly trading volumes for almost all Indian crypto exchanges are less 50% of what they were in January of this year.
Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist.
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