CoinDCX Success Story: How does it want to introduce 50 million Indians to cryptocurrency this year?
A sharp rise in internet users has revived the idea of virtual worlds and given rise to brand-new market phenomena known as cryptocurrencies to facilitate financial operations, including buying, selling, and trading.
Cryptocurrencies are virtual representations of priceless and immaterial items that can be utilised in various applications and networks, such as peer-to-peer networks, online social networks, social games, and virtual worlds.
A virtual currency has been widely used in many different schemes in recent years. Cryptocurrencies are undoubtedly a significant and growing component of the modern digital economy.
One of India’s largest cryptocurrency exchanges, CoinDCX is a well-known cryptocurrency trading platform. The business became India’s first unicorn cryptocurrency firm by raising $90 million on August 10, 2021.
Users can legally swap several cryptocurrencies on CoinDCX, which bills itself as India’s biggest and safest cryptocurrency exchange platform. Customers can trade their crypto assets in accordance with their needs because it is designed for all sorts of traders, taking into account their trading history, risk tolerance, and frequency.
A business called CoinDCX is developing a network for exchanging cryptocurrencies. The company’s primary goal is to create cross-border financial services that guarantee a steady flow of resources. Thanks to its liquidity, strong wallet, and impregnable protection, trading is rapid, dependable, and simple. With the help of several market-first products made available by CoinDCX, traders may now trade with exchange liquidity.
On April 7, 2021, CoinDCX announced that it had turned three. The exciting path of offering cryptocurrency trading and exchange services to the general public was started by CoinDCX three years ago. Around the same time, the Reserve Bank of India (RBI) announced a banking prohibition for bitcoin and related entities. Additionally, the cryptocurrency market in India was in dire need of a shake-up. It was sufficient to maintain the momentum, and CoinDCX launched with the single objective of “Cryptocurrency Adoption.”
By considering each trader’s trading history, risk tolerance, and frequency of trading, CoinDCX’s services are made to fit all types of traders. The company aims to democratise finance and increase public access to investing.
On January 20, 2021, the company announced that the CoinDCX Go app would go live. CoinDCX Go, a forthcoming Bitcoin application that enables users to legally buy Bitcoin and other popular cryptocurrencies with a single click, is a straightforward, secure, and safe way to invest in cryptocurrencies.
The cryptocurrency market, which is expanding at an unstoppable rate worldwide, includes CoinDCX. When we take a look at the entire cryptocurrency market, we can see that it was valued at $1782 billion in 2021. By 2027, the same industry is anticipated to increase at a CAGR of 58.4 per cent and reach $32420 billion. When considering the development of cryptocurrencies in India, it is estimated that the market will reach $241 million by December 2021.
Founders and Team
Sumit Gupta and Neeraj Khandelwal are the founders of the company.
Co-founder and CEO of CoinDCX, Sumit Gupta, is well-known. Sumit graduated from IIT Bombay with a BTech in Electrical and Electronics and an MTech in Electronics and Signal Processing. Before beginning his career as a software engineer at Sony, he worked as a data research analyst at Columbia Business School. He co-founded ListUp before quitting that company as well and launching CoinDCX; however, he departed the position after a little more than a year.
Another CoinDCX co-founder who also holds the position of CTO is Neeraj Khandelwal. Khandelwal is also a graduate of IIT Bombay, earning his degree in Electrical Engineering there. Khandelwal is in charge of the items’ technological development.
The entire platform was built from the ground up by the CoinDCX team. The team of more than 100 people includes full-stack developers, blockchain developers, machine learning engineers, app developers, software engineers, and data scientists, giving them the knowledge to implement any cutting-edge logic or functionality in our market. Soon, CoinDCX expects to employ more than 200 people.
Distributed ledger technology was something Sumit Gupta first became aware of as Bitcoin mining became more and more popular. At that point, the idea of combining several decentralised markets and cryptocurrencies, which act as the marketplace means of exchange, stuck in his head.
He subsequently got in touch with his buddy Neeraj Khandelwal, with whom he collaborated to close the critical gaps in the market between this new technology and consumers throughout the world. The two concluded that Blockchain traders could monitor hundreds of cryptocurrency trades every second and lacked a centralised trading network. This led to the IIT-Bombay grads launching CoinDCX in April 2018.
The firm claims that since its introduction, it has had a monthly trading volume of $400M and a daily trading volume of over $10M. They started the DCX journey in 2018 with a cryptocurrency exchange after studying the market and the potential of crypto technology.
Business and Revenue Model
According to the founders, the CoinDCX business strategy has created single-point access to trade all cryptocurrency instruments offered in more than 500 marketplaces. It asserts to have created a highly scalable trade machine engine with a one million transaction per second throughput capacity. On the app, a transaction charge applies to every trade or transaction. Like every other cryptocurrency exchange, CoinDCX generates revenue through deposit fees (paid while exchanging currencies), withdrawal fees, trading commissions (0.01 per cent of the total transaction is standard on any exchange), and listing fees.
The trader will profit by lending their holdings with DCXlend, converting INR to Cryptos and vice versa on DCXInsta, and leverage trades with DCXmargin on DCXtrade’s 500+ marketplaces. The company’s goal is to become the top cryptocurrency exchange in the world. Users get access to liquidity from the top cryptocurrency exchanges in the world thanks to the company’s innovative liquidity aggregation model.
Many people refer to CoinDCX as the first crypto unicorn in India. The company was founded in 2018 and offers simple buying, selling, and investing options for all cryptocurrency-based products. This BitGo-insured, ISO-certified cryptocurrency platform offers a variety of goods, including CoinDCX, CoinDCX Pro, DCX Learn, Cosmex, and more. It is the only cryptocurrency firm in India to have successfully completed three CoinDCX investment rounds in under a year.
Between October and November 2021 alone, CoinDCX’s installed user base increased by 45.78 per cent. The unique concepts around which CoinDCX was built, its capacity to overcome obstacles, the funding rounds it has experienced, and the creative and fascinating marketing tactics that CoinDCX employs all play a significant role in the company’s potential to expand.
Some growth highlights of the company are:
CoinDCX became the first cryptocurrency unicorn in India, valued at $1.1 billion as of August 10, 2021, with the help of the most recent funding round, in which Eduardo Saverin, the former co-founder of Facebook, and his B Capital Group participated along with a number of the company’s current investors, including Coinbase Ventures, Polychain Capital, Block.one, and others. In April 2022, CoinDCX had a value of more than $2.15 billion.
It has grown its userbase from 150K to 400K in just 15 months
The daily trading volume of CoinDCX is $100+ mn, and it 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
On May 10, 2022, CoinDCX formed CoinDCX Ventures to establish its own startup investing division. The company’s Ventures, the venture capital division of the unicorn Indian cryptocurrency exchange, will assist the business in investing in early- and late-stage cryptocurrency and blockchain firms.
An alumnus of Harvard Business School, Rohit Jain has been chosen by the business to serve as Senior Vice President and Head of Ventures and Investments for CoinDCX Ventures, which aims to support India’s digital asset ecosystem and boost its economy. CoinDCX Ventures is nothing less than a “huge milestone,” according to Sumit Gupta, co-founder and CEO of CoinDCX, and the cryptocurrency exchange intends to spend close to Rs 100 crores on CoinDCX Ventures over the course of the next 12 months.
CoinDCX “Earn” Crypto Yield Initiative
The beginning of CoinDCX’s new project has been set for May 26, 2022. The cryptocurrency asset owners can earn income on their holdings thanks to the company’s “Earn” initiative.
The platform will distribute the assets under “Earn” to generate profits across various yield-generating options like lending, margin trading, and staking. This new possibility to generate revenue promises no lock-in periods and withdrawals at any time, giving clients complete flexibility and control over their cryptocurrency investments. The tenor, however, has to be for seven days.
The global pandemic may have prompted more investors to consider these new liquidation options, which led to increased interest in digital assets. According to analysts, this trend is anticipated to grow rapidly as institutional and individual investors use these new asset classes to diversify their portfolios.
Retail investors between the ages of 25 and 40 spend millions of dollars each day trading cryptocurrencies in India, which…