India’s largest cryptocurrency exchange CoinDCX has received $2.5 million in investment from Coinbase Ventures, Polychain Capital and others, according to a blog post published on May 26. The investment follows a $3 million Series A funding round that was conducted in late March.
CoinDCX has the vision of bringing 50 million Indians into the cryptocurrency market and has budgeted $1.3 million towards educational purposes, meetup events, community engagements, and consumer campaigns. Multiple entities and individuals have noted the lucrative nature of the Indian market, which is one of the fastest growing economies in the world.
Sumit Gupta, co-founder and CEO of CoinDCX, is confident about the position the Indian market is in,
The recent months have shown that the cryptocurrency industry in India is finally getting the recognition it deserves from global corporations and investors...This new strategic investment into CoinDCX is a shot of confidence in our roadmap toward bringing the crypto asset class to a largely untapped Indian market. We look forward to our investors’ continued counsel in building the most trusted and safe exchange for our users.
India has had a rollercoaster relationship with cryptocurrencies. For many months, it was rumoured that government officials would impose a jail term for involvement in the cryptocurrency market, but this was soon dismissed. However, many investors were left in the dark when the Reserve Bank of India, India’s central bank, ordered banks to cut services to exchanges in July 2018.
This resulted in a nearly 2 year long limbo, where lobbyists pitched the case for digital assets and blockchain technology. The Supreme Court eventually ruled the ban on banking services as unconstitutional in March 2020. The decision was widely seen as a victory for the Indian market and happily welcomed by Indian investors.
CoinDCX, and generally all exchanges in the country, have shown increased volume and trading since the order was struck down. The exchange has seen a 47% increase in volume and a 150% boost in daily activity.