[Bitstamp] Sameer Dubey joins Bitstamp as Chief Operating Officer

We’re excited to be welcoming another trusted leader from the world of finance to Bitstamp. Sameer Dubey has joined our team as our new Chief Operating Officer.

Sameer brings global leadership in fintech and traditional banking to Bitstamp, where he is taking charge of expanding our operational capabilities as we scale across our global businesses. He is joining us following stints with leading banks such as N26 and Barclays Bank.

At the German neobank N26, Sameer served as the Head of Operations for UK. Prior to N26, he spent over a decade in executive roles at Barclays on their Payments and Cash Management Product team. At Barclays, he also helped the major UK bank take its early steps into the world of blockchain and distributed ledger technology. We recently sat down with Sameer to ask him a few questions about why he chose Bitstamp and how he sees the journey forward.

You’ve built an impressive career at both traditional institutions and neobanks. What convinced you to shift your focus to crypto?

I’ve been engaged with the world of crypto for quite a while. At Barclays, I was one of the founding members of what we called the Blockchain and Distributed Ledger Council, and from that point, I started to see that, in the world of finance, this is probably the most fundamental shift that’s happened for hundreds of years. I saw myself playing a part in this world, so it was more a question of “when” than “if”. I was also familiar with Bitstamp, having been a customer for about four years. So, when the opportunity arose, I knew it would be a good fit.

How do you see the cryptocurrency industry evolving over the next few years?

I think that in a few years, we won’t really be talking about a cryptocurrency industry anymore. It will be another part of finance and innovative crypto businesses will be considered fintechs similarly to how N26 is perceived today. A lot of the groundwork for crypto to fully integrate into finance has already been laid in terms of the market infrastructure and the regulatory frameworks. Now, the trust from traditional players is starting to build up and cryptocurrencies, both as investable assets and as technological innovations, are getting a chance to prove what they can do on the biggest stage.

What part do you see Bitstamp playing in crypto’s evolution?

Bitstamp, from its inception, has been a cornerstone of the crypto industry – I expect us to continue playing that role. Additionally, as crypto merges with finance, the part we play is going to take on new meaning. Part of what makes this space so exciting is that we really can’t know where we’ll be in, let’s say, 10 years. From my perspective right now, I see Bitstamp continuing to provide best-in-class exchange services based on excellent trading technology and outstanding operations. We’re certainly going to build out that core with new assets and trading options, alongside launching brand new services like staking to build out a wider platform. The expertise we’re bringing in now, with leaders joining Bitstamp from various sectors of finance, will be essential on that journey and I’m excited about exploring the future with this team.

At Bitstamp, we’re continuing to bring in top talent and ramp up our global presence. To join Sameer and the rest of our team across Europe, US and Asia, visit our careers page .

Hedge Fund Giant Invests In Bitcoin Trust, JPMorgan’s CEO On Crypto Regulation + More News
Hedge Fund Giant Invests In Bitcoin Trust, JPMorgan's CEO On Crypto Regulation + More News 101
Jamie Dimon, the CEO of JPMorgan. Source: a video screenshot

Get your daily, bite-sized digest of cryptoasset and blockchain-related news – investigating the stories flying under the radar of today’s crypto news.

Investments news

  • USD 48bn hedge fund giant Millennium Management invested in Grayscale Bitcoin Trust (GBTC), TheStreet reported, citing two undisclosed sources familiar with the matter. “While the price premium GBTC long traded at against bitcoin collapsed recently, it’s unclear if New York-based Millennium booked any losses on the crowded trade,” the report added, without providing any numbers about the investment.

Regulation news

  • Jamie Dimon, the CEO of JPMorgan, placed the legal and regulatory status of cryptocurrencies on a list of “serious emerging issues that need to be dealt with – and rather quickly.” Per a letter to shareholders, others such issues include the growth of shadow banking, the proper and improper use of financial data, the risk that cybersecurity poses to the system, the proper and ethical use of AI, the effective regulation of payment systems, disclosures in private markets, and effective regulations around market structure and transparency.
  • A collective of Russian crypto and blockchain players has launched a bid to convince politicians not to pass restrictive a new set of crypto laws, per Izvestia. The new campaign has been masterminded by the pro-business pressure group Investment Russia, the law firm the Digital Rights Center and the public organization RosKomSvoboda, a body that claims to support open self-regulatory networks and protection of digital rights of Internet users. The campaign addresses the country’s finance ministry, Duma financial chiefs, tax bodies and the Central Bank. A manifesto calls for amendments to draft laws that the parties say “will have an extremely negative impact on the Russian crypto industry” if they are adopted.

NFTs news

  • Latvian airline airBalticsaid that it will become the world’s first airline to issue non-fungible tokens (NFTs). The airline will issue limited collector NFTs showcasing an individual Airbus A220-300 with its registration and a piece of art of the Kuldiga city to promote tourism and Latvia in the world. Starting with Kuldīga, the cities and towns which were voted as the people’s favorites will one by one be represented on the digital art pieces issued by airBaltic. The initial drop of the first airBaltic limited NFT will be announced later in April.
  • The seven-time Super Bowl champion Tom Brady is launching an NFT platform called Autograph this spring, CNN reported, citing a representative for Brady. The platform “will bring together some of the biggest names in sports, entertainment, fashion, and pop culture to work with creators to develop unique digital collectibles,” it added.

Exchanges news

  • Blockchain technology company Ebang International Holdings Inc.announced the official launch of its crypto exchange for qualified investors to register and trade on. This launch will “not only expand the revenue sources from our cryptocurrency business but also optimize the development of our blockchain industry chain,” said the company Chairman and CEO Dong Hu.
  • bitFlyer has gotten their third president in two years. The new president is Goldman Sachs alum Kuniyoshi Hayashi, who replaced the outgoing President Kimihiro Mine on March 30, they said.
  • ShapeShift announced support for simultaneously connecting multiple wallets. Per an emailed announcement, users can switch between KeepKey, Trezor, Ledger, Portis, and ShapeShift mobile wallets on the ShapeShift web platform, without needing to reconnect. Support for additional wallets is coming soon, they said.
  • South African crypto exchange iCE3said they “will not return to operation” and that they “have been advised to initiate liquidation proceedings.” “All withdrawals from the platform have been disabled, and we have processed the withdrawals which have already been submitted via the form today, manually. We currently have no withdrawal requests pending for any currencies other than BTC and LTC,” they said.
  • Coinme, a US-based cryptocurrency cash exchange, announced its entrance into Florida with the launch of over 300 bitcoin-enabled Coinstar kiosks located at select Winn-Dixie, Fresco y Mas, Harveys, and other grocery outlets across the state.
  • The Miami HEATsaid it has entered into a long-term partnership with crypto derivatives exchange FTX.us, making this platform “The Official and Exclusive Cryptocurrency Exchange Partner of the Miami HEAT.” This deal works in tandem with the recent announcement that, starting with the 2021-22 NBA season, the home of the Miami HEAT will be known as “FTX Arena.”

Mining news

  • Chinese online lottery company 500.com has acquired Bee Computing, a Hong Kong-registered maker of Bitcoin mining machines, in a USD 100m deal, according to a filing with the US Securities and Exchange Commission (SEC). 500.com will pay Bee Computing USD 35m in stock by the end of the second quarter and send the other USD 65m worth of stock after the company has produced a certain number of 7nm ASIC bitcoin mining machines, as well as made higher performance bitcoin, ethereum (ETH), and litecoin mining machines.

Crypto adoption news

  • A new deal with the Valencia-based crypto exchange Criptan will allow Spanish travelers to make claims for airline-related delays and other incidents – and receive crypto rather than fiat as compensation. Per El Mundo Financiero, the exchange has teamed up with the Wings to Claim platform. The parties will allow travelers to make claims from travel agencies or airlines in situations whereby customers experience delays of three hours or more, lose baggage, if their flights are canceled or overbooked, or if they miss a connecting flight.

Blockchain news

  • Daegu, one of the largest cities in South Korea, has introduced a blockchain-powered ID authentication system for users of its online and offline public services. Per the Daegu Shinmun, the new platform makes use of a smartphone app that allows users to reserve city-operated facilities, make use of city-funded electric scooters and borrow library books using blockchain-based innovations. In a separate development, Law Issue reported that the electricity provider Nambu Power will also make use of blockchain-powered ID solutions on its renewable energy certificates platform.

Legal news

  • Michael Hlady pled guilty before a US Chief District Court Judge to conspiring to extort a startup company for millions of dollars in ethereum. When sentenced, Hlady faces up to 20 years in prison, as well as a fine, said the US Department of Justice. The startup was a mobile-based business that issued cryptocurrency as loyalty rewards for generating user traffic to its clients’ products. Hlady and his co-conspirator Steven Nerayoff issued threats to the company executives that included destruction of the company if they did not agree to demands for additional funds and tokens, claims the press release. As a result of this threat, the startup transferred ETH 10,000 to Nerayoff. He has entered a plea of not guilty to extortion charges and is awaiting trial.
Signal Turns Into Noise With MobileCoin Integration
Signal Turns Into Noise With MobileCoin Integration 101
Source: Adobe/natanaelginting

Private messaging app Signal, which is also popular among crypto users, announced they’re launching payments using MobileCoin (MOB). But then things turned sour.

Per the April 6 announcement, this is a beta feature in Signal Beta, available to the United Kingdom folks for testing and feedback purposes. They plan to expand the beta following more feedback.

Privacy-focused payments network MobileCoin, which uses the Stellar (XLM) Consensus Protocol (SCP) to synchronize a ledger, is the first payments protocol for which Signal added support, enabling a MobileCoin wallet to be linked to the messaging app in order to send/receive funds, monitor balance, and review transaction history. It’s currently possible to convert to/from the MOB token on crypto derivatives exchange FTX, with other exchanges coming soon, they added.

Signal does not have access to a user’s balance, full transaction history, or funds, they claimed, while users can transfer their funds “at any time” if they want to change services. Per Business of Apps data, Signal had 40m users in January this year.

But the reaction to this rollout wasn’t entirely positive. Some claimed that Signal is “dabbling in shitcoin pump,” and others added that Signal “has alienated all Bitcoiners” with this move.

just setting up my twttr

— jack (@jack)

Other criticism includes comments that Signal creator Moxie Marlinspike is using Signal to pump his MOB bag. Marlinspike has also been a technical adviser for MobileCoin.

However, he told WIRED that neither he nor Signal own any MOB tokens.

In 2018, the project announced a fundraising round led by Binance Labs for USD 30m denominated in ethereum and bitcoin. Per TechChrunch, the payments network recently raised USD 11.35m in funding across two rounds from Future Ventures and General Catalyst.

Furthermore, Marlinspike is listed as Chief Technology Officer in the MobileCoin whitepaper.

And speaking of the whitepaper, developer Tadge Dryja said that he found a MobileCoin whitepaper, which is reportedly just a copy of the ‘Zero to Monero’ paper with a few changes.

Others made similar allegations, such as Riccardo Spagni, the former lead maintainer of Monero.

just setting up my twttr

— jack (@jack)

BlockTower Capital founder Ari Paul, however, commented that MobileCoin is not a fork of Monero, and that Spagni’s claims can’t be used as proof to the contrary as he’s “an altcoin [developer] criticizing competition.”

This was a part of a longer technical discussion and disagreement over the project’s specifics.

Per Marlinspike himself, “Signal chose to integrate MobileCoin because it has the most seamless user experience on mobile devices, requiring little storage space on the phone and needing only seconds for transactions to be confirmed.”

The market situation caught the eye of analysts and traders, including Eric Wall, the Chief Investment Officer of the crypto hedge fund outfit Arcane Assets, who likened MobileCoin to an inedible footlong sandwich filled with a bunch of random ingredients.

just setting up my twttr

— jack (@jack)

At 14:32 UTC, MOB trades at USD 40 and is down by 38% in a day, erasing almost all its weekly gains. The price is still up by 648% in a month.

BTC Slips As Coinbase Sees 15% User Growth At Best, Focuses on Altcoins
BTC Slips As Coinbase Sees 15% User Growth At Best, Focuses on Altcoins 101
Source: Coinbase

The price of the most popular cryptocurrency, bitcoin (BTC), corrected lower following the much-anticipated announcement of Coinbase‘s results.

At 05:02 UTC, BTC trades at USD 57,576 and is down by 2% in a day and a week.

The US-based major crypto exchange, that is preparing for a direct listing of its shares on April 14, said that, according to their best scenario, the annual average number of their monthly transacting users (MTUs) is expected to growth by 15% and reach 7m this year.

“This scenario assumes an increase in crypto market capitalization and moderate-to-high cryptoasset price volatility. In this scenario, we expect that MTUs continue to grow for the remainder of 2021,” the company said.

Other two scenarios assume that MTUs might drop to 5.5m or 4m from the current 6.1m.

The 5.5m scenario assumes flat crypto market capitalization and low-to-moderate cryptoasset price volatility. While MTUs might drop to 4m if there is a significant decrease in crypto market capitalization, similar to the decrease in 2018, and low levels of cryptoasset price volatility thereafter.

However, Alesia Haas, Chief Financial Officer of the company, said during an earnings call that given the strong performance of Q1 2021, it is likely that annual average net revenue per user will exceed their historical range.

“Over the last 2 years, we have seen average annual net revenue per MTU range between USD 34 – USD 45 per month, with the low end of this range occurring in 2019, a period of low Bitcoin price and low cryptoasset price volatility, and the high end of the range occurring in 2020, a period of rising Bitcoin price,” Haas said, adding that the company believes that “we entered the fourth price cycle in late 2020.” They last 2-4 years, per the CFO.

Meanwhile, Brian Armstrong, Founder and CEO of Coinbase, stressed during the call that while Bitcoin is critical to the cryptoeconomy, “it’s just the beginning” as they’re innovating and creating new products and services: “In recent years, we have expanded to be much more than a place to buy and sell bitcoin.”

“You’ll often hear the comparison of Bitcoin to “digital gold”. But crypto is bigger than just Bitcoin — and Coinbase will ultimately strive to support every legitimate cryptocurrency in the market,” Armstrong said.

In Q1 alone, the company added support for 18 new assets, bringing the number of assets supported on the platform to 108.

Coinbase also revealed the following estimations for the first quarter of 2021:

  • Verified users of 56m
  • Assets on platform of USD 223bn, representing 11.3% crypto asset market share (includes USD 122bn of assets on platform from institutions)
  • Trading Volume of USD 335bn
  • Total Revenue of approximately USD 1.8bn
  • Net Income of approximately USD 730m to USD 800m
  • Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of approximately USD 1.1bn
BP looks set to return more money to shareholders as it beats expectations

Oil major BP has said that it expects to start buying back its own shares again, after hitting its targets for reducing its debt load earlier than anticipated.

“We are pleased to announce that we now expect to have reached our $35bn net debt target during the first quarter 2021,” said BP’s chief executive, Bernard Looney. “This is a result of earlier than anticipated delivery of disposal proceeds combined with very strong business performance.”

Net debt at the end of 2020 was $38.9bn, meaning that BP has sliced nearly $4bn off its debt pile in the past three months.

The group will update with more detail when it reports on its first quarter results at the end of this month (27 April). For now, BP noted that it is committed to “returning at least 60% of surplus cash flow to shareholders by way of share buybacks, subject to maintaining a strong investment grade credit rating.”

So why has net debt declined so rapidly? BP made more money from selling assets than it had expected. Deals included the sale of a petrochemicals business to global chemical giant Ineos, the sale of a stake in software group Palantir, and the raising of more than $2.4bn from the sale of an Omani gas development. As a result, the group now expects sales proceeds to hit the upper range of its earlier $4bn to$6bn estimate.

The group also benefited from the strong rebound in the oil price earlier this year.

What does this mean for your portfolio?

BP’s share price cheered the unexpectedly positive announcement, gaining around 3% to trade at around 300p a share.

As Mark Nelson of Killik notes, the shares still look reasonably priced “on a price to December 2021 earnings ratio of 11.3 times” plus “a prospective dividend yield of 5.3%”. Meanwhile AJ Bell analyst Danni Hewson reckons that the share buybacks raise the “prospect of more generous returns to shareholders”.

Long story short, if you hold BP already – and we’ve been pretty positive on oil stocks so a lot of you probably do – this is another reason to hang on. And even if BP isn’t your preferred play, we’d suggest having some exposure to the sector – fossil fuels will be around for a while longer and the market still doesn’t look to have priced in all of the rebound potential from the Covid-19 lockdowns.

Don’t Assume ‘Government Tolerance’ of Bitcoin – Allianz Chief Economist
Don't Assume 'Government Tolerance' of Bitcoin - Allianz Chief Economist 101
Mohamed El-Erian. Source: a video screenshot.

Mohamed El-Erian, Chief Economic Adviser of German insurer Allianz, said that the rapidly rising interest in bitcoin (BTC) by investors worldwide is triggered by their belief in a continued private sector adoption, but that the cryptocurrency will establish itself only if governments permit it to.

The President of Queens’ College, a constituent college of the University of Cambridge, made his remark in an interview with CNN in which he said bitcoin “takes away a lot from from governments, it takes away ‘seigniorage,’ the ability to provide currency and benefit from that.”

If people are investing into bitcoin, it’s because they believe that the private sector adoption is going to continue, which in El-Erian’s view is “the right thing to believe” – but the investors also believe that the government will not interfere with it, which the Chief Economic Adviser is not convinced to be true. He said,

“So I tend to tell people [to] be really careful; this is an asset that want’s to establish itself but it can only establish itself if governments allow it to. […] I tell people to be cautious, because you’re not only assuming private adoption, but you’re also assuming government tolerance, and that second one I’m not so sure about.”

The Chief Economic Adviser added that, from a narrow perspective, bitcoin is not too big to fail. From a broader perspective, said he, there’s another challenge to the liquidity paradigm, where investors bet on liquidity. With “three liquidity accidents” this year so far, he called for caution as “you never know which little fender bender is gonna cause a pileup on the highway.”

El-Erian said bitcoin’s latest surge was also related to various investors realising that, given the US Federal Reserve’s (FED) current quantitative easing policy and the record money supply, government bonds could no longer be considered the safest haven for their funds.

There are distortions in the marketplace, finds the adviser, caused by this massive intervention of central banks. Government bonds are safe assets for investors, and a way to diversify away from equity. But if their price is artificial as it is today – it’s too high – then they stop being a risk mitigator, and investors look elsewhere, El-Erian said. “Normally, you would look to gold, but there is an issue with the gold market. So a lot more people have gone into bitcoins as their risk mitigator which sounds absurd because bitcoins are incredibly volatile.”

Explaining why he thought investors were injecting their funds into the cryptocurrency despite this, El-Erian said,

“This is the situation where [bitcoin] is, in the eyes of some investors, the least bad asset to use.”

CNN host Julia Chatterley noted that the FED’s money supply indicator called M2 increased 27% year-on-year in February, indicating record money supply growth. M2 is a calculation of the money supply that includes all elements of M1 (cash and checking deposits) and “near money” (savings deposits, money market securities, mutual funds, and other time deposits). Per Investopedia, it’s watched as an indicator of money supply and future inflation, as well as a target of central bank monetary policy.

El-Erian replied that among the investors there are those who invest in BTC for defensive reasons, others for speculative reasons, and there are those who believe that the currencies are debased because of the money supply growth. “The more money supply growth you’re going to see, the more that’s going to push people into” bitcoin, he concluded.

just setting up my twttr

— jack (@jack)

At 10:25 UTC, BTC is trading at USD 60,405, having appreciated 5.2% in a day and 2% in a week. Overall, it’s up nearly 19% in a month and 753% over the past year.


Learn more:

Allianz Chief Economist: Crypto Is Not Dead

‘I Thought I Was The Smartest Person’ – Allianz’s El-Erian On His USD 19K BTC Sale

Here Are the Ways Governments Could Attack Bitcoin – and None of them Sound Hot

UK Crypto-Skeptic’s Anti-Bitcoin Petition Looks Set for a Sad Fate

Response to Ray Dalio: Banning Bitcoin Is a ‘Game of Whack-a-Mole’

There’s Still a Non-Trivial Chance of a Ban on Bitcoin – Kraken CLO

Latest Episode of India’s Crypto Ban Soap Draws Decidedly Mixed Reviews

NFTs, Altcoins Compete For Stimulus Checks With Bitcoin & Ethereum

Why The Return Of High Inflation Can No Longer Be Excluded

Inflation Is Here & Bitcoin Will Hit USD 115K ‘Ahead of Target’ – Pantera

Bitcoin Snowball Is Expected To Hit More Institutions in 2021

Bitcoin’s limited real-world use and extreme volatility show its recent surge is still a speculative bubble, UBS Global Wealth Management says | Currency News | Financial and Business News
Bitcoin’s “restricted real-world use” and “excessive volatility” illustrate the cryptocurrency’s latest surge remains to be a speculative bubble, in line with UBS Wealth Administration.

In a notice to shoppers and workers on Friday, titled “Is Bitcoin too huge to disregard?”, the chief funding workplace of UBS International Wealth Administration stated it stays “unconvinced” by bitcoin amid the cryptocurrency’s latest surge to record highs of over $61,000 per coin on March 13.

The UBS workforce argued “bitcoin’s restricted and extremely inelastic provide exacerbates its volatility” making it a danger to shoppers. The corporate additionally highlighted the restricted real-world use instances for the digital asset.

UBS recommended traders search for property which are much less risky and which have “extra clear valuation fashions.”

They emphasised merchants ought to act with “excessive warning with regard to crypto hypothesis” as a result of swings in “investor sentiment” or new “regulatory crackdowns” may pose important dangers.

The chief funding workplace provided different investments for shoppers together with semiconductor shares to benefit from crypto-mining and gold for draw back safety.

The UBS workforce did notice institutional traders’ latest entry into cryptocurrency has prompted a growth however cautioned traders concerning the volatility that it might carry to the asset.

“Empirical proof from established asset lessons means that larger participation by institutional traders may improve volatility because of their extra opportunistic funding method,” the UBS workforce wrote.

In a concluding assertion to the notice, UBS added that of their view “hypothesis in crypto is a raffle, not an funding.”

Regardless of UBS’ bearish view, bitcoin continues to make headlines and massive returns for traders. The cryptocurrency has appreciated roughly 700% over the previous yr alone and cryptocurrencies noticed record inflows of $4.2 billion within the first quarter of 2021.

Elon Musk additionally stated in a tweet earlier this week that Tesla would accept the cryptocurrency as a type of fee.

UBS wasn’t alone this week in placing a bearish tone. Bridgewater Associates Ray Dalio stated he believes the US authorities might find yourself banning cryptocurrencies altogether in an interview with Yahoo Finance.

Is Bitcoin Too Dirty For Some Investors?

Bitcoin is being known as “digital gold.” And taking the analogy additional, some individuals paint gold mining and bitcoin mining with the identical brush of being environmentally unfriendly. Except that notion modifications, some observers say, that might hinder the acceptance of the digital foreign money by institutional traders.

The subject of cryptocurrencies consumed chunk of time at a webinar hosted in the present day by Cboe International Markets. It featured three well-known names within the exchange-traded fund business: Cathie Wooden, founder, CEO and chief funding officer of ARK Make investments; Jan van Eck, president and CEO of VanEck Associates Corp.; and Kevin O’Leary, chairman of O’Shares ETF Investments.

Ark Make investments was one of many pioneers in providing bitcoin to traders when it started together with it in a few of its funds in 2015 by way of the Grayscale Bitcoin Belief. At the moment, Wooden mentioned, its value was about $250. (It closed buying and selling in the present day at $52,439.) Jan van Eck has lengthy been a bitcoin bull, and his firm has been making an attempt for numerous years to realize approval from the Securities and Change Fee to launch a bitcoin ETF.

And O’Leary, previously a famous crypto critic however now a believer, provided a number of warnings about bitcoin not flying with some traders—significantly institutional traders—due to its environmental and social impression. Pensions and endowments utilizing his firm’s ETFs as a part of their wealth preservation mandates wish to know the provenance of the cash being mined.

“A brand new drawback I believe lots of people haven’t thought of is whether or not the coin is compliant with [institutional investors’] committees,” O’Leary mentioned, alluding to the truth that bitcoin is manufactured in international locations accused of human rights violations.

“I’m actually talking about China,” he mentioned, including that’s an issue as a result of that’s the nation the place most of it’s mined.

Bitcoin Mining

In easy phrases, bitcoin mining requires highly effective computer systems to resolve cryptographic puzzles, and people who clear up them are rewarded with a sure variety of bitcoins. Bitcoin’s most provide is capped at 21 million cash.

Computer systems engaged in mining are vitality hogs, which critics contend make them environmentally unfriendly—particularly in the event that they’re made in a rustic (like China) powered largely by coal.

However Wooden and Van Eck pointed to analysis exhibiting that crypto mining’s environmental impression is perhaps overstated.

Wooden mentioned one in all Ark Make investments’s analysts did a examine evaluating bitcoin mining to gold mining, and it confirmed the vitality consumption related to bitcoin is a fraction of that for eradicating gold.

CoinDCX Review 2021 – Should it be Your Choice? (An Indian Exchange)
  • Is CoinDCX Safe?
  • What all features does CoinDCX offers?
  • What are the pros and cons of CoinDCX Exchange?

Today, we have brought to you yet another review of growing Indian crypto exchange called CoinDCX. CoinDCX is a Singapore-based company that has a user base predominantly in India (in India, the CoinDCX office is located in Mumbai, Maharashtra). Despite the skepticism of Indian Authorities towards cryptocurrencies, CoinDCX has survived and is growing at a good pace. Though its trading volume is far away from its competitor (i.e. WazirX, read our full review on WazirX here), the exchange can be considered for the features and security it provides to its users.

In this article, we will discuss everything about CoinDCX, from its features and benefits to its limitations. But first thing first, let us understand the foundation and history of the exchange.

CoinDCX was launched on April 7th, 2018 with an aim to provide a user-friendly experience where users can access a wide range of financial products and services backed by industry-leading security processes and insurance protection. CoinDCX is an ISO-certified company that provides decent liquidity with a fast onboarding process in the industry. Further, the exchange partners of CoinDCX are Binance (which is the world’s largest crypto exchange), Huobi, and Okex.

The exchange has just finished its 3rd round of funding in December 2020 with total funds raised worth USD 19.4 Million from companies such as Coinbase Ventures(the investment arm of San Francisco, US-based cryptocurrency trading platform Coinbase), Polychain Capital, Bain Ventures, Bitmex, Mehta Ventures, and Alex Pack, etc.

The exchange offers more than 200 different cryptocurrencies including Bitcoin, Ethereum, and other Altcoins with an average 24-hour trade volume of USD 2.5 Million (approx.).

CoinDCX trading volume

Now, let us know about the men behind the veil working for CoinDCX.

Founders of CoinDCX Exchange

Sumit Gupta (CEO) – Twitter

Sumit Gupta CoinDCX

Sumit Gupta is the Chief Executive Officer (CEO) and co-founder at CoinDCX. After finishing his graduation and post-graduation from IIT Bombay in India, he joined Sony in Tokyo. He invented India’s first location-based online marketplace (ListUp) which became a multimillion-dollar startup within a year. Sumit is a known name in the Indian Crypto Community.

Neeraj Khandelwal (CTO) – Twitter

Neeraj Khandelwal CoinDCX

Neeraj Khandelwal is the Chief Technology Officer (CTO) and co-founder at CoinDCX. He is an engineer by profession who leads the technical development of all the CoinDCX products. He graduated from IIT Bombay, India in Electrical Engineering in 2012. Under his technical leadership, DCX is exponentially growing across the globe with a variety of crypto instruments available to trade for users.

The CoinDCX team is a good blend of people from the software industry and traditional financial markets. Thus, this team has a good potential to take this exchange to new heights.

Now as we already know about the management team, let us talk about what does this exchange offers in terms of its features.

Features of CoinDCX Exchange

There a number of features that CoinDCX offers. I have tried to consolidate them as follows:

Features of CoinDCX Exchange

Types of trades offered by CoinDCX

The exchange offers Spot Trading, Margin Trading, and Futures Trading to its users. A margin trade can be levered up to 6X on CoinDCX. However, leverage for a futures contract is allowed up to 20X.

Instant Deposit and Withdrawals (deposit and withdrawal of fiat currency)

The “Insta” feature on CoinDCX allows a user to buy cryptocurrencies with Indian National Rupee (INR). Please note that CoinDCX does not support any fiat currency other than the INR. The minimum buy or sell limit per transaction is INR 1 and the maximum buy or sell limit per transaction is INR 1,00,000.

The lending of cryptocurrencies

“Lend” is a lending platform where users can earn interest through cryptocurrencies that they hold in their CoinDCX account. The user will receive his or her interest in the same cryptocurrency as his or her principal amount. If you lend BTC, the interest you receive will be in BTC.

CoinDCX - Lend Feature

All the locked cryptocurrencies are stored in geographically distributed cold wallets which are ensured DDoS protection, regular stress testing measures, and multi-signature authentications to ensure cutting-edge security.

There are a number of cryptocurrencies that can be lent through the exchange. For the complete list of such tokens, click here.

Coin Staking

A CoinDCX user can stake their cryptocurrencies on the exchange and earn staking rewards on the same. Currently staking feature is available on 7 coins.

Coin DCX - Staking Feature

Sub Accounts – Manage multiple accounts from one

CoinDCX has sub-accounts that allow you the option to split up your positions. You can create new sub-accounts, switch which sub-account you’re using, and transfer funds between sub-accounts. Therefore, you can create separate accounts for your trading and investing activities.

User Interface and Mobile Application

The trading view of the exchange is very interactive and user-friendly. The view will help you to trade comfortably without any hassles.

CoinDCX - Trading View

The exchange has a mobile application for android and iOS devices to keep the user updated on the go. The app is fully functional and if you enjoy trading on mobile, the app will keep you engaged. There are more than 100K downloads on the app store with an average rating of 4.6.


What are the Transaction Fee and Transaction limit for CoinDCX?

There are no deposit charges for deposit of fiat currency i.e. INR. For Non-KYC users, the deposit amount is limited to INR 10,000 only. For more details on the deposit click here.

The limit for withdrawal in Fiat currency (INR) is as follows:

Particulars KYC user Non-KYC user
Minimum Value INR 500 per transaction INR 500 per transaction
Maximum Value INR 500,000 per day INR 10,000 per day

The limit for withdrawal in Cryptocurrency is as follows:

Particulars KYC user Non-KYC user
Deposit No Limit The Maximum (deposit + withdraw) limit is 4 BTC per day
Withdrawal No Limit The Maximum (deposit + withdraw) limit is 4 BTC per day

The withdrawal fee is variable depending on the amount and type of cryptocurrencies being withdrawn. For more information on the withdrawal fee, click here.

The trading fee is also variable and is dependant on the club level assigned to you by the exchange. For more information on the trading fee, click here.

How secure is CoinDCX?

CoinDCX is a fairly secure exchange and the core team follows the following principles:

CoinDCX - Security

The exchange has uses geographically distributed cold wallets, DDoS protection, regular stress testing measures, and multi-signature authentications to ensure better security.

The Cold wallets mentioned above are completely offline and their multi-signature feature prevents a single point of failure and improves the resilience against the loss of funds on the loss of private keys.

Further, all the funds are insured by BitGO, including users’ cryptocurrencies held on MultiSignature cold wallets thus insuring them to an extent.

CoinDCX KYC Requirements

A user can trade on CoinDCX without submitting his/her KYC documents. However, there are limits to Deposits and Withdrawals as mentioned above.

KYC procedure of the CoinDCX exchange is fully automated in partnership with Onfido (a global leader in artificial intelligence for identity verification and authentication).

Social Media Presence

CoinDCX has a decent social media presence along with global coverage by traditional (Mint, Times of India, CNBC, Medianama, Inc42, Financial Express, Economic Times, Nasdaq, etc.) as well as crypto media houses (Cointelegraph, Coindesk, Coinpost, Blockchain News, etc.).

So, evidently this exchange has no less than any bigger exchange when it comes to the features. Now, let us summarise the pros and cons of using CoinDCX.

Benefits of CoinDCX Exchange

The benefits of the exchange can be pointed as follows:

  • The exchange has a user-friendly interface and a fully functional mobile application
  • CoinDCX has substantial Community and Social media presence
  • The exchange has renowned investors base which gives the exchange an ample amount of credibility and user confidence
  • The exchange provide sufficient amount of liquidity to the users for the purpose of Margin Trading and Futures Trading

Limitations of CoinDCX Exchange

There are some areas which CoinDCX should try to improve upon, such as:

  • The exchange only supports one fiat currency i.e. Indian National Rupee (INR)
  • Trade volume is fairly low in comparison with the top exchanges in the crypto market
  • The legal framework of Cryptocurrency trading in India is not clear. However, the situation is expected to improve in India as authorities are looking towards possible benefits that can be derived from blockchain technology. Though CoinDCX is registered outside India, its major user base is in India. Therefore the Indian jurisdictional risk may pose a risk of business continuity to CoinDCX Exchange.

Conclusion – CoinDCX Review

As per my understanding, CoinDCX is fairly loaded with all the major features. However the adoption of exchange is yet awaited from the user side. Further, the exchange can work on the various limitations I have mentioned above.

Create a free account on CoinDCX

Nonetheless, as crypto adoption is increasing in India and the authorities may clarify the legal framework of the cryptocurrencies (hopefully in favour of the industry) shortly, CoinDCX has a substantial scope of growth in the coming years. The core team is already visible in the media and may be successful in grabbing the attention of the country’s masses which will help the exchange immensely.