Cryptocurrencies were once a talk of the town but since the Government of India put a ban on the unregulated currency, things became silent. Recently in March Government lifted the ban on the use of this digital asset. CoinDCX, a Cryptocurrency exchange raised about $2.5 million in a funding round led by Polychain Capital, crypto investment platform. The round also saw contribution from Coinbase Ventures.
The company released a statement stating that the funding will be used to support its efforts to push into crypto adoption through dedicated adoption. This is the second round of funding for the firm since the lock-down began. Polychain is one of the largest crypto investment firms in the world and works towards the adoption of crypto worldwide.
Reserve Banks placed a ban on digital currencies like Bitcoin because of the wide opposition in its use but Supreme Court recently permitted the use of crypto in trade stating all bans null and void. The use of crypto was questioned because of because of its non-fiat character, complex behavior and their deal in a non-transparent way. There were no set guidelines to govern cryptocurrencies unlike money supply.
The company said that they have been recording massive growth since February itself. There have been 10X growth in signups in a week, 47% growth in trading volumes and 150% growth in daily active users in March alone. CounDCX is the first Indian venture to allow bank account transfers on exchange.
The recent investment will be utilized to strengthen adoption efforts and to increase the user base. They have a target to have 50 million crypto users in the country in an unspecified amount of time. The firm has also dedicated Rs 10 crore to focus on education, organizing meet up events community engagement and consumer campaigns. Crypto is definitely one of the most controversial topics and has a lot of taboo around it, it will be interesting to see the firm to dodge these challenges and outgrow them.