CoinDCX Bags $2.5 Million as Strategic Investment

The investment will reinforce CoinDCX’s efforts to spearhead crypto adoption
  • BY Jaspreet Kaur

    Feature Writer, BusinessEx

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  • May 27,2020
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  • 13 Mins Read

In these testing times, cryptocurrency is turning into a viable trading option. After the Supreme Court overturned RBI’s ban, a wave of happiness had emerged among crypto firms, in turn, surged crypto exchanges thereafter. Even still, trading of cryptocurrency has not been impacted. Although, confidence in cryptocurrency has become stronger as the cryptocurrency trading has increased dramatically. 

Owing to which, investors are also eyeing on the cryptocurrency space and making infusions in the crypto companies. Of late, the Mumbai-based cryptocurrency firm, CoinDCX has secured a $2.5 million strategic investment from Polychain Capital and  Coinbase Ventures, the investment arm of San Francisco-based cryptocurrency firm, Coinbase. 

The company will be employing funds to lead crypto adoption including the #TryCrypto campaign, one of its crypto adoption initiatives aimed at bringing the total number of crypto users in India to 50 million.

"The recent months have shown that the cryptocurrency industry in India is finally getting the recognition it deserves from global corporations and investors. Our relationship with Polychain Capital goes from strength to strength, reflecting our great partnership with the Polychain team. We are also excited to add Coinbase Ventures as an investor; Coinbase’s vision and successful efforts for global cryptocurrency adoption have been admirable and mirrors CoinDCX’s dream for a DeFi future," Sumit Gupta, CEO and Co-founder of CoinDCX, said.

The announcement of the strategic investment from Polychain Capital and Coinbase Ventures comes at a time of unprecedented growth and record trading volumes for the cryptocurrency industry in India, despite the global economic uncertainty caused by the Covid-19 pandemic. 

Building People’s Confidence into Cryptocurrency 

Cryptocurrency is still a new thing for Indian banks, companies and individuals though the digital asset was in the country for almost two years. After the apex court’s verdict in favour of cryptocurrency, its use has become legal and thus, users have started dealing in crypto like never before. Seeing this as an opportunity, CoinDCX is infusing its money in creating awareness and knowledge about cryptocurrency.

The investment will bolster CoinDCX’s efforts in building a user-focused and secure exchange to support the growing demand for crypto in India, as well as supporting CoinDCX’s INR 100 million (US$1.3 million) #TryCrypto initiative for educational initiatives, meetup events, community engagements, and consumer campaigns, the company said in its statement. 

The company is also planning  to roll out Academy, a blockchain and cryptocurrency learning program, that will help first-time crypto traders.

"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," Gupta informed. 

Polychain Capital has recently led CoinDCX's $3 million Series A round, which also included Bain Capital Ventures and HDR Group, Operator of BitMEX. Coinbase Ventures' investment into CoinDCX comes after Coinbase began serving Indian customers in April 2019 and marks Coinbase's first investment in the Indian blockchain company. 

Through Coinbase Ventures, Coinbase has also made investments in key cryptocurrency businesses such as Compound, BlockFi, Etherscan, Securitize, and Messari.

"We have worked closely with CoinDCX from an early stage, and have continued to be impressed by the team and vision. Their thoughtful insights into the Indian market as well as their long-term product roadmap have strengthened our belief in the potential of the business. We are thrilled to continue to support the team's vision and to provide our deep expertise in growing some of the most successful crypto projects in the world," Olaf Carlson-Wee, Founder of Polychain Capital, said.

After lifting the ban from cryptocurrency, CoinDCX claims to have seen a ten times growth in sign-ups in one week, 47 per cent growth in trading volumes, and 150 per cent growth in daily active users in March alone.

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