 "Crypto wrap 2024: Bitcoin, altcoins remain popular among Indian investors")
The majority of crypto investors in the country have invested in mainstream virtual digital assets (VDAs) such as Bitcoins, altcoins like Dogecoin, Shiba Inu, and Ethereum, followed by non-fungible tokens (NFTs) and stablecoins, a compilation of year-end reports of crypto majors CoinDCX and CoinSwitch revealed.
The crypto exchange platform CoinDCX reported that 14.6 per cent of total investments on its platform were allocated to Bitcoin, while CoinSwitch saw the share of the VDA at 7 per cent.
The recent Bitcoin rally in December, saw the cryptocurrency surge past the $100,000 mark, drawing Indian investors to homegrown crypto exchanges.
Women crypto investors rose in 2024 in line with an increase in the user base of these crypto exchanges. The user base of CoinDCX grew 14.3 per cent on a year-on-year (Y-o-Y) basis to 16 million investors in 2024 from about 14 million users in the previous year.
About 15 per cent of investors on the platform were women, with the participation of women among high net-worth individuals (HNIs) rising to 20 per cent in 2024.
CoinSwitch’s user base grew to over 20 million investors with about 11 per cent of them being women.
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Among common names in the two reports in terms of the list of top ten Indian cities in terms of adoption of crypto in 2024 include New Delhi, Mumbai, Bengaluru, Pune, and Kolkata. Notably, there are some smaller cities/towns that figure in the top ten list including Lucknow, Botad in Gujarat, Jaipur, Guwahati, Ludhiana, and Nagpur, among others.
On a cumulative basis, the crypto firms held a combined proof of reserves (PoR) of over ~ 8,600 crore, according to the latest figures.
PoR is the ‘proof’ that a financial entity has the holdings it claims to have. A PoR audit is published by crypto firms to inform customers that a custodian or a crypto platform is adequately liquid, and users can withdraw their funds at any time. It provides transparency on the user's and crypto exchange's holdings.
2024 saw another home-grown crypto exchange WazirX suffer a cyberbreach, leading to a loss of about 45 per cent of its crypto assets.
Over three months after the breach was first reported, Ashish Singhal, co-founder and chief executive officer (CEO), CoinSwitch alleged that the embattled firm WazirX moved over $73 million worth of crypto to exchanges such as Bybit and Kucoin.
At present, Zettai, the parent firm of embattled crypto exchange WazirX, has filed an application with the Singapore High Court seeking permission to convene a meeting of its creditors.
The meeting would enable the company to present a scheme of arrangement for the recovery of lost funds to its creditors and bring it to a vote, subject to the court’s approval.
Crypto rush
- 14.6% of total investments on CoinDCX were allocated to Bitcoin
- CoinSwitch saw the share of Bitcoin investments at 7%
Rising participation
- CoinDCX’s user base grew 14.3% year-on-year to 16 million; 15% were women
- CoinSwitch’s user base grew to over 20 million investors; 11% were women
Top cities that adopted crypto
- New Delhi, Mumbai, Bengaluru, Pune, Kolkata, Lucknow, Botad in Gujarat, Jaipur, Guwahati, Ludhiana, and Nagpur