- Indian exchanges faced temporary volatility due to global market fluctuations.
- Founders emphasize caution, stability, and resilience amidst downward price moments.
Amid a global crypto bull market, the Indian crypto community woke up to a rollercoaster ride on their local exchanges as Crypto/INR rates experienced a downward spiral. However, whilst the chaos, founders of major Indian exchanges stepped forward, shedding light on the situation from their unique perspectives.
Nischal Shetty, co-founder of WazirX and Shardeum, attributed the downturn to massive selling, particularly of tokens like SHIB, within a short span. He emphasized that such fluctuations are inherent to market cycles, urging caution during times of high volatility.
Susmit Gupta, founder of CoinDCX, reassured users that the exchange was functioning normally despite the turbulence. He highlighted CoinDCX’s relative stability due to higher liquidity, emphasizing that market fluctuations were beyond the exchange’s control.
Ashish Singha, co-founder of Coinswitch, provided historical context, explaining that USDT/INR prices typically trade at a premium in India. However, during volatile periods, price disparities occur, causing prices to deviate from the norm. Singha assured users that as volatility subsides, markets correct themselves, returning to their usual trajectories.
A Needed Reassurance?
The interconnectedness of global crypto markets was underscored by all founders, as fluctuations in international markets, particularly in BTC\USDT and SHIB\USDT, had a ripple effect on Indian exchanges. This interdependence led to a decrease in USDTINR prices across local exchanges, impacting INR-based crypto prices.
While users expressed concern over the sudden price drops, founders unanimously advised caution and highlighted the transient nature of market fluctuations. They emphasized that crypto-to-crypto prices remained stable and unaffected by selling pressure in India, reassuring users of the resilience of the crypto ecosystem.
In conclusion, while the Indian crypto community faced a temporary setback, the responses from exchange founders provided insights into the dynamics of the market. And reassurance of the market’s ability to weather storms. As volatility subsides and markets stabilize, confidence in the Indian crypto landscape is expected to rebound.
