Bear Market: Bull markets led to exuberance in crypto, bear markets will mature it: Ashish Singhal, CoinSwitch

“It is worth noting that there is a leak towards quality cryptography in the market. Bitcoin’s dominance has risen to 45%, suggesting that investors have shifted capital from lesser known currencies to quality crypto,” he says. Ashish Singhal, Co-founder and CEO, CoinSwitch

The crypto market is undoubtedly in a strong grip. How do you see this phase and how long can it last? Do you think the Indian market and investors are mature enough to handle the long crypto winters?
The U.S. Fed’s oversized rise to control inflation has impacted capital markets, whether it’s traditional stocks or cryptocurrencies. As capital rose, it was inevitable that markets would be bearish as investors moderated their appetite for risk.

It’s worth noting the strong correlation between Bitcoin and Nasdaq Composite, suggesting that investors are valuing cryptocurrency assets at the same time as deep-tech stocks. We also have to keep in mind that asset classes like cryptocurrencies are coming out of a multi-year bullfight. The correction of the course is thus understandable.

The foundations of the crypt, however, remain strong. The real power of cryptocurrencies is the underlying technology, the blockchain, which will be the basis of the new Internet or Web3.

Today, sentiment is bearish, but this is a phase of the market cycle and will not be permanent. History has shown that companies that lower their heads and build during the bear market have emerged stronger.

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During the dot-com bubble, Internet stocks fell and some businesses failed. But that hasn’t stopped the progress of technology. It has not stopped the internet from reshaping the world. Companies that built through that bear market and focused on their product reaped the benefits later. Amazon and Apple are examples. Today we are building a new internet. The bear market does not change this perspective. I would say this is the best time to build. Although weak companies may perish, good companies with the right fit to the right product market and the right business market will only come out stronger.

How long will this bear market last? This would be influenced by macroeconomic conditions. The silver lining is that India’s economic outlook is better than its Western counterparts. With regard to investments, the emphasis should be on research and understanding of the space.

The crypto industry is facing a double whammy of fears of recession and regulatory turmoil. Where are the crypto markets heading, not just in India, but globally? Do you think a solid regulatory framework can cut the bear phase?
Regulatory peace and certainty will protect the interest of investors. Ambiguity, on the other hand, introduces additional turbulence into already tough markets as this does not help. A global consensus on a future and technology neutral policy will enable the industry to grow and innovate and protect investors responsibly.

The crypto market has already attracted billions of dollars worth of investment. While the industry has implemented best practices and emphasizes user education, comprehensive regulations will instill confidence in investors and provide the barriers needed to protect their investments. The market has decided that crypto is an asset class. Regulators must follow.

At the global macroeconomic level, we are in unexplored territory. The United States and the Western world have been witnessing high inflation for decades after the pandemic stimulus. Rising interest rates to offset this will weigh on capital markets.

According to projections from the IMF and other reputable institutions, India is expected to do better. There is no fear of recession in India. The Indian economy, in fact, is expected to grow by 7.5% this year.

There has been a serious erosion of wealth in the cryptographic market. Do you think this has diminished investment sentiment and will new investors be more attentive as they enter the markets?
The bear market could lead to maturity in the cryptocurrency space. The multi-year bullfight we have been taking for a few years can sometimes lead to the exuberance of the market. We have also seen the same with traditional stock markets. Market corrections are a good time to re-focus on the fundamentals. I think this phase will help users understand that cryptography, or any kind of investment for the case, is not a quick enrichment scheme.

It is worth noting that there is a flight to quality cryptography in the market. Bitcoin’s dominance has risen to 45%, suggesting that investors have moved capital from lesser-known currencies to quality crypto.

The long-term potential of cryptography remains strong. Technology has crossed a threshold to make a U-turn. We are on the path to building new use cases that solve users ’problems. Decentralized finance and Web3 put power back in the hands of users. Bearish markets are temporary, Crypto is here to stay.

Are the volumes of the Indian crypto industry hurt due to this downward trend? Also, what is your opinion on the latest layoffs in the industry? Does this have anything to do with trading volumes and revenue? What are your staffing plans?
This bearish career has left no market intact: stocks, cryptocurrencies and bonds have been affected. Volumes in the Indian crypto market are similar to the global trend.

CoinSwitch has always been frugal even when we made big, bold bets. We have a well-thought-out roadmap to be the only technology-rich destination for India: to make equal money for all.

We will always put people first as we move forward in our next phase of growth. We will honor the offers we have made; our job is to stay focused, clean up the noise, and keep building. Only the daring will survive this.

July 1 – TDS deadline – approaching. Do you think it will further weaken the already grim feelings for the crypto industry in India? Or can it be a disguised blessing to the industry? Is it still confirmed with your request to reduce it to 0.1% or 0.01%?
As the July 1 deadline approaches rapidly, users are more concerned about ambiguity about TDS implementation. As an industry leader, we work continuously with regulators and the government to bring clarity to our users on these issues to ensure proper implementation. We hope that the government will provide more clarity on these issues soon.

What are your plans for the future? Are you delaying them to wait for the regulatory framework or working according to your own checklist? Where do you see the Indian crypto industry in the next 3-5 years or even 10 years later?
The bear market is temporary and the cryptocurrencies are here to stay. No withholding. We will be in India, do in India, for the world. India has the talent density, the home ecosystem and the adoption of users. What better place to build than India.

At CoinSwitch, we firmly believe that some of today’s largest companies have been built in the bear markets of yesteryear. Our trip since 2017 has not been without its difficulties. The crypto market is not new to downcycles. In India, the market has suffered the shock of 2018. Between then and now, the market has only grown, with more innovations, use cases and investments.

Through all these downcycles, we continue to build and improve our product, keeping users at the center of all our decisions. Today, more than 18 million registered users trust us to make cryptocurrency investments.

We will continue to build through this bear market as well. We remain bullish. We firmly believe that India has the potential to lead this massive technological change triggered by the xryptos and we want to play an active role in shaping the future. The technology that allows a shared and open flow of value, cryptographic tokens, can also be used to reshape the Internet infrastructure.

Although India has built successful Internet-based products and services, its influence and ability to shape the foundations of today’s internet is limited. Web3, based on open source protocol and shared ownership, changes that.

Our firm belief is that India can be the driving force behind this change. India has the talent, the internet users, the business ecosystem and the capital. Crypto can really be a power multiplier for India.

CoinSwitch aims to become a Wealthtech platform. What is the progress on that front? What kind of assets do you plan to put under the same roof? What is the thinking behind this umbrella approach?
Many Indians have begun their investment journey with Crypto. We want to grow with them, provide them with the right variety of asset classes, streamlined and tailored to their needs. We have an amazing team creating our new initiatives. You will learn more about these new initiatives in the next quarter

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