India’s latest crypto unicorn founder’s advice on how to choose a cryptocurrency

Founded in 2017 Bengaluru-based CoinSwitch was launched as a global aggregator of crypto exchanges. It started its India operations in June last year. In conversation with Mint, CoinSwitch Kuber co-founder and CEO Ashish Singhal talks about the back story, future plans as it awaits India’s clear stance on the crypto bill, advises retail investors What to look for when investing in crypto, and more.

The story behind becoming India’s fastest crypto unicorn

When we started trading in cryptocurrencies in 2016, we noticed that prices vary greatly across all exchanges, as they are determined by demand and supply on each individual platform. Here, we found an opportunity for a platform that aggregates all the exchanges so that users can find the exact price of the cryptocurrency at any time. Hence, CoinSwitch was founded by the three of us in 2017. Our aim is to make crypto investing as easy as ordering food online. At its peak, CoinSwitch was available as a global crypto aggregator in over 160 countries.

The company crossed 11 million registered users with a diverse population in a record 15 months in October, as 55% of CoinSwitch Kuber users come from tier-2 and tier-3 cities.

We received support from the likes of Sequoia Capital, Paradigm and Ribbit Capital in a Series A funding round in January 2021, and raised funding from Tiger Global in a Series B round in April 2021. In fact, Tiger Global approached CoinSwitch for funding. On the other hand, a sign of success in India. CoinSwitch Kuber was Tiger Global’s first investment in an Indian crypto company.

Are you in talks with the government for a crypto bill or a clear stand on it?

Given the novelty of the technology, regulatory uncertainty is understandable. India’s policy landscape is shaping up to be very similar to what we have seen in other countries that have regulated cryptocurrencies.

It is important for India to lead the crypto and blockchain revolution and positive regulations from the Indian government can enable this as they will counter the current hesitation among many individuals and institutions, leading to greater adoption. CoinSwitch Kuber, along with other Indian crypto platforms, recognize that crypto is a financial asset and not a substitute for fiat currency.

What do you think about retail ownership in crypto, which could bring a lot of volatility, especially leading to a rally in unknown coins?

Since cryptocurrencies are in a nascent stage, they are volatile. Their prices will stabilize as the market matures. In the meantime, we recommend that retail investors assess the authenticity of crypto assets by monitoring factors including the community behind the project, problem solving, market cap, historical performance to make an informed decision.

What if one day India bans crypto (like China)?

We do not believe the Indian government will ban crypto. The tone of the regulators has been largely positive and we expect encouraging regulations to go into effect. Given the government’s focus on Digital India, we are confident that they will recognize the massive impact of fostering a crypto ecosystem that will contribute to a technological and financial revolution.

Is CoinSwitch trying to introduce or tap markets other than crypto, and foray into services in the DeFi system?

We currently have no plans to tap into the DeFi ecosystem. However, we plan to diversify our offerings to include multiple investment avenues for users through different products and asset classes. This is one of the key areas where the Series C funding raised will be used.

CoinSwitch Kuber aims to introduce such traditional assets so that it becomes a one-stop platform for the complete investment journey of the investor. We plan to integrate the distinctive simplicity of our platform into these traditional properties to become India’s preferred investment destination.