With the one percent TDS implemented since July 1, many crypto investors have become too short to invest their money, or at least the data shows it. No prizes for guessing, so many Indian crypto exchanges have seen a sharp drop in trading volume.
Singapore-based crypto platform Wold, co-founded by Darshan Bathija, has recently suspended its withdrawals, trading and deposits.
News of the layoffs recently followed an announcement that Wald was laying off 30 percent of its workforce last month.
what went wrong?
Wald said the suspension of withdrawals was the result of massive customer withdrawals of more than $197.7 million since June 12, 2022.
The company announced Tuesday that there may be a solution in sight as NEXO, a lender in the digital finance space, begins the process of acquiring Wald.
“I understand that many of our customers are nervous about your funds. We are working tirelessly to ensure your financial security. For this, we have created an indicative term sheet to achieve Vault up to 100% with Nexo signed.” Darshan Bathija said in a statement issued on Tuesday.
About the closure of withdrawals by Wold, Gaurav Mehta, Founder, Catax, says: “This reflects the pathetic state of affairs in India, where fintech innovation and risky endeavors are shielded by corporate restructuring overseas and Indian client investments overseas. Have a pity for the companies.”
What can investors do now?
This sudden move left many investors unaware. Puneet-K, one of the users on reddit, a social news discussion portal, said, “Learned my lesson after losing lakhs worth of coins on a good day (seems long ago now) but never again fell for advice from YouTubers They are just cynics aiming to make cash.”
Another named Koal2 says: “So we won’t get any money back?”
To this, Wald says investors need to be prudent and patient for a while. If some customers have any questions, they can send them to inquiry@vault.com.
The company says that special arrangements will be made for customer deposits to meet margin calls that may be required.
“We seek your understanding and patience in the meantime. If you have any questions, please submit them to enquiries@vault.com. We will try to address them as soon as possible,” a statement from Wold said.
Why are investors exiting the crypto markets?
Most of the Indian crypto exchanges have seen a significant drop in their volumes soon after 1% TDS was implemented. This means that for each purchase, they have to set a percentage of their price and pay that as tax. This was seen to have an adverse effect on the overall crypto market.
According to data shared by crypto research firm, Crabaco, trading volume for WazirX dropped by up to 72.5 percent, while other crypto exchanges saw volume slipping anywhere between 29 percent to 41% in just four days. Is.
This story first appeared on mintjini and can be reached Here,