The entry of Bollywood actors and cricketers has rekindled interest in cryptocurrencies in the country. But where does cryptocurrency actually derive its value from? Should you invest in every new token? Mint explains:
What are the new crypto tokens?
India is no stranger to crypto-currencies, but two new tokens have recently garnered interest from users. The first is a token from the short-video platform Spark called $GARI, which the company says is a social token that can be used to help creators run their own e-commerce operations, create non-fungible tokens (NFTs) and more. to be done. The other is called Bolly, a cryptocurrency for the Bollywood-only NFT marketplace called Bollycoin, which was started by director Atul Agnihotri. Both tokens were promoted by actor Salman Khan and have garnered interest from both the crypto community and users alike.
Are these just new tokens and platforms?
At the moment, yes, but India is no stranger to cryptocurrencies at the moment. In fact, the country’s top cryptocurrency exchange WazirX currently lists six cryptocurrencies from Indian firms. At least two of these — WazirX and Matic — have impacted valuations of billions of dollars in the past. At the time of writing, MATIC has a market capitalization of over $10 billion. As Mint reported earlier, several other cryptocurrencies are expected to arrive from India in the next few months to a year. Furthermore, in 2021 alone more than seven new NFT marketplaces have been opened in the country.
How popular is crypto in the country?
In October, comparison platform BrokerChooser stated that at 100.7 million, India has the highest number of crypto holders in the world. The country has mostly benefited from increased trading volumes on crypto exchanges, but recent interest in NFTs from celebrities, Bollywood actors and cricketers has also inspired curiosity.
What is crypto being used for in India?
Most of the individuals are investing in crypto to take advantage of their volatile prices and make money. But experts say that platforms and firms mostly use them as a mechanism to raise funds and market their platforms and services. In fact, experts have warned users against investing their money in these new cryptocurrencies, citing a lack of clarity in their white papers, and the fact that they have more money than just raising funds or marketing a platform. There are many more use cases. He says that pursuing such tokens could hurt retail investors.
What are the other use cases?
Cryptos are not just meant to be tradable assets. They power blockchain platforms, which can be used to build new applications. This is where their value comes from. For example, the Ethereum platform is valuable because it allows developers to build a variety of decentralized apps on top of it, including financial, messaging, social media apps, games, and more. Similarly, Polygon allows the platform to reduce transaction fees. Experts say that cryptocurrencies tied to a single platform will have no value in the long run.
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