Crypto Bourses Offer Tokens to Investors Eyeing Higher Returns

Indian cryptocurrency exchanges are offering a larger portfolio of digital assets-tokens-to satiate a growing investor class seeking higher returns.

Wazir X launched 12 tokens in December, while Coin Switch Kuber added five, named Mana, Sand, Gala, Red, and Coti. Uno coin on boarded five new coins recently, while Coin DCX brought in a bunch like DappRadar, High street, Convex Finance and Constitution Dao.

Investors in search of outsized returns are exploring options other than the tried-and-tested Bitcoin, Ethereum, Tether, Solana and Shiba Inu to keep pace, these exchanges are strengthening their portfolios to better compete with global crypto exchanges.

The new tokens help crypto exchanges increase transaction volume, which means they generate more commissioner per transaction. Some platforms also charge a fee for onboarding a little-known token. Most important, these new offering keep an investor within their ecosystem.

Global changes like Binance, Coin base, FTX3, Mandala Exchange, and Huobi Global have hundreds of coins on their platforms. A few Indian investors also trade on these platforms to access new tokens. “The exchanges are looking to diversify their portfolios, and we have noticed that Indian investors are now experimenting with new tokens,” said Sathvik Viswanathan, cofounder and CEO of Un coin.

While coins like Bitcoin and Lite coin are digital financial assets that can be exchanged or used for trading, tokens like Tether, Unis wap and Chain link are representations of actual digital assets Due to a steady rise in cryptocurrency usage around the world, plenty of crypto businesses are gaining traction, experts said. The Indian crypto community is seeing steady demand to invest in these currencies as they become more popular due to the varied use cases.

“As a result, Indian exchanges like ours will continue to introduced additional tokens for investment after completing thorough research on the tokens in order to match the expectations of users,” said Sumit Gupta, CEO of Coin DCX.

As a customer gets locked in, crypto exchanges can also cross-sell other services such as wallets, said Praveen Kumar, founder and CEO of block chain company Belfries Group.

Indian crypto players have seen record user subscription in 2021. Coin Switch Kuber, for example, started the year with one million users, but that has gone up to 14 million currently. Investors have also started deploying a portion of their risk capital in the new tokens, industry insiders said.

“Indian investors who started investing in Bitcoin and Ethereum are now searching for a new Shiba Inu or Dogecoin that gives abnormal profits in a span of a new days or months,” said Vishal Gupta a leading Social media commentator on all things crypto.

RIGOROUS ONBOARDING

There have been numerous scams involving new tokens and coins globally, with cryptocurrency investors left in the lurch after putting in sizable sums. To curb that risk, the top Indian crypto platforms are following rigorous on boarding criteria. These include evaluating a token’s model. Its management, use case, price movement, developer support, and volumes on major exchanges, among others S-ET

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