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CoinDCX has $129M Holdings as per report

Indian cryptocurrency exchange CoinDCX provided a list of its on-chain and off-chain holdings. As of the time of writing, CoinDCX owned more than $129 million in cryptocurrency, according to the balances on the Nansen dashboard.

Photo by Bruno Oliveira / Unsplash

In its Proof of Reserves report (1), the Indian cryptocurrency exchange CoinDCX provided a list of its on-chain and off-chain holdings. As of the time of writing, CoinDCX owned more than $129 million in cryptocurrency, according to the balances on the Nansen dashboard.

Discussions on the need for exchanges to become more transparent have intensified on the eve of the collapse of the once-second-largest global cryptocurrency exchange FTX, its token FTT, and the ensuing bankruptcy.

The company said in a statement that, as a result, "CoinDCX's on-chain and off-chain asset balances and a comprehensive list of wallet addresses are accessible to the general public.

The dashboard provides information about CoinDCX's net worth, token and protocol allocation, asset value, and overall profit and loss. Currently, among others, its most popular tokens include ADA, Matic, Shiba Inu, Ethereum, and Bitcoin.

The business is also working on launching CoinMarketCap's freshly introduced crypto exchange proof-of-reserve tracker.

Binance, OKX, KuCoin, and Bitfinex are just a few of the exchanges linked with Nansen.

"With this, you may technically demonstrate that you have assets to liabilities of 1:1 and reserves to assets of more than 100%. It is crucial to conclude the most recent (FTX) occurrence. When everything is in the open, it offers regulators and customers trust", according to Sumit Gupta, co-founder, and CEO of CoinDCX.

Although proof of reserves may be a sign of a company's financial health, the sector has been jolted by the cascade effect on tokens following the Terra-Luna crash and the introduction of the FTT token, among other things.

"We must realize that this industry is still in its infancy and that there are no rules in place. Tokens are filtered using seven parameters, or seven M principles. Although I don't think this is the best option, Gupta claimed it was better."

According to Gupta, the company's next move is to put a structure in place to determine which tokens should be listed. The business is anticipated to take other actions in the following days to improve reporting of numerous metrics, including its Proof of Liability, which Gupta stated should be prepared for publication soon.

As of this week, CoinDCX will reveal its proof of reserves, according to a tweet by Gupta from last week. To certify our financial health, he continued, "We also want to publish a report from a credible third-party audit agency. Sadly, Big 4 audit firms in India don't work with cryptocurrency startups.

Along with Gupta, other founders have noted that it was challenging for cryptocurrency exchanges to secure audits from the Big 4 organizations, notably Deloitte, EY, KPMG, and PwC. According to Gupta, the industry is trying to rectify that, but it is a slow-moving process.

A third-party report that validated its reserves was issued by competing cryptocurrency exchange Coinswitch last week.

India's Current Condition of Crypto

Even though cryptocurrency transactions are taxed, the sector established a new organization on November 3 called the Bharat Web3 Association (BWA). BWA will now communicate with different stakeholders, including the government.

Gupta replied, "It would be difficult to understand how the government's views are evolving on cryptocurrency in light of recent developments because the business association is spearheading the initiative. The government should know that Indian businesses are moving toward transparency and being robust in a difficult market. Being unaffected in this market is a very significant indication of trust in Indian exchanges. So hopefully, things will become better."

He thinks big market-cap tokens like Bitcoin, Ethereum, and others will enjoy greater investor confidence and trust. Investors haven't fully fled, despite the bear market and the FTX disaster (2).

"I believe investors will continue to invest in terms of trading activity. Many may view this as an opportunity to invest and hold long-term, particularly given the cheaper pricing. TDS in India has significantly shifted from high-frequency and speculative trading to international exchanges. The consumer confidence is still high," he noted.
"Of sure, the number of new investors entering the market has decreased. But those who sincerely support cryptocurrency and decentralization are making investments. Due to the absence of TDS, products like SIP are growing."