Fundamentals Of Crypto Market Remains Strong Despite Crash: FiEx Founder
In a recent interview with BW Businessworld, FiEX founder and CEO Tushar Gandotra, weighed in on the current state of the crypto and NFT marketplaces in India. Despite the crash, he believes that fundamentals of cryptocurrency market continue to remain strong. Read on for excerpts from the interview.
Excerpts:
As international crypto platforms world over announce bankruptcy, what is your reading on the current situation of the crypto market?
Undoubtedly, the ongoing phase in the cryptocurrency market can be easily termed as one of the most difficult time periods for the industry since its inception. The lack of liquidity has taken a toll on the crypto ecosystem and as a result of this crunch, many well-known platforms are pulling the plug on the business and announcing bankruptcy. However, these difficult times have also offered an opportunity for users to identify genuine crypto projects.
It's equally important to emphasise that like other equity markets, the crypto market also goes through its phases of growth and decline. As the ecosystem is currently going through the decline phase, so it's natural that the next change will come in the form of enhanced growth. Another important source of hope is the fact that the fundamentals of the cryptocurrency market continue to remain strong which means there is nothing to be worried about in the long-term growth story of the industry.
How has the crash effected the digital asset ecosystem in India?
Aligned with global sentiments, the cryptocurrency market in India has also declined considerably with spooked investors withdrawing their money and stopping their trade activities, thereby putting exchanges in a crisis-like situation. The enrollment of new customers has also come down and this coupled with new tax provisions slapped by the Indian government is impacting the industry quite badly. The confidence of the Indian users has also been shaken by the crash of crypto markets globally and sporadic incidents of many platforms announcing bankruptcy. However, it's also equally true that once the growth comes back to the crypto domain, Indian customers will again make a beeline for the segment and start trading again with great gusto.
Volatility has been the essence of the cryptocurrency market. Is this ever going to change?
The high levels of turbulence and uncertainty are one of the strikingly different characteristics of the cryptocurrency market. While it might be unnerving in the short run, this dimension of volatility also adds to the overall appeal of digital coins. It is only because of the turbulent nature of crypto prices that one can earn surreal profits in the trading of digital coins. That said, as the ecosystem of cryptocurrency continues to mature and evolve, this uncertainty is expected to moderate in the future to a certain extent. The mainstreaming of digital coins with more and more companies accepting payments through crypto will also help the ecosystem of crypto to become more stable in the future.
How do you see the NFT marketplace growing in India with the impending explosion of metaverse?
NFTs have already achieved new heights of success and popularity in the Indian market. Right from celebrities to artists to sportspersons, everyone is jumping on the bandwagon and with metaverse coming into the picture now, this popularity is definitely going to scale new heights of success altogether. The metaverse platforms will empower the creator economy which, in turn, will allow a whole new crop of artists to showcase their abilities through different NFT categories related to art, music, media, etc. This will further boost the prospects of NFTs and help the category to achieve widespread adoption in the Indian market.
Also Read: The Great NFT Crash, Sports And Future
