Riding High On The Cryptocurrency Wave

With a young population driven by technology, a growing number of internet users and fintech advancements, crypto currency finds wider adoption in India. 

Mudrex is a US-headquartered and Bengaluru-based crypto investment platform launched early in 2018. It claims to be the world's largest crypto index investing platform having recorded a massive 2400 per cent surge in its user base in April 2022. 

Crypto In India 

During last year’s bloodbath in the global crypto industry, Indian investors shied away from panic selling. According to Statista data, the number of users in the cryptocurrency market in India is expected to shoot up to 328.70 million by 2027. The current trend in India is to invest for long-term returns. “I envisage a future where cryptocurrencies and blockchain technology empower individuals worldwide, sparking a revolution in the way we transact and invest,” says Edul Patel, Co-founder and CEO, Mudrex shares.

Initially, the company’s focus was on managing its own investments in the crypto market and building wealth for itself. However, recognising the potential of blockchain and cryptocurrency Mudrex shifted its focus to aiding retail investors who represents a significant portion of the investment community.

What It Offers

In the highly volatile crypto market, the company’s strategy revolves around advocating and enabling crypto index-style investing. It offers the Systematic Investment Plan (SIP) feature to its investors to enable them to take advantage of Dollar Cost Averaging (DCA). These strategies position it as a reliable partner for everyday investors navigating the dynamic crypto market. Apart from its flagship product, Coin Sets, which enables investors to hold a variety of tokens, Vault is another major offering which allows investors to earn 10 per cent interest on their investments. It also offers 'Crypto-as-a-service,' an API-based enterprise technology that enables traditional and crypto-specific brokers, portfolio management services and fintech companies to provide reliable and secure crypto investment products. 

As Mudrex is committed to address financial literacy issues, one significant step includes the launch of initiatives such as SatoshiGPT and Satoshi School. SatoshiGPT is a tool that can answer questions related to cryptocurrencies and investing. Edul Patel says, “SatoshiGPT stands as our philanthropic endeavour. As part of our mission, we do not have any intentions of monetisation.”

The Data Security Issue

In dealing with third-party APIs and financial transactions, the security of user data must be its topmost concern. Describing its strategies and programmes, Mudrex’s Co-founder and CTO, Alankar Saxena explains that the platform utilises AES-256 encryption, ensuring that all sensitive data remains encrypted and unreadable to unauthorised individuals. 

Furthermore, activity-based transaction limits are in place to prevent fraudulent actions on the platform. “We also perform third-party security audits at regular intervals,” Saxena adds. Mudrex also ensures strict adherence to the rules and regulations in the jurisdictions in which it operates, including India and the European Union.

Blockchain in Fintech

Transparency issues in the fintech industry have been a persistent concern, impacting trust and hindering the sector's growth. The transparent and auditable nature of transactions on the blockchain allows regulators to verify compliance and ensure adherence to regulations.

This transparency reduces the risk of fraud, money laundering, and other illicit activities, contributing to the overall integrity and accountability of the fintech ecosystem. Saxena explains that “The immutability of blockchain ensures the integrity of financial information. Once a transaction is recorded on the blockchain, it cannot be retroactively altered without consensus from the network. This feature guards against data manipulation.”

Going Beyond India

Mudrex is backed by Y Combinator and Nexus Venture Partners and currently operates in 90 countries. “We have a substantial user base primarily located in India, with the rest spread across the US, Europe and Southeast Asian markets,” says Saxena. In April of this year, it introduced Coin Sets to the Italian market. It has acquired the necessary registration as a 'Virtual Asset Provider,' enabling it to function as a registered broker-dealer and crypto custodian within the European Union.

Alankar Saxena reveals that the next strategic step is to potentially launch in Spain and the Netherlands. 

Larger Vision

Edul Patel sums up their journey as entrepreneurs. “I am dedicated to fostering a community of educated and well-informed investors who grasp the potential of cryptocurrencies beyond speculative gains. Ultimately, my vision is to facilitate global financial freedom for all.” In Patel’s view, the Indian market holds great potential for crypto. The implementation of taxation rules and the inclusion of cryptocurrencies in the anti-money laundering law showcase the government's efforts to provide a clear regulatory framework. These progressive regulations address concerns related to security, fraud and promoting innovation.

As the regulatory environment continues to evolve and the market embraces cryptocurrencies, the founders believe that India had the potential to become a significant player in the global crypto landscape.