Mint spoke with him about what motivated him to get into crypto and launch one of India’s first crypto exchanges. He also discussed the company’s future plans. Extracts edited:
Q.Please tell us about your past.
Hapur (Delhi/NCR) was where I was born. My family is full of engineers, which motivated me to study engineering. In 2014, I studied chemical engineering at Harcourt Butler Technical University Kanpur. During college, I worked as a web developer for clients. This helped me to sharpen my coding skills. I was able to create many digital properties thanks to my programming skills. This also allowed me to see beyond what is already available in the world.
Q.How did you become interested in cryptography?
My summer internship was during college break. I received a stipend of Bitcoin in 2016. The payment was instantly credited to my account via a local exchange using Bitcoin. It used to take around 5-7 days for the same payment to be credited to my bank account. I became interested in crypto ecosystems after receiving a Bitcoin payment instantly.
I spent the next fifteen days researching crypto online, gathering vital information about the operation of the cryptocurrency economy around the globe.
Q.Why did you decide to create BuyUcoin?
Bitcoin was more fascinating to me than any other thing, so I decided to purchase the cryptocurrency asset online using my savings. I looked online, but could not find any platform that allowed me to purchase such crypto assets in India. So I set out to create a cryptocurrency exchange in India so that Indians could also enjoy the benefits of crypto.
Atulya Bhat (co-founders), and Devesh Aggarwal (cofounders) liked my idea. It was a great feeling to meet like-minded people so early in my career. In just nine days, I created the BuyUcoin platform. On the 10th day, we executed the first trade. This was done by a friend who had used the platform to test it in July 2016.
We were the first to learn blockchain technology in India.
Q.How was it to set up a cryptocurrency exchange in 2016?
BuyUcoin began with an initial investment in Rs40,000. Our personal savings and freelancing income provided the initial funds. We spent the majority of this money on travel and company registration. All the setup including email, server and SMS was arranged by free trial of service providers. Our cash flow began to grow as the platform gained more traction.
While most exchanges followed a standard pattern set by foreign exchanges, we created our platform with Indian investors in mind. By allowing purchase in INR, you can buy cryptocurrencies. We also made it possible to buy bitcoin using debit and credit cards. This generated lots of interest on BuyUcoin.
Q.Let us know about BuyUcoin’s first days
In just six months, BuyUcoin had 0 to 1 lakh users. This was a huge inspiration to us to keep working hard. We felt validated by the support we received from users and knew we were on the right track. Since the launch of BuyUcoin, there has not been a dull moment.
We worked hard to simplify the process of buying and selling cryptocurrency. We have removed the order book from our interface. This would cause confusion for many new investors. Investors still love the multiple payment options, simplified interface, and easy payout option via wallet.
Q.What are your expansion plans?
In the current financial year, we plan to expand our reach to Southeast Asian countries like the Philippines, Vietnam, Indonesia, and Vietnam. We believe South Asia has many opportunities for crypto industry growth and can be a major driver for global crypto economic growth.
We are currently a bootstrapped startup that is profitable. We will continue to grow. We plan to use both organic and inorganic growth, and will seek out funding for global expansion.
Q.Why is India so desperate for crypto?
The global trading of crypto assets is possible 24x7x365. Stocks as an asset class are only now available. This was due to evolution in the financial industry. Similar crypto assets exist. They represent the greatest disruption in the financial industry and have tremendous potential to create wealth.
Blockchain and crypto are inseparable. Crypto assets will be part of any deal if the world is prepared to embrace blockchain tech. India must join other major economies around the globe in accepting blockchain technology to be part of the largest financial revolution in history.
Popular cryptocurrency analyst ‘Kaleo” has shared his belief that bitcoin’s price will rise after it stops fluctuating between $35,000 to $30,000 based on its price performance over the past year.
The anonymous analyst said that the Nasdaq index had influenced the bitcoin price last year. It rose sharply after tech grew rapidly. After surpassing its previous record high, bitcoin began to’significantly exceed tech’.
Kaleo observed that bitcoin’s chart appears bearish now, but he believes history will ‘rhyme.’ He predicts a sharp recovery in bitcoin prices, just as the July 2017 chart looked bearish but the price of the most popular cryptocurrency shot up shortly after.
Kaleo encouraged his followers to “keep stacking” and not to “waste this chance,” implying that now is the right time to buy BTC before its recovery.
The pseudo-anonymous crypto analyst explained last month why he believes Bitcoin will outperform tech stocks, and that the Bitcoin value will surpass $100,000 over the long term. CryptoGlobe reported that Troy Gayeski (co-chief investment officer, senior portfolio manager at SkyBridge Capital) believes a Bitcoin supply crisis is possible.
Gayeski stated that on-chain signals indicated that’strong holders’ have been accumulating bitcoin again and plan to keep it for longer periods. These holders are buying coins from speculators who bought bitcoins when it was at its highest price.
Square Inc., a digital payments company, has announced plans for launching a decentralized open-source financial services project that is bitcoin-focused. It will be called ‘TBD.
Square’s Chief Executive Jack Dorsey took the opportunity to tweet late on Thursday to explain his plans. According to him, the company will be “focused on building an open platform for developers with the sole purpose of making it simple to create non-custodial permissionless and decentralized financial services.”
Decentralized finance, also known as DeFi applications, is a service that doesn’t depend on banks or other centralized services. Instead, it uses software smart contracts that are based on blockchain technology to perform transactions between buyers/sellers.
Square lets users pay each other with money transfers via its mobile app. It also offers merchants a point of sale platform. In January 2018, Square began offering bitcoin trading on its platform. It integrates with Cash App’s investment app, and its payment app.
Dorsey recently approved the creation of a bitcoin wallet for merchants to improve security. This would allow them to store cryptocurrency more securely at the point-of-sale.
In a follow-up tweet, Dorsey stated that ‘Like the new Bitcoin hardware wallet we’re going to complete this completely open’. Open source, open development, and an open roadmap. Mike Brock is the leader and builder of this team. We have some ideas about the initial platform primitives that we want to create.
Mike Brock, Square’s leader in strategic development, will be leading the TBD team. Brock tweeted, “On a personal note I just want to mention that I’m super excited to be back in the open-source world.” “I was a Red Hat employee and I am excited to show the world that open-source software can be used to build great businesses.
Dorsey said that Square has an existing division, Square crypto, dedicated to general cryptocurrency and related projects. However, this is different from TBD. Square Crypto doesn’t receive any direction from Dorsey. It only gets funding. This funding is used to fund grants and projects. TBD will continue to be open-source and focused on the creation of a platform for DeFi businesses.
Dorsey stated that he would create a GitHub account and a Twitter account for the new company and has already started the Twitter accounts.
After a series of negative stories, cryptocurrencies are currently in a summer slump. They will be undergoing a two-month correction period.
According to CryptoCompare data, trading volumes on the biggest exchanges like Coinbase, Kraken and Binance fell by more than 40% in June. They cited lower prices as well as lower volatility for the reason.
According to the report, the June price of Bitcoin fell 6% and reached a monthly low at $28,908 in June. The intra-month peak of $138.2 trillion reached June 22, and was 42.3% lower than May’s high.
According to Reuters, the report highlighted China as a major catalyst. Reuters reported on it earlier Monday. China’s latest effort to crackdown on the industry has had a bigger impact than any previous efforts. However, experts and investors in the cryptocurrency industry still see a positive trend for bitcoin and other crypto currencies over the long term.
Pervalle Global’s chief investment officer, Teddy Vallee said that the Chinese crackdown had caused a lot fear. “The digital asset ecosystem was punched in its face. It’s now up against the ropes, rather than fighting in the middle. Participants are often afraid when there is a large sell-off and they pull back their chips.
Vallee stated that although he isn’t seeing large returns to exchanges, funding rates remain negative and the number of wallets available is lower.
China ordered the cessation of cryptocurrency at the end June as it prepared to launch its state-backed digital currency. The Chinese government shut down mining operations in various provinces that hosted between 50% and 60% of all bitcoin mining power.
VanEck’s director of digital assets strategy, Gabor Gurbacs, said that miners leaving China weren’t using as much bitcoin to transact as they used.
The emerging ESG narrative surrounding bitcoin’s proof of work consensus mechanism and the negative regulatory undertones emanating from the Financial Action Task Force (an intergovernmental anti-money laundering watchdog) have further exacerbated the market mood, Ben Forman managing partner at ParaFi Capital said to CNBC. ESG stands for environmental and social governance factors.
“Once these stories started to permeate the market in May,” said Nick Mancini (research analyst for the crypto sentiment analytics platform Trade the Chain). “Eventually, the bitcoin trading volume dropped by almost half since its peak and is now down 32% from its June average.
Gurbacs stated that summer can have lower volumes, even in equities. Investors may still feel the pain after this year’s crypto market losses.
He also said that the bitcoin price climbed to $60,000 this year and ether as high at $4,000 in 2016. This brought new interest and investors to cryptocurrency, which hasn’t seen a bear market for bitcoin yet.
Gurbacs stated that people are tired of rock pools.
He said that cryptocurrencies reached their highest point this year when ‘a lot people invested upwards, and a lot more people invested at the top. And they lost money. “Half of the market has disappeared, so we cannot expect the same volume when the market is basically a lot more people new to the space who were spooked.
Despite the drastic drop in trading volume it is still significantly higher than last year, Clara Medalie research lead at Kaiko, crypto market data provider Kaiko, said.
CNBC’s Medalie stated that although volumes plunged on most exchanges in June, overall volumes are still much higher than they were one-year ago.
She added that June volume is still among the top five most volume-producing months ever. Although the volume drop was significant compared to May’s, it was not fair because May had the highest volume ever recorded due in large part to the unprecedented liquidation events. Volumes are back to 2020 levels, but they are still huge compared to 2020.
Trade the Chain’s Mancini still believes crypto has a bullish outlook. He expects volatility to rise and volume to reach previous highs.
He stated that the bitcoin daily candle Bollinger Bands were now tightening in a manner similar to July 2020. This resulted in explosive price action. We believe bitcoin will grow instead of shrinking, with more institutions announcing crypto trading and research departments, sovereign countries adopting bitcoin as their currency, and miners moving into more democratic nations.
According to Trade the Chain, Bitcoin derivatives reached a peak of $230 billion in May and then declined to $45 billion by July 9.
Mancini stated that one of the positive news stories from the derivatives markets was that the ratio of bitcoin options to be called is 0.60. This is down from 0.65 in June. This means that traders are becoming less bearish over the coming months.
A major local ebank is planning to launch a Bitcoin debit card with trading ( BTC) as the Ukrainian government moves forward with cryptocurrency-related legislation.
Monobank, a Ukrainian online banking app, has successfully integrated with a cryptocurrency trading platform. Monobank co-founder Oleg Gorodokhovsky said Monday.
The new integration will allow Monobank customers to buy and trade Bitcoin using a debit card, according to the executive. Gorokhovsky stated that Monobank will release the new feature in the next month, subject to approval by the National Bank of Ukraine.
Monobank was launched in 2017 under the license of Universal Bank, owned by Sergey Tigipko (a former chief of central banks and ex-deputy prime Minister of Ukraine). Monobank has more than 2.5 million customers as of August 2020.
Monobank’s Gorokhovsky is also the former chairman of PrivatBank, which is the largest bank in Ukraine. He expressed his optimism about Bitcoin earlier in this year. Gorokhovsky stated in a February Facebook post that he was convinced by Tesla’s $1.5 billion Bitcoin purchase that Bitcoin is here to stay. Gorokhovsky also revealed a large personal stake in Bitcoin and predicted that BTC would reach $100,000 by 2022.
The Ukrainian authorities are making steady progress with a series of bills related to digital currency. Oleksandr Bornyakov (deputy minister of the Ministry of Digital Transformation) stated last Wednesday, that the authority had recommended the adoption of a revised draft bill “On Virtual Assets” in the second reading.
The Ukrainian parliament also passed new legislation on Wednesday regulating payment methods. This includes regulations regarding the central bank’s digital currency.
The Cape High Court placed the final liquidation of the collapsed bitcoin scheme Mirror Trading International, (MTI), in effect this week.
The liquidators announced that they had been able to locate approximately 8 000 bitcoin in addition to the 1 281 bitcoin found from FX Choice, a Belize-based broker. This was sold for R1.1 billion.
At current market prices, an additional 8 000 bitcoin is worth approximately R4 billion. Liquidators expect to be able track down more bitcoin than the 29 000 that have escaped MTI.
On September 8, the liquidators will return to court to argue that MTI should not be considered a Ponzi scheme.
This would make it easier for liquidators to recover funds that they believe belong to the insolvent estate. Anybody opposing this can file their reply affidavits by August 31.
Moneyweb spoke to Riaan van Rooyen, joint liquidator, after the final liquidation had been handed down. He encouraged MTI members to file claims with the liquidators and said that they should not be afraid of being required to contribute to the insolvent estate.
To recover as much as possible
“We want to make sure that members get as much money as we can, especially for the elderly and vulnerable. Members should know that they won’t be required to contribute to the estate simply because they received withdrawals. This simply means that any withdrawals they have received will reduce their claims. Their claim against MTI would be reduced if they pay in R30 000 and withdraw R10 000.
The liquidators are planning to organize a nationwide roadshow to reach as many MTI members as possible to help them file their claims.
MTI’s multilevel marketing strategy was primarily a success for the founders and early adopters. Clynton Marks, a 50% shareholder, opposed liquidation and claimed that there were good chances of saving the company using other means.
According to an data dump done by Anonymous ZA, some MTI leaders made more than R100million from the scheme. Liquidators will be looking for undue enrichment.
Marks is one of several leaders of MTI who are believed to have earned hundreds of millions of rands through the scheme.
Chainalysis declared MTI the biggest bitcoin scam in 2020.
MTI claimed on its website that it had a computerized algorithm that could generate returns of 0.5% per day, which is equivalent to approximately 180% per year. However, the Financial Sector Conduct Authority investigated and found no evidence of such an algorithm or any trading success.
FX Choice frozen MTI’s accounts because of extravagant and fraudulent claims regarding its trading success.
According to the broker, 1 846 bitcoin had been deposited with it between January 2020 and June 2020. However, 566 bitcoin (or about 30%) were lost.
MTI initially traded forex through FXChoice. However, MTI later switched to bitcoin trading through Trade 300, a broker created by CEO Johann Steynberg and not a legitimate brokerage.
After Steynberg disappeared, the failed bitcoin scheme was placed into provisional liquidation in December 2020. This happened just days after MTI stopped processing withdrawal requests. In August 2018, the FSCA began warning people about MTI and advised them to get their money back.
MTI was estimated to have had 280 000 accounts at the time of its December shutdown. This was achieved through multi-level marketing systems that paid 10% commissions to members for money they referred.
After accounts that were opened under the names of family pets or other bogus accounts are closed, liquidators expect that there will be a reduction in accounts to 150 000 to 180 000.
Multi-level marketing was designed so members could increase their earnings through extending their “downlines”, even to the point where they named their dogs investors.
Within a E-Crypto News board conversation, Which Are Your Long-Term Prospects To Get Bitcoin? Writer Christopher Hamman brought together a board of 13 company professionals, such as Frank Springfield, to talk about Bitcoin’s long term prospects. The entire panel discussion could be located here. Frank’s meeting in full text is below.
“We’ve observed that the quantity of curiosity about cryptocurrencies skyrocketed within the last calendar year. Much as the present effect of the net couldn’t be called in 1995, no one could reasonably forecast the effect which cryptocurrencies will have about the fiscal system in twenty five decades.
But, I’m convinced that cryptocurrencies aren’t going anywhere and their effect will be huge. When it’s using this new technology to achieve more of their unbanked or boost their customer expertise to supplying clients with new goods or custody choices, conventional financial institutions will be made to have a crucial perspective of these and determine that it is that they are interested in being in the long run to stay relevant.
There’ll be winners and losers, both big and small financial institutions, along with my bet is that the winners will probably come out of those who find out how to adopt these modifications, get out ahead and split their own niche. This will only be hastened while the government eventually decides to issue its digital coin, which looks like a foregone conclusion now.
Since the chief of this cryptocurrency conversation for the last calendar year, people often ask if Bitcoin is a passing craze. It’s carved out its niche as the very best electronic store of value and that I hope it will keep growing towards gold.
Whether, then Bitcoin can expand past a store of value and also create more Degree Two usage cases remains to be viewed. The key choice use example of Bitcoin in the present time is its own Lightning Network.
This system has expanded and provides fast and inexpensive payment railings for global transfers, but it nonetheless has quite a way to go before obtaining mainstream adoption.
Ethereum as well as Hedera Hashgraph equally have a lot more Level Two software being constructed on top of these and might end up proving to be useful platforms for financial institutions to utilize rather than Bitcoin.
It’s well-known that lots of Gen Z’ers haven’t stepped foot to a conventional lender and, probably, never will. Rather, many hotel to”banking” via the usage of CashApp along with other programs they can receive in their mobile phone.
Besides attempting to determine the way to achieve another generation, conventional financial institutions will also be facing increased pressure from associations such as BlockFi that can give interest rates on crypto monies that far transcend anything given in traditional banks.
And so, I hope that much more financial institutions may choose to get in the crypto match and possibly the simplest way is by providing to take custody of cryptocurrencies such as The Bank of New York Mellon has completed.
Some could also attempt to determine the way to boost their curiosity rates, but that seems less likely given the technical worries that probably allow these elevated prices to be compensated. Others are going to research how to use this blockchain/hashgraph technologies and intelligent contracts to boost their product offerings, consumer expertise and efficiencies.
Those people who have charge card company segments will probably begin supplying cryptocurrency rewards cards in the event the increase of businesses like Twist continue to raise.
In the long run, it appears obvious that there’ll be several mergers and acquisitions involving TradFi and DeFi. On the other hand, the lengthier TradFi entities wait to accommodate to the new technology and also the more runway awarded to DeFi things to grow until they are obtained, the harder it’s going to be for TradFi things to control the storyline.”
The Texas Department of Banking has verified that state-licensed banks may provide cryptocurrency custody solutions to customers.
Texas Issues Notice on Crypto Custody
The Texas Department of Banking has enabled nation charted banks to keep crypto resources on behalf of customers.
At a Thursday note, the banking regulator declared that state-chartered from Texas are currently allowed to offer custody services on cryptocurrency investments below the Texas Finance Code § 32.001.
The note added to get custody over customer’s funds, curious banks can save a duplicate of the personal keys of the customers’ assets or possess customers move funds into pockets controlled exclusively by the banks.
While lending banks the hands of keys is at odds with the ethos underpinning the cryptocurrency motion, it’s a much-needed measure for institutional adoption. According to U.S. lawful demands, institutional investors should have their resources, such as cryptocurrencies, saved securely using an experienced third party custodian like a lender.
At precisely the exact same time, safely saving cryptocurrency is really a serious issue and demands a degree of comprehension which banking institutions might not always have.
Policies round the safety of capital are a vital necessity for crypto custody. Security options consist of cold storage and also multi-signature pockets, in addition to insurance policy.
The note realized that banks might not have the capacity to safely safeguard cryptocurrencies, an asset type that’s prone to regular hacks and thefts. In the note, Texas Department of Banking remarked that the prosecution of crypto assets is different from conventional assets such as certificates of bonds and stock.
The lender regulator added that the provision of custody services on cryptocurrency could just be permitted if banks already have”sufficient protocols in place to efficiently manage the risks and comply with all applicable law”
The note added that successful risk management controls and systems have to be implemented to quantify, track, and manage related risks connected with the custody of electronic assets.
Texas’ mindset towards cryptocurrency has changed in the previous month. In May, the country passed the House Bill 4474 that amended Texas Uniform Commercial Code to include”virtual money.” The legislation created a legal platform for cryptocurrency investments.
Texas isn’t the only country to permit banks to establish crypto divorce services. In Wyoming, yet another crypto-friendly U.S. country, the nation’s Department of Banking has already issued a new sort of banking charter called a”special-purpose depository institution” This charter, given to Kraken and Avanti, enables institutions to provide both trading and custody solutions for customers. Along with Wyoming and Texas, as of this past yearthe Office of the Comptroller of the Currency also enables U.S. federal banks and cooperative banks to give custody services to get cryptocurrency investments.
Elon Musk’s inclination to influence the crypto area with devil-may-care tweets has been on screen back on Friday, as many coins dropped between 10-18percent in the aftermath of Musk’s most up-to-date Bitcoin ( BTC) meme.
The Tesla CEO’s Chat which revealed a Bitcoin signal near a broken heart emoji might have been translated as fairly mysterious, but in minutes that the crypto market reacted by diving into a sea of crimson, as near $100 billion left handed the worldwide marketplace cap.
Industry executiveswhile worried about the sway Musk exerts about the crypto area, are currently growing optimistic that Bitcoin can escape his gravitational pull. Friday’s sell-off was really a good illustration of this, stated the chief operating officer of charge system Mercuryo, Greg Waisman, that pointed out the newest drop was not quite as barbarous as the others had been previously.
‘To a large extent, Bitcoin investors are learning how to discount tweets out of Elon Musk and that has been made clear since the price fall wasn’t as enormous as we’ve seen previously. Bitcoin investors attempt to keep a united front by restricting how they fear sell. This is a great beginning for Bitcoin,”’ explained Waisman.
Waisman said investors were gradually accumulating the market knowledge which will gradually create Musk’s tweets immaterial, including factors such as jurisdictional regulations could turn into a more true catalyst of markets later on.
‘We’re getting to the point at which crypto stakeholders will respond only according to principles that are applicable. The cryptocurrency sector is growing towards adulthood, and also to a large extent, understanding buildup is taking the centre point,’ said Waismansaid
‘As marketplace analysts get extra understanding they will learn how to base their conclusions about the impacts which matter most, such as regional regulations,’ he added.
Nick Spanos, co-founder of ZAP Protocol, agreed that preceding tweets in Elon Musk had demonstrated more damaging into Bitcoin compared to one published on Friday. Spanos explained that this was a indication that dealers were starting to dismiss Musk’s impact.
‘Following the current discussion of Elon Musk that has pushed Bitcoin cost down by approximately 5 percent, there’s some kind of immunity in the coin. But despite its fall Bitcoin is trading over the important price level of 36,000,’ explained Spanos.
‘From preceding tendencies, the cryptocurrency generally sees steeper plunges however, the present 6.83percent is a indication that the sector is proving to be unmindful of their billionaire’s sway,’ he added.
Konstantin Anissimov, executive manager at CEX.IO, shared similar ideas, noting that the whole crypto market could not bow to mere people like Musk for more and that international regulatory issues would soon take centre stage.
‘I believe at some stage the crypto marketplace will develop independent of influence in powerful individuals like Elon no matter the big follower foundation on Twitter and just bow to change from regulators and phenomena from the international and global marketplace,’ explained Anissimov.
The analyst who called bitcoin’s cost crash states technical research have yet to confirm a base.
Bitcoin has increased 30 percent from its current low. While the restoration appears impressive, 1 analyst, that called the current cost crash, plans to remain on the sidelines since technical graphs have to reveal credible evidence of a change greater.
‘After the weekly stochastics turn upward, we’d add vulnerability to bitcoin since it stays supported by favorable long-term momentum despite its own correction,” Katie Stockton, founder, and also managing partner of Fairlead Plans, stated at a weekly research note published on Monday.
Bitcoin’s weekly stochastic graph is trending south west and demonstrating a value of less than 20, meaning that the industry is over-extended into the downside. A twist higher would affirm the floor and open the doors for resumption of their wider bull run.
The stochastic oscillator contrasts the final cost of an asset together with the assortment of its costs within a particular period to create oversold and overbought signs that dealers use as causes for short and long trade entrances.
Though the stochastic indicator is flashing an output signal sign for the first time because 2019, the MACD histogram proceeds to print deeper pubs under the zero line at a indication of bolstering bearish momentum.
Therefore, a V-shaped retrieval to $50,000 and greater looks hard. ‘Resistance is currently initially near $53,000, though it doesn’t seem in shop to get a near-term evaluation,’ Stockton mentioned, including that intermediate-term momentum would be to the disadvantage.
Other analysts maintain a similar perspective.
‘This rally has possible towards the immunity area involving $42k-43k, that can be difficult to defeat straight from the new non,’ Kempenaer stated in an email. ‘Very likely longer is necessary to develop a new foundation.’
Bitcoin dropped from $58,000 to almost $30,000 from the eight days May 19, shaking out extra leverage and feeble hands in the crypto marketplace.
The cryptocurrency has stabilized in the past couple of days, together with all the upside restricted from the 200-day easy moving average, now $40,635.