The following content does not constitute the opinion of BeInCrypto and should not be construed as financial advice
Community, it’s AMA time! Get ready for this interview – today we welcome Vijay Ayyar, who is Vice President of CoinDCX.
I’ll have 11 questions for Vijay. After that, he will answer the 5 most interesting questions from you.
Let’s start with the basics. One of the most important information for traders & investors about any new crypto project is its team. Please tell us about the CoinDCX team.
CoinDCX is India’s largest crypto exchange and wallet with 14M+ users. We are backed by Pantera, Bain Capital, Polychain Capital, Coinbase Ventures, and many other top VCs. The CoinDCX team is 600+ strong comprising product, engineering, operations, marketing, customer support, and partnerships.
BeInCrypto: You have just launched the global crypto trading app in over 100 countries. What challenges do you anticipate as you enter new international markets, and how do you plan to overcome them?
CoinDCX made the decision to enter international markets based on the fact that we believe our product is best in class and something global users will take to. As always, there will be challenges – the market is now very different from a few years back, there are a lot of new global players as well as local ones.
So having a unique position is quite critical. This is why we’ve launched a unique product globally called a “crypto discount broker”. As a broker, the app is linked to many top global crypto exchanges and hence has the ability to offer over 1000+ crypto assets for trading, at really low fees.
BeInCrypto: Sounds impressive! Are there any particular markets you are especially excited about or see as having great potential for cryptocurrency adoption?
Crypto adoption is growing globally given clear regulations that are incoming, but also due to the fact that crypto is providing real value to a number of people. Overall, we are excited by many markets across Europe, Asia, and Africa, but haven’t narrowed down on any particular market. This is why we currently are live in over 100 markets and are taking our time to assess traction and user interest, based on which we will formulate our country level strategy.
However, just to give you an idea from our current traction, we see a lot of interest coming from users in Turkey, South Africa, Australia, Indonesia, Thailand, Austria, Netherlands, Philippines, Poland, Hungary, Qatar, and Saudi Arabia.
BeInCrypto: What else sets CoinDCX apart from other cryptocurrency exchanges, and how does it cater to the needs of traders and investors?
CoinDCX’s global crypto app is a “discount broker”. What this means is that our broker is integrated with top global crypto exchanges for liquidity and hence when a user places a trade on CoinDCX, the app settles the trade at the best price with one of many crypto exchanges. The advantage is that a trader need not have multiple exchange accounts to trade different crypto tokens, is able to access over 1000+ crypto assets across Spot, Margin, and Futures, and can do so at very low fees.
We’re able to offer low fees due to the fact that as a broker, we send large amounts of volume to these global exchanges that discount the fees for us. A new trader will probably not be able to get into a top tier VIP at a global crypto exchange immediately. But with CoinDCX, they are able to do so.
Also, being a broker implies that we’re able to offer any new crypto asset instantly if it is listed on one of our integrated exchanges which is extremely important in the fast moving crypto markets.
BeInCrypto: Can you explain the process of listing new cryptocurrencies on CoinDCX and how you ensure their credibility and potential for growth? I saw on your website that you use a 7m framework principle. How does it work?
We follow a rigorous process of listing cryptocurrencies on the platform. This includes factors such as security, utility, volumes, market cap etc. We do this since we are a “Regulation first” platform that believes the market will tend toward regulations in the future. The process is applied to any new crypto token that we want to list and once it passes this framework test, is approved by our coin listing team.
BeInCrypto: How does CoinDCX handle liquidity for both popular and lesser-known cryptocurrencies?
Being a broker, we are able to offer deep liquidity due to our multiple exchange integrations across all crypto tokens.
BeInCrypto: Our usual question. What specific measures are in place to ensure the security of user funds and prevent hacks? How does CoinDCX compare to established international exchanges in terms of security?
CoinDCX places utmost importance on the security of its assets. We regularly publish a proof of reserves report for assets on the platform as well. More recently we were ISO/IEC 27001:2022 certified as well. The ISO/IEC 27001:2022 standard is a globally recognized information security standard that has been developed and maintained by the International Organization for Standardization (ISO).
In terms of storage of crypto assets we partner with top global custody providers such as BitGo and Fireblocks to ensure security and safety of crypto assets, using approaches such as hot and cold wallet storage to ensure that access to most crypto assets on the platform is not “online” and not connected to the Internet.
BeInCrypto: I think the next question is really interesting. The crypto community is faced with the fact that most of the world does not perceive cryptocurrency as something worth investing in. How will you educate and onboard users with varying levels of experience? What educational resources and tools does CoinDCX provide to help traders and investors make informed decisions?
CoinDCX takes pride in the fact that we have onboarded more than 15M+ users in a large market such as India. This would not have been possible without a strong focus on education and learning.
We regularly conduct workshops and sessions for users through our community leads across the country focusing on understanding the basics of crypto, how/why to invest, and how one should be thinking about building a portfolio. We aim to take this approach internationally as well by building very strong communities and working with partners to spread crypto education.
BeInCrypto: Are there any upcoming features or developments on CoinDCX that would benefit traders and investors, and if so, what are they?
The CoinDCX team recently launched a fantastic new product called “Okto” which is a non-custodial Web3 wallet offering users access to over 40+ blockchains and staking services while allowing instant swaps across tokens. Having said that, we are hard at work on bringing new innovation to the crypt trading space and have a couple of ideas up our sleeves, so definitely watch this space!
BeInCrypto: What advanced trading features are available on CoinDCX, such as margin trading, API access, and algorithmic trading tools? How do these compare to other exchanges?
CoinDCX’s Pro trading solutions/app is built specifically for traders and hence we offer all the tools required for a trader to effectively trade the markets. This includes Spot, Margin, Futures, API, Web, and also staking solutions.
BeInCrypto: What is CoinDCX’s fee structure for trading different assets? How do these fees compare to other exchanges, especially for high-volume traders?
Being a broker allows us to offer extremely low fees due to the fact that we send high amounts of volume to top global exchanges.
Currently spot trading is completely free (zero fees) – there are no gimmicks here at all (some platforms mention zero fees, but you have to perform a different activity to avail of it such as stake their token etc). On Margin and Futures we offer extremely competitive fees in line with any top global platform.
BeInCrypto: I am sure that now our community wants even more to try your platform after such information. Vijay, 2024 is coming! What are your thoughts on the crypto market in 2024 and how CoinDCX will position itself within it?
2023 has been an extremely interesting year in the crypto markets given the overall market has recovered quite strongly after 2022’s bear market. We have a number of bullish indicators going into 2024 with the Bitcoin ETF and halving being the major ones.
Hence, all signs point to a bullish 2024 and possibly 2025 as well, hence this is the perfect time to ensure you get onto a platform that allows you to trade the markets at your fingertips, offers you 1000+ crypto tokens at low fees, across Spot, Margin, and Futures. (Hint: CoinDCX’s International Pro app!)
BeInCrypto: Let’s move on to questions from our Community!
The first question is from:
Customer care and service is part of helping users to create feelings and stick with the platform. So how is your customer support service now, in the future will there be more promotions to attract users from Coin DCX?
We always think customer first and in that regard as we have launched our global platform, have ensured that we have a dedicated team of customer support staff catering to our global users. In fact, our core business team as well frequently respond to customers directly to resolve their issues. We believe that in such early stages of the product going live for a global audience, every customer interaction is an opportunity to make a mark and improve the experience.
BeInCrypto: @Lucasaman is asking:
I read on CoinDCX twitter that “The CoinDCX Pro app will not work starting November 30, 2023. All trading history, orders, and funds will automatically be available in the CoinDCX app for a unified experience.” Can you explain why this is happening for CoinDCX Pro? Does the app still work?”
This is important to clarify and a good question. This does not apply to our users OUTSIDE India. The Pro app is the only app that is live and will continue to function. This update was specifically for Indian users since we had 2 apps live in India and have now combined it into 1 single app. So nothing to worry at all.
BeInCrypto: The question by @Deepak_sn:
What is your stand when it comes to crypto regulation? And are you planning to be regulated in any jurisdiction?
CoinDCX strongly believes in a future where crypto is regulated and from the very beginning we have been operating as a company that is hoping to be regulated at some point. This implies having the right onboarding and KYC processes in place, having the right controls from an operations perspective in terms of transaction monitoring and Anti-money laundering. We use some of the world’s best tools in this regard.
In India, regulations are taking some time hence we are in the process of considering a few other jurisdictions to get regulated and will announce something once we have something more firmed up.
With a cash-rich balance sheet and recent funding rounds, can you provide insights into CoinDCX’s financial strength, indicating the company’s ability to sustain operations for 4-5 years even with zero revenues?
CoinDCX raised a $135M round in 2022 from top investors that gave us a valuation of >$2B making us India’s first crypto unicorn. This allows us runway for at least 4-5 years even with no revenues – that is the strength of our balance sheet currently.
BeInCrypto: The last one is by @Gustav_mr:
Do you have plans to implement Referral program and also giving Some % of reward for all holders? It can help to find more investor as well
Yes! We currently have a “beta” referral program for our first traders on the platform whereby if you refer a friend and they make a first trade >$100, then both you and your friend will receive $10 each as bonus amount. Over time we will roll out a more long term referral program for all users.
BeInCrypto: Great! Vijay, thank you for having time today!
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