Analyzes the status of the Indian crypto market with 5ire case study
An Indian blockchain company 5ire, recently raised $ 100 million in a Series A funding round from UK-based Sram and Mram. The $ 1.5 billion company has suddenly emerged as the latest addition to Unicorns in India.
In particular, Alphabit, Marshland Capital, Launchpool Labs and Moonrock Capital, four well-known start-up investors, each committed $ 21 million to a seed round.
Well, with this news, it may look like the Indian crypto sector is booming. However, this does not seem to be the case, at least not in the last couple of months.
It is said that India’s largest digital asset exchange is preparing for a prolonged crypto winter that may include some unfavorable local twists. Stock exchanges, including Binance-backed WazirX, have put expansion plans on hold as a result of current crypto-market conditions, consumers’ inability to move money to their accounts, and the impending imposition of a dreaded transaction tax on cryptocurrencies.
What does the crypto market look like then?
According to Google Trends’ analysis of the last 90 days of search data, the 2022 Union Budget Statement from 30% Taxes on income from cryptocurrencies and other virtual digital assets appear to have had a detrimental effect on the interest of Indian retail investors.
Furthermore, on February 1, 2022, searches for the term “Cryptocurrency” reached a record high, with a reading of 100. Since then, most days have seen values between 17 and nine.
The reason for this happens to be that the Indian government treats cryptocurrencies differently from equities and bonds by prohibiting the offsetting of trade losses.
In addition, the fact that crypto exchanges have largely been shut down from the conventional financial system since mid-April contributes to the misery of Indian investors.
Incidentally, the current scenario of the market is quite different from 2021 when India was one of the thriving markets for cryptocurrencies. That being said, according to Chainalysisthe country’s cryptocurrency market grew by more than 600% during the 12 months to June 2021.
Where does the 5ire fit then?
According to a medium post dated December 8, 2021, 5ire plans to replace the current mechanism with SPoS, or the Sustainable Proof of Stake consensus algorithm that provides high levels of security and efficiency never achieved by either PoW or PoS. Furthermore, the organization plans to expand its base across America, Asia and Europe.
Despite an unfavorable Indian cryptocurrency market at the given moment, companies like 5ire are building a more democratic and effective system that has sustainability and long-term benefits for the planet.
