Crypto Winter Is Here; Indian Exchanges Melt Into Freefall

Photo by Kanchanara on Unsplash

The seeds that spawned the meltdown in early May aren’t anything new. All eyes have been on Bitcoin (BTC) ever since as it struggled to remain near the psychological threshold of $28,000. Ethereum (ETH), Cardano (ADA), Polygon (MATIC), and other coins also experienced a downfall as the bubble popped.

What Is Crypto Winter?

Literally speaking, crypto winter is when prices contract and remain low for an extended period. The wheels of crypto winter were set in motion earlier this year.

The term likely came from the hit HBO series, “Game of Thrones,” which featured the motto of the House of Stark as “Winter Is Coming.” Considered to be a warning with lasting conflict, Crypto Winter will descend as a period of trouble over the crypto market.

SOS For Investors

Investors are warned to stay vigilant and be prepared for chaos. Hiring froze, and layoffs took a toll on employees of major global crypto exchanges like Coinbase and Gemini in early June. Shares of Coinbase fell by 86% from their 52-week highs as the crypto market joined the bear party with the US stock market.

Light At The End Of The Tunnel

Crypto winter isn’t something new. Back in 2020, crypto history proved that once the crypto winter thaws, there comes a period of the incredible growth that lasts. So maybe all hope’s not lost?

Digital Twists

India’s largest digital assets exchanges are prepping for a prolonged winter that comes with some unwelcome local twists. Exchanges like Binance-backed WazirX have put expansion plans on the back burner.

The bleak streak is now baying for WazirX, BuyUcoin, Unocoin, and CoinDCX. India’s hawkishness in the form of disabling UPI for crypto transactions and levying a 1% TDS-plus-30% tax on income from holdings did them in.

As if this panic wasn’t enough – BuyUcoin is cutting promotional spending; its trading volume has been down 80% since 2021. Unocoin is hiring only for “key positions.” WazirX is halting expansion as it contends with a 95% trading dip since October 2021. CoinDCX—which spent $$$ on cricket sponsorships and celebrity endorsements, froze withdrawals without notifying users.

Retail investors are horror-struck.

Too long? Here’s a one-liner: An extended period of trouble over the crypto market termed ‘Crypto Winter’ sets in, testing investor patience;  Indian exchanges take a freefall.

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