In a first-of-its-kind YouTube interview, CoinSwitch CEO Ashish Singhal made crypto conversation with Editor-in-Chief Ankit Vengurlekar on July 5th, 2022. In a freewheeling chat, they discussed crypto winter, asset safety, the new TDS policy, and most importantly, CoinSwitch’s strategy in the current market situation. Edited excerpts.
On being asked what he thought about the crypto winter, Ashish said that even though he couldn’t be overly positive about current market conditions, he’s optimistic about the routine of market cycles. Bull runs are often followed by corrections, he said, be it crypto or the stock markets.
“The good thing about these bear markets is that good projects, the ones that solve user problems, continue to grow.”
The CEO focused on positive BUIDL action, underlining the importance of resilience and development in the crypto space. In the last couple of years, adoption has grown steadily at CoinSwitch, evidenced by the rapid growth of its user base from 10 million to more than 17 million today. That growth is indicative of long-term change, Ashish said.
The CoinSwitch strategy
Crypto companies are laying off their employees, they’re downsizing, and some are even getting shut down. Is CoinSwitch safe? The people who invest with CoinSwitch – is their money safe?
Ashish responded by explaining how (and why) some companies weather market storms and some fall through the cracks. The crypto industry has a lot of [business] models, he said. Some are risky, some are safer.
The chief executive summed it up nicely: The execution model of a company can make or break it.
Elaborating, Ashish said the CoinSwitch business model is simple. It charges a small fee for crypto buys or sells. That’s it. No lending, no borrowing, no staking, etc. The question of safety of users’ money doesn’t arise because the money isn’t compromised in the first place.
“This is our only revenue stream,” Ashish reiterated.
But the chief executive was quick to point out that companies that do lend and borrow aren’t exactly unsafe; they’re just riskier. Which, he added, isn’t necessarily a bad thing. But that isn’t how CoinSwitch functions.
User’s money is user’s money and it can be withdrawn from the app to their bank account anytime. There’s absolutely no concern on that front.
New TDS provision
The CEO lauded the government’s motive behind the new TDS policy—efficient tracing and tracking of crypto transactions in the country. However, he said, there’s a caveat. Compared to a 0.02% TDS on stock investments, 1% for crypto seems excessive.
“It creates a problem for the user. Although the amount is refunded, it is done at the end of the year. The user’s capital remains locked until then.”
CoinSwitch has meticulously followed TDS regulations and has taken steps to ensure that the transition is smooth for users. Ashish added that it’s very important for all users to understand the rationale behind the implementation of TDS, why it’s important, and why its violation could be “very bad for the ecosystem, and for you, as the user.”
What should users do?
Crypto has no boundaries. It’s not a national or domestic entity; it’s a global play. In light of the crypto winter, what would you advise users to do with their favorite coins? Buy the dip? Wait for the dip?
Whenever you make an investment, you must do it with utmost diligence.
“Never invest because your friends are investing, or you feel that this is a trend…”
- Never rely on WhatsApp ‘experts’. Do your own research. If you think a crypto project is the next Google, make sure you know everything about it—who’s behind it and whether they know what they’re doing.
- Invest according to what you’ve read and understood about the project, and according to what you can afford to invest.
- Never allocate more than 5-10% of your portfolio to cryptocurrencies. They are risky assets. The market is volatile and you can’t time your investments. Conviction and understanding are the key aspects in crypto investing.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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