As pandemonium of anger, confusion, panic and humour brews inside the Indian Cryptocurrency trading community over RBI’s dictatorial mandate on Banks to wind up business relationships with Crypto exchanges, Coinome, an Indian exchange launched a counter measure – Crypto to Crypto trading market.
Coinome’s move comes within hours of RBI’s press conference. The exchange launched 5 new trading pairs reportedly BCH/BTC, ZEC/BTC, DASH/BTC, BTG/BTC and LTC/BTC.
Only Major Indian Exchange with both BTC and INR pairs
Coinome can be called a major exchange in India, thanks to their ability to cater Instant deposits upto 10 lacs and withdrawals upto 5 lacs per person, with no upper limit on NEFT based withdrawals per day. With this in mind, Coinome will be the only major Indian exchange with BTC as well as INR pairing for cryptocurrencies in India. It is crucial for Indian traders to have reliable exchanges with BTC based pairing. This way the traders will not have to move their funds to international exchanges.
Boost for Crypto traders
Cryptocurrencies have been around a while now. There are early investors who became millionaires, thanks to boom in Crypto prices. We call some such millionaires ‘Whales’. In crypto lingo a whale is a person with more than 5000 BTCs. Whether we have such whales in India may be debatable, but one thing is for sure, the whales trade in Bitcoins.
Not only the whales, experienced traders focus on BTC based market as they really believe in the first ever cryptocurrency. Such users in India have been trading in international exchanges like Binance and Bittrex for a long time now. This is a great opportunity for traders to stay within India and grow their BTC quantity.
No change to INR markets
Earlier today the exchange put out an official response to RBI’s press release. It has advised the users to take due caution before making unwise decision (aka panic selling). The INR transactions are working without a glitch and the statement ensured users a safety of their funds.
Introducing BTC trading pairs is also a sign that the exchange will keep its business running in India.
Arbitraging Within the Exchange
If a single exchange is to offer both BTC and INR markets, there is a possibility of Arbitrage.
At the time of this writing:
1 BCH = INR 36000
1 BTC = INR 416000
1 BCH = 0.089 BTC
Hence, 1 BTC = 11.234 BCH
So if you buy 11.234 BCH, sell it for 1 BTC and then sell the 1 BTC for INR, you can make a profit of INR 11000 Approximately.
We need more
If Coinome is reading this, let me tell you guys that it is good that you have BTC pairs. Yes, there is also an opportunity to arbitrage within the same exchange. But to really attract core BTC and Altcoin lovers to trade on Coinome, you have to add more BTC pairs than INR pairs.
If Coinome can introduce a few more coins and perhaps add an exclusivity of BTC pairing, the users can save the loss they incur in transferring BTC or other trading coins to other exchanges. Coinome has an advantage to become a market mover and the ability to learn from the mistakes of other failed BTC paired exchanges in India.
The Trading Experience
The markets have only just been introduced hence we don’t see much volume on them. The highest volume for the BTC trading pair is currently on the LTC-BTC market.
Coinome has launched an introductory fee of only 0.1% for both makers and takers on all BTC markets.
It will take a little while for the panic to settle and the trading volumes to get back to the original glory. The weak hands, as they say in Cryptoverse, are shaking and panic selling.
What is next?
Quite honestly, I am still bummed that there is no ETH or ERC20 tokens on Coinome yet. But maybe Coinome is saving the desert for the last. Now that we have BTC pairs, Coinome can introduce ETH and a plethora of ERC20 tokens together as BTC as well as INR pairs. Hopefully that is the next move by the Billdesk initiative.
Have you traded with Coinome’s BTC Trading Pairs? Let us know your experience in the comments below
Update: Coinome’s withdrawal figures were updated.