Cryptocurrency volumes may have dipped in India after RBI’s blanket ban but it has not deterred new players from seizing the opportunity that an emerging market as huge as India has to offer.
A new cryptocurrency exchange is all set to start its operations in India and later expand to other Asian countries. Alluma.io is based out of Singapore with an office in Gurugram (Formerly: Gurgaon). The exchange plans to start its India operations in early Q3 with over 100 Cryptocurrency trading pairs.
Akash Aggarwal led Alluma is touted as ‘institutional grade’ exchange with very high liquidity. Currently India has over a dozen well functioning cryptocurrency exchanges but liquidity is the major concern among traders. Incumbent exchanges have seen a sharp decline in trade volumes across the world and India tells no different tale. Barring a few, the order-books are running very thin for many assets trading on exchanges in India.
Alluma plans to launch a Crypto-to-fiat (INR) market as well as a Crypto-to-Crypto market. But given the RBI’s directive to banks, how will they launch the fiat based model?
“We currently have several banking partners and are ready to launch fiat to crypto in India. However, from an INR perspective, we will of course follow RBI guidelines and adjust our consumer offering.”Akash Aggarwal, the CEO of Alluma told Coin Crunch India over email.
Can Crypto-to-Crypto Model work in India?
Agarwal is positive. While big players like Koinex and Zebpay have launched crypto to crypto model, it is yet to see significant volumes in these markets. Moreover, these exchanges are yet to offer a wide variety of coins and tokens to trade with. With very few options to trade and equally low enthusiasm of traders, Crypto to Crypto markets on Indian exchanges are in dismal state.
Alluma claims to be solving the volumes problem by offering a solution of shared liquidity with multiple exchanges across the world.
“Our Crypto-to-Crypto solution is particularly strong given the liquidity partnerships Alluma has” – Akash Aggarwal, CEO, Alluma
With such partnerships Alluma can rely on the orderbooks of several exchanges to fulfil orders on their own exchange. CoinDCX exchange in India has a similar partnership with Binance. The orderbooks from Binance ensure good liquidity for CoinDCX’s consumers.
Alluma will be conducting an ICO (technically an Initial Token offering) for its LUMA tokens. LUMA is ERC 20 standard token.
The LUMA token can be used for paying trading fees, joining a community vote for new listings and also paying for training programs within Alluma’s training academy. The exchange will offer what it calls a Decentralised chat service on their platform for peer to peer discussion.
At the time of this writing, the whitepaper is 4 more days away from publishing. You can check it out here
Alluma will also offer three loyalty programs, each with incremental benefits. The benefits range from discounted trading fees to exclusive access to new products and quicker/real time support. There are Basic, Gold and platinum plans.
The exchange will be launching in Q3 this year in India followed by Philippines. An Android app will be available in the beginning followed by an iOS app.
The first 20 assets with multiple trading pairs to launch are BTC, ETH, LTC, XRP, BCH, XMR, DASH, FUEL, IOTA+T, MIOTA, TRX, SNT, SNGLS, BAT, NCASH, VEN, OX, ETC, ADA, PHP.
[Link: Alluma Telegram Community]
Alluma will be joining the list of over three dozen exchanges in India but will it survive and be the goto exchange for India and Asia in general? What do you think? Let us know in the comments below.
Update: CEO’s name was edited with the correct spelling.