Transparency is an important virtue for good businesses. Not just transparency in numbers and economics, in the case of cryptocurrency exchanges, something as simple as having an open order book exchange increases the trust of a user multi-folds. An experienced trader would want to be able to see what the current order book looks like to make an informed decision on the trade.
Majority of the exchanges in India now are open book, but that wasn’t the case until 2017. Barring a few exchanges such as now-defunct Coinsecure, the cryptocurrency trading wasn’t as open. The incumbents cornered traders into buying and selling Bitcoin at a rate set by them, not the user. But it all changed by the end of August 2017.
As the crypto market was gearing up for the biggest bull run ever witnessed, a new cryptocurrency exchange Koinex brought more than just Bitcoin to cater to Indian traders. Koinex offered open order book trading for five cryptocurrencies including Bitcoin Cash in the beginning, at a time when only Bitcoin was offered by most popular exchanges.
Koinex would then go on to list over 30 cryptocurrencies that can be traded with BTC, ETH, XRP or INR, clock a trading volume of over INR 1722 Crores in a day, raise a seed round funding from Beenext, followed by a second round from Pantera Capital, distribute tokens worth crores of rupees in trading competitions, open a peer to peer exchange in response to regulator’s attempt at choking the industry and pretty much do everything else to stay true to the title “India’s largest exchange”, and all of this in just one year.
Inside Koinex – A Tech Stack that inspires
If you look around, we have over two dozen operational exchanges in India itself. Makes you wonder if it is that easy to build an exchange? Koinex was built in an apartment too. But building solutions to improve the service for the user, being able to handle hundreds of thousands of transactions per second, send billions of real-time messages every week, that is the difficult task. That is what differentiates a good exchange and a great exchange.
Koinex has always been quick to adapt to the changes in the technology, be it in scaling or in making the platform more robust. Big giants like Cloudflare and MongoDB have each published their case studies on how Koinex integrated their technologies on its platform.
Koinex has lakhs of active users, they are prone to issues such as latency, hacking attacks and in general slowing down services due to overload. Koinex has integrated with Cloudflare to limit the number of requests, enhancing security, in turn, improving the performance of the exchange.
Finally comes the real-time messaging service. Those flashes you see on the order book when an order is placed, removed or fulfilled, the notifications users receive, the price ticker updating continuously, they all work because of real-time messaging services. Koinex built a Publish-Subscribe (PubSub) system in-house and removed the dependency on third-party applications to deliver over 20 billion real-time messages a day. The system is called Pushman at Koinex.
Koinex – The Rebel
The journey of cryptocurrency trading in India has been a rocky one. While the country was still recovering from the December turmoil of a halt in INR deposits and withdrawals on several exchanges, the apex bank, RBI decided to pin the metaphorical bubble by curbing banks officially from dealing with cryptocurrency exchanges. Koinex had to fight back for themselves and their users.
Koinex joined three other exchanges and a few individuals to file a writ petition in Supreme Court against the RBI’s diktat. At the time of this writing, the case is pending its final hearing in Supreme Court.
As the deadline of the banking restrictions approached, Koinex announced their peer to peer exchange called Loop. Loop became a holistic platform to allow traders to buy and sell Bitcoin, Ethereum and XRP for INR with other traders and then use them to trade 30 other assets on the exchange on their crypto to crypto exchange, thus forming a complete ecosystem for crypto trading in India. The same KYC-verified account and wallets appear on both Koinex and Loop ensuring the seamless trading experience.
Despite the regulatory pressure, Koinex introduced a peer to peer system for depositing and withdrawing INR, bringing back the good ol’ fiat based trading days.
As Zebpay, once the biggest and one of the first crypto exchanges in India shut down, Koinex geared up and introduced new offers to bring on crypto enthusiasts who may have been distraught with this sudden announcement, and keep the momentum going. Despite the slowdown and regulatory concerns, Koinex is holding the fort to provide reliable cryptocurrency exchange services to the fellow countryfolk.
Transparency at Koinex
In December last year, Koinex was adding 35,000 users a day . It was scaling rapidly and became a household name in the crypto trading community. The cryptocurrency market overall is witnessing a drop in volume since then, Koinex has had days when the volume on the exchange merely crossed a few BTC, they remained transparent about it.
Koinex has not been accused of any malpractices like wash trading, volume manipulation or liquidity stealing, unlike some other Indian exchanges.
Despite the bear market, Koinex is constantly adding new users, crypto deposits have gone up and have growing trade volumes. The exchange is here to stay and will build fabulous cryptocurrency products for the years to come. We are a billion people ready to ride the new wave of technology – Blockchain.
Disclaimer: This is a partnered post and may contain forward looking statements for the product. Coin Crunch India advises readers to do their own research before investing in cryptocurrencies and related products.