Low advertisement by Crypto Exchanges could be one of the reasons.
Crypto Exchanges of India are experiencing a year-end slowdown.
They have experienced outstanding growth this year, but December isn’t the month when their starts are rising.
From October 2021 to November 2021, they registered a growth of 10% month on month, according to an Economic Times (ET) report.
“Signups in December were lower than what we saw in November, but it’s higher than what we saw 6 months ago,” said a WazirX spokesperson.
BuyUcoin earlier witnessed an average daily sign-up rate of around 8,000 to 10,000. It has recorded a drop to below 4,000.
Many exchanges grew at 40,000 to 50,000 users daily, but could not manage the same rate in December. There could be many reasons for that.
Advertisement Spree During October and November
October was the period when the ICC Men’s T20 World Cup and festive season were going on in India. Exchanges had planned a blitzkrieg of advertisements. They spent around INR 50 crores on advertisements during the T20 World Cup.
But the unclear laws on crypto advertisements resulted in a fallout between the Exchanges and regulators, as Exchanges were reprimanded for the advertisement blitz.
In the ensuing weeks, BCCI also barred IPL teams from associating with Crypto Companies.
Considering all these developments, the Crypto Exchanges felt it is better not to advertise at the moment.
So, the Exchanges are not able to reach the masses, resulting in lesser sign-ups than before.
Promise of Legislation
On November 23, Parliament listed the Crypto Bill for tabling at the just-concluded Winter Session of 2021.
It brought a promise that the Government might formulate a regulatory framework governing crypto in India. The promise raised the hopes of many, which could have driven up the sign-ups.
But as the final date of the Winter Session approached, it became clear that the time for legislation still awaits in future.
It is usually observed that as the markets post a downward rally, people become less interested in cryptocurrency. These investors view crypto as a speculative asset. When the asset does not promise positive returns, they become less interested in it.
At press time, BTC is trading for approximately 47400 USDT on Binance. Its dominance stands at 40%.
India has around 2 crore crypto users according to WazirX founder Nischal Shetty. The country has one of the youngest populations in the world. It is ideal for crypto adoption and innovation. That’s why India is regarded as a sleeping giant in the world of crypto.
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