New user sign-ups are a metric used to value crypto companies.
Investors are upset after the government decided to start
Cryptocurrency and Regulation of Official Digital Currency Bill, 2021In the upcoming winter session of Parliament.
The bill seeks to ban all private cryptocurrencies in India but allows for “certain exceptions for the underlying technology and promotion of its use”.
crypto exchange There has been a 15-50% drop in new sign-ups so far in November.
They have also reported a drop in their monthly transactions, after some investors have liquidated positions and adopted a “wait and watch” mode.
“We have seen a 20% drop in new sign-ups on a week-on-week basis. Our average daily sign-up rate during the most recent bull cycle has been 8,000-10,000 per day. Right now, we are getting around 5,000-6,000 new users every day,” said Shivam Thakral, CEO, BuyUCoin.
Sources told ET that some of the biggest exchanges like CoinSwitch Kuber and CoinDCX have also been affected.
However, some of the major exchanges claimed that they did not see any major changes, especially in the trading patterns of mature investors.
“We have not seen any significant change in these numbers on our platform as we largely cater to retail investors who invest for the long term,” said Ashish Singhal, CEO of CoinSwitch Kuber.
Insiders say that many investors are opening additional accounts to sell the crypto assets they hold.
“We have seen an increase in the number of sign-ups because people who already have crypto assets through mining or payment are selling these. Therefore, we see some new members hoarding crypto. , selling them, withdrawing money and depositing it into their bank accounts,” said Satwik Vishwanath, co-founder and CEO of Unocoin. cryptocurrency transaction.
Smaller exchanges said they were seeing steady sign-ups as people were curious about the new asset class despite price volatility after the government deregulated the sector last Tuesday.
“We are currently seeing an average daily sign-up rate of around 4,000 per day,” said Vikas Ahuja, Blockchain and Crypto Assets Council (BACC) member and CEO, Crosstower, a cryptocurrency exchange.
Industry trackers said that trading volume has increased over the past few days as investors rushed to sell crypto assets, but it has subsided since Saturday.
“The transaction volume has doubled, but it has happened for the first two or three days, and we haven’t seen it since Saturday. Those who were nervous have already exited and it remained stable till then. Unless there is more news about the draft bill,” Vishwanath said.
Young investors began investing in cryptocurrencies during the lockdown, when companies largely began working from home.