Amid the downturn in the global crypto market and evolving regulatory environment in the country, cryptocurrency exchange CoinDCX aims to play the long game by focussing on building a regulatory compliant platform and product innovation. While in the short-term the company might have increased costs and taken revenue hits, in the long-term it is confident of having better growth momentum, said CEO Sumit Gupta.
CoinDCX has seen its volumes drop nearly 80 per cent, along with a decline in revenues. However, it is bullish that its new products will be additional revenue streams and the volumes will go up due to its compliance and transparency efforts.
The company is currently building its new offering Okto — a Defi app that gives access to over 20 chains and 100 protocols. The app is envisioned to be a simplified platform to make Web3 offerings easily accessible. Gupta said the app will be launched globally this month, and has so far received positive responses.
The exchange in the recent past, as a part of regulatory compliance, released its proof of reserves post debacles. It has also become a Financial Intelligence Unit (FIU)-registered entity.
Gupta said active efforts by the company on regulatory fronts will make the platform more reliable and trusted, thus bringing in more customers and garnering a larger market share in the future. “The past year has been difficult for the sector, and we as a company have had to be much more proactive in terms of raising the bar for compliance and being transparent. Although there was added work and cost, our efforts to comply with regulations is in the right direction as it ensures customer protection and builds trust on the platform,” he said.
The exchange reported a net loss of ₹41.34 crore in FY22, compared with a profit of ₹4.36 crore in FY21. Gupta said the company is now focussed on having a product-led growth and building a compliant and secure platform. It does not have plans to invest in mass campaigns and advertisements to get customers on board. It will rather focus on attracting customers by creating educational content that simplifies investing for customers, he added.
CoinDCX had earlier said it had plans to hire 1,000 employees. However, now the company has recalibrated; although it does not have a revised hiring target, CoinDCX will continue to hire for required positions and roles as it works on its product development.