CoinSwitch, one of India’s recognised crypto exchanges, is expanding its services portfolio to attract more users onboard its platform. In an announcement shared this week — the exchange launched a new feature called ‘Earn’. Through this, CoinSwitch will let users ‘lock-in’ their crypto assets and earn rewards in the form of cryptocurrencies. With this offering, CoinSwitch may be looking at increasing the number of people who engage with crypto on its platform, given that the sector is still largely unregulated and volatile in India.
For the first phase of its roll out, CoinSwitch users will be able to use four cryptocurrencies — Solana, Cardano, Polygon, and Near as crypto deposits. Each of these four crypto assets already have a fixed reward rate.
For Solana deposits, users will be able to earn up to seven percent rewards. Similarly for Cardano, Polygon, and Near — the reward rates stand at three percent, 5.5 percent, and 8.5 percent, respectively. It is to be noted that these Earn rewards may be subject of market fluctuation, depending on the number of people who lock in their cryptocurrencies on the platform. The transaction volume of the underlaying blockchains will also impact the percentage of these rewards.
“The rewards are issued by the blockchain, as per its rules. This is a safe and attractive program for our users to monetize their holdings without having to sell,” said Balaji Srihari, Business Head, CoinSwitch while commenting on the development.
The platform has further specified that in case anyone using the Earn feature wishes to unlock their crypto deposits, they will be allowed to do so at any time.
In recent months, Indian exchanges have reported a drop in trading volumes. This has been triggered because of an overall industrial slowdown. In addition, back-to-back interest rate hikes in the US as well as the targeting of crypto players like Binance and Coinbase by the SEC in the US also had negative effect on the market momentum internationally.
CoinSwitch, in August this year, trimmed its customer support staff citing a drop in user engagements. In the same month, CoinDCX crypto exchange also fired twelve percent of its work force blaming India’s crypto tax regime for pushing potential investors away.
India is expected to get a clearer legal framework to govern crypto firms by December this year. The G20 nations, along with India, have drafted the main points around which these crypto rules would be based.
Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.