Amid crypto blues, CoinDCX ups bet on Web3

Nearly every tech sector looked better during the banner years of 2020-21 as free-flowing capital lifted public and private valuations. But one area that perhaps outgrew all others was cryptocurrency.

Digital assets, formless and beyond state control, had tech enthusiasts hooked the world over. Even some of the most discerning retail investors found it hard to ignore their allure. That brought crypto exchanges into play in a spectacular manner.

Among the Indian platforms, CoinDCX stood out because of its speed in winning over funders and users. In March 2019, it raised a seed round of $2 million. In April 2022, it scored $135 million in Series D from the likes of Pantera Capital, Steadview Capital and BCapital. The infusions gave it a valuation of $2.15 billion.

The script, however, flipped in the subsequent months. The global tech ecosystem went from a period of cash glut to crunch and crypto markets bled. In India, the government’s tax measure and the RBI’s firm no to virtual tokens further dulled investor participation. Platforms’ trading volumes plummeted by over 90%.