Tag: WazirX

Crypto tax deterred trading frequency of 83% of active traders: Survey

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Since India implemented tax on cryptocurrency transactions, 83 percent of active traders have indicated their trading frequency has suffered, according to a survey by crypto exchange WazirX and Zebpay involving close to 9,500 respondents. 

According to the survey, around 24 percent of respondents are contemplating shifting their trading activities to international exchanges owing to the high taxation and 29 percent traded less than the pre-tax period. 

The survey revealed that 27 percent of the respondents sold over 50 percent of their portfolio before April 1 when the 30 percent capital gains tax was implemented. About 57 percent of respondents sold under 10 percent.

The revenue from tax collections for the government is expected to decline as 27 percent of customers (34 percent traders and 23 percent holders) said they would trade less than earlier owing to the current taxation policy. 

Also read: Crypto fall: Experts decode key triggers

The survey was conducted among a pool of traders and holders. The traders were classified as those who traded every day, more than five times a week or at least more than twice a week. The holders were those who traded a few times a month or were invested for the long term.

The respondents for the survey only involved traders who actively traded from the starting of this year till April 15. 

The report indicated that the worst impacted were millennials as 28 percent of the respondents aged 18 and 35 sold more than 50 percent of their holdings before April 1, while 23 percent wished to move their holdings to an international exchange to avail of a more favourable tax climate. 

This emigration posed a significant risk in terms of investors falling prey to non-KYC compliant international exchanges. 

Also read: Stocks vs cryptocurrencies: Understanding the main differences between the two asset classes

The holders, on the other hand, had continued to retain their positions, with 45 percent saying they would hold on to their positions. This signifies their faith that the tax provisions will be made more conducive in the longer term, the report states.

Addressing the survey findings, Rajagopal Menon, Vice President,  WazirX, said, “The survey results stipulate the need to reform certain conditions to aid the growth of crypto investors in the country, which will result in economic prosperity.  The tax regime needs to be balanced to encourage participation and revive trading volumes.” 

Avinash Shekhar, CEO of ZebPay, said the survey results indicate a considerable number of respondents intend to reduce their trading frequency. 

“Crypto is driving revolutionary change across the world and it is in our nation’s interests to encourage, not dissuade participation. Restrictive policies serve as a barrier to both adoption and innovation. While India’s crypto tax policy is a step forward, reconsidering certain aspects will help build a more supportive regulatory environment for all industry stakeholders and will ultimately contribute to overall economic progress,” Shekhar added.

Also read: Crypto lender Vauld halts withdrawals — A look at what went wrong

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Stocks vs cryptocurrencies: Understanding the main differences between the two asset classes

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The stock market has been in existence for over a hundred years and despite their fair share of risk, they have always been considered a safe long-term bet with proven performance over time.

Cryptocurrencies are the new kid on the block and have attracted mixed investor sentiments. While some believe they can generate significant value in the long run, many are sceptical and refrain from dipping their toes into crypto waters.

This is mostly because cryptocurrencies are highly volatile and fluctuate every second. In comparison, stocks are relatively stable and take a while to mirror the ongoing market sentiment. Below is an illustration of the main differences between stocks and cryptocurrencies to help you get a better understanding of both asset classes.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Trading dries up on Indian crypto exchanges as new transaction tax kicks in

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Warnings from Indian crypto exchanges that a controversial new transaction tax would erode trading are coming true, with volumes evaporating since the levy took effect.

Three exchanges- ZebPay, WazirX and CoinDCX suffered declines of between 60 percent and 87 percent in the value of daily trading immediately after the 1 percent tax deductible at source became effective on July 1, data from CoinGecko show. A fourth, Giottus, saw trading sink 70 percent, its chief executive said.

Also read: More trouble for India’s crypto exchanges as new TDS rules causes drop in trading volume

Those steep declines came from already depressed trading levels, as a combination of plunging prices, unfavorable tax treatment and difficulty getting cash onto exchanges combined to depress the once-hot market.

Binance-backed WazirX, for example, did $3.8 million worth of trading on July 2, the day after the tax known by the acronym TDS took effect, CoinGecko data show. In early July last year, it would have taken less than two hours of trading to reach that mark. (Crypto exchanges trade 24 hours a day, seven days a week).

While long-term crypto holders are still buying and selling, market makers and high-frequency traders are “gone,” said WazirX Vice President Rajagopal Menon. Traders are also doing more peer-to-peer trading and migrating to so-called decentralized exchanges, he added.

Also read: You can now earn crypto when you shop; all you need to know about shop-to-earn

The government introduced a tax regime for digital assets in February, consisting of the TDS and a flat 30 percent tax on income from crypto investments. It also banned offsetting of losses on such assets, treating them differently from stocks and bonds.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Mining Pools vs Staking Pools: What is the difference

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Independent mining and staking activities demand a lot of resources. One either needs to purchase expensive mining equipment or pledge substantial amounts of crypto toward the blockchain.

Either way, the cost of involvement can be very high. Pooling resources allows aspirants to participate in the staking/mining process and earn block rewards without singlehandedly dedicating all necessary resources.

Sure, the rewards may be lower, but they are usually constant and predictable, which is not the case for solo staking or mining.

Check out the illustration below for a better understanding:

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

More trouble for India’s crypto exchanges as new TDS rules causes drop in trading volume

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Figures sourced from data aggregator nomics.com reveal that trading volumes on Indian crypto exchanges took a mighty blow since the 1 percent TDS came into effect on July 1, 2022. The two largest exchanges in the country, WazirX, and CoinDCX, saw their trading volumes slashed by at least 80 percent.

WazirX saw trading volumes plummet 63.11 percent, falling from $14.53 million on June 30, 2022 (before the TDS enforcement) to $5.36 million on July 1, 2022. Over the last 4 days, the exchange has lost 80.11 percent as the trading volume presently stands at $2.89 million.

In apprehension of the 1 percent TDS kicking in, CoinDCX started seeing diminishing volumes on June 29, 2022, itself. The exchange shed 64.64 percent in trading volume, slipping from $7.41 million to $2.62 million between 29th and June 30, 2022. The current trading volume stands at $1.01 million, amounting to an overall drop of 86.37 percent. This makes it the worst-hit crypto exchange.

Also Read: A look at STEPN, the NFT app that pays you crypto to go running

The TDS rule states that all trades involving the sale and transfer of crypto assets will be charged a 1 percent fee on the seller’s end. This means that the seller will receive 1 percent lesser than the total proceeds of the sale. Also, since transaction fees are a major source of income for crypto exchanges, the drop in trading volume only adds to the woes of Indian crypto exchanges.

“The TDS levy is a modern instance of a tax provision that would be highly detrimental to the crypto industry. The tax provision will not only discourage innovators who have been doing a great job in promoting India as an innovative hub for the industry, but the government too will be at a loss as they will lose out on the possibility to earn massive tax revenue due to the overall decreased transaction volumes,” said Amanjot Malhotra, country head at Bitay, to BusinessLine.

However, a few experts believe it is too early to ascertain the full effect of the new TDS rules as trading volumes generally slump over the weekend. “At present, it is still premature to predict the ramifications of TDS. We will be in a better position to understand this by the second week of July,” said Rajagopal Menon, vice president at WazirX, to The Economic Times.

Also Read: As crypto market bleeds, experts and charts warn worse still to come

On the other hand, some experts view the TDS rule as a positive for crypto businesses. “Investors can trade now with confidence by paying applicable taxes and crypto entrepreneurs in India can conduct their business without any fear,” said Shivam Thakral, CEO of crypto exchange BuyUcoin, to the Hindu BusinessLine.

Indian exchanges had shown a similar reaction when a 30 percent tax on profitable crypto trades was introduced on April 1, 2022. Over the next 4 days, Indian exchanges lost 44 percent of their trading volume.

According to crypto market researcher Crebaco Global, trades on WazirX dropped by 40 percent, CoinDCX slipped by 52.91 percent, and Zebpay cliff-dropped 76 percent, since March 31, 2022 (before the 30 percent tax was enforced.)

Also Read: ‘Crypto Queen’ Ruja Ignatova of Bulgaria added to FBI’s 10 most-wanted fugitives list

The TDS rule has also further decelerated Rupee deposits on crypto exchanges. The same was already slowing down since the tussle between Coinbase and the National Payments Corporation of India (NPCI), resulting in the exchange halting its UPI services in India.

This happened back in May 2022, when Coinbase rolled out its UPI service. The very next day, the NPCI issued a statement saying it was unaware of any crypto exchange using UPI in the country. Following this statement, all crypto exchanges in the country began to pull the plug on UPI payments.

The crypto industry has also been impacted by the everlasting Crypto Winter that began at the end of December 2021. As a result, several Indian crypto exchanges have reduced their hiring initiatives to keep operating costs to a minimum.

Also Read: You can now earn crypto when you shop; all you need to know about shop-to-earn

“We have cut down all our non-critical costs,” said Menon to the Economic Times earlier in June. “We are hiring only critical hires, we aren’t spending money at all. It’s literally crypto winter here,” he went on to explain. It’s a similar story for Unocoin and BuyUcoin who have slowed down hiring. The latter has also cut down on paid partnerships with social media influences and reduced mass advertising campaigns.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

You can now earn crypto when you shop; all you need to know about shop-to-earn

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shopping is not exactly a pocket friendly activity. Sure, you come home with a bag full of products you need or love, but at the end of the day, it’s still just a debit entry in your financial logs, right?

While product manufacturers make hefty profits through their customers, buyers are not rewarded much for their loyalty. But that’s about to change!

Shop-to-earn platforms are trying to reimagine the shopping experience by amalgamating blockchain technology with retail purchases. These applications reward consumers for their day-to-day spending, allowing them to earn crypto on each purchase. Sound interesting? Let’s take a deeper look.

How does shop-to-earn work?

While different apps have different renditions of the shop-to-earn model, the basic philosophy remains the same: to reward customers in crypto for their purchases. The more you purchase, the more crypto you earn.

There are several shop-to-earn apps available today. Some of the more popular ones include StormX, Social Good and ShopNext. All three platforms reward you in their native cryptocurrencies for transactions made within their merchant network.

They all have upwards of 600 merchants in their respective networks, including some top names in the fashion, electronics, home appliances, and other verticals. Social Good has 1,800+ such merchants.

Every purchase you make will earn you crypto rewards. The rewards will differ from platform to platform and depend on the merchant and purchase amount. Some platforms also provide memberships that further amplify the rewards on each purchase. For instance, with StormX, you can earn between 0.5 percent and 85 percent in crypto cash back, depending on your membership level.

You can then transfer these tokens to your crypto wallet and exchange them for fiat currency or other crypto tokens.

You can also stake your reward to earn more tokens

Social Good and StormX also allow you to stake your rewards to earn even more crypto. According to an article by CoinDesk, you can stake SG, Social Good’s native token, and earn up to 15% APY as staking rewards. On the other hand, you can earn an additional 7.5% to 50% p.a. by staking STMX, StormX’s native token. These rewards will be sent to your StormX account every week.

A budding market

According to a CoinDesk report from May 2022, there are 5 billion mobile users worldwide. Around 2 percent of these mobile users possess crypto in some form or the other. Also, 55 percent of shoppers hope to be rewarded with cashbacks or other perks. This brings the potential user base of the shop-to-earn model to 55 million people globally.

However, this is without factoring in the growth of the crypto industry or the increase in the number of mobile users. CoinDesk estimates the crypto industry to grow by 10x in the next two years, bringing the potential userbase for S2E platforms to a massive 550 million by the end of 2023.

But you don’t have to wait that long to get your hands on these burgeoning digital assets. You can buy/trade cryptocurrencies on the WazirX platform today. You can also receive exciting signup bonuses and even better rewards for referring your friends. So why wait? Start trading now!

Disclaimer: Cryptos are unregulated virtual assets, not a legal tender and subject to market risks.

Note: This is a partnered post.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

How to earn crypto for free

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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While cryptocurrencies have shown immense growth, they have also proven to be highly volatile. Therefore, it’s only natural for someone to think twice before putting their hard-earned money behind these virtual digital assets. Fortunately, there are a few ways to get crypto without spending a single penny.

It’s true; one can get free cryptocurrencies through airdrops, crypto faucets, signup and referral bonuses, web 3 browsers and even by simply learning about crypto. These methods allow you to profit from the burgeoning crypto asset class without risking your bank balance. Check out the details below:

Note: This is a partnered post.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Cryptocurrency podcast: Looking at cryptocurrency as a retirement plan for millennials

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The younger generations have a vastly different relationship with money as compared to the generations that have come before them. In the age of NFTs, cryptocurrencies and other Blockchain assets, the concept of investment has changed rapidly.

With these changing investment strategies, retirement planning for millennials has taken a new shape.

In this special podcast presented by CNBC-TV18 in association with WazirX, Manisha Gupta is joined by Raj A Kapoor, Founder & CEO, India Blockchain Alliance, and Rohit Kundliwala, Cryptocurrency Marketing Manager at WazirX to discuss the opportunities of investing in crypto as a retirement option for this generation.

Tune in to Cryptocurrency Podcast to know more.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Note: This is a partnered post.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

95% of crypto scams don’t happen on blockchain; here are some you need to be aware of: WazirX Transparency Report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Crypto exchange WazirX has published its Transparency Report for the period between October 2021 and March 2022. Among other findings, the report shows that about 95 percent of the scams reported on WazirX were money market ones, and only 4.5-5 percent of the cases were related to blockchain and virtual digital assets (VDA).

As per the second edition of the exchange’s bi-annual Transparency Report, Ponzi schemes and social engineering scams were most common, accounting for about 40 percent of the total scams during the period.

About 25 percent of the scams were related to phishing/airdrop, and another 25 percent were impersonation scams. Meanwhile, 5 percent were related to identity falsification/identity theft. The Mumbai-headquartered exchange has blacklisted 17,218 accounts, up by 19 percent compared to April 2021-September 2021.

The report highlighted the following types of scams that took place in the Indian VDA space:

Impersonation scams: In these scams, the imposter poses as a famous and credible individual from the VDA industry and demands money.

In a recent case, an imposter tried to dupe investors by creating a telegram channel with fake profiles of crypto-exchange founders. As a result, a request was registered with the platform to take down the channel and related fake profiles. “Our legal team has proactively coordinated and supported LEAs on several requests regarding impersonation frauds,” WazirX noted.

Social engineering scams: Under pretexts ranging from credit card expiry to bank account validation, scammers aim to instil a sense of fear. They then push people into taking quick action without careful assessment. WazirX noted that it had witnessed a growth in such scams.

“We recently got a request where, on the pretext of blocking a credit card, a certain amount VDA was demanded by the scammer,” WazirX said. The scam, however, was later detected, and the amount retrieved.

Identity theft: Here, a scammer wrongfully obtains and uses another person’s personal data for fraud or deception for economic gains.

In one such incident of identity theft detected by WazirX, the victim, an 85-year-old man with no income tax return (ITR) history and agriculture as his source of livelihood, was scammed by a distant relative. The imposter was found operating the WazirX account illegally, transacting large amounts. The victim was misguided by his relative to complete KYC checks successfully. Eventually, the user’s account was blocked.

Commenting on the report, Nischal Shetty, CEO and Founder, WazirX, said, “Even now, most scams occur due to lack of awareness amongst users and indicate the requirement of large-scale awareness programs to safeguard user interests.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Cryptocurrency Podcast: Growing influencer market in the Metaverse

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Digital influencers today are constantly expanding their horizons to engage with a larger audience. Their presence on all possible digital platforms to find new followers is a mandate if they plan to keep growing. The Metaverse is one such platform that is garnering the attention of influencers in their zeal to find new users.

Manisha Gupta of CNBC-TV18 spoke to Rohit Kundliwal, Marketing Manager, WazirX and Pranav Panpalia, Founder & Mentor, OpraahFx and OP Gaming to discuss the growing influencer marketing in the Metaverse.

Influencer marketing is a fast-growing industry that captures the attention of internet users swiftly and ensures that brands get enough exposure and valuable visibility, provided the right ambassadors take charge of engaging followers with the campaign.

Tune in to this podcast to find out how Metaverse provides a more immersive and experiential platform for influencers, brands and innovators alike

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Note: This is a partnered post.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow