The latest announcement by Chinese central bank, People’s Bank of China [PBoC] with regards to making all crypto transactions illegal has sent Indian investors into massive sell-offs. Cardano [ADA], Polygon [Matic], and Solana [SOL] have been investor favorites for quite some time but the latest news witnessed many market players cashing out. As many resorted to offloading their assets, others settled for the dominant cryptocurrencies like Bitcoin [BTC] and Etherium [ETH] as FUD intensified in the market following the development.
Coinciding the news, popular Indian crypto exchanges have recorded a 50% rise in the volume of transactions in a span of two days. Experts believe that the rush was attributed to those who invested in the crypto with smaller market caps. However, seasoned investors remained unfazed by the recent turn of events.
Indian cryptocurrency exchange, BuyUcoin’s founder Shivram Thakral stated,
“The largest sell-offs we’ve seen are in the biggest gainers as investors are likely to cash out their investments in assets like Cardano, Solana, Matic”
According to him, China’s ban set off alarm bells among the newbie investors into a dumping spree while others traded for the safer assets. Previously Bitcoin [BTC] was the most preferred token for Indian users until recently many new investors started exploring other altcoins.
Can China’s loss be turned into an opportunity for India?
The recent crackdown has nevertheless drawn a lot of attention from the global crypto community. However, not many were surprised. China has a long history of targeting crypto-related activities be it Bitcoin and crypto mining or clampdown on exchanges and businesses.
This has resulted in mass exodus and shifting of operations to crypto-friendly countries such as Bahamas, Kazakhstan as well as parts of the US, Canada, etc. On the other hand, with its growing tech-savvy population and prudent steps towards bringing the much-needed regulatory clarity, India can provide a huge market by attracting crypto-related business and capital. Drafting new legislation compatible with the burgeoning technology and providing support to crypto-related startups is the need of the hour.