Exclusive: 'Cryptocurrency Is Here To Stay, Not Get-Rich-Quick-Scheme' Says WazirX's Rajagopal Menon

Cryptocurrency is here to stay, and but not a phenomena of 'get-rich-quick-scheme'. In an interview with GoodReturns.In, Rajagopal Menon, Vice President, WazirX touched upon the opinion of crypto currency future, and tax rates and their impact on the market and also how to avoid failures of infamous TerraUSD sisters and FTX Group. Menon believes crypto market is a disciplined investment just like every other options, and to hedge good returns require patience and discipline. He also added, the best way to go about in crypto is by investing small amounts in systematic.

Here is the excerpts from the interview:

1. What is your pinion on crypto future?

Crypto is the internet of value. Like the electricity and the internet, it is here to stay. Just like we didnt understand the true potential of the internet in the 1990s, we underestimate the potential of crypto today. Crypto is truly going to transform every industry.

2. Are you optimistic about the bull phase even after Govt imposed TDS?

Yes. There are about 142 crore Indians of which there are 8 crore unique investors in the NSE. There are about 50 million Indians who are in crypto. So the potential is tremendous.

3. Has India's tax rate of 30% impacted the crypto market investment since April 2022?

Yes. Trading volumes have left Indian exchanges and moved to foreign exchanges. Volumes in Indian exchanges have crashed by 90%. Traffic and app downloads of foreign exchanges have gone up in the corresponding period. The government is losing out on revenue, Indians are losing out on legal recourse and a safe trading experience, and Indian companies are losing customers.

4. What advice would you give to cryptocurrency investors in this market surge?

Crypto is not a "Get rich quick scheme". Like any other investment, it takes discipline and patience. No one can time the markets. Investing small amounts in systematic manner over a long period of time is the best way to go about it.

5. What's driving the recent crypto market surge?

Recent movements in the crypto market can be attributed to a mix of speculative anticipation over potential Bitcoin ETFs, the upcoming Bitcoin halving event in 2024, and broader macroeconomic factors, such as shifts in U.S. interest rates and inflation trends.

6. Do you think, the TerraUsd failure that led to at least $40 billion loss of investors wealth, has led to biggest illiquidity in the global crypto exchanges?

The crypto industry is in its infancy. Many have compared it to the wild wild west. This is capitalism in its purest form. None of the companies that went under required bailouts which is routine for the banking industry. In spite of this, the industry continues to innovate.

7. How can crypto markets can avoid terraUSd-like market rout, liquidation of 3AC, and what lessons could be learn from FTX bankruptcy and how investors can avoid being impacted in such a situation?

These incidents happen in free markets. When founders get greedy and make bad choices, these are individual mistakes. In the last 15 years, 516 banks have failed in the US, the most advanced and regulated market in the world.

It underscores the importance of due diligence and the need for investors to scrutinize the governance and operational integrity of their platforms. Crypto is all about self-custody. Always remember: not your keys, not your coins.

8. How does WazirX ensures the safety and security of users investments?

Two-factor authentication, multi-signature protocols, SSL encryption, strategic use of cold and hot wallets, real-time monitoring, periodic security audits, heuristic behavior's analysis, and withdrawal whitelists are just a few of the security measures that WazirX uses to keep user funds safe. The Proof of Reserves is publicly available, reinforcing our commitment to transparency.

There has been a rapid rise in the number of cryptocurrencies that are available for investment. As per CoinMarketCap, over 2 million cryptos are traded and there are 671 exchanges. While the market cap is over $1.4 trillion.