After FTX chaos, Indian crypto exchanges try to calm nervous investors

business-standard.com:

Cryptocurrency prices have remained muted amid intense selling pressure. The FTX saga has resulted in liquidity pressures in brokerages as big as Genesis. Total market capitalisation fell below the $800 billion mark during the week but later recovered marginally. On Friday, it was at $826 billion. Bitcoin was trading at $16,451, and Ethereum was at $1,180.

"This week, the broader crypto market came under intense selling pressure due to Genesis dealing with liquidity issues. Before the FTX fiasco, Bitcoin traded around the $19,000 level but fell to $15,000 before finding support above the $16,000 zone. Bitcoin has been holding well above the $16,000 level for the past few days," Alankar Saxena, CTO and co-founder of crypto investing platform Mudrex told Business Standard.

"The drop was majorly due to stolen Ethereum being dumped and disbursed to multiple wallets by the FTX exchange hacker. The same and looming bankruptcy concern around Genesis trading and the subsequent effect on Grayscale or Digital currency Group (DCG) caused a sharp fall in Bitcoin prices too," Anurag Dixit, founder of crypto asset management platform, Kunji said.

The unfolding of the FTX saga continued to reveal starker details.

"The details emerging from the FTX bankruptcy filing revealed that the underlying jumble is a lot murkier and the industry continued to guess the potential spread of contagion. Most notably, the top 50 creditors were owed over $3 billion, but their names were kept confidential, creating more speculation in the markets," Parth Chaturvedi, Crypto Ecosystem lead at CoinSwitch, said.

Gaining investors' trust

Following the FTX fiasco, several crypto exchanges in the country tried to calm the investors' fears.

CoinDCX published