Trust is key to crypto exchange sustainability — CoinDCX CEO Sumit Gupta
Investor sentiment has always been a critical driver in the crypto space. Both positive and negative sentiment influence ongoing trends — be they price movements, product launches or regulations. In 2022, sentiment worldwide suffered as major crypto firms and ecosystems collapsed, further straining investors amid an unforgiving bear market.
While many showed resilience as Terraform Labs, Celsius and Voyager, among others, closed down, Sam Bankman-Fried’s alleged misappropriation of FTX customers’ funds drove even the most die-hard crypto investors to question the integrity of those running the show.
A series of scams, crashes, bankruptcy filings and court cases have forced investors to rethink how they store crypto and seek accountability from crypto exchanges. Proof of reserves (PoR) became the de facto standard adopted widely among crypto exchanges to publicly showcase and reassure investors that funds exist.
Sumit Gupta, co-founder and CEO of CoinDCX — a Mumbai-based crypto exchange — has opted for the same approach of being transparent with investors. Speaking to Cointelegraph, Gupta discussed the thought process behind proof-of-reserves standards, healing investor sentiment, a new era of trust-building and more.
Cointelegraph: While many exchanges have opted to reveal their proof of reserves, the outflow of assets from exchanges remains a growing trend. Do you think this new standard will help regain investors’ trust?
Sumit Gupta: The collapse of FTX, which is actually a case of malpractice and manipulation of the market, has shaken the industry. Unfortunately, the fiasco has been linked to the integrity of the crypto market, questioning the safety and security of crypto assets.
It is imperative for users to worry about
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