On Saturday, cryptocurrency exchange, Koinex witnessed some of the lowest prices on its platform. There has been a marked subdued interest in cryptocurrencies, post the Supreme Court’s order where it upheld Reserve Bank of India’s (RBI) directive to stop banks from working with Indian cryptocurrency exchanges. However, the rate at which the price dropped, is quite unprecedented, given that the none of the other exchanges noted such low prices.
Crypto-News India, delved deeper to show the price trend over the last couple of days. The price of Bitcoin, for instance, was recorded at Rs 3,19,253. However the prices went up by Rs 3,29,527 which is a huge mark-up. On Monday, the price has bounced back slightly and the cryptocurrency is valued at Rs 4,10,000.
Another instance was the price of Ether Rs 26,927 which went down to Rs 22,600. However the price at the moment of writing this article was Rs 22,385. On Monday, Ether was trading on the platform for Rs 26,000. The price for Litecoin was the highest at Rs 4,998 and the lowest was Rs 3,852.
INR WITHDRAWAL UPDATE:
The INR/Crypto trading corridor may be discontinued over the next few days with prior notice. After that, users will be able to trade via Koinex Loop and TrueUSD corridors for fiat stability.(2/2)
— Koinex (@koinexindia) July 7, 2018
Why the numbers are a revelation because we checked the prices on exchanges such as Unocoin and Bitbns too- the other two exchanges that are more or less dealing with INR-Crypto corridor. For instance, during the same time period, prices of Bitcoin were Rs 4,59,999 and the lowest were Rs 4,35,551. The prices of Ether were Rs 32,888 at its highest and Rs 30,000 at its lowest. The Litecoin price on the exchange was: Rs 5744 at its highest and Rs 5319 at its lowest.
We had a couple of theories about the reason why the prices went down:
- Due to listing of the token Augur the accounts have been frozen for a significant length of time
- Over the weekend, Koinex announced that it would be stopping INR withdrawals in its entirety, the second exchange, after Zebpay to do so.
We believe that the second reason is a more probable reason why the prices fell, as numerous investors started withdrawing their funds. Speaking to Crypto-News India, exclusively, Aditya Naik the co-founder and Chief Business Officer of Koinex said, “Well, this is not the first-time prices crashed on cryptocurrency exchanges. It happened on other exchanges also when they notified to discontinue withdrawals. However, if you notice the price fall on Koinex was not as bad as it was on other exchanges and this dip was due to the immediate panic selling of the crypto and withdrawing of INR by some traders. However, the more seasoned traders are willing to hold on to their digital assets and patiently wait for the commencement of the peer-to-peer network (Loop) to continue trading. They understand the nuances of the decentralized platform and understand the crypto environment.”
He added that people need not worry as the exchange has introduced Koinex Loop which is a peer-to-peer exchange and is completely decentralized.
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