The recent crypto market is going through a challenging phase where we are seeing a lot of crypto-related businesses going bankrupt like FTX, losing funds, user support, etc. But it is expected from the crypto market because of its high volatility so there might be an improvement soon or might not.
Because of this scary market situation, we decided to talk to the professionals in this industry about it and we invited Mr. Umesh Kumar, Founder, and CEO of India’s Leading Cryptocurrency Exchange, Suncrypto.
Suncrypto is still maintaining momentum even in those tough situations so we think they have the right answers to all the questions related to the current market situation. This article contains the personal thoughts of Mr. Umesh Kumar, have a look.
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What does Suncrypto's CEO think of the current market situation?
On asking the question about the Current Market situation the CEO of Suncrypto, Mr. Umesh Kumar shared his views as he said “People think of crypto as full of profits and expect that they will get the bull zone only but what they do not realize is that after every bull there are chances of the bear as well. It won’t even stay stable for long, forget about the bullish periods forever.
When a bull period is ending we will see a lot of new projects entering the market after getting influenced by the bull zone and out of these projects some will be really good while some won’t be able to thrive. And we will see that when the downfall will come or when the bearish zone will come.
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At that time some of these projects will end up falling into bankruptcy and this should happen. Why? Because the projects which do not have a good influence on the market should not be there, the bad projects should end to give lessons and make places for the upcoming better ones.
The fallen project like LUNC (cryptocurrency), Vauld (Lending and borrowing platform), and the recent FTX (Second largest cryptocurrency exchange ) needed to fall to realize what’s going on in the market and what kind of services we should not get involved in as users.
What we got through these falls is that we got to know about the bad factors like FTX using user funds for personal gains, etc and they got removed so that became a lesson for everyone. Many crypto investors, retail investors, and institutional investors have lost their investments because of this so that was a sad part.
What it's the effect on Suncrypto?
Not only the Suncrypto users, but any crypto user will be worried because of the market so we asked Mr. Umesh Kumar about the effect these ongoing events have caused on Suncrypto.
He answered with confidence that “This whole situation of FTX bankruptcy has created a huge impact on the crypto market as well where we even saw Bitcoin losing 25% of its value and going really low after the event. And that's all the effect we got on us because of the market situation and nothing else.”
According to Suncrypto CEO, “Suncrypto is not at all impacted by the FTX or any other platform which is negatively affected, We have no relation to those, we have no financial transactions with them, neither we are involved in any lending or borrowing situation nor promote such things. We are safe from such incidents and especially your crypto is safe with us.“
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But like any user, we had the same thought: how can we believe Suncrypto? How can Suncrypto prove that the exchange is safe even in this situation?
Mr. Kumar said that “We have already shared Proof of Reserve information through a blog post and a Twitter post. And in that, you would have seen that all of the reserve-to-liability ratios are minimally 100% for all the coins on our exchange. We have never compromised with that or any other security and safety precautions.
And according to me (Mr. Umesh Kumar), this is a good opportunity for long-term investing as the prices are really low. So if you buy the crypto now for a really low price to hold it for the next 5 years, it will be a good investment. But before any kind of investment always keep in mind the risk factors of the crypto market and make sure to Do Your Own Research (DYOR).
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Is the Users fund safe or not?
The most important and final question for the CEO of Suncrypto was whether the user funds are safe or not.
Mr. Umesh Kumar answered that with “Suncrypto is fully financially stable, we have encountered no such issues with our exchange as we only support the trading services on our platform. Our motives do not include earning profits over the user funds, it's the user's fund, not ours, it's actually a huge responsibility for us. And we totally understand that we need to keep it safe in any situation. We are making our profits by charging a small transaction fee for every transaction you make and that is enough for us. We store more than 80% of cryptocurrency in the cold wallet to ensure maximum safety. We understand the value of each investment done on our platform and we will never risk our user's trust and faith in us for anything.
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And that ended the whole conversation with the CEO of Suncrypto.
