India’s first social cryptocurrency exchange is in the works with Defy, a fintech startup, recently raising $5.5 million in a funding round to build it. Cryptocurrency enthusiasts feel that such an exchange will help investors and make the market more mature.
A social crypto exchange is a platform where investors can observe and follow the investing strategies undertaken by experts in the field, influencers and even friends.
"Social crypto investing recognises the need of common investors to invest in groups. People feel confident to invest in things that have been vetted by someone they know and respect. I think after e-commerce, we will see social investing gaining more strength," says Manish Kumar, co-founder of two blockchain-based financial markets platforms GREX and RealX.
New investors can utilise such platforms to emulate strategies of experienced investors. Such platforms allow new investors to have conversations and interactions to give them more clarity about investing in cryptocurrencies.
"Normally, when people go to buy a stock or insurance policy, they seek the advice of friends, who may be more knowledgeable, through social media groups or other mediums. So, our idea is to assemble this kind of experience within our exchange. Apart from friends, experts can also share their ideas on our platform. An investor can take into consideration what kind of coin they (experts and their friends) are buying and how is their portfolio doing. Either investors can follow them, or they can follow their strategies and their portfolios. That will make it easy for initial investors," says Bhagaban Behera, co-founder and CEO, Defy.
As new investors build their portfolios, they would be able to share the details of their strategies and holding with others. "Our future plan is to build a strong team and take the product to the next level. Our idea is to make crypto simpler and more fun. So, people can get started with this," says Behera.
While this may be the first one in India, globally, there are several social crypto exchanges already in existence. Some of the popular ones are Dtrade, eToro, PrimeXBT Covesting, Gate.io and KuCoin.