Crypto Advocate Kashif Raza Highlights Need to Safeguard Newcomers’ Interests
The crypto market witnessed a catastrophic loss two days back which led to creating a massive loss for the investors. Bitcoin came down by 29.71% overnight. It traded at $7967 dollars on March 11, 2020, and the next day the price witnessed a downfall at $5600. Amidst this, the king of crypto even visited a bottom around $3800, which marked a 50% regression in less than 24 hours resulting in an epic sell-off.
Regular investors in many of the world’s financial markets are panicking to sell everything as they fear the market uncertainty.
On the lines of “Safeguarding Newcomer Interests,” the Indian crypto regulatory news and analysis platform Crypto Kanoon tweeted a video featuring their Co-Founder, Kashif Raza talking about how the market crash has affected the newcomers of the crypto market.
Why is it Needed to Safeguard Newcomers’ Interest?
As per Kashif Raza, in the absence of any regulation, the users of cryptocurrency share the responsibility to safeguard the interests of newbies. It is time to find out innovative ways to do it.
There has been a surge of new investors after the Supreme Court of India lifted the ban on crypto trading. Several crypto enthusiasts from India have been excited to make investments. The crypto market has recently witnessed a crash and it is speculated that it is a historic one.
Ever since crypto trading was legalized in India, a lot of new registrations have taken place on the best crypto exchanges available in the country. It can’t be denied that it is a good move by the citizens as they are opening up to new technological advancements. But, what about market awareness? How much do novice investors know about it? How prepared are they to witness a crash?
The excitement people have to make investments in Bitcoin is justified. But on the whole, as responsible citizens and also experienced investors we have to make certain regulations on how and to what extent one must invest in crypto, based on the current market status. This is to ensure that the newcomers do not suffer excessive losses.
Indians Might Not Encourage Each Other to Invest in Crypto! Here’s Why.
On talking about how the market crash can discourage people to invest in crypto, Raza seems to be worried about the losses new investors are suffering from. It’s quite evident that the investment made in crypto is not a matter of doing things just like that. Experiencing a massive market crash just days after they ventured into the crypto world, can indeed be heartbreaking.
Now the case is, would someone recommend investing in crypto at a time when they themselves are experiencing massive losses. This downfall in the crypto market can lead to a lot of people being disinterested to make digital currency a priority. Leading to the discouragement of the crypto market.
What Can We Do?
On talking about the same, Raza stated that there are multiple ways how this can be solved. In the absence of a central authority, it is obvious that blockchain technology will not have an authorized regulation that is to be followed strictly before making any transactions.
Raza believes that exchange platforms should come up with some stringent norms to be followed before investors initiate trading on their platform. For instance, making it mandatory to read the risk modules before investing. Moreover, limiting the investment amount for the newcomers for a particular time period (until they are completely aware of the crypto trading space) can be another good alternative.
Raza raises questions for leaders of crypto exchange platforms!
“My question to the leaders of exchange platforms be it @NischalShetty @smtgpt and other such as @inkparadox @balanipankaj is, we know we can’t change the market for sure, but why can’t we come with something that can safeguard newcomers’ interests?”
It would be pleasing to see the response of crypto advocates upon the concern raised by Raza. This might lead to some constructive steps being initiated towards safeguarding the interests of newbies and thereby, push crypto adoption in India even further.