Sundays are meant for detox and not regretting about spending it lazily on the couch!
During this lockdown period owing to COVID-19, people have constantly been connecting through various social media platforms and reaching out to the masses. Meanwhile, we have witnessed immense recognition of Bitcoin and the crypto space in this duration of being quarantined as people emphasized on alternatives to traditional investment assets.
On May 31, 2020, yet another quarantined Sunday, two prominent crypto advocates of India Naimish Sanghvi, CEO and Founder of CoinCrunch India and Nischal Shetty, CEO OF WazirX had a great Ask Me Anything (AMA) and Q&A session.
Naimish put forth some thought-provoking questions about the WazirX platform and its own native WRX token.
A day before the AMA session, invited people to drop their questions for Nischal Shetty.
👉15 Best questions will each win 100 WRX tokens. So Submit your questions for Nischal now.
👉Submit Question- https://t.co/0SvUnJDyLS
— Coin Crunch India (@coincrunchin) May 30, 2020
To everyone’s surprise, around 120 questions came up within an hour! This is a testimony of the growing enthusiasm building up for crypto in India, and specifically for WazirX and the WRX token. The AMA had hundred above viewers on a Sunday evening with amazing questions thrown in the live chat during the session, alongside.
Let’s’ have a look at some of the most interesting highlights of the AMA:
- The WRX unlock?
The total supply of WRX is around 1 billion, and until now, around 11% of the total supply is given away until now in the form of sign up bonus, referral, trade mining, contests, etc. It was just yesterday when the 2nd unlock of WRX token took place after February 2020. It has a long schedule for the next unlockings, which is based on the simple algorithms of “Tokenomics.”
Important to note that Nischal pointed out the term “Tokenomics,” which ensured the limited and right amount of supply of WRX instead of haphazardly opening all in one go.
Through this concept of tokenomics, which when separated means: Token + Economics.
In my understanding, it is balancing the supply of WRX tokens according to the demand based on price, which happens to be the foremost point of Economics. Through this tokenomics, the existing as well the potential investors of the network are likely to get the benefits of unlocking, which otherwise would have been futile. Great Brains Working!
- Why is there a premium on buying and selling USDT?
Nischal: It works on the simple economic law of demand and supply, where the market is full of buyers and sellers. This question arises when there is a difference of rate in markets of two countries due to capital control.
Making it simpler, he explained that if someone has to transfer INR to any other foreign country, he/she will have to send it in Dollar, which can be sent as per the set limit and not beyond that. Supposedly, if the limit stands at sending 1000 Dollar against the demand of 1,100 Dollar at the rate of Rs. 75 per Dollar.
So, the remaining 100 Dollars is likely to be earned in many ways, out of which one can possibly be freelancing and earning. Now, not sure that he/she might get an exact number of Dollars demanded, if at all he/she gets 200 Dollars, there is likely to be a price control towards the demand and abundant supply against the number demanded. This is the common reason for the difference between the price of USD and USDT, which otherwise, in our understanding, should be the same.
- Why USDT premium is inversely proportional to the Bitcoin price?
Naimish: When the market or the BTC price pumps, USDT premium lessens down, and also, the inverse happens when BTC price plummets or market breaks. Why so?
Answering him, Nischal again pointed out the law of demand and supply aligned with BTC price rise and dip.
- Operations of WazirX amidst the Coronavirus lockdown
Naimish: Appreciating the increasing popularity of cryptocurrencies and Bitcoin, Naimish inquired about the operations of WazirX amidst the Coronavirus lockdown and the physical issues that the business was facing.
Nischal: The increasing signups on the exchange as people look for ways of making profit through the internet amidst the lockdown is very encouraging. However, this is not the right time to celebrate, looking at the worsening situation around the globe. Signups done for the sake of doing are actually not the goal.
This really means that the team is focused to have a long-term association with their networkers and is very considerate about the global situation due to the Pandemic. On the other hand, he is really proud of the fact that the Supreme Court lifted the 2018 ban on cryptocurrencies well before the Pandemic, which in a way triggered the Indian crypto community more than the current situation.
On a very affirmative note, he addressed that the entire team is working from home and added that work from home has been better in maintaining the focus and working even diligently.
- Nomination of a family member in case of deceased trader/investor
Nischal: Speaking on a very positive note, Nischal said that nomination is a very important facility and will help family members a lot. Introduction to such a feature for hassle-free recovery of the account in case of the account holder’s death is in WazirX’s wish list, and steps are already being taken to launch it soon.
Naimish: Naimish added that the nomination feature would help to directly contact the nominee in case of sudden and unexpected death of the trader or investor, even if the latter has not informed his/her family about his investments in or through WazirX or any other medium.
- Will WazirX allow derivatives trading like futures, options, margin trading? If yes, then how long will it take?
Nischal: The team wishes to take it slow yet steadily. As in, before the Supreme Court’s order of lifting the ban on cryptocurrencies, the WazirX team was keen on extending the peer-to-peer network and are now focusing on developing an easy path for the newbies who want to adopt the crypto space and then change the direction thereby.
He also focused on the timely delivery and transfer of the potential investment planned and plans for developing other complex features.
In my view, this can be the best resort to start with and take one step at a time rather than complicating the process and offer more exposure to the crypto space.
- Is WazirX looking forward to launching mining pools for Indian audiences just as Binance—the acquirer of WazirX?
Nischal: The team wants to take it in a very straightforward and uncomplicated way, and offer one thing at a time. Additionally, the team has been working towards the security aspect everyday to ensure a smooth gateway of trading and investing. Moreover, WRX has not got its blockchain and is currently on Binance’s blockchain, which assures that many developments and features are coming in our way in the near future.
In my view, this happens to be very trader friendly and removes all the complex scenarios of trading in between.
Here, I would also like to bring up Nischal’s assurance about security in the WazirX platform, wherein he mentioned that being a part of the Binance family, security was definitely a major point. WazirX has been learning from the best and an even larger entity; therefore, it goes unspoken of how credible the platform is.
Any online transaction through any medium or partner is not 100% safe or secure, yet we do it, and so is the case here. However, we need to trust the team and maintain our own safety through KYC, the secrecy of passwords, OTPs, or whatsoever.
- Use Cases of WazirX
The use case of WRX is vital as the 2nd unlocking that happened yesterday unlocked 1/3rd of the tokens held for paying the trading fees.
Naimish: Why are so many tokens released just for paying the trading fees, and what other than this will be the use case of WRX?
Nischal: For now, the only use of WRX token is to trade; the other avenues are likely to be developed and implemented soon. Waiting for the announcements is what the networkers should do.
Moreover, crypto is a network effect model from the adoption point of view. If many people are using and adopting particular crypto, it is likely to get significant and powerful, which is the preceding step for every successful venture.
Nischal and Naimish had a consensus on the basic rule of trading and investment, wherein both emphasized that the one who is investing should always keep a family member or some other reliable person informed about one’s investment portfolio. This would help recover one’s funds in case of any mishap to the investor or trader.
With the tremendous urge of the young generation towards crypto, this piece of financial advice would definitely prove useful. All in all, the session was quite an informative one, and seeing these two great crypto advocates giving and gaining regular insights, a newbie can never be left in a dark space.