Know My Company
Hi, Sumit. Tell us about your journey in technology and how you started at CoinDCX.
I was first introduced to Distributed Ledger Technology and Cryptocurrencies when Bitcoin first began gaining traction in 2014 and became fascinated by its potential to shape the world shortly after. Upon realizing that Blockchain could bring numerous solutions to existing issues in financial markets, I envisioned combining decentralized marketplaces and cryptocurrencies to provide users with one single platform to interact with one another.
We first started by building a cryptocurrency exchange that was light and nimble, yet highly liquid at the same time. Within 2 years, we became India’s largest crypto trading platform and liquidity exchange. We believe that by bringing multiple cryptocurrency trading products under one roof, we have built a platform that works well for all types of traders—with their experience, risk tolerance, and frequency of trading taken into consideration.
As a successful crypto entrepreneur, what are the major opportunities and challenges do you foresee in the future of Enterprise Blockchain and Crypto?
One of the important barriers to overcome for both retail and institutional adoption is regulation.
What is of absolute necessity on a global scale is a clear regulatory roadmap that can guide blockchain and crypto businesses on the path to compliance—especially for the application of licenses for entities and service providers such as crypto exchanges, payments processors, and digital banks.
Within the crypto space, scalability continues to be one of the largest challenges in the industry. To this end, second layer solutions have been developed to address scalability concerns, such as the Lightning Network for Bitcoin. I believe that although crypto is still in its nascency, continued industry innovation will bring forth innumerable opportunities for the Blockchain and Cryptocurrency sector’s continued growth.
India is yet to legalize the Blockchain and Crypto transactions. Yet, we see a glimpse of hope of Blockchain becoming a major disruptor, as referred to in the recent Budget 2020 by India’s Finance Minister. Could you shed some light on India’s opportunities, and how it could become a global force in the industry dominated by China, the US, and Korea?
Though Blockchain and Digital currencies were not covered explicitly in this year’s Union Budget, there are signs that the Indian government is keeping an open stance towards Blockchain, having realized the potential benefits it can provide to the economy.
The launch of Vajra—a Blockchain-based platform to secure retail payments—is one such positive sign. Despite these developments, the government and regulatory bodies in India, are taking their time to study and understand the technology and the potential impact of Blockchain and Cryptocurrencies before embracing it fully.
With the resources that India currently possesses, such as a highly-skilled workforce of IT professionals to tap into, the country has the hallmarks of a global leader—one that can stand alongside industry leaders such as China, the US, and Korea. For India to achieve this, the country needs to adopt smart regulations that complement the growth of new technologies, and not stifle the innovations that can propel its growth.
We know Fintech is the most enterprising destination for Crypto and Blockchain. Which other industries are most likely?
Outside of the Fintech sector, Cryptocurrency and Blockchain innovation has immense potential to revitalize traditional industries such as the Agricultural and Real Estate sectors with the use of smart contract-based supply chain and deed-ownership models.
Healthcare, Pharmaceuticals, and Logistics can also benefit greatly from the use of Blockchain, leading to greater traceability of medication and documents.
Banking and Lending marketplaces are heavily disrupted by Big Data, AI, Blockchain, and Predictive Intelligence technologies. What kind of future are you building do you bring together these technologies at CoinDCX and other institutions?
Though the traditional financial system has helped to globalize the world’s economy with the expansion of trade and creation of jobs, its potential to effectively ease the economic hardships faced by millions of people has reached a point of stagnation. With the help of Blockchain technology, greater financial inclusion can be achieved through services such as cross-border remittances, cutting time and costs involved in the process.
In the same spirit, CoinDCX was started with the focus of engendering financial inclusion through cryptocurrencies. Through innovations such as DCXinsta—our peer-to-peer fiat-crypto gateway—we are able to reduce friction and build a bridge between the fiat and crypto world, potentially benefiting thousands of Indians.
Data leakages and phishing assaults are very common in your industry. How do you leverage technology to combat these risks. What kind of support do you get from the open-source Blockchain Developers and Analysts?
As a trading platform that deals with millions of users every day, security remains one of our top priorities. That is why we adhere to the strictest security protocols, such as geographically distributed cold wallets, stress testing, and the addition of security levels for users, such as two-factor authentication (2FA), and withdrawal confirmation.
We have a dedicated security team at CoinDCX that constantly observes and incorporates best security practices from the industry, ensuring that our platform remains one of the most secure in the crypto trading space.
The Crystal Gaze
What digital technology start-ups and labs are you keenly following?
Within the global DeFi space, I am personally following the work being done by MakerDAO, Compound, and Bitcoin’s Lightning Labs. In the Indian Cryptocurrency community, I believe startups like Matic, and Marlin are currently making good progress.
What other emerging technologies within your industry are you interested in?
Technologies such as Augmented Reality (AR), Virtual Reality (VR), and Internet-of-Things (IoT) are industries that have shown significant progress and could potentially change the future of technology. I am excited to see the continued developments within each of these spaces in 2020 and the years to come—undoubtedly they shall each play a role in the future economy, alongside Blockchain and Cryptocurrencies.
What’s your smartest work-related shortcut or productivity hack?
Having a clear, long-term vision for all my pursuits is a rule I live by. I believe that every decision can yield a calculated return on investment if one has a clear long-term vision and goal in mind.
Keeping your long-term goal in mind can also serve as an effective means of cutting down on unnecessary or unproductive tasks that detract from your progress towards your objective. It keeps you focused.
Tag the one person in the industry whose answers to these questions you would love to read:
I would love to hear what Anthony Pompliano, Co-founder of Morgan Creek Digital, thinks!
Thank you, Sumit! That was fun and hope to see you back on AiThority soon.
Sumit Gupta is Co-founder and Chief Executive Officer of CoinDCX, India’s largest cryptocurrency trading platform and liquidity aggregator.
Beginning his journey in the world of business at the age of eight, Sumit showed an early proclivity for entrepreneurship, selling video games for profit in his hometown. When bitcoin began gaining traction in 2014, Sumit saw the potential of leveraging blockchain technology to enable financial inclusion.
He actualized this vision by founding CoinDCX, which has grown to become India’s largest cryptocurrency exchange. Prior to establishing CoinDCX, Sumit worked in Tokyo for renowned technology giant Sony, where he served as a software engineer. Sumit also founded ListUp, one of the first e-retailer companies with a location-based app. Under his leadership, ListUp had grown into a multimillion dollar business within one year. He holds an Undergraduate and Master’s degree from the Indian Institute of Technology Bombay.
CoinDCX is India’s largest cryptocurrency platform and aggregator.