The Indian Cryptosphere
The bursting of a Netflix show inspired squid-token bubble & the presence of a digital coin that may look Tata-backed are symptoms of larger malice at play in a space bustling with investors, punters & scamsters alike.
“The propensity to gamble is always increased by a large prize versus a small entry fee, no matter how poor the true odds maybe.”
— Warren Buffett
The Indian context
This quote by Warren Buffett is an apt description of the ongoing crypto-mania. A recent study by BrokerChoose pegged crypto owners in India at 100 mn — the world’s largest cohort. It is increasingly becoming a preferred asset class for HNIs as well. At the same time, there are millions of crypto-dabblers who are lured by the spectacular returns in a market that is yet to be regulated.
With the government regulations still in the works, a clutch of top crypto exchanges has pledged to adopt a joint self-regulatory mechanism to safeguard the interest of investors. The ads by crypto exchanges are in complete contrast to this initiative.
I believe, the need is to have more investor awareness initiatives around the risks of such investments, something similar to what has been ongoing from the equity markets perspective.
What are your thoughts? Join the discussion here.
(Sajid is a Strategy Consultant and founder at Le Monturé Strategy who works at the intersection of human behaviour, business design and innovation strategy. He blogs at sknotes and tweets @sajidkhetani)
