Crypto bourses in a spot of bother as prices crash

economictimes.indiatimes.com:

Cryptocurrencies that were the flavour of the season till about last year have seen a sudden fall on every matrix for the exchanges — trading volumes, value and profitability — as a crypto winter sets in following a big drop in prices in the last few months. The sudden shift in market sentiment from exuberance to fear has led to exchanges resorting to a combination of short- and long-term measures to manage working capital. The exchanges have seen a drastic drop in revenue and margins — by as much as 80% and 60%, respectively, compared to a few months back, according to industry trackers.

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The tough times may not be over yet, as India looks to roll out the new TDS (tax deducted at source) regime on July 1, which will impact the cost of buying crypto assets. “There has been a significant dip across Indian crypto exchanges and we have witnessed a drop of about 70-80% in daily transactions year-on-year,” said Nischal Shetty, cofounder and CEO at WazirX, a cryptocurrency exchange. From cutting jobs to reducing the number of coins traded on the platforms, slashing marketing spends and moving to cheaper offices — exchanges are trying it all. “Like any exchange, the volumes govern the margins and since April, the volumes have dropped 50-60%, which has been reflected in our margins. We have been prudent in risk assessment and planning our capital to provide a long runway that can power us through crypto winter,” Shetty said. People aware of the matter said at the peak of the crypto boom till November 2021, large exchanges were spending around Rs 5 crore per month