Indian crypto exchanges reassure investors no exposure to risky coins post the FTX collapse

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Following the bankruptcy of FTX by trading volumes, Indian crypto exchanges claimed they are taking steps to restore investor confidence by making details of all of their reserve funds completely transparent.

The sharp decline in FTX's native FTT coin is thought to have affected roughly half a million crypto investors in India, who are now facing a devaluation of their invested capital of over 90 percent. Leading crypto asset exchanges CoinDCX, CoinSwitch, and WazirX, were quick to release statements regarding their sound balance sheets and assure customers that there was no impact of FTX's bankruptcy on their operations after realising the potential for widespread panic among Indian investors.

It started with Changpeng Zhao, the founder of Binance, who pledged to fulfil his promise to fully publish the proof of reserves he has on hand to cover any future consumer withdrawals. Notably, Binance was an investor for FTX and has pulled out of any ties with them post the FTX fiasco.

Now the co-founder at CoinDCX, Sumit Gupta, has already announced on Twitter that the crypto exchange would publish its proof of reserves by the fourth week of November after the collapse sent shockwaves across the crypto community. Meanwhile, Ashish Singhal, a cofounder of CoinSwitch, has already said that the company's crypto and fiat money holdings are greater than the entire amount held on its consumers' behalf.

Indian crypto exchanges have acknowledged the necessity for strong self-regulation and have thus far operated effectively, pending clarity on potential rules and regulations governing crypto assets in the nation. CoinDCX has restated its decision of not launching a native token like the FTT for FTX, while WazirX has reaffirmed that it works with one of the greatest custodial services in the world.