crypto strategy

Systems and protocols in place to avoid an FTX-like crisis: Indian crypto companies

Indian startups involved in crypto asset management, bitcoin stacking and wallet management solutions said they have systems and protocols in place to ensure that no FTX-like situations arise with their users. As the FTX contagion continues to reverberate through the crypto ecosystem, investors are concerned about the transparency, reserve levels, security, and internal controls followed by crypto companies.

Leading crypto investment platform Mudrex said it always keeps investors informed of all activity regarding their funds; it does not take any leverage or operate any credit on investors’ funds; its assets are securely stored and backed by real assets 1:1; and it uses separate hot/hot/cold wallets for storage and transactions.

“We have been in the cryptocurrency space for five years now and have survived many ups and downs. We have always maintained that user funds are of paramount importance and should never be risk,” said Edul Patel, founder of Mudrex.

FTX traded with client funds and the demise of the exchange affected over one million users. Since then, control of customer assets has become a major issue in the crypto space, as exchanges control users’ private keys.

During a purchase, the coins and tokens are stored in the customer’s wallet, which is hosted on the exchange.

Khaleelulla Baig of KoinBasket, a thematic crypto investment platform, said his company did not take the risk and headache of taking custody of users’ assets, and that users should keep their assets in their choice of wallets/exchanges.

Mohammed Roshan, co-founder of GoSats, a bitcoin stacking company, said he believes in the ethics of the bitcoin industry – not your keys, not your coins.

“We use multi-signature storage for user funds with industry-leading BitGo to process withdrawals. We advise users to maintain control of their bitcoin using a hardware wallet or multi-signature wallet and trusting no single entity to store their digital assets,” he said.

Manan Vora, Senior Vice President, Strategy and Operations at Liminal, a self-service portfolio management solution, said, “We have partnered with leading blockchains like Polygon, Tezos, Avalanche, etc., where we support them and the projects built on these blockchains with crypto custodial solutions to ensure the utmost safety and security. We are also seeing an influx of requests for our self-custody solutions.”

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