With the craze for holding cryptocurrency growing, India’s high-net ultra-rich individuals and some companies are entering the crypto space and pumping millions of dollars to buy some pie of the digital assets.
According to a report published by Kindly Frank, a consulting firm, close to 20% of Indian ultra high-net worth-individuals (UHNWIs) has invested in cryptocurrency and non-fungible tokens (NFTs).
Even though they are not fully aware of cryptocurrency and NFT, they believe that the crypto space will be a mainstream avenue for investments.
Ultra high-net-worth individuals (UHNWIs) are those people that have assets worth $30 million. As the Indian economy is growing, more and more individuals are joining this space.
India has now become one of the fastest-growing economies of the world and crypto space is also taking a big leap, as the government has given a positive sign by taxing crypto, as against a bill that was looking to completely ban crypto.
The report also said that today, nearly 18% of UHNWIs now own crypto and 11% have invested in NFTs.
As scores of crypto projects are launched daily, Indian crypto exchanges are also reviewing them and listing them on their exchanges, this allows more and more individuals to invest in new projects, thereby gaining more profits than investing in the later stages.
UHNWI invest in pre-sale phases
Many UHNWIs are investing in the pre-sale phases, where they get a good return for their investment and once the token is public, many a time within a few weeks or months they convert their investment to over 10X to 100X.
This attracts new people, but there are many black sheep in this sector, even UHNWIs need to invest by doing proper research on the project they want to invest in.
In their 2018 report, Knight Frank said that there is huge potential for blockchains, but the majority of respondents said that they have not heard about blockchain, crypto, and NFTs.
Only 14% of the respondents said that crypto and NFTs might influence the way they manage their wealth.
But, after 4 years, blockchain, crypto, and NFTs have taken the world by storm. Everyone is talking about it. No one wants to be left behind and wants to invest in this space.
Today, the crypto market capitalization is around $1.82 trillion, more than hundreds of nations’ wealth.
Tech giants joining the race
Very recently, an Indian IT tech giant, Tech Mahindra has announced the launch of TechMeraverse practice to deliver interactive and immersive experiences of Metaverse to its customers.
Crypto, NFTs, and Metaverse have gained a lot of transactions in India. The rally has been seen for the past few years. Initially, it started with Bitcoin, and slowly it has now entered NFTs and Metaverse.
As India is also supplying a global workforce for various such projects, its importance is now being felt by many, and people with huge wealth are not getting attracted towards it.
Experts believe that blockchain technology has the potential to generate many new opportunities to cater to future needs.
Speaking on this, the CEO of Mudrex said that the government policies in this space are helping companies join, build Metaverse and Web 3, this will also boost the government vision of digital India.
Big technology companies such as Tata Consultancy Services (TCS)and Infosys have already started to provide metaverse services driving digital growth in India, Mudrex CEO adds.
According to the National Association of Software and Service Companies (Nasscom), an Indian non-governmental trade association and advocacy group focused mainly on the technology industry report, it said that crypto technology in India is expected to grow twice faster and can create more than 800,000 jobs By 2030.
Crypto to bridge digital divide
Crypto has the capability to meet the Indian digital divide and also help the nation to achieve a $ 5 trillion economy by 2025. The sector will also overcome investment challenges, as anyone across the globe can invest, thereby breaking the border barrier.
Though there are issues related to illicit money entering the space, this is the case of any sector, there are checks and balances in the sector, as all the investments are done by going through the KYC process.
According to various estimates so far, Indian investors have already pumped $7 billion and have been eagerly waiting for the crypto bill.
In the coming months, the government can provide a real push to the cryptocurrency sector, if it clears the air on the legality of crypto in India. This will help other investors looking to invest in this, but waiting for the government to take a call.