I wanted to write this review on CoinSwitch Kuber primarily for one reason- the play store reviews of CoinSwith app are shocking ( 3.1 Stars with 1000s of 1-star ratings) and it seems like their digital marketing team is unable to bury all the negative reviews for this new cryptocurrency platform owing to some serious issues on the platform- a very substantial amount of these reviews allege a deliberate price manipulation, illogical Coinswith buy and sell price differences and many other issues.
To understand this issue and to check whether these allegations are true, I have started using the CoinSwith app and came across some pretty interesting things that I feel should be discussed in a detailed review.
The Story of CoinSwith Kuber So Far
CoinSwith Kuber was founded four years ago by Ashish Singhal with a self-imposed burden of bringing the cryptocurrency revolution to India.
Currently, CoinSwitch is valued at a whopping 500 Million USD with a recent investment of 25 Million USD by Tiger Global Management- USA-based hedge fund’s first investment in Indian Cryptocurrency exchange.
CoinSwitch’s portrayed noble intention of democratizing Cryptocurrency trade is marred by its not so transparent trade executions and hidden charges that cut out a substantial chunk of transactions.
Officially Coinswith charges you no brokerage charges for any cryptocurrency trades on its platform, but think about it, no brokerage charges, no additional revenue, no subscription fees or service charges. Then how does CoinSwith Kuber make money?
This is where the strategic price difference between the Buy price and Sell price comes into play. Let take a look into how this works. Before we continue, I just want to make it clear that these profit-making strategies of Coinswith will make you end up paying ridiculously huge amounts of brokerage, the only difference is that it won’t be called brokerage.
The term brokerage or transaction charges for trades has an inherent limitation on the potential of the profits or overall margins that can be acquired from the traders. But the strategy used by CoinSwith allows it to gain relatively very high profits.
One of the reasons why hedge fund companies like Tiger Global are so keen on betting on this platform, they see it. They see the potential of CoinSwith to make huge profits, particularly in India where Cryptocurrency platforms are not regulated by a policy framework or regulatory authority.
Coinswith Buy and Sell Pirce Differences?
I don’t know what the CoinSwith team is thinking but the way they are handling everything, I am surprised that no one has filed a criminal case against them.
How could the price difference between the buy price and sell price go to 3-5 percent? They are expecting us to believe that this difference is market-driven?
The content marketing team of CoinSwith is working desperately to pull people with 100 Rupees crypto investments and why the buy and sell price differences are justified. Hope this charade of theirs comes to an end and the Government of India if not the Apex financial institutions like RBI takes note of this situation.
This predatory and opportunistic exploitation is expected when there is no national-level regulatory framework for Cryptocurrency exchange platforms. This case of CoinSwitch only reiterates the importance of the Indian Government acknowledging the importance of Cryptocurrencies’ role in the future economy and the need for strong regulatory institutions.
Playstore reviews for CoinSwith Kuber
We don’t have to be a genius to see what is happening here, everyone who trades on CoinSwith knows what is goin on and how their money is being chopped off with every trade. But their is nothing we could do until there is a regulation or someone takes it to court to question the transparency and trade related practices of the platform. But until then, all we can do is to take caution and be smart. There are other platforms that offer better transparency and prices for cryptocurrency trading, check them instead of getting lured in by deceiving marketing campaigns. Stay tuned for Thought Scroll recommendations of best Crypto Currency exchanges in India.
