The crypto world is buzzing with CoinSwitch's announcement of a whopping ₹600 crore recovery fund after the WazirX hack. While it seems like a lifebuoy thrown to victims of the breach, it also raises a question: Is this just a marketing move to gain WazirX users, or is it genuinely meant to help?
The Dual Nature of the Fund
Altruism or Marketing?
On one hand, it looks altruistic. CoinSwitch’s effort is a dedicated fund to help WazirX victims. The fund will be running for two years, and users can get back up to 100% of their losses. But hey, there’s a catch. You have to go through some steps to qualify.
WazirX creditors can use CoinSwitch's calculator to see what they can get back, and they need to sign up and complete KYC to get started. So, this isn’t just a handout. They are expecting users to deposit funds into their platform, with a promise of rewards.
But on the other hand, this could also be a smart business move. By attracting WazirX users to their platform, CoinSwitch is likely looking to bolster its user base. The program not only requires a signup on their platform but also encourages referrals, which can definitely help them gain more users.
A Revenue Stream?
CoinSwitch's business model is based on aggregating liquidity from various exchanges and earning fees or commissions. So, it makes sense that they’d want to get more users onto their platform, especially in a time when WazirX was facing issues.
And let’s not forget, CoinSwitch has some serious financial backing from investors like Andreessen Horowitz and Tiger Global. This gives them the cushion to absorb shocks and run programs like this, which may also enhance their reputation in the long run.
Summary: A Complex Mix of Intentions
In the end, CoinSwitch's ₹600 crore fund is both a helping hand and a calculated marketing move. It’s a clever way to engage users while helping them at the same time. CoinSwitch’s Cares program may set a precedent for other companies, but with the current state of the crypto industry, this kind of fund won't become the norm just yet.
