CoinDCX CEO Sumit Gupta has categorically put to rest speculation of a potential acquisition by Coinbase.
The speculation was preceded by news of a $44 million security breach widespread across the South Asian cryptocurrency exchange CoinDCX, which supposedly triggered the crypto giant, based in the United States, to take an interest. Gupta said the company is not up for sale and added that it is not going to cease operating; instead, it has been committed to the mission of establishing the crypto ecosystem in India.
CEO Rejects Acquisition Claims
There were speculations that Coinbase was going to buy CoinDCX at a massive discount. People who were close to the deal asserted that the offered price was close to $1 billion, which was a drastic fall compared to CoinDCX’s highest valuation, $2.2 billion. Nevertheless, Gupta clarified the speculation directly on X, saying that CoinDCX is still independent and working on its vision of India’s crypto future.
His public statement received mixed responses. Some in the crypto space backed his position by asking the exchange to maintain its construction in India. Others estimated that the sale to Coinbase could help the platform as it faces increased difficulties.
Coinbase Remains Silent on Intentions
Coinbase has declined to comment on whether it is in the process of acquiring the company. The spokesperson explained that the firm is inundated with opportunities to create more economic freedom in the world. They also said that Coinbase is open to constructing, acquiring, forming alliances, or even investing where required.
Coinbase has already participated in investments in CoinDCX and CoinSwitch, which are ranked as the most significant Indian exchanges. This has also led to the speculation that Coinbase can merge the two companies to establish itself in India. Nevertheless, Ashish Singhal, CoinSwitch co-founder, did not confirm that an active merger is currently underway. He admitted that the Indian crypto industry is under pressure because of tax-unfriendly crypto policies, a lack of an open relationship between the government and the crypto industry, and a complicated relationship with regulations.
Security Breach Raises Operational Questions
One of the issues that was brought up by the $44 million hack was the internal controls of CoinDCX. There are reports that hackers used backend vulnerabilities and potentially got internal credentials. The money was transferred between several chains within a short period through the mixers in order to obscure the pedigree.
The platform was also criticized for reporting the hack 17 hours after it happened. CoinDCX said that it was more interested in securing its systems first than global exchanges that report the breach in a matter of hours. Nevertheless, amidst the criticism, the bounty program, which promises up to $11 million in case of recovery of the stolen assets, has been introduced.
Analysts claim that the incident demonstrates why it is necessary to be more compliant and to have improved internal solutions. CoinDCX is constantly confirming that they have been stable, fully operating, and looking forward to achieving long-term growth in India.