Crypto funding in India continues to make big steps even as more entrepreneurs embrace cryptocurrencies

India has been on the forefront in the adoption of digital currencies. Well, Financial Express reported that the under-35 age group has been dominating the crypto investment industry, covering over 75% of the investor base. Interestingly, Statista reveals that most startups in India have founders aged between 31 and 35 years. This just shows that many companies coming up in the country are going to be using a lot of crypto in their funding. 

Well, Bitcoin and Ethereum have remained the top interests of investors. You see, Bitcoin, being the mother of all cryptocurrencies, continues to make tremendous steps while increasing in value. In fact, the token has already crossed the $100,000 mark. Actually, according to experts all over the globe, Bitcoin might even hit $1 million by 2030. So, despite it being volatile, investors in India are really loving the token following its consistency in growth. 

But what about crypto funding?

Now, considering the fact that many people are getting into the hype of digital currencies, it only makes sense that many people have gotten into fundraising using cryptocurrencies and other blockchain methods. For instance, in 2021, a blockchain platform raised over $450 million for investment in crypto form. In India, blockchain startups raised over $524 million in 2021 compared to just $5.5 million in 2019. You can definitely see the massive surge. 

But a big question you might be having is, why are investors turning to crypto funding? Why has the crypto space massively increased within the last few years, with revenue shooting from $1.5 billion in 2020 to $6.6 billion in 2024? Let’s just try to answer that right here.

Access to a global market

One great thing about crypto funding is that it removes geographical barriers allowing investors to pool funds from all over the world. You see, traditional methods of raising capital, like venture capital,might be limited to a specific country or region. If not that, then they require intermediaries. However, with crypto, you follow a decentralized approach. Here, no single user has control, and instead, all users collectively have the control.

You see, some governments close off borders and restrict the movement of money. Again, people around the world experience a hectic time sending and receiving money across international borders because of huge processing fees and long transaction times. However, with crypto, international borders have stopped being an issue. Instead of money value being secured by governments and third parties, crypto offers a decentralized mechanism where the government and third parties stop being a factor. You can get your funding from anywhere across the world without having an issue that it might take ages before it gets to you. 

Increased transparency

Transparency is among the best selling points of digital currencies. It is actually a fundamental reason why investors in India are heavily investing in crypto and using it to fund their projects. 

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At the heart of crypto transactions is an immutable ledger that records all transactions that happen on the blockchain network. Now, for most blockchains, including Ethereum and Bitcooin, these ledgers are public. As long as you have an internet connection, you can access the blockchain and get to see all the recorded transactions. The records will include:

• Amount of tokens transferred
• Sending and receiving addresses
• Time of transactions

With this information, it is easy to track any transaction that has ever been made, in and out of your company wallet. The best thing about these records is that they are unalterable and cannot be deleted. Unlike traditional systems where transactions can be erased or manipulated by the administrator or central authority, for crypto, there is no such chance. 

For example, if someone is raising funds through an ICO or token sale, investors are able to follow up on what is happening. How much money has been raised? Where are the funds going? 

With this kind of system, fraudulent schemes like Ponzi schemes and rug pulls are even near impossible to pull off. Since transactions are very public, it is easy for investors to investigate the legitimacy of a project based on the amount of money being withdrawn. 

Speed and efficiency

This is another quality of crypto that sets it apart from traditional forms of funding. A Bitcoin transfer is much faster than a bank transfer or normal fundraiser methods, some of which take days, if not weeks or months. Crypto transactions are normally near instantaneous, especially with the use of decentralized finance (DeFi). 

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The introduction of smart contracts has made it easy for operations in the Ethereum blockchain. Investors are now able to automate processes and agreements, removing the need of third-parties like lawyers. This is particularly more effective in industries such as real estate, finance, insurance and supply chain management. With smart contracts, forget about delays that come with traditional processes.

Wrapping up

It is a well-known fact that crypto is gently but massively taking over the world. Within the next couple of years, you can expect to see many sectors incorporating crypto into their systems. Be sure that crypto is a force to be reckoned with. And this is what investors in India have seen. The future is already here with us.