Cryptocurrency trading on the DBS Digital Exchange in Singapore has doubled since the market crash in June.
The Singapore-based investment firm – DBS Digital Exchange – reported that cryptocurrency transactions on its platform doubled after the market crash in June.
This comes as a surprise because many other exchanges, including CryptoCom, Coinbase, Gemini and Bybit, have had to lay off a large portion of their staff due to the price crash and successive outflow of investors.
It should be noted that Piyush Gupta, CEO of the parent company of the trading venue – DBS Bank – is a staunch supporter of cryptocurrency. Not so long ago, he predicted that they would play a major role in the future financial network and could become an alternative to gold.
The collapse of Counter-Effect Terra in May led to a massive crisis in the cryptocurrency sector. At that time, the project’s algorithmic stablecoin – UST – and its original token – LUNA – crashed almost to zero, causing losses to millions of investors.
Soon, other entities such as Celsius and Three Arrows Capital also encountered major problems. The former halted withdrawals due to “harsh market conditions”, while a court in the British Virgin Islands ordered the latter’s liquidation.
All those negative events, along with the accelerating inflation around the world, the military conflict in Ukraine, and the energy crisis, among other reasons, caused a massive crash in the cryptocurrency market.
At one point, bitcoin fell to $17,500 – a level not seen since the end of 2020.
In contrast to the decline, Singaporean digital asset platform DBS Digital Exchange said the past two months have been very successful as the number of cryptocurrency transactions has more than doubled compared to numbers before June. Speaking of Bitcoin, the amount purchased by users was four times higher than it was in April.
“Investors today are looking instead for safe havens to trade and store their digital assets amid the ongoing market volatility,” said Lionel Lim, CEO of DBS Digital Exchange.
The increasing appetite for digital assets expressed by Singaporeans can be explained by the fact that the country’s authorities are ready to establish the city-state as a global hub for blockchain. They also demonstrated their intentions to enforce strict rules in the space and to ensure maximum protection for local investors.
Gupta’s Crypto position
In March of this year, Piyush Gupta – CEO of Singapore’s largest financial institution DBS Bank – envisioned bitcoin could become an alternative to gold and its valuation. He also believes that the cryptocurrency industry will play a vital role in the future monetary system.
However, the current volatility of the asset class remains an obstacle. Because of this, digital assets cannot be classified as “money as we know it,” the CEO concluded:
“The other big challenge is volatility in value. If you want to use this to pay for something, you don’t know what it will cost you. Today crypto is a potential source of speculative value.