Last week, the market capitalization of a crypto token produced by three Indians surpassed $10 billion, placing it among the top 20 crypto tokens worldwide.

crypto token has surpassed $10 billion

Polygon (MATIC) is an Ethereum token that is used to run the Polygon Network, an Ethereum scaling solution. One of the Ethereum blockchain’s most serious flaws is its high transaction fees. Polygon uses Layer 2 sidechains, which are blockchains that run alongside the main Ethereum chain, to provide quicker and cheaper transactions on Ethereum.

What caused this to happen? Polygon’s market cap has increased tenfold as a result of increasing consumer adoption in gaming, non-fungible tokens (NFTs), and Defi (decentralized finance).

Between January and May 2021, the number of applications built on Polygon increased by eightfold to nearly 400.

In 2019, Polygon’s token was distributed via Binance’s Initial Exchange Offering, which raised over $5 million. In March 2021, Coinbase, the largest cryptocurrency exchange in the United States, allowed users to trade Polygon’s token.

In recent meetings with the government, prominent crypto exchanges requested that the Securities and Exchange Board of India (Sebi) rather than the Reserve Bank of India (RBI) regulate the market. They say that since crypto assets are not backed by a government, they are more akin to commodities than currencies.

Several exchanges have also pitched for a hybrid or an entirely new regulator for cryptocurrencies. A hybrid regulatory body could be created Under Sebi and RBI which would be responsible for regulating crypto exchanges, said BuyUcoin chief executive Shivam Thakral.

Major banks, including ICICI Bank and IndusInd Bank, have unofficially ordered payment gateway partners to stop handling cryptocurrency exchange transactions in recent weeks. According to banking industry insiders, these restrictions could be the result of RBI’s informal guidance to banks urging stricter compliance with existing money laundering laws. The Supreme Court overturned the RBI’s 2018 ban on banks trading in cryptocurrency last year.

Cryptocurrency in India

Crypto-Labs | By Anubha Singh