A crypto coin created by three Indians crossed $10 billion in market capitalization last week and is currently among the top 20 crypto tokens across the world.
The company generating the coin, Polygon is a scaling solution for Ethereum. High transaction and processing fees are the primary issues with the Ethereum blockchain. Polygon’s goal is to use Layer 2 sidechains, which will provide cheaper and faster transactions on Ethereum. The Layer 2 sidechains are essentially blockchains that run alongside the main Ethereum chain.
Polygon has seen a 10- fold market cap due to growing adoption by consumers in the gaming sector, DeFi (decentralized finance), and non-fungible tokens (NFTs). The number of applications built on Polygon has increased to almost 400, an 800% jump between January and May of this year.
Coinbase, the biggest American cryptocurrency exchange, has allowed users to trade Polygon's crypto-based token since March 2021. Back in 2019, their token was distributed via Binance’s Initial Exchange Offering, which landed up raising over $5 million.
In a recent meeting with the government, prominent crypto exchanges have requested that the market regulator SEBI should be allowed to regulate the crypto market rather than the central bank, RBI. They put forth the argument that crypto assets are closer to commodities than to currencies since they are not backed by a state. Several attendees have also pitched for a hybrid model 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.
Off-the-record, across the past few weeks, major banks including IndusInd Bank and ICICI Bank have told payment gateway platforms to stop processing cryptocurrency exchanges.