Denial of Acquisition Talks

CoinDCX Co-founder and CEO Sumit Gupta refuted reports citing unnamed sources suggesting a potential acquisition valued below $900 million. In a series of recent tweets, Gupta dismissed the claims as “rumors,” stating CoinDCX is “super focused” on India’s crypto market and “not up for sale.”

Speaking after Mint reported these talks, Gupta clarified the matter publicly.

Recent Security Breach

The denial comes shortly after CoinDCX disclosed a significant $44.2 million hack on July 18, impacting its operational wallet. In response, the exchange committed to bearing the full loss from its treasury reserves and initiated a bounty program, offering up to 25% of recovered funds to white-hat hackers assisting in recovery.

Consolidation Hopes by Coinbase

Despite CoinDCX’s denial, industry analysts suggest Coinbase, already FIU-registered in India, is indeed considering strategic consolidation in the Indian market. Potential moves include acquiring CoinDCX and its competitor CoinSwitch, or merging its existing investments.

Coinbase management has publicly highlighted India as a key market opportunity, stating it “represents one of the most exciting market opportunities in the world today.” However, Coinbase declined to comment directly.

“We don’t have active conversations in this regard at this time,” a CoinSwitch representative stated, dismissing the rumors.

“We believe competition is good and it will ultimately benefit users,” said the CoinSwitch official, adding that its company would remain a leader in the Indian crypto ecosystem.

Upmanyu Misra, a former investment banker, described the potential acquisition as a “long-term strategic bet” and part of a trend of global players consolidating to secure market share rapidly, citing accelerating regulatory clarity in India.

“Regulatory clarity is accelerating strategic consolidation, with global players moving fast to outpace local rivals, secure top talent, and lock in market share. It’s an ‘opening move’ for wider industry restructuring,” Misra noted.

Market Context

The unconfirmed acquisition stories surface just over a week after CoinDCX recovered from its own security incident, underscoring the evolving risks and opportunities in the Indian crypto sector.