Thread by @NischalShetty

1/
There’s some confusion in Indian Crypto ecosystem around price of USDT in INR

Please share this tweet thread with everyone around you so they understand too

I only speak for WazirX exchange

- WazirX is an Open Order Book Exchange

- WazirX DOES NOT buy or sell USDT/INR

2/

- ANY user of WazirX can place BUY or SELL orders at the price they think is right

- Our order book will sort the buy orders in the defending by price and sell orders in ascending by price

- Based on the top buy and sell orders by users, the current price is determined

3/

Why does USDT get expensive at times?

- USDT gets expensive when there are too many buy orders and not enough supply to sell

Why is there not enough supply?

- The demand for crypto in India is way higher than the amount of crypto in the market

4/

Why can’t WazirX try to fix price?

- As an open order book exchange, we cannot place any price restrictions.

Let’s assume we place price restriction. What happens?

- Sellers of USDT will not want to sell at lower price as they can get higher price somewhere else

5/

Setting a fixed price would mean NO ONE will be able to buy crypto as there won’t be anyone wanting to sell at lower prices.

Crypto’s strength is in being open, fair and accessible

I hope I’ve been able to explain to a certain extent ✌️

Learn and share

#IndiaWantsCrypto