Mudrex, a Web3 company offering crypto investment services, announced a new rewards initiative for its user base in India on Tuesday, June 11th. Called ‘Earn’, this service will allow Mudrex users to earn up to 10 percent annual income on their crypto holdings without any lock-in period. The crypto community in India is taking incremental steps towards inclusion in the sector given the country’s skeptical approach to digital assets. Mudrex’s new initiative seems to be a move aimed at keeping Indian users on its platform.
In the first phase of the service’s rollout, Mudrex listed 50 cryptocurrencies including Bitcoin, Ether Solana, Cardano and Polygon — a holding that can earn up to ten percent in rewards for owners. The reward percentage for holding each of these different cryptocurrencies varies.
“To participate in Earn, users must maintain a minimum balance of supported coins in their Mudrex wallets. By engaging in a mix of short-term ventures such as margin financing and asset allocation in secure, long-term DeFi protocols, Mudrex seeks to generate a steady stream of fixed annual returns of at least 0.023 percent to a maximum of 10 percent on their investments,” the company said in its statement.
The crypto community in India has grown to a user base of 19 million, a CoinSwitch report estimated last December. Almost 75 percent of cryptocurrency owners were between the ages of 18 and 35. However, thanks to India’s crypto tax laws, the density of India’s crypto user base is prone to ups and downs.
In a separate report the same month, WazirX claimed to have seen a 90 percent drop in crypto trading volume as India awaited clarity on regulatory implementations.
Crypto income in India is taxed up to 30 percent. The government also levies one percent TDS on every crypto transaction, a rule that has created negative sentiments among the investment community since it came into existence in 2022. Despite several pushbacks from the finance ministry, these crypto laws remain unchanged in the country. This situation has led many crypto players in India to come up with special offers that could keep their users connected to their platforms.
For example, in November 2023, Indian crypto exchange CoinSwitch launched its own ‘Earn’ feature to allow users to ‘lock’ their crypto assets and earn cryptocurrency rewards. The platform said at the time that it was a way for the exchange to allow its users to monetize their holdings without having to sell them.
Speaking about Mudrex’s decision to launch this initiative, its CEO Edul Patel said, “We aim to empower our users to maximize their crypto earnings by eliminating fees and simplifying the process.”
According to the company, the beta phase of the Earn program has already managed to attract over 5,000 users.
“We also plan to expand the range of supported coins, continuously improving the value proposition of our platform for users,” Patel added.
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