Cryptocurrency: These cryptos rallied up to 50,000% in one year. Do you own any?

Synopsis

Despite the market volatility in April-May, some altcoins have delivered eye-popping returns to investors, rallying as much as 50,000 per cent in the last one year.

Axie Infinity, an Ethereum-based gaming token, has soared over 48,380 per cent, attracting millions of users from developing countries like the Philippines and Indonesia within a short span.

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New Delhi: As the craze for cryptocurrencies is increasing across the globe, investors looking for superior returns are swiftly lapping up lesser-known digital tokens, which carry higher risk.

Despite the market volatility in April-May, some altcoins have delivered eye-popping returns to investors, rallying as much as 50,000 per cent in the last one year.

Sharan Nair, Chief Business Officer of CoinSwitch Kuber, says investors are aiming to extract huge benefits from these cryptocurrencies, just like it happened with bitcoin in the initial days.

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In I-T parlance, taxation on cryptocurrencies should depend on the nature of investment – whether it is held in the form of currency or in the form of assets. Know the tax implications of investing in cryptos

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Axie Infinity, an Ethereum-based gaming token, has soared over 48,380 per cent, attracting millions of users from developing countries like the Philippines and Indonesia within a short span.

Vikram Subburaj, CEO and Co-founder of Giottus Cryptocurrency Exchange, says Axie Infinity will face stiff competition and this is likely to limit its growth.

Dogecoin, which was created to make fun of the speculation in cryptocurrencies, has soared as much 8,300 per cent in the last one year, especially after Tesla boss Elon Musk said he was working with its developers.

Blockchain payment network Terra’s LUNA coins, which uses dollar-pegged stablecoins to power price-stable global payments systems, have gained about 6,000 per cent in the last one year.

Subburaj of Giottus expects it to hit $1, which is still about 300 per cent higher from its current levels. “Future growth of Terra may be capped given impending regulations around stablecoins,” he added.

Polygon, which was founded by three Indians, has delivered over 4,300 per cent returns in the last one year. It has the potential to grow along with Ethereum, and a strong growth from current levels is possible in the next year, Subburaj said.

Cardano and Solana have gained 1,400-2,000 per cent returns in the last one year.

Nair of CoinSwitch Kuber says the recent craze over non-fungible tokens has brought these coins to a more mainstream market. “Coins like these will experience a continuous surge in the coming days and investors will be in a good position,” he adds.

Among the behemoths, Ethereum has given a stellar returns of 770 per cent in the last one year. Market experts attribute this rally to the buzz around the London Hard Fork, a recent software update that strengthened the network.

Vincent Lau, Managing Director Of International Operations, Huobi Global, says it will continue to grow. “The entire blockchain will be able to provide more functionalities and make the ecosystem more sustainable,” he adds.

Source

Updated: 08/22/2021 — 04:00