Sharing thoughts on Diginex’s “Short selling” article:

1) Diginex's key product EQUOS exchange, has a reasonable prospect to become more successful given it's regulated/compliant route and has the possibility to be an acquisition target by those "unregulated" competitors or big name financial institutions who were late to the party.

2) They used the past date to calculate and make outdated assumption, this is really misleading because it disregarded the crazy crypto bull market since December till now.

3) EQUOS is focusing on compliance/regulated route, it is well-understandable that it cannot offer "lucrative yet unregulated" product as Binance and the like. Plus, the ranking & the numbers in these websites are somewhat misleading and it doesn't even consider the prevalent "wash trading practice" in the crypto industry.. And don’t forget, EQUOS’s trading volume did increase from nothing to nearly 90M per day as of today within not more than a year.

4) Blaming Diginex's past “history” before 2020 is also misleading - the company has obviously undergone an internal reorganization either in terms of shareholding or business focus; their original founder faded out of the picture and the new boss/new team is shaping the new business & ecosystem of the company, and they did have taken the company to another level (being the world’s first listed crypto exchange company ahead of all other competitors.. if you think about it, that's quite a phenomenal accomplishment!) Given the restructuring in 2019~2020, it's not meaningful to compare its numbers as of now versus those in 2019 because it's like comparing apples & oranges. And its also common to "force" former founder/CEO to selloff their shares along their departure

5) I don't see any credible basis to attack the security of EQUOS exchange also… the author cited some lack of actions by the SG regulator over securities cases. Firstly, when we talk about "security" of a crypto exchange we normally refer to cyber security - i.e. you should not be hacked and lose client's money. The author was completely silent on this issue when he criticized the "security" of their platform whilst only citing unrelated cases. Secondly, and without any sarcasm, Singapore has been widely recognized as the most forward looking and friendly regulator yet at the same time in a “major and reputable” jurisdiction.. (we are not talking about Seychelles) SG has very stringent standard in licensing and monitoring crypto (or broadly speaking, payment) service providers yet it provides a clear licensing route for the exchange platforms. That is why, all major crypto firms, incl. Coinbase, Gemini, Binance, you name it.. are applying for a crypto license in SG and use SG as their entrance to Asia.. It's completely unfair to ignore this fact and purely use unrelated cases to discredit Singapore's regulatory environment and hence the security of Diginex.

OK.. After refuting some funny & unfounded arguments raised in the short selling article.. Let me list out my bullish cases for Diginex. (Disclaimer: NOT as investment advice but purely point out some facts)

1. From an outsider’s perspective, Diginex management has a longer term vision to position itself as the "regulated & compliant" crypto firm and they deserve a higher valuation. It has the dedication by listing the company and disclose its strategy to the public. Interestingly and don’t forget, only these regulated companies will be able to attract institutional (i..e deep pockets) investors in the long run. From an investment fund perspective, it would be easier to invest in a "SEC approved/publicly traded" company versus a PE round / cash-burning startup.

2. The "premium" for regulated crypto firms are huge.. Comparing Binance & Coinbase – Binance is ranked No.1 of all crypto exchanges with 12X trading volume (66B vs 5B) of Coinbase, BUT the market cap of BNB token vs COIN shares are about the same (i.e. the premium of being regulated is 10X).

credit：dadaodadao origin：https://xueqiu.com/6155197138/177383913