What to know:
- A Binance delisting decision sent prices of defunct crypto exchange WazirX’s WRX tokens down 60% in an hour.
- The delisting is another blow for the once-darling Indian exchange WazirX.
- WazirX, still reeling from the financial and reputational damage, has worked to recover the funds with limited success.
As an analyst with years of experience in the volatile crypto market, I have seen my fair share of ups and downs. The recent Binance delisting decision regarding WazirX’s WRX tokens is yet another reminder of the unpredictable nature of this space.
The announcement that Binance would stop supporting WazirX’s WRX tokens caused their price to drop by 60% within an hour, despite WazirX expressing optimism about a new beginning for its trading platform.
On Wednesday, Binance announced that they would be removing WRX from the WazirX platform, as well as AKRO (Kaon) and BLZ (Bluzelle), due to these tokens not meeting their current listing criteria during a routine assessment of their offerings.
Removing a token from significant trading platforms is frequently interpreted as doubt in the token’s durability or prospects, leading to unfavorable market feelings towards the affected token. Following the announcement, the prices of AKRO and BLZ plummeted by up to 40%, but WRX suffered the most severe decline.
WRX token exchange hands at 10 cents as of Wednesday, down 98% from a 2021 peak above $5.
The removal from listing represents another setback for the once-favored Indian trading platform WazirX, which was previously India’s largest exchange in terms of volume and popularity before experiencing a $230 million hack in July. In a June report, the exchange reported that it held over 45% of the total user asset reserves. Since then, WazirX has initiated a restructuring process in Singapore to address its outstanding debts.
As a researcher, I uncovered that the ill-gotten gains were discreetly transferred to multiple accounts, employing Tornado Cash to veil these transactions, as detailed by CoinDesk in their report from September. This revelation casts a shadow over any optimistic expectations of a complete financial recovery.
Despite facing significant financial and reputational setbacks, WazirX has been making efforts, albeit with modest results, to retrieve the lost funds. However, it has received considerable backlash due to its approach towards managing the crisis, particularly in terms of user interaction and fund recovery procedures.
As a researcher spearheading this project, I’m excited about our forthcoming fresh chapter. We’re all set to reinstate our services on the WazirX platform, but with an upgraded twist. Our primary focus will be on a recovery-driven strategy for creditor benefits.
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) December 18, 2024
The platform is taking multiple steps to resume its activities. According to a recent announcement on their blog, they aim to reactivate the business and introduce a decentralized trading system, with the goal of maintaining the company’s presence in the market.
The company announced on X that they are preparing for a new beginning, offering improved services and a recovery-focused strategy for creditors in Scheme Creditors. Once the Scheme is approved, subject to legal and regulatory conditions, they plan to reactivate the WazirX platform and launch a Decentralized Exchange (DEX) featuring innovative elements designed to improve user experience and create a stronger platform.
A day following the proposal by WazirX, the idea of Recovery Tokens (RTs) emerged. These tokens are suggested as a means to reimburse users for any losses incurred due to a hack.
As a crypto investor, I’ve learned that these digital tokens are going to be distributed as rewards to users, proportionate to their account balances within the platform. This distribution strategy is designed to facilitate recovery by tapping into future profits, potential buybacks, and trading opportunities on open markets, as outlined in a recent announcement.
Read More
- SUI PREDICTION. SUI cryptocurrency
- „People who loved Dishonored and Prey are going to feel very at home.” Arkane veteran sparks appetite for new, untitled RPG
- LDO PREDICTION. LDO cryptocurrency
- Destiny 2: A Closer Look at the Proposed In-Game Mailbox System
- Clash Royale Deck Discussion: Strategies and Sentiments from the Community
- Jennifer Love Hewitt Made a Christmas Movie to Help Process Her Grief
- ICP PREDICTION. ICP cryptocurrency
- Naughty Dog’s Intergalactic Was Inspired By Akira And Cowboy Bebop
- Critics Share Concerns Over Suicide Squad’s DLC Choices: Joker, Lawless, and Mrs. Freeze
- EUR IDR PREDICTION
2024-12-18 15:54