Binance's decision to delist WazirX's WRX token has caused the token's price to "plummet" 60% in just one hour.
Delisted by Binance, the price of WazirX (WRX) plummeted without brakes. Image: The Crypto Times
WazirX, once the most renowned crypto exchange in India, is facing many challenges, from the shocking $230 million hack incident in July that it has not yet fully recovered from, to being delisted by Binance from December 25, 2024.
Screenshot of the delisting announcement from Binance
Binance's decision to delist the WRX token has dealt a heavy blow to WazirX. The token's price has dropped sharply by 60% within an hour of the announcement, becoming the most severely affected token among those removed from the exchange, alongside Kaon (AKRO) and Bluzelle (BLZ). This decision has sparked negative sentiment in the community, as delisting is often a sign of lack of confidence in a token's viability.
WRX price movement in the past 24 hours, screenshot taken on CoinGecko at 10:10 AM on December 19, 2024
WRX is now only trading at $0.1, a 98% drop from its peak of $5 in 2021. This event is happening in the context of WazirX's efforts to recover from both financial and reputational damages.
Previously, in July, WazirX suffered a serious hack incident, resulting in a loss of $230 million. The stolen funds, which accounted for more than 45% of the platform's total user asset reserves, were laundered through Tornado Cash to conceal the transactions. This has made the prospect of a comprehensive recovery seem fragile.
The exchange has filed for restructuring in Singapore to address its debts. However, the way WazirX handled the crisis, particularly in communicating with users and recovering assets, has been heavily criticized.
Despite facing numerous challenges, WazirX is still striving to make a comeback. In a recent announcement, the company has unveiled plans to relaunch the platform and launch a decentralized exchange (DEX) with enhanced features to improve the user experience.
We are gearing up for a fresh start with enhanced services and a recovery-driven approach for Scheme Creditors.
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) December 18, 2024
Following Scheme approval (subject to legal and regulatory requirements), we plan to reopen the WazirX platform and launch a decentralized exchange (DEX) with… pic.twitter.com/F7MObirmfF
Additionally, WazirX plans to issue a recovery token as a compensation mechanism and to make up for the victims of the hack. This token will be airdropped to creditors based on their balances on the platform.
How will Recovery Tokens (RTs) be used?
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) December 17, 2024
As part of the Scheme, Scheme Creditors will receive RTs on a pro-rata basis based on their Approved Claims. RTs provide access to:
• Surplus sharing
• Recoveries from Illiquid and Stolen assets
• Potential market-driven upside… pic.twitter.com/0DSzAYzoWp
It is evident that from being a leading exchange to a series of financial and reputational crises, WazirX is striving to rewrite its story. Although the path to recovery is fraught with challenges, the exchange is making efforts to regain the trust of the community and reclaim its lost position.
Compiled by Coin68
