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-prominent Indian exchange WazirX.
- WazirX, still struggling with the aftermath of financial and reputational damage, has attempted to recover the funds with limited success.
A recent decision by Binance to delist WazirX’s WRX tokens has resulted in a dramatic 60% price drop within just one hour. This move comes as WazirX seeks a fresh start for its platform.
Binance announced the delisting of WazirX’s WRX along with Kaon (AKRO) and Bluzelle (BLZ) during a routine evaluation of tokens that no longer meet their offering criteria.
Delisting a token from major exchanges is often seen as a signal of dwindling confidence in that token's future, which significantly affects market sentiment. Following the announcement, the values of AKRO and BLZ dipped nearly 40%, but WRX faced the most severe decline, tumbling to just 10 cents, a staggering 98% lower than its peak exceeding $5 in 2021.
WazirX WRX Token
This delisting is another setback for WazirX, previously the largest cryptocurrency exchange in India by volume and user count before suffering a $230 million hack in July, which affected more than 45% of the total user assets. To alleviate its financial responsibilities, WazirX has initiated a restructuring process in Singapore.
The hacker obscured the criminal transactions utilizing Tornado Cash, as reported by CoinDesk, exacerbating WazirX's recovery efforts, which are already hindered by public scrutiny regarding its crisis management and user communication.
WazirX’s official statement via its social media mentioned:
"We are gearing up for a fresh start with enhanced services and a recovery-driven approach for Scheme Creditors. Following Scheme approval, we plan to reopen the WazirX platform and launch a decentralized exchange (DEX) with innovative features to enhance user experience and provide a more robust platform."
Moreover, WazirX is considering implementing recovery tokens for affected users, which may be used for compensation based on platform balances, thus enabling recovery through future platform earnings and potential buybacks.
