In what appears to be a twist of events, one of the most prominent businesses in the crypto exchange industry, WazirX, finds itself in a tricky situation. They have called on Binance, a old friend after suffering a $230 million cyber attack.
A Rocky Relationship
WazirX and Binance are as much related as Siamese twins, but the knot tying them has severed. Before 2022, they are members and associates but things started going wrong after the Enforcement Directorate India came to the scene. Some of the criminal loan applications were alleged to have used WazirX as a money laundering system.
The Stuck Sandwich
Yes, it seems they are not really friends anymore: Binance retains control over WazirX’s funds and still has $80 million worth of the WRX token. This uncomfortable position has put WazirX in a ‘sandwich’ and now it has to rely on Binance to give back to its customers after sustaining the hack.
The Big Hack
July 18, will be etched in the memory of WazirX as a clear ray of sunshine before the thunder struck. They end up forfeiting 45% of their assets, and the platform ceased every trading and even withdrawal. This hack was devastating to the crypto community and adversely impacted 33% of Indian crypto users that own accounts on WazirX.
The Bailout Plan
WazirX is now looking to devise a way to survive. One of the suggestions was to allow customers to trade all tokens with spot exchanges but lock 45% of the tokens in USDT, DAI etc. But, this did not go well with the users, who stated that-this is as good as being given half a cookie when one wanted the full cookie.
Customers Speak Out
All these proposals reached WazirX users for voting, and the general public has until August 3 to cast their votes on the proposed solutions. But so many people are protesting, saying “It is unfair!” Those people think that exchanging 45% of the remaining tokens for stablecoins will reduce the size of their crypto holdings.
What’s Next?
It is known that WazirX is in discussion with Binance, but as of now, the actual partnership has not been established. The representatives of Binance didn’t provide their comment on the situation, and WazirX lacks transparency as well. Customers on the other hand are just waiting for a fix that does not require him/her to lose a large fraction of their total assets.
A Call for Calm
For now, all that WazirX investors can do is sit and watch.. So, watch this space as this particular crypto drama continues to play out – with hopes high perhaps one day WazirX and Binance can join hands together again.
Community Concerns
In the meantime, the crypto community is filled with questions. Many wonder if this incident will trigger stricter regulations or if it is a sign of deeper issues within the crypto exchange system. One thing’s for sure: all eyes are on WazirX and Binance as they navigate these choppy waters.
In the world of crypto, anything can happen. So, keep your eyes peeled and your digital wallets safe!
