As WazirX, an India crypto exchange, navigates turbulent times following a massive hack, the exchange unveils an ambitious recovery strategy. This strategy empowers creditors to reclaim nearly half of their lost assets.
During a recent YouTube town hall, co-founder Nischal Shetty outlined a plan. This includes airdropping recovery tokens to affected users, relaunching trading, and exploring new revenue-generating avenues. These efforts are all to restore faith and resilience to WazirX’s community.
Recovery Tokens: A Second Chance for Creditors
WazirX is rolling out a special set of recovery tokens to address the immediate concerns of affected creditors. These tokens will allow creditors to recover up to 48% of their lost assets through trading on the platform.
The tokens will be distributed pro-rata, ensuring that users who suffered the most from the breach receive their fair share of compensation. A crucial part of WazirX’s recovery strategy is the relaunch of its trading platform, which is slated to return in February 2025.
Alongside the relaunch, the platform will introduce new features, including crypto staking, futures trading, and over-the-counter (OTC) desks. These new offerings will attract fresh users and help generate revenue. This part will be allocated to buy back recovery tokens, ensuring creditors are paid back steadily.
WazirX’s latest strategy came after initially proposing a “55/45” strategy to share losses among users. However, following strong opposition from the community in a poll, WazirX decided to abandon this plan.
Decentralization and User-Centric Innovations
WazirX is looking to the future with its plans to create a decentralized exchange (DEX), answering user demand for greater control and self-custody. This DEX will be built on a native governance token. It will allow users to trade, earn rewards, and participate in the platform’s development.
By integrating the DEX with the main platform, WazirX hopes to drive liquidity while generating revenue that will continue to fund its recovery efforts. Creditors will also have the option to swap recovery tokens for DEX tokens, enhancing the utility of their compensation.
In addition to its technical and financial recovery plans, WazirX is pursuing legal action to reclaim assets lost to theft. The platform also seeks rescue funding through strategic partnerships with potential “white knight” investors. This ensures the company has the resources to support its users and long-term vision.
WazirX Faces Regulatory Scrutiny and Legal Battles
WazirX’s effort comes as it faces heightened scrutiny from regulators, with India’s Financial Intelligence Unit reportedly investigating its operations. Additionally, a coalition of victims has filed a class-action lawsuit, with ongoing cases in the Delhi High Court, intensifying the pressure on the platform.
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