The delisting of WRX from Binance is seen as a significant blow to the Indian exchange. The question remains: what steps will they take to turn the situation around?
Community Outrage as Binance Announces Delisting of WazirX (WRX)
On December 28, 2023, Binance announced its decision to delist WRX, the native token of WazirX, from its trading platform, effective January 5, 2025. This move comes amid WazirX's ongoing legal disputes and regulatory challenges in India, particularly regarding the conflict over ownership and legal accountability between Binance and WazirX.
WRX Token Drops Sharply Following Delisting Announcement
Source: CoinMarketCap
WRX Token Plummets Over 50% Following Delisting Announcement
After the announcement, the price of WRX dropped sharply by over 50%. Prior to the delisting news, WRX was trading around $0.20, but within 24 hours, the price plunged to a low of $0.0932, reflecting market panic and a wave of sell-offs. Trading volume surged, tripling its daily average, as investors scrambled to exit their positions before the token's removal from Binance.
WazirX’s Hack Compensation Includes a Significant Portion of WRX Tokens
Source: @AmolJagde
WRX Delisting Sparks Mixed Reactions Across Social Media
The decision to delist WRX has triggered significant debate within the community, especially on social platforms like X (formerly Twitter). Users have expressed disappointment and anger toward both Binance and the WazirX project.
Many investors criticized Binance for a lack of transparency, citing the insufficient preparation time provided to users before the announcement. Others have raised concerns about WazirX’s survival prospects following the event, particularly as user trust in the exchange has taken a substantial hit.
Community Outraged Over Binance's Delisting Announcement
Community Questions Future of Similar Tokens, Demands Transparency from Binance
The delisting announcement has prompted the community to question the fate of other tokens in similar situations. Many are calling for greater clarity from Binance regarding the specific criteria and processes used for token delistings.
"I honestly don’t understand why Binance decided to delist WRX after previously claiming they had no connection to WazirX. This move only adds to the confusion among users."
-- @iSandeepJaswal wrote on X --
Community responses also emphasized that this action could undermine user trust in Binance during similar events in the future.
Once a rising star in the Indian market, WazirX was considered one of the leading and fastest-growing cryptocurrency exchanges in India, playing a crucial role in popularizing cryptocurrency in a country with a population of over 1.3 billion people.
The Journey of WazirX After 6 Years of Operation
Founded in 2018, WazirX quickly established itself with the goal of addressing issues such as high transaction fees, slow processing speeds, and poor security. As a result, the exchange attracted millions of users and built a large investor community in India.
One of the most significant milestones for WazirX came in November 2019, when Binance announced the acquisition of WazirX. This was seen as a major turning point, allowing WazirX to connect with Binance's global ecosystem and offer advanced services to its users. Thanks to this acquisition, WazirX was able to integrate more deeply with Binance, enabling its users to transfer assets directly from WazirX to Binance.
Binance Provided Strong Support to WazirX in the Early Years of 2024
Source: Binance
The success of WazirX did not last forever. By 2022, the exchange began facing a series of legal disputes and allegations related to money laundering. On August 5, 2022, the Enforcement Directorate (ED) of India froze assets worth 64.67 crore rupees (approximately $8.1 million) belonging to WazirX.
WazirX's 2022 Announcement Regarding Asset Freezing
According to the Enforcement Directorate (ED), the exchange was suspected of assisting fintech companies in converting funds from illegal activities into cryptocurrency and transferring them abroad through transactions on WazirX.
The investigation also revealed that some China-backed companies had used WazirX to conduct money laundering transactions. These funds were converted into cryptocurrency and moved overseas, making it difficult to trace their origin.
The situation escalated when the relationship between Binance and WazirX also became strained. Changpeng Zhao (CZ), CEO of Binance, stated that Binance had never truly owned WazirX, despite having previously announced an acquisition deal.
While WazirX was still facing money laundering allegations, in July 2024, the exchange became involved in a major hack. Hackers breached WazirX’s system and stole over $234.9 million worth of cryptocurrency from user accounts. This is considered one of the largest hacks in the history of cryptocurrency in India, sparking widespread criticism and calls for the restitution of assets to affected users.
WazirX Exchange Hacked as Fraudsters Continue to Withdraw Funds in July 2024
Source: Cyvers
WazirX had to undergo system maintenance and conduct security checks for several days. The exchange announced that it would restore user account balances to their state before the hack and reverse any transactions made after the attack.
Once one of the leading exchanges in India, WazirX has now found itself caught in an ongoing crisis. After money laundering allegations, disputes with Binance, and a major hack, WazirX has gradually lost its position in the market. Trading volumes have sharply declined, some major partners have withdrawn from the platform, and investor confidence has collapsed.
Is this the end for WazirX, especially after Binance has firmly distanced itself?