WazirX exchange management announced plans to launch its own decentralized exchange (DEX) and a “recovery token” to settle all outstanding debts with its users, almost three and a half months after the cyber hack which resulted in loss of Rs 2000 crores of user funds.
WazirX revealed its ambitious recovery strategy aimed at addressing outstanding debt settlements and revitalizing its platform operations, in a townhall discussion on YouTube on Wednesday. The plan centers around the launch of a new “Recovery Token” and multiple business initiatives designed to maximize creditor recoveries after the July 18 hack resulted in loss of 45% user funds.
WazirX management also announced that they will start trading on WazirX platform, after suspending it for 3.5 months.
According to the exchange, this token is structured to capture value from multiple sources, including future platform profits, new business ventures, recoveries from illiquid and stolen assets, and potential white knight investments.
The exchange also reveals the key use cases of this token which include a buyback mechanism to boost creditor recoveries capture market movements and also provide additional liquidity.
In addition to the recovery token, WazirX also announced the initiatives to maximize fund recovery for Creditors. Central to WazirX’s revival strategy is the planned reopening of its trading platform, with trading fees being shared with creditors. The exchange is also launching several new products and services, including:
1. Decentralized exchange (DEX) that combines a centralized exchange user-friendly experience with self-custody security. This features thorough security audits and an intuitive interface. The exchange also plans to launch a native DEX token and enable Recovery token swaps for creditor benefits.
2. Crypto staking service enabling users to earn rewards across multiple blockchains. This feature will allow users to use a lower-risk alternative to traditional lending. Meanwhile, the OTC desk will cater to large-scale crypto transactions, generating revenue through commissions and spreads.
3. The exchange stated that they are actively pursuing legal actions to reclaim illiquid and stolen assets, ensuring they are secured for Creditors’ benefit.
4. Discussions are ongoing regarding White Knight Proposals for rescue financing and strategic collaboration. These partnerships could offer additional funding and support for creditor recoveries.
Community Reaction
Despite this, WazirX has come up with a good plan, but users do not seem happy, as the trust issue comes here in play. A user named RV posted, “They are ready with a plan to fool people once again.” An another user call it a scam and disappointing.
It seems that WazirX will have to work harder to gain the trust of its users. The most important thing is to return their funds to win back their trust.
Also Read: WazirX Hacker Is Converting Stolen Funds Into Bitcoin
