As hundreds of thousands of WazirX users await recovery of their suspended funds on the exchange, the WRX- WazirX’s own token- has suffered diminishing value by 90% after getting delisted from Binance. According to estimates, WazirX users are set to face a loss of over Rs 50 crore after WRX crashed, owing to delisting by Binance.
WRX tokens constituted part of the existing funds held by WazirX post the July 18 hack in which Rs 2000 crore worth cryptocurrencies were stolen.
The current Proof-of-reserve report, shared by CoinGabbar, shows that there are a total of 21.52 million WRX tokens, worth INR 7.64 Cr as of latest market price. Earlier before token’s Binance delisting, it was valued above 50Cr.
After the delisting news, the market cap of WRX token has decreased from $100 million to merely $7 million, as per market data from Coinmarketcap. That means, WRX tokens holdings’ value have already diminished by Rs 43 crore, which the users are expected to bore the brunt of.
While the price decline in the WRX token was expected due to delisting by Binance, the question arises WazirX team could have seen this coming and avoided further losses.
What is WazirX doing with user funds?
The WazirX team previously announced that they would move user funds to crypto exchanges for trading and benefit with recently risen price actions. As per the PoR, the team currently holds nearly $58 million on crypto exchanges and $190.40 million of assets onchain.
These funds include over 400 crypto assets ranging from large-cap cryptocurrencies like Bitcoin, Ethereum, Tron to several low-cap or even some illiquid tokens. All these assets combined makes a total of $248.35 million in remaining funds, as of 26th December 2024.
The funds were initially transferred to the exchanges like Binance, ByBit and HTX with intentions to make a profit for users but it seems like the strategy is not paying any good. To add that, the total remaining user funds have shrunk even more in value, down nearly $50 million compared to the amount $298.17 million, shown by the WazirX team on 24th October.
Now the question arises what WazirX team intends to do with user funds as they are not trying to recover nor are they announcing to release partial withdrawals. Moreover, the WazirX team is also using these funds to cover legal expenses and even launching new projects without even taking users’ consent.
