Binance’s decision to delist WazirX’s WRX token has sparked a dramatic decline in its value, underscoring the volatility that comes with such major exchange decisions. Following the announcement on Wednesday, which also included delistings of Kaon (AKRO) and Bluzelle (BLZ), WRX experienced a 60% drop in price within an hour.
Delisting a token from a prominent exchange is often seen as a sign that the token is losing credibility, leading to a sharp decrease in market confidence. While AKRO and BLZ saw their prices drop by 40%, WRX suffered the most, plummeting to just 10 cents, a significant fall from its peak above $5 in 2021.
This latest setback adds to the ongoing troubles of WazirX, once India’s largest crypto exchange by volume and popularity. The company has been struggling to recover from a massive $230 million hack in July, which affected over 45% of its user assets. The hacker used Tornado Cash to launder the stolen funds, complicating efforts to retrieve them. WazirX has since filed for restructuring in Singapore to clear its financial liabilities.
In the face of these challenges, WazirX is determined to rebuild. The exchange recently announced plans to relaunch with a focus on decentralization, aiming to introduce a decentralized exchange (DEX) with improved features and user experiences.
“We are preparing for a fresh start with a recovery-focused approach for our creditors,” WazirX stated. “Once legal and regulatory requirements are met, we intend to reopen the platform and launch an innovative DEX to enhance the user experience and create a stronger platform.”
Additionally, WazirX is introducing Recovery Tokens (RTs), which will be airdropped to creditors to compensate for their losses from the hack. These tokens will provide recovery through future platform profits, buybacks, and trading on open markets.
