WazirX is Planning to Release a Decentralised Exchange and Update its Platform with Additional Capabilities

In addition to resuming platform operations, WazirX has announced plans to create a decentralised exchange (DEX). This action is intended to assist in compensating users who suffered losses totalling INR 2,000 crore as a result of a massive cyberattack that compromised the company's multisignature wallet.

Features including cryptocurrency staking, an over-the-counter (OTC) desk, and futures trading will be added to the new DEX and redesigned platform, generating income streams for compensating impacted consumers.

Recovery Tokens to Make up for the Losses

WazirX intends to provide creditors with "recovery tokens," which equal 48% of the stolen money, to assist users affected by the breach. These tokens, which are distributed pro rata, give users flexibility by allowing them to be held with the hope of long-term recovery through future platform revenues or traded for instant compensation. This strategy seeks to provide some liquidity to impacted users while offering a route towards a possible full recovery.

Nischal Shetty, the founder and CEO of WazirX, claims that the new DEX will provide a user-friendly interface equivalent to centralised exchanges, increasing accessibility to decentralised trading. Shetty observed that self-custody—where people keep control of their assets—is becoming more and more popular among cryptocurrency users. The security advantages of DEXs, which let users control their transactions and assets directly rather than depending on a centralised system that is susceptible to assaults, are consistent with this trend.

Planning to Launch Test Version in February 2025

Even while DEXs are becoming more and more popular, less than 5% of global cryptocurrency traders utilise them, and they only account for 13–15% of worldwide trading volumes. In addition to encouraging more users to embrace self-custody, WazirX hopes to capitalise on this market.

By February, WazirX anticipates releasing a test version of the DEX along with the new platform. The company's remuneration plan will be linked to advancements in decentralised finance by offering users who own recovery tokens the opportunity to trade them for DEX tokens. The money made by the improved WazirX platform and the new DEX will be used to pay back creditors.

WazirX is functioning under a restructuring moratorium issued by a Singaporean court while it attempts to recover from the attack. Financial analysts caution that even with these efforts, only about 57% of the losses would be compensated, which might leave users with losses of almost INR 850 crore that have not been recovered.

About WazirX

WazirX is more than just a digital asset trading platform since its founding in 2018. The path has been driven by enthusiasm, determination, and a desire to provide all Indians with democratized access to cryptocurrency. WazirX is the market leader in terms of transaction volumes, boasting a listing of over 350 cryptos and tokens and over 16 million users. This solidifies WazirX's position as a reliable leader in the nation's cryptocurrency market.

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StartupTalkyNitin Konde