WazirX is a cryptocurrency exchange that is owned by Binance, the world’s largest bitcoin exchange in terms of trading volumes. Binance was founded in the year 2017 and has its headquarters located in the Cayman Islands. WazirX is an Indian based cryptocurrency that was later acquired by Binance.
The former company had recently announced a compensation WRX Airdrop for users who lost their money by investing in the commonly known crypto SHIB. Let’s look at the compensation that is announced and the reason for the loss of money.
WazirX to Compensate Users
Indian Cryptocurrency exchange WazirX had recently announced that it has taken certain measures to compensate the users who have lost their money investing in the Shiba Inu Coin (SHIB) after it was listed on the exchange for a price higher than its actual value.
The volatile meme cryptocurrency was listed on the exchange for a higher price that is around INR 3 while the actual price while listing the cryptocurrency was around INR 0.0016. But soon after the listing, the price of SHIB had fallen below INR 1 and it led to a loss for a lot of investors.
It was found that many people had complained about the difference in price only after they had bought the cryptocurrency in urgency without even checking the actual listing price of the token which is also known as the dogecoin killer.
Explanation by WazirX
WazirX had explained in a blog post of what actually happened with the price of SHIB. They conveyed that when the crypto token had gone live in the market, the deposits and withdrawals of the coin had taken a little while to go live due to a misconfiguration.
They also added that there was a delay in their liquidity provider in order to bring in more liquidity which led to a liquidity crisis in the market related to the SHIB transactions. The price of the token had increased as there was a lack of liquidity.
Steps Taken by WazirX
The WazirX team had identified the issue and had discovered the misconfiguration. They had soon turned on the withdrawals and deposits of Shiba Inu Coin which led the prices to auto adjust based on the new deposits which came in from the customers. This was the major reason for the fluctuations and a lot of users had lost their money.
What is WRX Airdrop?
WRX Airdrop is a further step taken by the company due to their catastrophe. Nischal Shetty who is the founder and CEO of WazirX India had posted a tweet conveying the WRX Airdrop program. He said that this program will be eligible for the users who had bought SHIB at a higher price and did not sell it.
He added that the company will WRX Airdrop which is equivalent to the amount of loss incurred by the users. The eligible users will receive the WazirX tokens for the next 4 months. The Airdrop tokens will be equivalent to the 25% of the loss incurred and the tokens will be provided for the next 4 months.
He added that there won’t be any new airdrop program unlocked or used for this purpose.
Is WazirX owned by Binance?
Yes, WazirX is owned by Binance.
Who is the founder of WazirX?
Nischal Shetty is the founder of WazirX.
When was WazirX founded?
WazirX was founded on 2017.
The crypto craze in the country has been rapidly increasing with several people jumping into the crypto market. We have seen a lot of people investing in SHIB even without knowing the exact background or the required information about the coin.