Home Business 15 Million Crypto Users Left In Limbo As Binance-WazirX Twitter Feud Continues

15 Million Crypto Users Left In Limbo As Binance-WazirX Twitter Feud Continues

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15 Million Crypto Users Left In Limbo As Binance-WazirX Twitter Feud Continues

While Changpeng Zhao, co-founder of Binance, and Nischal Shetty, co-founder of embattled crypto exchange WazirX, continued to bicker on Twitter over the weekend over the latter’s acquisition by the first, WazirX users felt the brunt of this feud. . WazirX has 15 million registered users as of August.

Off-chain transfers to WazirX – which is a popular feature on the exchange – were halted and the exchange’s native WRX token fell by more than 14%.

Off-chain transactions are transactions occurring on a cryptonet that move value outside of the blockchain. Due to their zero or low cost, these transactions are becoming popular, especially among large participants.

These trades often do not incur transaction fees and were popular among stock market investors. Interestingly, these have been on the radar of the Law Enforcement Directorate (DE).

According to a statement released by the ED on Friday, “Despite repeated opportunities, WazirX failed to give crypto transactions of suspicious fintech APP companies and to reveal the KYC of the wallets. Most of the transactions are not either no longer recorded on the blockchain.

The ED had announced on Friday that bank assets worth Rs 64.67 crore held by the director of WazirX had been frozen after the investigative body conducted research into the exchange as part of a case of money laundering via crypto-currencies.

After the raid, as the row between the two co-founders of the crypto exchange erupted on Twitter on Friday, the value of the exchange’s native WRX token also plummeted.

According to CoinMarketCap, WRX was trading at $0.2816 around 4:00 PM IST on Friday and fell to $0.2407 at 11:00 AM IST on Monday. The cryptocurrency fell 14.52% over the period.

Data according to CoinMarketCap

Amish Prajapati, a WazirX user from Mumbai, told Business Today that he invested a large amount in WRX tokens and is now suffering huge losses.

Prajapati said, “The value of WRX has been declining since the start of the year. First it was the 30% tax announcement, then the Luna crash, and now this. I am in a huge loss.

Moreover, panic among investors set in after Zhao tweeted, “We might shut down WazirX.” In a later tweet, he advised WazirX users to transfer funds to Binance. “If you have funds on WazirX, you need to transfer them to Binance. It’s as simple as that,” Zhao warned.

As the confusion grew, telegram group WazirX began to be inundated with queries from investors and users. Other Indian Crypto Telegram groups also suffered a similar fate.

One user via Telegram asked, “Should I sell all my WRX holdings or continue to hold them?”

However, this is not the first time that the WRX token has made the news, and that too for the wrong reasons.

In January this year, WazirX got into trouble with the GST department because the regulator argued that the exchange failed to pay applicable 18% GST on trades made on the exchange via these tokens. WazirX then had to pay the tax authorities Rs 49.2 crore.

Despite investor unease, WazirX says all investor funds are safe and all operations are proceeding as usual.

In a statement, commenting on the recent fiasco, the exchange said: “We would like to state that currently deposits and withdrawals are operating as usual. We are evaluating our further course of action and will always act in the best interests of users. »

Read also : Binance Might Close WazirX, Move Your Funds: Changpeng Zhao – BusinessToday
Read also : Binance denies holding stake in WazirX as exchange faces ED issues – BusinessToday
Read also : WazirX has been acquired by Binance: Nischal Shetty BusinessToday

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