Binance’s decision to delist tokens is often seen as a sign of dwindling confidence in their future, typically leading to negative market reactions. This was the case when Binance announced the delisting of WazirX’s WRX token, causing its price to plummet by 60% within an hour, even as WazirX aims for a “fresh start” on its platform.
On Wednesday, Binance revealed it was removing WRX, alongside Kaon (AKRO) and Bluzelle (BLZ), following a regular review of tokens that no longer met its standards. The delisting usually signals a lack of trust in the token’s potential, sparking negative sentiment. While AKRO and BLZ experienced declines of up to 40%, WRX took the hardest hit.
As of Wednesday, WRX was trading at 10 cents, a staggering 98% drop from its peak of over $5 in 2021. This delisting adds to the woes of WazirX, once India’s largest exchange by trading volume and user base. The platform has been struggling since a $230 million hack in July, which resulted in the theft of over 45% of its user assets, according to a June report. The exchange has since initiated a restructuring process in Singapore to address its liabilities.
The hacker used Tornado Cash to launder the stolen funds, further complicating the platform’s efforts to recover, as reported by CoinDesk in September. These setbacks have dampened hopes for a full recovery.
WazirX, still grappling with both financial and reputational damage, has faced criticism for its poor handling of the crisis, particularly regarding communication with users and the fund recovery process. Despite these challenges, the exchange is working on restarting its operations. On Wednesday, the company posted plans to relaunch its platform and introduce a decentralized exchange (DEX) to revive its brand.
“We are preparing for a fresh start with improved services and a recovery-focused strategy for Scheme Creditors,” the company stated on X. “Once approved (subject to legal and regulatory requirements), we plan to relaunch the WazirX platform and launch a decentralized exchange (DEX) with innovative features designed to enhance the user experience and strengthen the platform.”
Just a day before, WazirX introduced the concept of Recovery Tokens (RTs), which are designed to compensate users for losses incurred from the hack. These tokens will be airdropped to creditors based on their balances on the platform, providing recovery through future profits, potential buybacks, and trading on open markets.
