Upcoming Features: Decentralized Exchange and Crypto Staking Among Others

In response to a significant security hack resulting in substantial financial losses for its users, cryptocurrency exchange WazirX has announced plans for launching a decentralised exchange (DEX). This comes alongside a revamped platform version aimed at compensating those affected by the cyberattack, which led to a loss of Rs 2,000 crore just three months ago.

To facilitate recovery, WazirX is introducing ‘recovery tokens’ that will give the harmed users a chance to reclaim an initial 48 per cent of their lost assets. These tokens, allotted based on individual losses, will be tradeable, offering users a possible avenue to sell them as they wait for the full restoration of their assets. WazirX is working towards restoring complete trading functionality on their platform by February of the following year.

Advantages of the Decentralised Exchange for Users

The proposed decentralised exchange, which is currently under development, is designed to allow users more autonomy by enabling them to manage their assets without intermediaries, hence decreasing risks associated with third-party entities. Those who receive recovery tokens will also be given the opportunity to exchange them for exclusive tokens intended for use on the DEX once the exchange is operational. WazirX plans to roll out a test version of the DEX soon and will funnel profits from the DEX as well as the main exchange to support the affected users.

Regarding the shift towards decentralisation, WazirX’s CEO Nischal Shetty pointed out the increase in demand for self-custody solutions following several security breaches on centralised platforms. Although DEXs currently account for a mere 13-15 per cent of the total crypto trading volume globally, Shetty reiterated WazirX’s commitment to making DEX platforms more accessible to regular investors.

Additional Upcoming Features

The reintroduction of WazirX will feature new offerings, including cryptocurrency staking, an OTC trading desk, and futures markets, as part of an effort to generate more revenue that will feed into the user compensation plan.

Current Recovery Efforts and Associated Financial Losses

Concurrent with these recovery efforts, a court-mandated restructuring process is taking place in Singapore, where WazirX has gained a respite period of four months. Despite all the recovery strategies being put in place, advisors suggest a significant loss for users, which may be as high as Rs 850 crore, acknowledging that the reimbursement might not surpass 57 per cent.

Ongoing Legal Hurdles

Legal entanglements are also part of WazirX’s challenges, with several proceedings initiated by various parties including those in the National Company Law Tribunal and the Delhi High Court. Moreover, a collective of over 30 impacted individuals is preparing to present a unified lawsuit at the National Consumer Disputes Redressal Commission, illustrating the extensive impact of the breach.

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