Users Left In Limbo Binance and WazirX Offers Not Giving Details on Ownership

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While Zhao says that the Chinese cryptocurrency exchange did not complete that transaction Shetty says that his company is ‘effectively’ the owner of WazirX

The Binance CEO issued a warning bell with the statement that it was possible to shut WazirX down, but didn’t.

Binance had suspended the off-chain transaction for WazirX users just a few days ago. The result was that WazirX implement a transaction fee on transactions to Binance

Beginning on last Friday, Changpeng Zhao and Nischal Shriya, the chief executives of Binance and WazirX respectively are at war on Twitter over who is the owner of the troubled Indian cryptocurrency exchange.

While Zhao says that the Chinese cryptocurrency exchange did not complete that transaction Shetty says that his company owns WazirX.

The dispute began shortly when that the Enforcement Directorate (ED) said in a press release that it raided the WazirX headquarters of WazirX and frozen WazirX’s assets valued at the sum of INR 64.67 Cr under the suspicion with money laundering.

Binance’s CEO Zhao stated it was the Chinese cryptocurrency exchange has never held shares in Zanmai Labs, the suspected parent company behind WazirX. Zhao said that Binance will cooperate with the investigation of ED into WazirX which has prompted Shetty to change his mind.

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Shetty said that Zhao’s exchange is the owner of WazirX’s domain name as well as permission to root to AWS servers cryptocurrency assets, as well as crypto profits. In addition, Shetty implied that WazirX and Zanmai Labs are two different distinct entities, which appear to be unrelated.

Shetty’s comments raised questions regarding what ownership he holds for his company and resulted in a Twitter dispute among Zhao as well as Shetty. The subsequent dispute on Twitter involved details about who owns what at WazirX however neither Zhao or Shetty discussed who is the owner of WazirX.

WazirX Takes A Hit

The confusion surrounding the acquisition in 2019 and subsequent denial three years later have sent alarm bells ringing across the WazirX user base, which led to a major sell-off in the past few days.

Since Zhao’s initial tweet last Friday, worth of WRX WazirX’s native coin dropped between 27 and just 24 cents. But the most significant effect has been seen in the volume. On August 5 at 10:05 pm the amount traded was about $5.44 Mn.

The Twitter war between Shetty and Zhao resulted in a major selling-off, accompanied by a decline in value. WRX trading volume hit an all-time high of $10.85 Mn on August 6, at 9:10 PM. This was the price of about 25 cents.

According to the WazirX report for 2021 report the crypto exchange claims to have more than 10 million users, and had conducted transactions worth $43 billion during the course of. The exchange is the majority of India’s crypto investors who are unaware about the current situation happening at WazirX.

On numerous forums on the internet including Twitter as well as Telegram, Indian users have been keeping an eye on the situation but without any clarity about what’s following, there’s one thing anyone can do.

Binance Limits User Manoeuvrability

In the midst of the conflict of words that raged between Zhao and Shetty Shetty, the Binance CEO caused up a panic when he said that the Chinese cryptocurrency exchange could have shut down WazirX down, but did not.

We could close down WazirX. We can’t since.it’s hurting the people who use it, Zhao said. This was further made worse by a follow-up tweet by Zhao who advised WazirX clients to send their funds to Binance.

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This caused Indian users into a state of panic and they began looking options to move money to the Chinese cryptocurrency.

The issue is that Binance closed off chain transfers to customers on the same day because the two CEOs were involved in an Twitter dispute, according to numerous reports from users on the official WazirX Telegram channel.

Off-chain transfers allowed users to transfer funds within the internal network across WazirX and Binance without cost This was a feature that was a feature that the Chinese cryptocurrency exchange has shut down.

Following Binance’s actions in response to Binance’s actions, the Indian cryptocurrency exchange has added a fee for customers who wish the transfer of funds via WazirX in order to transfer funds from Binance. With no off-chain transfers, WazirX users will need to utilize on-chain transfers that involves the blockchain, and there’s an additional cost.

The actions of both companies made it more difficult for customers to transfer cryptocurrency funds between different exchanges and gives them less alternatives.

In all of these, WazirX has been asking its users to be calmand assured that operation is being carried out in the normal way.

In light of the recent developments concerning WazirX We wanted be sure to assure our customers that our operations are continuing as normal, said WazirX on Twitter. Crypto as well as INR withdrawals are processed in the normal way.

For certain, it remains the sole Indian crypto exchange that allows withdrawals in INR for its customers. Although it is technically possible to withdraw their funds from WazirX however, the tax rate of 30% on the profits generated by crypto makes it more of as a decision rather than a decision that is forced.

An uncertain regulatory environment which includes a strict tax regime as well as the adversarial RBI that has created a lot of difficulties to crypto-investors in India. The ongoing dispute with two most prominent actors in the crypto world won’t look very good in the eyes of the authorities either.

In a previous interview in a previous conversation with Economic Pitch, an influential crypto-related person said The entire crypto community is shocked, and it’s going to be a challenge to persuade the regulators to adopt a more relaxed position towards the industry in light of the public conflict that has been waged between WazirX as well as Binance chief executives.

With no solution in sight with Binance and WazirX determined to fight until the end of the day users are the ones who are caught in a bind. A lot of Indian users, who are fueled by the feeling of nationalist pride support WazirX. But, a large percentage of Indian users are contemplating a move to another platform.

The future for WazirX in limbo Users are still in limbo regarding what they can do. The ball is now in the hands of two warring parties in this conflict and they must avoid the risk of becoming a victim.

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