WazirX, an Indian cryptocurrency exchange, has admitted that Binance controls its WRX token and has failed to conduct quarterly burns for five consecutive quarters.
WazirX has revealed in a recent blog post that Binance controls the WRX token. The post sheds light on the IEO and the subsequent management of the token Binance’s failure to conduct quarterly burns for the past five quarters has raised concerns among stakeholders.
The article explores WazirX’s connection with Binance, addressing issues and potential effects on the WRX token and its users.
Binance’s Control Over WRX Token
WazirX confirmed that Binance conducted the WRX token IEO, retaining all the proceeds from the sale, which amounted to nearly $2 million.
Currently, Binance holds a significant amount of WRX tokens, with a total of 580.78 million locked and unlocked tokens. Of the unlocked WRX tokens, Binance transferred 116.8 million (11.68% of the total supply) to a treasury account on binance.com through multiple transactions.
Additionally, WazirX clarified that their team did not receive any token allocations from Binance, highlighting the control that Binance has over the WRX token.
Binance has five quarters of token burns to complete, starting in January 2022. On March 9, 2022, Binance burnt $6 million in WRX tokens from October to December 2021.
The absence of subsequent burns has raised concerns about the commitment of Binance to the project and its impact on the WRX token’s value.
Implications for WazirX and WRX Token Holders
WazirX users have been kept in the dark for an extended period due to the lack of transparency regarding the management of WRX tokens.
Although the news of Binance’s control over WRX tokens did not cause a significant immediate impact on the token’s price, there are potential implications for both WazirX and WRX token holders.
The ongoing feud between WazirX and Binance over the ownership of the exchange has been further fueled by this revelation.
Previously, Binance ceased providing wallet services to WazirX and requested the Indian crypto exchange to withdraw its assets from Binance wallets.
Binance’s repeated refusal to perform quarterly burns raises doubts about the exchanges’ future partnership.
For WRX token holders, the lack of regular token burns raises questions about the scarcity and value of the token. Token burns are typically intended to reduce the token’s supply, potentially increasing its value.
The absence of regular burns may impact market sentiment, as investors could interpret a lack of commitment from Binance. This could potentially affect the long-term prospects and stability of the WRX token.
