WazirX and Binance Feud: WazirX Issues Clarification on $WRX Token

WazirX and Binance Feud: WazirX Issues Clarification on $WRX Token

WazirX, an India-based Bitcoin Exchange, recently updated WRX token holders and investors about its relationship with the Binance exchange and clarified their stance on $WRX Token and Burn.

WazirX stated that Binance controls the $WRX tokens, following the WRX IEO conducted by Binance.

Update on $WRX Token Management & Burn Clarification

Full details here – https://t.co/pzhjsJCXpl

In light of recent events, we would like to clarify that Binance controls the WRX token.

Binance had conducted the IEO for $WRX, and all the sale proceeds of WRX IEO (i.e.,… pic.twitter.com/ChZqlGuhBt

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) May 16, 2023

Token Allocations and Relationship Stance Of The Two

According to WazirX’s tweet,  IEO for WRX was conducted by Binance, and all the sale proceeds of WRX IEO (i.e. 108,401 BNB tokens worth USD 2 Million) were collected and retained by Binance. Additionally, WazirX added that the wallets holding locked and released WRX tokens are also managed and controlled by Binance.

The team also shared that Binance is now responsible for the quarterly WRX tokens burn. Previously, the WRX burn event happened on March 9, 2022, and was organized by Binance for the Oct-Dec 2021 quarter (7th burn event). Since Jan 2022, Binance hasn’t led any burn events for five quarters.

Along with WRX tokens, Binance also handles the wallets possessing WRX tokens (locked and released). The tokens to be released based on WRX Release Schedule are available in these wallets. WazirX also offered a complete list of wallet addresses in which you’ll find the locked and unlocked 580.78 million WRX tokens held by Binance.

According to some reports, Binance moved 116.8 million WRX tokens (11.68 percent of the total supply) to a treasury account. The binance.com account received these tokens on different dates in four transactions. WazirX also offered insights into the remaining burns, with information about the number of WRX to burn every quarter.

History of Binance Vs. WazirX Clash

It’s been a while since the Binance Vs. WazirX clash has been going on, and the current statements from the WazirX team .while calming the investors, gives us a glimpse of how the relationship has soured over the years.

The clash originated when Binance announced the termination of wallet services to WazirX following WazirX’s legal trouble with the Indian government. Binance asked WazirX to withdraw their assets till a specified date. The reason stated  by Binance was due to misleading statements by Zanmai Labs (Owner of WazirX) about their relationship as the cause of termination.

Binance offered two alternatives to Zanmai- either retract those statements or finish the partnership. Zanmai’s response was unsatisfactory, leading to the end of their relationship.

As a result, Binance Exchange ordered Zanmai to withdraw funds by Feb 3, 2023, from the WazirX operation accounts.

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