WazirX, a cryptocurrency exchange, has released Proof of Reserve to boost transparency.

by | Jan 25, 2023 | Market, Market News | 0 comments

WazirX’s Background

WazirX is the largest cryptocurrency exchange in India. WazirX, which was founded in 2018, has risen to become the most reputable exchange in the Indian crypto sector.

It is a subsidiary of the Binance Group, which operates the world’s largest cryptocurrency exchange, with customers in 180 countries. WazirX and Binance recently established a $50 million Blockchain India Fund to support their ambition of making cryptocurrency accessible to Indians.

WazirX is experiencing a significant increase in the number of new users as well as trading activity, with a monthly volume of $5.4 billion and expanding at an exponential rate. WazirX’s expansion has just just begun, with 6 million registered users. WazirX and Nischal Shetty, the founders of the #IndiaWantsCrypto movement, has over 5 million followers on social media.

WazirX publishes reserve evidence.

Following the crypto industry’s fear and upheaval generated by the FTX liquidity and bankruptcy incident, leading digital-asset service providers began disclosing their reserve money. WazirX, a cryptocurrency exchange, has issued its proof of reserves report, revealing that the total value of customer assets held is $286 million.

WazirX’s reserves-to-liabilities ratio remains more than one, signalling adequate liquidity for consumers in the case of a withdrawal, according to the company. WazirX displayed their proof of reserves using Coin Gabbar, a third-party crypto asset tracking software. At the time of writing, WazirX had around $285 million in total user assets stored in Tether.

The statement claims that 90% of WazirX customer funds are housed in Binance-based wallets, with the remaining 10% maintained in both hot and cold storage wallets. This equates to around $256.5 million and $28.5 million. This comes at a time when crypto exchanges are attempting to soothe nervous clients who have requested disclosures. Investors are suspicious of exchange operations following the recent FTX catastrophe in the crypto market.

“We are dedicated to establishing India’s leading crypto exchange ethically and safely, and complete transparency is a vital component of that promise,” said Rajagopal Menon, Vice President of WazirX. We intend to give our users with the trust and security they deserve by making our wallet addresses, exchange list, and independent Proof of Reserves report public.”

User resources

The bulk of WazirX user assets are housed in Binance-based wallets, with the remainder in both hot and cold storage wallets. Shiba Inu tokens are the exchange’s largest holding, accounting for 19% of total reserves. WazirX is the owner of 6.09 trillion SHIB tokens worth $53.8 million. The next two are Ethereum and Bitcoin.

The exchange now owns 1,248.76 Bitcoin worth $21.7 million and 19,832.17 Ethereum coins worth $26.43 million. WazirX is a crypto exchange platform located in India that allows users to buy, sell, and trade various crypto assets such as Bitcoin, Ether, Litecoin, and others. WazirX now has over 15 million users.

Despite being India’s largest exchange, WazirX has previously been in trouble with local authorities for money laundering. During the investigation, monies on the exchange were frozen for a little more than a month. During this period, Binance openly distanced itself from the exchange with a tweet from CEO Changpeng Zhao, who stated that Binance does not own the exchange.

Furthermore, throughout the inquiry time, Binance sided with local authorities by halting off-chain financial transactions using WazirX. Binance was the first exchange to reveal its proof of reserve plan following the FTX debacle, prompting a chain reaction of other exchanges to follow suit.