WazirX, a prominent player in the cryptocurrency universe, is stepping up its recovery plan in the aftermath of a significant asset shakeup. The company has announced that it will be issuing new Recovery Tokens (RT) to help distribute stolen and recovered assets back to its user base. This decision was made public by the company’s founder, Nischal Shetty, who also hinted at the possibility of these tokens making their way to the trading floor, providing a new avenue for liquidity and a potential boost in market value.
This initiative by WazirX comes on the heels of the firm concluding its Net Liquid Platform Assets (NLPA) rebalancing process, which is essentially a realignment of the platform’s assets and liabilities.
In a direct address to WazirX users, Shetty outlined the company’s recovery plan, which encompasses three key components: profit-sharing, stolen asset recovery, and the introduction of a decentralized exchange (DEX). He reassured users that every possible measure would be taken to create value for their community.
The token distribution, which represents the first significant move of its kind for WazirX, is set to go ahead after receiving the go-ahead from the Singapore High Court. The court allowed Zettai Pte Ltd, the parent company of WazirX, to hold a meeting with its Scheme Creditors on January 23. The creditors will then vote on whether to endorse the proposed Scheme of Arrangement, which includes the immediate distribution of rebalanced assets.
If approved, creditors will be compensated with tokens rather than fiat currency. This approach exposes them to the market and opens up the potential for price appreciation.
WazirX has made provisions for users to track their allocation on the platform’s First Distribution page. The page provides a detailed breakdown of their tokens, the current market value, and their effective USD recovery percentage.
In response to a user inquiry regarding the varying token values and inconsistencies in balance displays, Shetty explained that users would retain any market upside or downside from this point on.
The token distribution plan is expected to be executed within 10 days of Scheme approval, as stated in WazirX’s blog. However, certain tokens with low market liquidity will be partially distributed in their original denominations, with any remaining balance settled in USDT or another stablecoin.
Shetty also addressed a query on the missing 15% USD value, stating that it directly correlates with the newly issued RT tokens. He further added that if the Scheme is rejected by the creditors, it would result in a lengthy and complicated process of resolving ownership disputes over the platform.
While the token prices are based on live market data from Coinmarketcap and are subject to change, WazirX also advised that minor variances of up to 0.5% in recovery amounts could occur due to the vast number of token transactions during rebalancing and crypto price volatility.
This move by WazirX signifies a significant step in their recovery plan and demonstrates a commitment to protecting their user base while increasing potential market exposure.
