In this post:
- To distribute seized funds, WazirX is generating fresh RT tokens, which it may list for trading if user demand is strong.
- The delivery of tokens, rather than cash, is contingent upon the approval of creditors for a planned scheme.
- On WazirX’s First Distribution page, users may monitor their recovery status and rebalanced token allocations.
According to statements made by the company’s founder, Nischal Shetty, WazirX is issuing new Recovery Tokens (RT) to distribute stolen and recovered assets to its users. If users are interested, the tokens could soon be listed on the trading floor, providing an opportunity for liquidity and additional market exposure.
Naturally, the token distribution follows WazirX’s successful completion of the Net Liquid Platform Assets (NLPA) rebalancing procedure, which realigns platform assets with its liabilities.
WazirX’s recovery strategy consists of three primary strategies: the establishment of a decentralized exchange (DEX), profit-sharing, and the restitution of stolen assets. Speaking directly to WazirX users, Shetty declared, “We will do everything we can to help create value for our tribe.”
How WazirX plans to carry out its first significant token distribution
In order to decide whether to move forward with the Scheme of Arrangement, which involves the immediate distribution of rebalanced assets, creditors will meet with WazirX’s parent company, Zettai Pte Ltd, on January 23. This decision was approved by the Singapore High Court.
If accepted, creditors will be compensated with tokens rather than cash, exposing them to the market and potentially increasing their value.
Users may now view their allocation on the platform’s First Distribution page, which displays their calculated token breakdown, current market value, and effective USD recovery percentage, per WazirX’s official blog post on the subject.
A user expressed worry about the varying token values and disparities in displayed balances under Shetty’s article. The current value in USD differs from the NLPA value. The user said, “Please explain.” “You get to keep any market upside or downside from here on,” Shetty explained.
According to WazirX’s blog, the planned token distribution will take place within ten days of the scheme’s acceptance. However, several tokens with limited market liquidity, such as ANT, LOVELY, PUSH, GFT, OOKI, MDX, BOB, and WRX, will only be partially issued in their original amounts. The exchange stated that USDT or another stablecoin would be used to settle any outstanding amount.
WazirX’s strategies for upcoming recovery
“Where’s the 15% USD value if you currently display the 85% USD value for July 18, 1 PM?” asked Shetty immediately in response to a creditor. How will you demonstrate it? According to Shetty, the missing piece is directly related to the recently released RT tokens.
WazirX claims that if the creditors reject the scheme, they will have to wait for ownership conflicts over the platform to be settled, which the exchange expects to be a convoluted and drawn-out procedure.
Additionally, WazirX stated that token values are susceptible to fluctuation and are based on real-time market data from Coinmarketcap. Users can see their recovery amounts in real time by switching between INR and USD.
However, WazirX did caution that the high volume of token transactions during rebalancing and the volatility of cryptocurrency prices could result in small variations of up to 0.5% in recovery amounts.
Cryptopolitan Academy: Do You Make These Errors on Your Web3 Resume? Learn More Here
