- WazirX proposes a controversial 55/45 approach after a $230 million hack.
- Users can trade only 55% of assets, with 45% converted to stablecoins and locked.
- The crypto community demands better security and transparent communication.
In the aftermath of a $230 million hack, WazirX’s proposed “socialized losses” plan has sparked significant outrage within the crypto community.
WazirX co-founder Nischal Shetty clarified that the poll was intended to gather community input and was not a binding decision. However, this has done little to alleviate user frustration.
WazirX Hack Sparks Controversy Over Asset Lock Plan
WazirX, a prominent cryptocurrency exchange, is under fire after proposing a controversial 55/45 plan to address losses from a recent $230 million hack. This plan restricts users to trading only 55% of their assets, with the remaining 45% converted into stablecoins like USDT and locked on the platform. This measure affects all users, regardless of whether their funds were directly impacted by the hack.
The crypto community has vehemently opposed this approach, with a user poll indicating strong disapproval. Many users feel that the plan unfairly penalizes them and limits their ability to access their investments. The exchange’s handling of the situation and its communication strategy have also been criticized, leaving users feeling vulnerable and uncertain.
WazirX co-founder Nischal Shetty has attempted to mitigate the backlash by explaining that the poll was merely a tool to gauge community sentiment and not a final decision. Nonetheless, the exchange’s denial of alleged security lapses reported by TruthLabs has done little to restore user confidence. The hack and the subsequent proposal have underscored the need for improved security and transparency within the crypto industry.
In response to the incident, the Bharat Web3 Association (BWA) is focusing on developing stronger cybersecurity measures and better consumer protection protocols. This initiative aims to prevent similar incidents in the future and rebuild trust in the rapidly growing cryptocurrency sector.
The WazirX hack and the subsequent backlash against the proposed 55/45 plan highlight the critical importance of robust security measures and transparent communication in the cryptocurrency industry. As the community demands better protections and clarity, exchanges must prioritize user trust and safety.
“The backlash against the 55/45 approach shows the growing frustration and uncertainty among WazirX users, many of whom cannot withdraw their funds.”
