Indian crypto exchange WazirX has shed light on its relationship with major global exchange Binance, announcing that Binance controls the WRX token. Binance is known to have conducted the WRX token IEO (Initial Exchange Offering) and retained all the proceeds from the sale, which totaled nearly $2 million. Currently, Binance holds 580.78 million locked and unlocked WRX tokens.
In a series of transactions documented by WazirX, Binance transferred a total of 116.8 million unlocked WRX tokens (11.68% of the total supply) to a treasury account on binance.com. The Indian exchange, however, clarified that their team did not receive any token allocations from Binance directly.
One significant concern for the WRX token holders is the reported failure by Binance to conduct the quarterly WRX burn, which is their responsibility. WazirX reported that Binance last executed a burn event for the quarter of Oct-Dec 2021 on 9th March 2022, where $6 million worth of WRX tokens were burned. However, Binance has allegedly not conducted quarterly burns for the past five quarters, starting from January 2022.
WazirX users had previously been unaware of the details regarding the management of WRX tokens. Despite the revelation, the token’s price only dipped by 3% at the time of writing. The information raises questions about Binance’s commitment to the project, particularly given the prolonged feud over the ownership of the exchange between WazirX and Binance. Previously, Binance had halted wallet services to WazirX and asked the Indian crypto exchange to withdraw its assets from Binance wallets.
At this time, Binance has yet to respond to the claims made by WazirX. These unfolding events highlight the importance of transparency in the realm of cryptocurrencies, a need often obscured by the decentralized nature of the technology.
As these events play out, potential investors and cryptocurrency enthusiasts must approach investing with caution and remain vigilant. Detailed market research and a thorough understanding of the risks involved are essential to make informed decisions in such a rapidly evolving industry. It is crucial to remember the fluidity of this landscape and the responsibility of involved parties to ensure accurate and transparent information is available to users.
Source: Coingape
