Following Binance’s unexpected move to delist WazirX [WRX], Kaon [AKRO], and Bluzelle [BLZ], a sharp decline in their values has been witnessed, with WRX plummeting by 56% to $0.1006 at the current moment.
This decision by Binance has not only affected the prices of these tokens but has also brought to light the ongoing Binance-WazirX dispute, raising concerns about the regulatory risks associated with these digital assets.
How did the situation escalate between Binance and WazirX?
The relationship between Binance and WazirX has been surrounded by controversy, particularly after Binance initially claimed ownership of WazirX in 2019, only to deny complete ownership in 2022.
The conflict intensified following regulatory investigations into WazirX in India, with allegations of money laundering and hacking incidents valuing $235 million surfacing. Recently, the Delhi High Court mandated a fresh probe into WazirX’s transgressions, further complicating the exchange’s position.
Binance’s decision to delist these tokens signals a deteriorating relationship, especially impacting WRX, WazirX’s native token, by eliminating a crucial trading platform and reducing its overall liquidity and attractiveness to investors.
WRX’s downward spiral: Insights from the data
The significant 56% drop in WRX’s value within a span of 24 hours underscores the vulnerability of the token. Currently, WRX is priced at $0.1006, with a market capitalization of $38.42 million, marking a decline of 56.27%. The surge in trading volume by 550% indicates widespread panic selling.
Technically, WRX has breached crucial support levels, with immediate support set at $0.0869 and resistance at $0.1181. The Relative Strength Index (RSI) has plummeted to 34.9, indicating oversold conditions.
The Moving Average (MA) cross (9, 21) demonstrates a consistent bearish trend at $0.2168 and $0.2129.
With the delisting and regulatory uncertainties looming, WRX’s chances of recovery appear bleak, causing a dip in investor confidence.
Why did Binance opt for this course of action?
Binance’s decision reflects its broader strategy focused on compliance amidst mounting regulatory pressures. With WRX embroiled in legal and ownership disputes, it has emerged as a liability for Binance.
This tactical move aligns with the increasing global emphasis on regulating crypto exchanges, as authorities demand stricter oversight to combat fraudulent activities. Removing controversial tokens like WRX demonstrates Binance’s commitment to risk mitigation and regulatory adherence.
What about AKRO and BLZ?
While WRX faced the brunt of the delisting repercussions, AKRO and BLZ also experienced significant declines. AKRO’s value decreased by 38% to $0.00238, and BLZ saw a 42% dip to $0.07099 at the time of the announcement.
Unlike WRX, these tokens do not have the same regulatory issues. Their decline seems to stem more from market reactions to Binance’s decision. Nevertheless, they face uncertain futures as decreased liquidity and exposure pose considerable challenges.
The fallout between Binance and WazirX serves as a warning to the crypto market, emphasizing the significance of governance, transparency, and regulatory compliance. The road to recovery for WRX appears arduous amidst legal and reputational obstacles.
Investors are urged to proceed cautiously, recognizing the risks associated with platform conflicts and regulatory pressures.