WRX is the cryptocurrency released by Wazirx exchange, the largest exchange in India and a part of the Binance ecosystem. WazirX is a Mumbai-based cryptocurrency exchange that started working in March 2018 just before the Indian central bank introduced a ban on virtual currencies in the region.
It became a huge challenge for the exchange that just started working but it managed to survive in the conditions when many participants of the Indian cryptocurrency market had to stop working. The reason for that was a severe drop in trading volumes caused by the ban as investors feared violating the regulations.
Being new in the market, the platform managed to turn this fact into an advantage and make the most out of the crisis. The three-week-old resource didn’t bother about restrictions as it didn’t have a huge infrastructure to support. It wasn’t that large at that time in comparison with its business rivals so it wasn’t hard for the enterprise to tide over the ban.
Since the demand for cryptocurrencies is great in India, the team tries to create a platform to meet the demand of users despite unfavorable conditions for the development of the crypto industry in the country. Due to the ban imposed by the Indian central bank, the cryptocurrency infrastructure is not developed, so the company tries hard to compensate for it and introduce world-class practices locally serving both cryptocurrency enthusiasts from India and other countries.
WazirX platform and technologies
The platform launched a peer-to-peer system to solve the problem of a regulatory hurdle. It removed the necessity for the participation of financial institutions and helped to connect buyers and sellers directly. It became a key moment that entailed skyrocketing growth.
Another key moment in the development of the exchange took place in November 2019 when Binance paid attention to the exchange and purchased a share in the Indian cryptocurrency startup. Media sources claim that the transaction was estimated at 5-10 million USD. This has become a landmark moment for the whole crypto industry and raised the level of the platform considerably. Binance has also introduced the service enabling users to buy and sell cryptocurrencies with Indian rupees using Binance Fiat Gateway.
In 2021, WazirX crossed 200 million USD in daily trading volume. There are 130+ cryptocurrencies available for trading on the platform at the time of writing.
The platform has a mobile app with an average app rating of 4.6. In partnership with Binance, WazirX has launched a 50 Million USD ‘Blockchain for India’ fund. Though it is an Indian platform, it targets users all across the world. The platform can boast of instant deposit and withdrawal, a highly efficient auto-matching peer-to-peer engine with high liquidity, and the opportunity to login via Binance.
The WRX token is the backbone of the ecosystem. When it was released, the platform tried to attract new users with a promise to distribute their tokens among early participants of the system. The investors could save 50% on trading fees when using the token for their deals. 40,000 users signed up on the platform within a week after the announcement.
Apart from transactions, WRX is needed to pay a listing fee, margin fee, and voting.
The total supply is one billion tokens. The platform applies the burning scheme to preserve the value of its native tokens. At the time of writing, it has performed burning 5 times removing 3.7 million, 6.5 million, 3.3 million, 8.3 million, and 7.3 million WRX tokens from circulation in different burning sessions correspondingly. The coins are burnt on a quarterly basis. Later the platform plans to conduct burning sessions in proportion to the growth of the exchange.
The company uses burning not only to strengthen the price of existing coins but also to demonstrate the commitment of a team by a cryptocurrency project. The team of the exchange performs regular updates to the WazirX engine, thus increasing the security of exchange users. Easy, secure, and seamless exchange of rupees to WRX or vice versa attracts more customers to the facility. Also, the Binance support contributes to the stability of the facility.
The WazirX platform uses the revenue model based on the trading fee, which is from 0.1% to 0.2% for investors. Low fees along with lack of fiat custody and round-the-clock availability make the platform convenient for work.
Nischal Shetty, CEO and co-founder of WazirX, tried mining in 2010 using his personal computer. The world of cryptocurrencies attracted his attention again in 2017 before the bull rally began. Shetty is a software engineer with a bachelor’s degree in computer science. He noticed a huge disparity in user experience between the Indian and global exchanges. He joined efforts with his former colleagues to launch the WazirX platform in an effort to change the situation. Siddharth Menon and Sameer Mhatre became the co-founders of the exchange. First, they created the website and announced the future release of a native token to support the ecosystem. It was a kind of research and experiment for them before they fully submerged into the cryptocurrency industry.
The #IndiaWantsCrypto campaign
The team is rather active and dedicated to what they do. It’s worth mentioning continuous media coverage of the platform. For instance, the founder of the platform Nischal Shetty began a campaign on Twitter called #IndiaWantsCrypto after India banned crypto-related transactions.
The initiative, actually, continues to this day and has celebrated 1000 days on July 27, 2021.
After 303 days of addressing ministers of the government, seeking a positive crypto regulation in India, Shetty was tweeting every day and, eventually, had received a positive response from Rajeev Chandrashekhar, a sitting Rajya Sabha MP.
On March 4th, 2020 (after 450 days of tweeting), the Supreme Court ruled in favor of decentralized currencies, opening banking channels to cryptocurrencies.
The campaign became very popular globally and continues to bring awareness about cryptocurrencies to Indian society. It undoubtedly affected the decision of the Indian central bank to develop and adopt CBDC in the next few years.