Indian Crypto Currency Exchange WazirX which was recently hacked for over $230 million, in a latest X post has revealed plans to issue a Recovery Token to settle outstanding debts with creditors.
The official announcement said that the token will be airdropped to Creditors proportionate to their balances on the platform.
The exchange noted that the recovery token will offer a path to recovery through Future platform profits, New business initiatives, Realization of Illiquid Assets held by third parties, Recoveries from stolen assets, and Potential capital from White Knight proposals.
The exchange noted key use cases of Recovery Token which include:
Buybacks, which aim to boost creditor recoveries and capture market movements. With Additional Liquidity, tokens can be traded in the open market for early access to funds, offering flexibility and a chance to capture immediate value.
In another post, the exchange outlined four major strategies to maximize fund recovery. The crypto exchange also announced plans to launch a native DEX token and enable Recovery Token swaps for Creditor benefits.
The first initiative will see WazirX reopen its platform for trading, allowing users to resume trading and potentially driving up trading volumes. It underscored that the Fees generated during this period will be shared with Creditors, creating a stream of recovery for them.
Secondly, WazirX plans to diversify its revenue streams by introducing new products and services. These include a decentralized exchange (DEX), staking options, an over-the-counter (OTC) desk, and futures trading.
The exchange noted that the DEX will aim to merge “the user-friendly experience of centralized exchanges with the security of self-custody,” creating a system that emphasizes both accessibility and security.
The focus would be to encourage users to provide liquidity through rewards, ensuring smooth trading. It would feature an intuitive interface for easy onboarding and engagement. It also revealed plans to launch a native DEX token and enable Recovery Token swaps for Creditor benefits.
Staking Feature-
Through the new staking feature, users get an opportunity to earn rewards through blockchain network support. Users would be able to deposit tokens into our staking pool or directly use staking smart contracts across multiple blockchains. Staking rewards will be proportional to investment, subject to a nominal fee.
OTC And Futures Trading–
An OTC Desk will be designed for large-scale crypto transactions, ideal for institutional investors and high-net-worth individuals.
It also plans to enable Futures Trading on the platform allowing users to speculate on future crypto price movements with leverage options, and amplify gains (or losses) by entering into contracts to buy or sell assets at a predetermined future price.
The exchange also noted ongoing efforts to pursue legal actions to reclaim illiquid and stolen assets actively, ensuring they are secured for Creditors’ benefit.
Finally, it revealed exploring ongoing White Knights proposals, who can offer rescue financing and strategic collaboration. It noted that such partnerships could provide additional funding and support for Creditor recoveries.
The exchange has appreciated the WazirX community’s unwavering support and patience as they implement these recovery initiatives.
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