Crypto community slams WazirX’s ‘socialized losses’ plan after hack
As WazirX navigates this crisis, the firm faces the challenge of rebuilding trust with its user base and the broader crypto community.
In the aftermath of the recent WazirX hack, which resulted in a $230 million exploit, the cryptocurrency exchange’s proposed solution to address the losses has met significant resistance from its user base.
The crypto community heavily criticized the firm’s plan, known as the “socialized losses” or 55/45 approach, particularly after a user poll reportedly showed overwhelming disapproval of the measure.
The proposed 55/45 approach suggested that users could trade only 55% of their assets on the Indian exchange while the remaining 45% would be converted into USDT stablecoin or other tokens. These converted tokens would then be locked on the platform. This decision would apply to all users, regardless of whether the hack affected their funds.
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Author: Amaka Nwaokocha
