Indian crypto exchange WazirX is going to refund users with WRX tokens who lost money on the volatile Shiba Inu (SHIB) coins that opened at a substantial premium to its current price on the exchange on 14th May. The refund will be made in the form of WRX token airdrops, the exchange’s native crypto asset.
SHIB Holders Faced Losses Due to WazirX Listing Error
Shiba Inu (SHIB) coin is the most talked-about cryptocurrency these days, hailed as a Dogecoin killer that surged soon after being listed earlier this week.
Till 13th May, it wasn’t listed on any of the Indian cryptocurrency exchanges with WazirX becoming one of the first to enable trading.
With the token listing, a lot of interested WazirX investors bought the SHIB tokens at an affordable price.
At the time, the SHIB coin was valued at $0.00002, however, the price listed on WazirX was $0.041.
A lot of investors ended up buying the SHIB coins at the listed price, unaware of the price of the actual token.
Most of them only realized it after the price crashed down to the actual cost, claiming that they were duped by the Indian cryptocurrency exchange.
Refund to Holders in WRX Token
In response to users that faced huge losses on buying the SHIB coins, the CEO and Co-founder of WazirX said that the company has introduced the “WRX Airdrop” program for users who bought “SHIB at an exceptionally high price and did not sell after the token’s prices normalized.”
Hence, the exchange has decided to refund the users in the form of WRX airdrop over the next 4 month:
“We will conduct this WRX airdrop program over the next 4 months. We will airdrop WRX equivalent to 25% of your loss every month for the next 4 months.” Shetty said.
Note: WazirX DID NOT sell this SHIB. Users bought & sold it in open market
Due to liquidity crunch, prices rose fast for brief period of time
However, we want to help our users and our community. Hence this airdrop program
Buyers will receive airdrop. Sellers won’t be affected
— Nischal (WazirX) ⚡️ (@NischalShetty) May 16, 2021
In the future, the exchange is also planning to warn users about expected volatility for 24 hours on its site when a new token is listed:
“We are at a stage where relying on liquidity providers won’t work for us at this scale. From now, we will enable deposits and withdrawals of a token. After giving sufficient time for people to bring in the tokens, we will then enable the listing. This will ensure that there’s no liquidity crisis.”