WazirX Holds 92% of Total Reserves of $285M in Binance Wallets
WazirX announced this week that it has $285 million (around Rs 2,320 crore) in its reserves. The exchange, which claims to serve more than 15 million customers, conducted an audit of its reserves to ensure it could handle mass withdrawals in an emergency without having to shut down operations. Of the total user assets, approximately 92% are held on Binance wallets. This amounts to $259.07 million (about Rs. 2,120 crore).
The 2017-founded exchange has stressed to existing and potential clients that its reserves-to-liabilities ratio is “more than 1:1”. This basically indicates that WazirX is not likely to face a liquidity shortage situation like FTX.
The audit also revealed some interesting highlights, giving insight into the current state of crypto culture in India.
Shiba Inu, Bitcoin, and Ethereum emerged as the top cryptocurrencies that make up WaizirX’s holdings in total value and percentage.
Dogecoin and Polygon also got a decent ranking on the list.
Indians are apparently betting big on the same DOGE and SHIB coins.
In December 2022, the exchange said that over 27% of early crypto buyers on its platform purchased Shiba Inu tokens. DOGE trading, on the other hand, swelled 3,000% as soon as Tesla chief Elon Musk completed the takeover of Twitter.
CoinGabbar, a third-party platform that tracks crypto assets, has released proof of reserve from WazirX.
“It is not intended to be a full, complete, or complete statement of the actual assets or reserves held by the exchange on behalf of its users or customers,” CoinGabbar’s post noted.
WazirX holds $26.45 million (around Rs 220 crore) in reserves, or 8% of the total, in wallets hosted by other exchanges.
KuCoin, Binance, CryptoCom and Giottos also conducted checks on their financial status.
During the last week of December 2022, officials from the United States Securities and Exchange Commission (SEC) warned crypto investors not to blindly trust the internal audits of crypto firms.
“Having such a report is not sufficient for an investor to assess whether the company has enough assets to cover its debts,” said Paul Munter, the acting chief accountant of the company, at the time. SEC, quoted by the media.
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