WazirX shuts NFT marketplace amid ongoing crypto winter
The NFT marketplace was created in June 2021 by the Indian crypto exchange WazirX but has been discontinued.
Users can still make deposits
WazirX, an Indian crypto exchange, has closed down its NFT marketplace. According to the website, the “marketplace has been sunsetted.”
As per the website, users can still trade NFTs and sell or buy the NFTs they bought on WazirX by visiting the OpenSea link on the website. WazirX’s OpenSea profile states that 52,253 items are available for purchase.
Users are disturbed by the situation, and many are concerned that the exchange will be the next to close. On the topic, there is, however, no confirmation. It’s probable that there are some technical difficulties with the NFT market and that it will soon be operational again.
The crypto industry is on shaky ground due to India’s stance on cryptos and other virtual digital assets {VDAs}, which puts WazirX in an unsafe situation. To “weather the crypto winter,” the crypto business Wazirx let go of 50 to 70 staff in October 2022.
A prolonged crypto winter has devastated the Indian scene, and WazirX has been gradually scaling up its operations over the past few months. Although users can still make deposits on the crypto exchange platform, INR withdrawals must be enabled.
The business has made proof of reserves public to allay some user anxiety caused by numerous disputes. WazirX’s total reserves as of Feb. 22, 2023, at 1:50 PM, were $315.56 million, of which only $9.76 million was on its exchange, and the remainder was parked on the blockchain.
WazirX embroiled in a dispute with Binance
Previous disputes between WazirX and Binance, the biggest exchange in the world, concerned ownership of the platform. It was believed that the crypto juggernaut bought the Indian exchange in 2019.
According to Binance CEO Changpeng Zhao {CZ}, the deal was never completed.
The CZ-led platform published a blog that urged Zanmai Labs, the organization in charge of the well-known Indian crypto exchange, to withdraw assets that were held in Binance wallets. After users were concerned about their assets, Binance took action.
Nevertheless, the NFT marketplace closure and the Binance fiasco have renewed investor apprehension. They need to find out the marketplace problem and how the exchange intends to proceed.
The Indian government has also scrutinized WazirX. The Enforcement Directorate (ED) froze assets worth INR 64.67 Cr concerning a money laundering case in August of last year, just hours before Zhao posted his infamous series of tweets.
In addition, WazirX received a show-cause notice from the ED in June 2021 for transactions totaling INR 2,790.74 Cr. This case is still ongoing.
