WazirX announced this week that it holds $285 million (about Rs. 2,320 billion) in its reserves. The exchange, which claims to serve over 15 million customers, has conducted an audit of its reserves to ensure it can handle emergency bulk withdrawals without having to shut down its business. Around 92 percent of all user assets are held on Binance wallets. This makes US$259.07 million (about Rs.2,120 billion).
Founded in 2017, the exchange has highlighted to its existing and prospective clients that its reserves to liabilities ratio was “greater than 1:1”. This basically points to that WazirX does not run the risk of being confronted with a liquidity crisis FTX.
The audit also revealed interesting highlights that provide an insight into the current status India’s crypto culture.
Shiba Inu, Bitcoinand ether emerged as the top cryptocurrencies making up WaizirX’s holdings by total value and percentage.
Dogecoins and polygon also secured decent rankings on the list.
Apparently, Indians rely heavily on the memecoins DOGE and SHIB.
The exchange took place in December 2022 said that over 27 percent of first-time crypto buyers on its platform have purchased Shiba Inu tokens. The DOGE trade, on the other hand, has already swelled by 3000 percent Teslaboss Elon Musk completed Twitter take.
CoinGabbar, a third-party platform that tracks crypto assets, released WazirX’s proof of reserve.
“It is not intended to be an exhaustive, complete or comprehensive statement of the actual assets or reserves held by the exchange on behalf of its users or clients,” the statement said post Office noted by CoinGabbar.
WazirX holds US$26.45 million (around Rs.220 billion) worth of reserves, accounting for eight percent of the total, in wallets hosted by other exchanges.
KuCoin, binance, CryptoComand Giottus also conducted checks on their financial status.
In the last week of December 2022, United States Securities and Exchange Commission (SEC) officials issued a warning to crypto investors that they must not blindly trust the internal audits of crypto companies.
“Such a report is not sufficient for an investor to assess whether the company has sufficient assets to cover its liabilities,” media reports quoted Paul Munter, the SEC’s acting chief accountant, said at the time.
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