","button_title":"Play-to-Earn Game List","span_one":"No obligations","span_two":"Free to use"}},"header":{"homepage":"Homepage","Game Reviews":"Game Reviews","Game List":"Game List","Developers":"Developers","Developer List":"Developer List","Gaming News":"Gaming News","search":"Search","local":"en","Popular P2E Developers":"Popular P2E Developers","Play To Earn Games":"Play To Earn Games","P2E Games":"P2E Games","Crypto Games":"Crypto Games","Web3 Games":"Web3 Games"},"meta":{"title":"Games to Earn, Blockchain, NFT, P2E Games List","description":"Play hundreds of games! Games to Earn, P2E, Blockchain, NFT, Crypto, Web3 Games. Read game reviews and start playing right away. Play now!","ogType":"article","keywords":"NFT Games, Crypto Games, Earning Games, Earning Games, Blockchain Games, P2E Games"}}},"initialLocale":"de","ns":["news_letter","singleNews","singleGame","footer","common","header","meta"],"userConfig":{"i18n":{"locales":["en","hi","fr","es","de","pt","nl","tr"],"localeDetection":false,"defaultLocale":"en","domains":[{"domain":"playtoearngames.com","defaultLocale":"en"},{"domain":"hi.playtoearngames.com","defaultLocale":"hi","locales":["hi-IN"]},{"domain":"fr.playtoearngames.com","defaultLocale":"fr","locales":["fr-BE","fr-CA"]},{"domain":"es.playtoearngames.com","defaultLocale":"es","locales":["es-GT","es-MX"]},{"domain":"pt.playtoearngames.com","defaultLocale":"pt","locales":["pt-BR"]},{"domain":"de.playtoearngames.com","defaultLocale":"de","locales":["de","de-DE","de-AT","de-CH"]},{"domain":"nl.playtoearngames.com","defaultLocale":"nl","locales":["nl-BE"]},{"domain":"tr.playtoearngames.com","defaultLocale":"tr"}]},"trailingSlash":true,"default":{"i18n":{"locales":["en","hi","fr","es","de","pt","nl","tr"],"localeDetection":false,"defaultLocale":"en","domains":[{"domain":"playtoearngames.com","defaultLocale":"en"},{"domain":"hi.playtoearngames.com","defaultLocale":"hi","locales":["hi-IN"]},{"domain":"fr.playtoearngames.com","defaultLocale":"fr","locales":["fr-BE","fr-CA"]},{"domain":"es.playtoearngames.com","defaultLocale":"es","locales":["es-GT","es-MX"]},{"domain":"pt.playtoearngames.com","defaultLocale":"pt","locales":["pt-BR"]},{"domain":"de.playtoearngames.com","defaultLocale":"de","locales":["de","de-DE","de-AT","de-CH"]},{"domain":"nl.playtoearngames.com","defaultLocale":"nl","locales":["nl-BE"]},{"domain":"tr.playtoearngames.com","defaultLocale":"tr"}]},"trailingSlash":true}}}}WazirX Shocks Users: No Share in Past Profits Despite Losses - Play to Earn Games News
WazirX Shocks Users: No Share in Past Profits Despite Losses
Reinout te Brake | 17 Sep 2024 00:49 UTC
In recent developments surrounding the cryptocurrency exchange, WazirX, substantial information has emerged regarding its plans to navigate through the aftermath of a significant cyber breach. The pioneering platform has outlined a "restructuring" strategy aimed at compensating its users, albeit with a notable caveat: investors are poised to bear a substantial portion of the fallout.
WazirX Announces Restructuring Plan Post-Cyber Attack
The pivotal moment came when WazirX's management team took to a digital stage, hosting a townhall discussion on Youtube. The main agenda was to unveil a comprehensive restructuring scheme to its user base, still reeling from the shock of a cyber hack on July 18, which saw an astonishing Rs 2000 crore worth of cryptocurrencies vanish into thin air. During this session, clarity was offered on how the assets of Zettai, the entity linked with WazirX, would form the cornerstone of the proposed compensation model. The assets in question encompass the remaining funds on the platform post-hack, any recouped tokens, and those emerging from possible profit-sharing ventures post-restructuring. The total valuation of these assets, as per the exchange's report, touches around $301,787,232.
User Compensation Tied to Pro-rata Basis, Controversy Ensues
The specifics of the compensation process have sparked discourse and discontent among the WazirX user community. Key details reveal that users are expected to take a 45% reduction on their total investments in the exchange. This decision, particularly the exclusion of profits from previous years in the compensation scheme, has been met with stern opposition from affected users. They argue against bearing the brunt of losses from the cyber hack, questioning the management's stance on not sharing profits with them, especially under these dire circumstances.
The Financial Underpinnings and User Outrage
A deeper look into the financial operations of WazirX (Zettai Pte Ltd) unveils that the exchange had a bustling year in 2022, with total revenue reaching approximately $108.38 Million USD. However, a substantial portion of this revenue was allocated to marketing, administrative, and other expenses, leaving a relatively modest profit of $7 Million USD. This disclosure has fueled user ire, with many voicing concerns over the apparent prioritization of operational expenses over user compensation.
Adding to the complexity, a Q&A session held towards the townhall's conclusion brought to light more unsettling revelations. When probed about the deployment of past profits to aid hack victims, it was reiterated that following the sale of WazirX in 2019, Zettai did not retain any claims to these profits. This clarification has led to further speculation and questions about the flow of profits and the overarching financial strategy of the platform.
Looking Forward: The Restructuring Scheme and Its Implications
Zettai is now embroiled in a meticulous restructuring process, a tactical move to bridge the 45% asset-liability gap created by the hack. The proposed scheme of arrangement awaits the nod of the Singapore High Court, seeking an equitable asset distribution among creditors, the recovery of stolen tokens, and potential avenues for profit sharing.
Should the court sanction this scheme, creditors stand to receive token distributions, mirroring 55% of their claim value in USD terms. This plan not only marks a significant pivot in the exchange's operational blueprint but also sets a precedent for how crypto platforms might address unprecedented financial turmoil.
In essence, the unfolding scenario around WazirX highlights the complex interplay between user interests, platform sustainability, and the unpredictable nature of cybersecurity threats in the digital asset universe. As stakeholders brace for the journey ahead, the outcomes of this restructuring endeavor could very well shape the resilience and governance standards of cryptocurrency exchanges in the future.