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WazirX to compensate investors who bought Shiba Inu coin at high price

WazirX has announced that it will compensate investors who bought Shiba Inu coins on its platforms at the higher price.

twitter-logoManas Tiwari | May 17, 2021 | Updated 10:35 IST
Shiba Inu coin
The meme cryptocurrency was listed on the platform last week.

Highlights

  • WazirX to compensate investors who bought SHIB at higher price.
  • Trading platform announces WRX Airdrop program for compensation.
  • Investors to get compensated over next four months.

WazirX has announced that it will compensate investors who bought Shiba Inu coins on its platforms at the higher price. The trading platform has announced an Airdrop program for the same which will be executed over the next four months. WazirX founder Nischal Shetty tweeted that the WRX Airdrop program will cover investors who bought SHIB token at a very high price and are yet to sell it.

"Announcing WRX Airdrop program for users who bought SHIB at exceptionally high price & did not sell. WazirX is about trust & we have decided to help our users. We will AIRDROP WRX equivalent to your loss!" Shetty tweeted.

The meme cryptocurrency was listed on the platform last week after its sudden popularity. At the time of listing, the SHIB token was valued at around $0.00002 which converts to around 0.0016 INR. The price listed on WazirX was 3 INR. As there was a lot of hype around the Shiba Inu coin, many investors bought it for the listed price, without checking it, largely because of the urgency.

The price returned to the actual cost within hours. Several investors took to social media platforms to share their holdings and claiming how they were robbed. India Today Tech had highlighted the issue last week. However, WazirX has maintained that it had no role to play in it and will ensure that this doesn't happen again.

The platform in a blog post said that for tokens listed under Rapid Listing Initiative, it relies on liquidity provider to provide initial liquidity.

"Today, when SHIB market went live, its deposits and withdrawals took longer to go live due to a misconfiguration. There was also a delay in our liquidity provider bringing in liquidity, and that led to a liquidity crunch in SHIB market. With more people trading, SHIB prices climbed up due to the lack of liquidity," the statement from WazirX added.

Who will be compensated and how?

According to the details shared by WazirX, two categories of investors will be eligible for investing in cryptocurrencies -

-- Who bought SHIB at exceptionally high price and have not sold them.

-- Who bought SHIB at exceptionally high price and sold them after prices normalised.

The platforms said that it will conduct a WRX airdrop program over the next 4 months. As part of the program, investors will be paid WRX equivalent to 25% of their loss every month for the next 4 months.

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