Binance has moved 17 tokens, including WazirX’s WRX, to its innovation zone.
The dispute between Binance and Indian exchange WazirX has reignited, with Binance suggesting it might delist WazirX’s native WRX tokens. This tension escalated on May 10, 2023, when Binance announced on Twitter that it would move several assets, including WRX, to the “Innovation Zone.”
Binance CEO Changpeng “CZ” Zhao later clarified on Twitter: “As some of you suggested, instead of direct delistings, we will move ‘no-progress projects’ to the innovation zone first. If they still don’t improve, we may delist. One more intermediate step.”
Binance moved 17 tokens, including WRX, to its innovation zone.
“The Innovation Zone was created to give Binance users a place to trade new and risky projects,” a Binance blog stated. On May 16, a WazirX blog post claimed they had no control over the WRX tokens, listing wallet addresses where Binance is holding a total of 580.78 million WRX tokens.
“We hope this clears up any confusion about WRX management,” the WazirX blog stated.
Since May 10, the price of WRX has dropped significantly from $0.1459 to $0.1243 on May 24, and trading volumes have decreased from $622,128 to $518,980, according to CoinMarketCap.
“Users are blaming WazirX, but WazirX has no control because Binance is in charge,” an industry source told CoinDesk. “When Binance, the biggest exchange in the world, says it might delist a token, it negatively affects the token’s price and volatility.”
The public dispute between Binance and WazirX, which began in August 2022, revolves around the true ownership of the Indian exchange. In this latest chapter, WazirX also claims that Binance is responsible for the quarterly burning of WRX tokens and has not done so for the past five quarters, since January 2022.
Burning refers to the permanent removal of tokens from circulation by sending them to an inaccessible address, which can sometimes increase the token’s price by reducing supply.
“Binance is increasing the pressure, trying to strangle the token or possibly kill it,” the source said.
Binance did not immediately respond to CoinDesk’s request for comment, and WazirX declined to comment.
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