• WazirX, an Indian crypto exchange, has closed down its NFT marketplace.
• The closure is due to the ongoing crypto winter and India’s stance on cryptos and other VDAs.
• WazirX previously had a dispute with Binance concerning ownership of the platform.
Overview
The Indian cryptocurrency exchange WazirX has shut down its NFT marketplace as part of a move to weather the prolonged crypto winter in India. This decision is due to India’s stance on cryptos and other virtual digital assets {VDAs}. In October 2022, WazirX let go of 50-70 staff members in order to survive the adverse conditions caused by this prolonged market downturn. Users can still make deposits on the exchange platform but INR withdrawals must be enabled for it to function properly. Moreover, there was also a previous dispute between WazirX and Binance concerning ownership of the platform.
WazirX Marketplace
The NFT marketplace was created in June 2021 by the Indian crypto exchange WazirX but has been discontinued since then. Users can still make deposits on the website but cannot access their funds through INR withdrawals as yet. As per the website, users can still trade NFTs and sell or buy the NFTs they bought on WazirX by visiting OpenSea link on the website. According to OpenSea profile, 52,253 items are available for purchase at present.
Crypto Winter
The prolonged crypto winter has taken a toll on the entire industry with businesses having to scale back operations in order to remain afloat during these trying times. In this context, it is understandable that businesses like WazirX have decided to shut down their non-profitable ventures such as their NFT Marketplace so that they may focus their resources in more profitable areas such as trading or lending services instead.
Proof Of Reserves
In light of numerous disputes from customers who were concerned about lack of liquidity in terms of funds available for withdrawal along with difficulties associated with accessing those funds; Wazirx made proof of reserves public for allay user anxiety regarding these issues. As per records dated 22nd Feb 2023 at 1:50 PM IST; total reserves available with them amounted up to $315 million out of which only $9 million was parked on exchanges while rest were locked up securely into blockchain based wallets & accounts held by them or any third-party partners they might have worked with in past few months .