WazirX’s Platform Crashed Amid Regulation Panic

WazirX's Platform Crashed Amid Regulation Panic
  • WazirX’s exchange hit 10 million users this year.
  • Compared crypto to the 17th century Tulip mania.

With few exclusions, India’s proposed ban on private cryptocurrencies triggered significant panic selling on Tuesday night, crashing India’s largest crypto exchange, WazirX. WazirX CEO Nischal Shetty told BusinessToday. Due to high user activity after the government’s intended rule was made public, the WazirX app was reinstated.

Users Frustrated

Users flocked to social media to express their frustration at not selling or purchasing crypto on WazirX. Users also noted falling Bitcoin and Ethereum prices on WazirX and other Indian exchanges compared to rising worldwide platforms.

According to Shetty, Indian crypto markets have historically traded at a 7-8% premium to global rivals due to demand. His remarks come as the number of crypto fans has risen exponentially in the last year. WazirX’s exchange hit 10 million users this year, with a surge in recent months.

The exchange has disclosed trade delays and order cancellations, with work in the process to show real-time ticker pricing. Former RBI Governor Raghuram Rajan similarly raised doubts about the feasibility and survivability of the 13,000+ cryptocurrencies, predicting just a handful would survive. Compared crypto to the 17th century Tulip mania.

Rajan told CNBC-TV18:

“If things have value only because they will be pricier down the line, that’s a bubble. A lot of cryptos have value only because there is a greater fool out there willing to buy.”