SHIB Scam (Wazirx version)

As we know there’s was an issue with Shib listing in Wazirx, below is the statement of Wazirx.

“Namaste tribe! We’d like to share an update and clear some misconceptions around SHIB listing on WazirX. We want to clarify that WazirX does not decide the listing price for overall price for any token. We have an open order book system, and the price is decided only and only by the buyers and sellers based on demand and supply. WazirX also does not buy or sell tokens on the exchange, so we have nothing to gain from any change in a token price. 

WazirX listing process

  1. We enable a token’s deposits and withdrawals – either onchain or offchain via Binance – and its trading market at the same time.
  2. For tokens listed under Rapid Listing Initiative, we rely on our liquidity provider to provide initial liquidity.

What happened today?

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 enough 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. Very quickly, our team discovered this misconfiguration, turned on SHIB deposits and withdrawals, and SHIB price auto-adjusted based on the new deposits coming in from our customers. 

What measures are we taking to minimise such scenarios in the future?

For all future listings, we’ll make sure to enable deposits and withdrawals (onchain or offchain) of a token at least 1 hour prior to making its market live. This will help us ensure that anyone can bring in the liquidity for a token and will reduce our reliance on our liquidity provider. Going forward, we’ll make sure that no market pair goes live without its offchain or onchain deposits being live already.  Risk Warning: Crypto trading is subject to high market risk. Please ensure that you undertake sufficient risk assessment when trading newly listed tokens as they are often subject to high price volatility. WazirX will make best efforts to choose high-quality coins, but will not be responsible for your trading losses.”

Source: Wazirx

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