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Crypto Exchange Platform WazirX Shuts Down NFT Marketplace Due To Low Traction

The move comes amid multiple challenges, including regulatory scrutiny and a public tussle with Binance

Crypto Exchange Platform WazirX Shuts Down NFT Marketplace Due To Low Traction

Outlook Start-Up Desk

POSTED ON February 23, 2023 10:24 AM

Cryptocurrency exchange platform, WazirX has shut down its NFT (non-fungible tokens) marketplace, which it launched in June 2021. The move comes after the marketplace failed to gain much traction among users. According to the official website for the NFT marketplace, users will still be able to trade their NFTs on OpenSea.

WazirX said in a statement that it is proud to have launched India's first NFT Marketplace, which showcased the work of many creators. However, the company added that it did not gain much traction. WazirX had created a safe and secure marketplace where creators could showcase and trade their unique digital assets. NFTs are decentralised, and owners have complete control over their assets, which is why they have become so popular. The company has assured its users that they can continue to hold their NFTs in their wallets and these can be sold in other marketplaces such as OpenSea.

The closure of the NFT marketplace follows WazirX's move to shift assets held in the Binance wallets after an ultimatum from Binance to do so by February 3, 2023. Earlier, Binance, which operates the largest crypto exchange in the world, claimed that it has no control over WazirX user funds or any aspect of the WazirX exchange's operations.

In addition to the public tussle with Binance, the Indian cryptocurrency exchange has faced multiple challenges, including regulatory scrutiny. In August 2022, the Enforcement Directorate conducted raids at the premises of the company's director and froze bank accounts to the tune of Rs 64.67 crores.

WazirX's trading volume plummeted 76 per cent in the 12 months ending December 2022. The company managed over 7 times growth in its scale in the fiscal year ending March 2022, thanks to a small base and the boom during most of 2021 at least. Despite this growth, the cryptocurrency exchange has faced many challenges in recent months, including regulatory scrutiny, legal challenges, and the public tussle with Binance.

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