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It’s said one man’s loss is another man’s gain, but in the world of Crypto, this applies to major crypto giants. Once an acclaimed and largest cryptocurrency in India, WazirX is facing brutal challenges post a cyber-attack.
The attack led WazirX to lose assets worth over $230 creating a rife among investors, according to a report by The Hindu. Now, its failure to cater to the Indian audience at the moment has given space to Binance. It is one of the largest cryptocurrency exchanges by trading volume, serving a base of over 185 million users spread across 180 countries.
However, now the untimely fall of the WazirX has paved the way for Binance to swoop in and entice the Indian investors to join Binance and help regain its footing in India.
WazirX, founded in 2018 became a rising star in the cryptocurrency world and a favorite for Indian investors. Its user-friendly interface allows people to easily invest and learn about the fast-track world of Crypto. However, this freedom was short-lived as the Government of India imposed a 30% tax on cryptocurrency gains, followed by a 1% tax deducted at source (TDS) on transactions.
This imposition resulted in fatal for WazirX, as users slowly but steadily started dropping from the platform, resulting in the downfall of the WazirX.
However, the demise of WazirX didn't result in the rise of Binance. It had its fair share of struggles in the Indian marketplace.
Being the world's largest cryptocurrency exchange, Binance, initially struggled to gain traction in India due to government regulation and uncertainty. Another factor was competition from local players like WazirX. However, with WazirX plummeting, Binance saw an opportunity to re-enter the Indian market.
Partnerships and Collaborations: Binance transformed its competition to partners. As it has formed partnerships with local businesses to increase its presence in the Indian market.
Regulatory Compliance: One of the biggest issues that Binance faced was regulatory compliance. So now, it has been actively engaging with Indian regulators to ensure compliance with the country's cryptocurrency laws.
Marketing and Education: To gather more traction with the market, Binance has launched initiatives to educate Indian investors about the benefits and risks of cryptocurrency trading which will result in more investors.
Competitive Pricing: Binance has introduced competitive pricing and fee structures to attract Indian traders.
Other factors for the increase of the Binance user base:
Reduced Competition: WazirX's decline has reduced competition in the Indian market, allowing Binance to capture a larger market share.
Increased User Base: WazirX’s struggle to stay afloat in the market has been futile, leaving no choice for its users to switch to Binance.
Fear Factor: After a sudden drop in WazirX caused a frenzy amongst its users, they had to invest in more reliable and established players like Binance.
It seems that Binance has learned from its initial scuffle and has adopted a strategic approach to regulatory compliance, partnerships, marketing, and competitive pricing. These changes have made Binance successfully regain its footing in India. As the Indian cryptocurrency market continues to evolve, Binance is well-positioned to maintain its leadership position, thanks to WazirX.
Read more: About Binance Smart Chain Development
