After suffering a massive cyberattack in July 2024 that led to the theft of over $234 million in digital assets, WazirX is now focused on rebuilding from scratch. However, as the crypto exchange prepares to reopen its platform, competitors are racing to attract its user base, reshaping the Indian crypto landscape in the process.
The Battle for Users
Seizing the opportunity, CoinSwitch recently launched a massive Rs 600 crore initiative—CoinSwitch Care—aimed at supporting users impacted by the security breach. The program offers affected users various benefits, including signup rewards, revenue redistribution, and referral incentives. However, users will start receiving these rewards only after WazirX resumes operations and clarifies the fate of the lost funds.
In response to inquiries about the initiative, CoinSwitch stated, “Signup and referral rewards will be available immediately, but revenue redistribution will commence only after WazirX releases the affected funds.”
Balaji Srihari, Vice President at CoinSwitch, further explained, “It’s crucial to determine the total loss before redistributing funds. Once WazirX reopens and releases the missing assets, we can ensure a fair and proportionate allocation to impacted users.”
Crypto Market Gains Momentum
The Indian crypto sector is witnessing a surge in competition, coinciding with a bullish market. Bitcoin recently surpassed the $100,000 mark for the first time in early December, a surge fueled by the re-election of Donald Trump as U.S. president. Trump, who has expressed support for digital currencies, also owns a cryptocurrency enterprise called World Liberty Financial. As of the afternoon of January 29, Bitcoin was trading at $102,817.
Meanwhile, as international crypto exchanges eye the Indian market, domestic players are doubling down on efforts to regain user trust and strengthen their foothold.
A Potential Takeover?
Following the WazirX breach, speculation around a potential acquisition surfaced. Sumit Gupta, Co-founder and CEO of CoinDCX, took to social media platform X to hint at a possible buyout of WazirX.
“We are actively monitoring developments and exploring multiple options, including acquiring WazirX to facilitate fund recovery. However, the matter is still under judicial review in Singapore, limiting our ability to proceed until a clear verdict is reached,” Gupta stated.
Looking Ahead
With WazirX striving to rebuild, competitors are capitalizing on the situation, offering incentives to attract its displaced users. As regulatory frameworks evolve and investor confidence grows, the Indian crypto ecosystem is undergoing a significant transformation. The coming months will reveal whether WazirX can reclaim its position in the market or if its competitors will take the lead in reshaping the industry.