An alarming incident occurred at the Indian cryptocurrency exchange WazirX in the early hours of Thursday, resulting in a malicious attack that led to the theft of a significant amount of digital assets. The hack targeted not only various cryptocurrencies but also the platform’s native token, causing a substantial loss in market values across the board.
The exchange has taken immediate action by temporarily halting withdrawals to contain the situation. Reports indicate that the hack depleted approximately 50% of WazirX’s reserves, raising concerns among investors and the broader crypto community.
Market Impact and Losses
Following the breach, the value of WazirX’s native token, WRX, has plummeted by 15% to just over 14 cents, as per Coingecko data. Additionally, the price of the token in Indian rupees has seen a sharp decline of over 25% since the hack was confirmed.
The attacker managed to steal a substantial amount of customer funds, including $100 million worth of shiba inu (SHIB), $52 million in ether (ETH), $11 million in MATIC, and $6 million in PEPE. The ongoing liquidation of these stolen coins by the hacker has put further downward pressure on their market values.
While SHIB has experienced a notable 6% drop in its dollar value, its rupee-denominated price has plunged by 16%. Other tokens traded on WazirX have also faced losses in their INR pairs, signaling the impact of the hack on the exchange’s market dynamics.
Bitcoin and USDT Price Discrepancies
One significant observation post-hack is the substantial discount in the bitcoin-rupee (BTC/INR) pair on WazirX, which has declined by 11% to 5.1 million rupees ($60,945). In comparison, on CoinDCX, a rival exchange, BTC is trading at 5.7 million rupees, indicating a significant variance in prices.
Despite the turmoil, the global average price of bitcoin in dollar terms has remained relatively stable, showing a 1% increase on the day at $61,800. This discrepancy highlights the impact of the hack-induced panic selling on WazirX’s market dynamics.
Similarly, the USDT-INR pair on WazirX has experienced an 8% decline, further emphasizing the rush for fiat currencies amidst the uncertainty caused by the security breach.
Conclusion
The discounts and price differentials in cryptocurrencies on WazirX following the hack underscore the impact of security breaches on investor sentiment and market stability. The incident serves as a stark reminder of the vulnerabilities in the crypto space and the need for robust security measures to safeguard digital assets against malicious attacks.