The crypto community heavily criticizes WazirX’s proposed “socialized losses” plan following a $230 million hack, highlighting dissatisfaction and demands for better security.
Points
- WazirX proposes a 55⁄45 “socialized losses” plan after a $230 million hack.
- The plan faces significant backlash from the crypto community.
- Users express frustration with the plan, feeling it unfairly impacts all users.
- Community demands better security and transparency from WazirX.
Following a $230 million hack, cryptocurrency exchange WazirX proposed a controversial “socialized losses” plan, which has been met with significant backlash from its user base. The plan, known as the 55⁄45 approach, has sparked outrage among users, leading to widespread criticism.
The 55⁄45 Plan
WazirX’s proposed solution involves allowing users to trade only 55% of their assets on the exchange while converting the remaining 45% into USDT stablecoin or other tokens. These converted tokens would then be locked on the platform, applying to all users regardless of whether their funds were affected by the hack.
Community Outrage
A user poll conducted from July 27 to August 3 revealed overwhelming disapproval of the 55⁄45 plan. Users voiced their frustration, arguing that the plan unfairly impacts everyone rather than specifically addressing those who suffered losses from the hack. One user suggested drastic measures for WazirX’s CEO, while another questioned the exchange’s transparency and accountability.
Demands for Better Security
The backlash against the plan underscores the growing frustration and uncertainty among WazirX users, many of whom are unable to withdraw their funds. The exchange’s handling of the hack and subsequent communication has left the user base feeling vulnerable and uncertain about the future of their investments.
WazirX co-founder Nischal Shetty emphasized that the poll was merely to solicit community input, not a legally binding decision. The exchange has also refuted allegations of security vulnerabilities that purportedly led to the hack, denying any lapses in their security measures.
Conclusion
The crypto community’s strong reaction to WazirX’s 55⁄45 plan highlights the need for better security and transparency within the exchange. As users demand more robust measures to protect their investments, WazirX will need to address these concerns to regain trust and confidence.
解説
- The strong backlash against WazirX’s proposed plan reflects user dissatisfaction with the handling of the hack.
- Effective security measures and transparent communication are crucial for maintaining user trust in cryptocurrency exchanges.
- WazirX’s situation underscores the importance of having robust cybersecurity frameworks to protect user assets.
- Exchanges must prioritize user concerns and develop strategies that address security vulnerabilities and enhance transparency.