Why is WazirX Token going down? WazirX faces issues in payment processing and trading

Cryptocurrencies have made a huge public impact this year, and as the COVID-19 rages around the world, millions of people have started to invest in cryptocurrencies. For a long time, financial analysts and experts were doubtful of cryptocurrencies. However, over the past year or so, even the most popular celebrities like Snoop Dogg and billionaire Elon Musk have started to endorse various cryptocurrencies. Even people in India have started investing in crypto seriously. According to WazirX, there are more than 1.5 crore cryptocurrency holders in India. 

Bitcoin was the first major cryptocurrency that made the general public aware of the potential of cryptocurrencies. Then came Ethereum which became a platform for other cryptocurrencies to be built. Since then thousands of cryptocurrencies have emerged, but only a handful have become very popular. However, a cryptocurrency from India, WRX, or the WazirX Token has been getting a lot of attention. The past month saw the price of WazirX rise significantly. However, over the past couple of days, the WazirX Token Price has dropped. In this article, we'll be taking at the WRX token and why it's going down. 

What is WazirX Token? Why is WazirX Token Going Down?

The WazirX Token is the native token of the WazirX crypto platform. In order to get a better understanding, the WazirX Token functions similarly to how the Binance Coin (BNB) functions for the Binance crypto exchange platform. The WazirX Token can be bought for INR, BTC or USDT on the WazirX. Using the WazirX Token to trade has many advantages for users, like reduced fees. Around the beginning of April, the price of the WazirX token rose significantly, following an announcement on Twitter by Nischal Shetty (Founder of WazirX) that the company was planning to improve server response times and upgrade their servers so there were no issues for their users. 

However, during the recent Dogecoin and Ethereum Classic rally, tens of thousands were trading on the WazirX app, which crashed their servers again and the trading service went down for quite some time. This left many WazirX users angry, which could be one of the reasons for the recent drop in WazirX prices. Moreover, the crypto markets are unpredictable and usually, when a few coins gain a lot of momentum (Like Dogecoin, ETC right now), people tend to sell off their existing currencies to buy the trending ones. This could have been the case for WazirX Token, as people spent their WRX tokens to buy Dogecoin, flooding the supply, thereby reducing the price. 

WazirX Token Price Prediction

Crypto markets are highly volatile and often run of how famous a cryptocurrency is, rather than how useful the use-case behind the crypto is. However, WRX is a solid cryptocurrency with a good use case, i.e. being the native currency of the WazirX platform. A few ago, WRX was trading close to Rs. 300. It can be expected WRX will perform similar to market conditions, as the coin is used to make purchases on the WazirX platform. Still, take any prediction with a grain of salt. Stay tuned for more updates on WazirX and cryptocurrencies. 

Disclaimer: Please note, this is not financial advice. People should do their own research before investing in cryptocurrencies. 

IMAGE: WAZIRX TWITTER