Krutika Adani
In a desperate attempt to recover funds WazirX has proposed a rather odd solution to socialize losses. The exchange conducted a poll to ask user opinions.
The concept of socialized loss has resulted in a massive stir amongst its users many of whom felt cheated.
A socialized loss is a concept where a single loss is distributed among all the users or stakeholders. In this case, the $230 million loss to be distributed among the users of WazirX.
If the concept of socialized loss is chosen in WazirX’s case, it might result in a permanent loss of 45% for all the users.
After facing severe backlash, the exchange backtracked on its plan saying the poll was just to know user opinions.