WazirX restored, huge panic selling led cryptocurrency exchange app's crash, says CEO Nischal Shetty

Hours after reports circulated concerning an upcoming bill banning cryptocurrencies in India with certain exceptions, there was a massive amount of panic among people that led to the crashing of India’s biggest crypto exchange, WazirX.However, the app was restored later after the crash. Confirming the same, Nischal Shetty, founder and CEO of WazirX told BusinessToday that soon after the government’s proposal to ban private cryptocurrencies in India became public, users in large number became active on the app that led to the crash.Meanwhile, the official Twitter account of WazirX took to social media to communicate that the app was working fine now. “Delays in-app and web are now fixed," said the tweet, thanking users for their support.Taking to his Twitter handle, Shetty addressed the new incoming legislation with a hashtag reading #Indiawantscrypto.Yesterday, users on the app, complained about the inability to sell or buy Bitcoin on WazirX. Many even grumbled over their money getting stuck during the processing. Amid the chaos, users also highlighted the dropping prices of Ethereum and Bitcoin on WazirX. Check few of the tweets below:Many users asked Shetty to clarify his stand and explain the difference in rates listed on the app and those on the global crypto market.People also questioned why the rates on WazirX were reporting losses while the global rate showed a profit for digital tokens such as Doegecoin.Many investors were left angry by the losses they incurred.According to BusinessToday reports, prices on WazirX for Bitcoin (BTC) dropped by 17.17 percent to touch Rs 37,78,000. Moreover, the digital token Ethereum’s value declined by 14.1 percent to Rs 2,87,773. Similarly, Dogecoin was also down by 17.21 percent to Rs 14,9000; however, WazirX’s own token WRX value further declined by 22 percent to Rs 78.The crypto exchange platform advised users to not sell their assets in panic mode, adding that differences in exchange rates and countries will always be in place due to demand and supply factors.For the unversed, the central government is all set to introduce “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021” in the upcoming winter session of the Parliament. This new bill would prohibit the use of certain cryptocurrencies barring a few that are available in the market.Since this report made headlines, crypto enthusiasts in the country have been expressing their grievances and thoughts on social media, with many hoping that they would not be adversely impacted by the proposed regulation.