The Socialized Loss Strategy

     Indian cryptocurrency exchange WazirX last week claimed to have suffered a loss of 45% from the hack, and announced a plan called “Socialized Loss Strategy” whereby the company launched a poll and gave people two options with access to 55% of funds.

The Two Options of access to 55% of funds

1) Without withdrawal ability, and a priority for any potential recovery.

2) With withdrawal ability, and the remaining 45% will be converted to USDT and locked.

Public Reaction on two WazirX Options

     Both of these options were not liked by most people, and WazirX CEO Nischal Shetty was heavily criticized.

     Nischal Shetty, in his defense, cited the cost of legal action, explaining that this would cause more losses and also prolong the process, while rebuilding is easier by socializing the losses.

My Point

     Although I agree with Nischal Shetty's argument that people should focus on their money instead of getting involved in useless matters; but I don't agree with that poll, instead of creating a poll, people should be given full access to their remaining funds, and on return of the hacked funds, they should also be kept for full access.