Thread by @NischalShetty

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There's misconception around SHIB listing that happened on WazirX yesterday. I'm going to detail out so everyone can understand better.

A. WazirX DOES NOT decide the listing price or for that matter price at any point in time for a token

B. Buyers and Sellers decide

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C. We've always been listing tokens and allowing deposit/withdrawal at the same time

D. We have a liquidity provider program where large sellers can bring tokens & provide liquidity

E. When SHIB listed, we had way too many buyers but not enough sellers

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F. Buyers started bidding higher, sellers started putting higher ask price since the demand was high

G. This led to a rapid increase in price

H. Eventually more sellers came in and the price normalised

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I. It is incorrect to say that WazirX made money by selling at higher price. Since we don't buy or sell, price changes are not an advantage to us

This is how an open order book like WazirX works.

We can work on avoiding such scenarios. We'll be doing the following:

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i) We'll open Deposit and Withdrawal of every new listing at least 1 hour before we list the token

ii) We'll announce when the Deposit and Withdrawals are live so that sellers can bring the new token and help build liquidity

This should help avoid such scenarios. Thanks!