OKB, the native token of OKX, all of a sudden dropped by 50% from $52 to a minimal of $25, in keeping with knowledge from the OKX alternate. The sharp decline, in keeping with OKX’s rationalization, was the results of a wave of huge liquidations, coupled with an general bearish pattern out there.
OKB token suffered a flash crash, dropping its value by 50% inside minutes. Crypto markets have been falling. OKB just isn’t a significant token, however it reveals how weak liquidity will be within the crypto markets.
OKX’s market cap decreased by greater than 10% after this value motion, from roughly $3 billion to $2.7 billion, according to data from CoinMarketCap. At press time, the OKB token has rebounded above $44, and OKX’s market cap has additionally recovered above $3 billion
The trigger was initially unknown. Nevertheless, after a couple of hours of the incident, OKX make clear the main causes of the early crash, citing huge liquidations and the market’s downward pattern. In line with OKX, OKB’s value actions had been initially in line with common market tendencies. Nevertheless, when the worth of OKB reached round $48, it triggered the liquidation of a number of massive leverage positions.
A Downdraft Hits Markets
The wave of liquidations, coupled with the continued market downturn, sharply drove OKB’s value down. As the worth continued to fall, it triggered additional liquidations, affecting pledged loans, leverage transactions, and cross-currency transactions. This spiral of liquidations created a suggestions loop, with OKB hitting the day’s low of round $25 in a brief interval.
OKX has pledged to compensate its customers for any further losses incurred resulting from this incident. The alternate introduced that particulars relating to the compensation course of could be launched inside the subsequent 72 hours.
Moreover, OKX stated that it’ll take proactive measures to forestall such incidents sooner or later. These embrace optimizing spot leverage gradients, enhancing pledged lending threat management guidelines, and refining liquidation mechanisms.
OKX Faces Rip-off Allegations
Along with the worth decline of its native token, OKX can be going through a latest accusation of being a “rip-off alternate.” The decentralized blockchain platform, Ice, took to Twitter yesterday to voice severe allegations towards the alternate.
In a tweet, Ice blockchain declared OKX a “rip-off alternate” following their ICE token itemizing on January 19. Ice claimed that regardless of a previous settlement with OKX for the itemizing, quite a few points plagued the launch day, together with customers struggling to seek out the newly listed coin, buying and selling restrictions primarily based on native compliance, and conflicting responses from OKX assist.
Ice emphasised that they reported these issues promptly to OKX, however as of but, no concrete actions have been taken by the alternate to handle or rectify the reported issues.
In response to Ice’s accusations, Haider Rafique, OKX’s Chief Advertising Officer, stated that OKX is actively investigating the instances of customers unable to find the itemizing on their app or web site. Rafique cited the complexity of latest listings, attributing discrepancies in person experiences to elements resembling native legal guidelines, rules, KYC necessities, and itemizing insurance policies.
OKX ranks because the second-largest crypto alternate after Binance, holding over $14 billion in person property, in keeping with knowledge from DefiLlama. Regardless of going through challenges out there throughout 2023, OKX demonstrated resilience and strategic prowess by forging impactful partnerships with outstanding world entities.
One notable collaboration was revealed in December when OKX introduced its alliance with the famend F1 racing workforce McLaren. This partnership was established to expedite entry to Web3
Final 12 months, OKX introduced it prolonged its partnership with the well-known soccer workforce Machester Metropolis. Manchester Metropolis can be OKX’s first world model associate. The purpose of their partnership just isn’t solely to boost model visibility but in addition to contribute to the event of Web3 applied sciences.