April 19, 2024
OKX Vows Compensation After 48% Token Crash
Latest Cryptocurrency News

OKX Vows Compensation After 48% Token Crash

OKX, the cryptocurrency exchange, will compensate users affected by a flash crash in its token (OKB) on Jan. 23. At around 9 am GMT, OKB’s price plummeted by 48%, from $46.80 to $25.10 in under 15 minutes, erasing $6.5 billion in diluted market capitalization before a swift recovery. Currently trading at $45.94, OKX staff explained the crash, stating, “Multiple large leverage positions’ liquidation was triggered successively,” causing a cascade effect in the market.

OKX commits to “fully compensate users for additional losses caused by abnormal liquidation,” and a specific compensation plan will be introduced within 72 hours. The same day witnessed significant crypto market fluctuations, partly influenced by Grayscale Bitcoin Trust’s (GBTC) $39,099 Bitcoin sale to fulfill investor redemptions. FTX, a troubled exchange, sold nearly $1 billion of GBTC ETF shares to settle estate liquidations.

In the past year, OKX prioritized regulatory compliance, delisting privacy coins like Monero ($149), Zcash ($21), Dash ($26), and Horizen (ZEN) on Dec. 29, 2023. On Jan. 2, the exchange imposed additional requirements for UK users to comply with new Financial Conduct Authority (FCA) rules, necessitating risk assessment completion before trading.

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