The platform coin OKB of the mainstream exchange OKX suddenly plunged around 17:00 on January 31st. The official announced the investigation results earlier, stating that the cause was a chain liquidation event triggered by the overall market downturn. At the same time, the official also stated that compensation will be provided to investors.
(Prior summary: OKB, the platform coin of OKX, experienced a sharp drop! Market slaughtered with a 50% flash crash.)
(Background supplement: A review of ten sets of data on OKX in 2023: OKB’s annual increase of 108%, Web3 wallet users growing by 98%.)
The platform coin OKB of the mainstream exchange OKX experienced an unexpected plunge this evening (23) at around 5 o’clock, dropping by 50%, with a sharp and abnormal volatility, approaching $25.
Official response: Market downturn triggers chain liquidation
In response to this incident, OKX officially announced the investigation results of the flash crash event on the X platform at around 22:00, stating:
In addition, regarding the losses suffered by users, OKX stated that the following measures will be taken for compensation:
The platform will fully compensate for the additional losses caused to users by abnormal liquidation, including pledge lending, leveraged trading, and cross-currency trading. The specific compensation plan will be announced within 72 hours.
Further optimization of spot leverage gradients, risk control rules, and liquidation mechanisms for pledge lending to avoid similar problems from happening again.
Is it an official manipulation or a giant whale dumping?
Since OKB does not support contract trading and only provides spot and leverage trading, the gossip community speculated before the official investigation results were released: “OKB doesn’t have contracts, but it can drop like this? Isn’t this coin controlled by the official?” “OKB is a spot needle attack, not even sparing its own people?”…
On the other hand, half an hour after the incident, according to the on-chain monitoring data published by Spot On Chain, it showed that 10 wallets controlled by a suspected giant whale had transferred 176,154 OKB tokens (about $9.58 million) to OKX on January 16th. Therefore, it is speculated that the flash crash of OKB this time may also be caused by the dumping of this giant whale.
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