OKX, a mainstream exchange, experienced an abnormal fluctuation event on January 23rd, causing its platform token OKB to plummet by 50%. Today, the official compensation plan was officially announced, stating that eligible users’ funds will be airdropped in the form of USDT to their accounts before February 1st.
(Prior Summary:
OKX Exchange Responds to OKB Plummet: Promises Full Compensation for User Losses, Blames Forced Liquidations)
(Background:
OKX Platform Token OKB Plummets! Market Slaughtered by 50%)
Table of Contents:
OKX Announces Compensation Plan: USDT Airdrop
Compensation for Losses from Selling OKB at a Low Price due to Forced Liquidations
Affected Users Seek Compensation for OKB
OKB, the platform token of mainstream exchange OKX, experienced an unexpected plunge of 50% on the evening of January 23rd, reaching a low of nearly $25. The official investigation into this abnormal fluctuation event revealed that it was caused by “massive forced liquidations,” resulting in consecutive forced liquidations of some products.
At the same time, OKX pledged to fully compensate users for any additional losses caused by the abnormal liquidations, including pledging loans, leveraged trading, and cross-currency transactions. They also promised to optimize the risk control rules and liquidation mechanisms for spot leveraged positions and pledging loans to prevent similar issues from happening again.
In the early morning of January 26th, OKX officially announced the compensation plan for the OKB plunge event on its website. The platform stated that it had adjusted relevant risk parameters regarding the abnormal fluctuation of OKB this week and would airdrop eligible affected users.
The accounts eligible for the airdrop will include:
– Leveraged trading and leveraged positions involving OKB
– Current pledging and borrowing with OKB as collateral
– Cross-currency margin accounts with OKB
OKX will airdrop the funds in the form of USDT to the above-mentioned eligible users’ accounts before February 1st, 2024.
Furthermore, the platform mentioned that the airdrop for eligible users will cover “the price difference losses resulting from forced liquidations and selling OKB at a low price,” as well as any fines and transaction fees related to forced liquidations.
If there are multiple collateral assets involving OKB or liquidations of cross-currency full positions, the relevant fines and fees charged during the liquidation of other collateral assets and positions will also be included in the calculation of the airdrop amount. However, compensation for positions liquidated due to the platform’s risk reserve fund will not be included.
Note: Price difference losses refer to the losses caused by the difference between the price at 5:07:26 PM UTC+8 on January 23rd ($48.36 USDT) and the forced liquidation price.
Regarding OKX’s compensation plan, some users expressed their desire to be compensated for the amount of OKB they were liquidated at the time, rather than receiving USDT. Others complained that it was not full compensation since it only covered less than half of their losses, as they experienced liquidations from leveraged positions.
In terms of the token price, OKB quickly rebounded to above $45 after plummeting by 50% to $25.1 on January 23rd. Currently, it has reached $51, experiencing a 6.7% surge in the past 24 hours, almost recovering the lost ground from the event.
(Source: Trading View)
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