The platform coin OKB of the mainstream exchange OKX suddenly plunged around 17:00 on January 31st. The official announcement earlier revealed that the cause was a series of liquidation events triggered by the overall market downturn. At the same time, the official also stated that compensation will be provided to investors.
(Prior Summary:
OKX platform coin OKB plunged! Market slaughtered with a 50% flash crash
)
(Background Supplement:
Reviewing ten sets of data for OKX in 2023: OKB’s annual increase of 108%, Web3 wallet user growth of 98%
)
The platform coin OKB of the mainstream exchange OKX plummeted without warning this evening at around 5 o’clock, dropping by 50% and approaching $25, with abnormal volatility.
Official response: Market downturn triggers series of liquidations
Regarding this incident, OKX officially responded to the flash crash investigation results in a post on the X platform at around 22:00, stating:
In addition, regarding user losses, 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 loans, leverage trading, and cross-currency transactions. The specific compensation plan will be announced within 72 hours.
Further optimize the risk control rules and liquidation mechanisms for spot leverage gradients and pledge loans to prevent similar issues from happening again.
Official market manipulation? Or a large whale dumping?
Since OKB does not offer contract trading and only provides spot and leverage trading, before the official investigation results were released, the gossip community speculated that it was caused by deliberate manipulation by the official side: “OKB doesn’t have contracts, so how could it drop like this? Isn’t this coin under official control?” “Is OKB intentionally manipulating the spot market, not even sparing their own people?”…
On the other hand, half an hour after the incident, according to on-chain monitoring data published by Spot On Chain, it was revealed that 10 wallets controlled by a suspected same whale had previously transferred 176,154 OKB coins (approximately $9.58 million) to OKX on January 16th. Therefore, it is speculated that this OKB flash crash may also be attributed to the dumping by this whale.
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