[Update] OKB Crashes 50% in Value, OKX Commits to Compensation for Losses Harry - 23/01/2024

The OKB token of the OKX exchange unexpectedly lost 50% of its value between 16:00 - 16:10 with no clear reason, causing a stir within the community.

OKX Coin Plunges 50% in Value

Update:

After nearly 5 hours of investigation, OKX's China branch has explained the reason behind the OKB "plunge." They attribute the OKB price drop to a general market downturn on January 23, 2024.

At that time, OKB's price plummeted to a sensitive point of $48.36, triggering a cascade of liquidations of leveraged positions, loans, large margins, resulting in the coin's value plummeting to $25.1 within moments. However, the situation has since normalized.

While not disclosing the extent of the incident, OKX has committed to compensating users affected by losses incurred through lending, margin trading, and cross trading services. Details of the compensation plan will be announced within the next 72 hours.

Additionally, the exchange will adjust the immediacy of cross-trading leverage, risk control rules, liquidation mechanisms, and other adjustments to prevent similar issues in the future.

Original article:

On the afternoon of January 23, 2024, investors were left in shock as OKB - the cryptocurrency coin of the OKX exchange - suddenly dropped by 50% from around $52 to $25.1 USD in just 5 minutes, quickly rebounding to around $44 USD with no clear explanation.

Responding to the OKB "plunge," OKX's founder and CEO, Star Xu, also uncertain about the unfolding events, stated that "the team is investigating the price volatility and will report to the community once the issue is clarified."

Despite the incident, OKX remains a preferred exchange for investors following Binance. Not only leading in NFT trading volumes, OKX has also been a longstanding sponsor of McLaren Racing and Manchester City Football Club.

According to DefiLlama data, OKX ranks as the second-largest crypto exchange after Binance, holding $14.41 billion in user assets, with a 24-hour trading volume exceeding $3 billion and weekly visits surpassing 6.6 million, trailing Binance by 15.8 million visits, according to CoinMarketCap.

Top 10 cryptocurrency exchanges by user asset holdings worldwide. Screenshot from DefiLlama on January 23, 2024

OKB, as the OKX exchange coin, is issued as an ERC-20 token on the Ethereum platform. Holders of OKB benefit from reduced trading fees, earn savings on OKX, participate in token launchpads, margin trading, lending, among other perks.

Following the incident, OKB lost over 10% of its market capitalization, dropping from an initial $3.1 billion to just $2.7 billion. OKB's price is gradually recovering, currently trading around $45 USD.

5-minute chart of the OKB/USDT pair on OKX at 06:00 PM on January 23, 2024.