OKB, the native token of cryptocurrency exchange OKX, saw a sharp decline of up to 50 percent today. The crash briefly wiped out $6.5 billion in the token’s market value. Following this, the stock exchange announced that it had launched an investigation regarding the issue. In a recent development, OKX has decided to pay compensation to users.
Cryptocurrency exchange promised to compensate users for their losses!
cryptokoin.comAs you follow from , today the OKB price dropped 48% in less than 15 minutes. During this period, the token dropped from $46.80 to $25.10. Thus, it erased $6.5 billion in market value before a rapid recovery. The token is trading at $47.33 at the time of writing. The OKX team first made the following statement on the subject:
After touching 48.36 USDT, liquidations of multiple large leverage positions were triggered in succession. In addition, the market impact caused the stock market price to decline, further triggering the liquidation of pledged loans, leverage transactions, and cross-currency transactions. This ultimately caused the price to drop to 25.1 USD in a short period of time.
In a latest development, the cryptocurrency exchange has promised to “fully compensate users for additional losses caused by abnormal liquidation” with a specific compensation plan to be launched within the next 72 hours.
OKX launches investigation after OKB drops 50%
Cryptocurrency exchange OKX has launched an investigation into the sudden 50% drop in the value of its native token OKB. After OKB’s value dropped to $25.1, OKX CEO Star Xu addressed the issue. Although the CEO did not go into specific details, Xu said the OKX team is actively investigating the recent surge in OKB prices. In this context, the exchange CEO promised to submit a report on the issue later.
Meanwhile, Spot On Chain, a Blockchain analysis platform, highlighted that the price drop coincided with 176,154 OKB (equivalent to over $8 million) being deposited into OKX from 10 previously dormant crypto addresses. Spot On Chain stated that these deposits occurred approximately a week before the incident. That’s why Spot On Chain called this move “suspicious.” According to the firm, the wallets likely belong to a single entity. However, the connection between this asset and the subsequent price decline remains unclear.
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