The decline in the price of Bitcoin, the leading cryptocurrency, also affected altcoin prices, turning the overall market outlook into a negative one. In today’s decline, OKB Coin, the local altcoin project of the OKX exchange, surprised investors by experiencing a decline of over 50%.
Reasons for decline for altcoin
The reasons for the sudden decline in OKB Coin are not yet fully known. However, one or more of the following possible reasons may have caused the decline:
- Decrease in Bitcoin price: The decrease in Bitcoin price also negatively affected altcoin prices. OKB Coin was one of the altcoins affected by this decline.
Bitcoin is the largest and most liquid asset in the cryptocurrency market. The decline in Bitcoin price negatively affects the general risk perception in the market and puts pressure on altcoin prices. Therefore, the main reason for the decline in OKB Coin is considered to be the decline in Bitcoin price.
whale moves
- Depositing a large amount of OKB from 10 wallets: A large amount of OKB deposited into OKX from 10 wallets within 7 days may trigger a decline by creating supply pressure in the market.
According to tracking by Spot On Chain, on January 23 OKB tokens experienced a 40% drop in the short term. 7 days ago, 10 addresses deposited a total of 176,154 OKB (approximately $9.58 million) to OKX. These 10 wallets received a total of 176,154 OKBs 4 years ago (February 20, 2020) and have not made any transactions since then. 10 wallets deposited all tokens to OKX on January 16, 2024. Depending on timing, these wallets may be controlled by a whale. If these wallets are controlled by a whale, this whale’s release of this large amount of OCD could create supply pressure and trigger the decline.
- A technical error: An error in the platform implementation can also be the cause of the decline. However, this possibility seems less likely.
According to OKX CEO Star’s statement, the company is investigating the incident and will announce the situation to the community soon.
Decline effects
The sudden decline in OKB Coin surprised investors and created uncertainty in the market. The decline significantly reduced the market value of OKB Coin. As of the time of writing, OKB Coin is at $46.
The decline may also negatively affect OKB Coin’s position in the cryptocurrency market. OKB Coin is among the 30 largest tokens in the cryptocurrency market. However, if the decline continues, it may be possible for OKB Coin to lose this position. The sudden decline in OKB Coin is an important development for the cryptocurrency market. The decline negatively affected the risk perception in the market and created uncertainty. The decline may also negatively impact OKB Coin’s market value and position.
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