Native token of crypto exchange OKX OCD It lost approximately 50% of its value in a very short time. OKX informed its followers on X of a comprehensive internal plan to resolve the current issues. Additionally, it promised to compensate its users for additional losses resulting from abnormal liquidation.
Exchange
Users will be fully compensated for any additional losses caused by abnormal liquidation. The specific compensation plan will be announced within 72 hours.
He made a statement as follows.
According to current data, OKB token is traded at $47.04. Additionally, it recorded a decrease of 13.55% last week. However, on January 23, the token dropped sharply from $52 to $25, nearly halving its value and causing concern among investors.
OKX plans to implement enhanced measures to address future market volatility, including optimizing spot leverage gradient levels, revising pledged lending risk control rules and improving liquidation mechanisms. The goal is to prevent similar market fluctuations from adversely affecting investors’ large leverage positions.
Community Concerned
However, in X crypto- community has expressed skepticism about the situation, focusing on OKB’s $10 billion market cap and concerns about how a $10 million sale could precipitate a 50% drop in its price brought.
Look that problem with liquidity, with 10b cap token, only 10m $ selling dump 50%, can we trust you long time?
— moon(🐐) “❤️ Memecoin” (@Vietanh7777) January 23, 2024
One user emphasized the need for urgent corrective action to prevent further decline, while another speculated that a ‘whale’ may have caused the decline.
Leverage in cryptocurrency, which involves using borrowed funds to increase investment returns, is the option that offers high rewards but equally high risks. OKX currently offers 10x and 20x leverage options under full liquidation mode.
The market is also affected by flash crashes, which are often triggered by thin liquidity spread across various platforms. For OKB, a 2% market depth, which measures the capital required to change the price of an asset by 2%, is between $224,000 and $184,000. This means that a sell order above $224,000 could potentially trigger another price cascade.
Our team is investigating the recent okb price volatility. We will report to the community later. pic.twitter.com/UI9uPgQfA5
— Star (@star_okx) January 23, 2024
Koinfinans.com As reported by CoinGecko, OKB’s current market cap is $2.8 billion, making it the fourth largest exchange token by circulation.