- OKX to compensate users after OKB token price crashes 48% on January 23.
- OKB market cap loses $6.5 billion, recovers to $47.59 after sharp decline.
- OKX promises reimbursement plan within three days to restore user trust.
The cryptocurrency exchange will reimburse users who were impacted by the sudden sharp drop in the value of OKX’s proprietary token, OKB
On January 23, within less than fifteen minutes, the value of OKB plummeted from $46.80 to $25.10, marking a sharp drop of 48%. This significant drop resulted in a loss of $6.5 billion in diluted market capitalization. However, the token demonstrated resilience, bouncing back to a trading price of $47.59 at the time this was recorded.
In-Depth Compensation Scheme Underway
The OKX team ascribed the swift decrease to the liquidation of numerous large leveraged positions. As market dynamics persisted, the token’s price dropped, leading to further leveraged deals, cross-currency trades, and the settlement of collateralized obligations.
To address the disruption caused by the sudden market drop, OKX has committed to reimbursing affected customers. The exchange has assured users that it will announce a comprehensive reimbursement plan within the next three days. This measure is seen as an effort to restore market confidence and maintain the trust of its users following the incident.
Cryptocurrency exchanges are increasingly responsible for protecting their users from market irregularities and technical issues, a path that OKX has also adopted by providing compensation. This approach is essential due to the industry’s intrinsic dangers and instability. It is worth mentioning that the OKB flash crash occurred concurrently with significant shifts in the broader cryptocurrency market.
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