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OKX To Compensate Users After OKB Price Flash Crash

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  • On January 23, OKX’s native exchange token (OKB) experienced a 50% decline in three minutes due to a Flash Crash triggered by abnormal price fluctuations. 
  • The exchange expressed commitment to developing a compensation plan for affected users to be unveiled on the 26th.
  • Ice Blockchain revealed issues with its ICE coin listing on OKX.

On January 23, OKX’s native exchange token (OKB) experienced a 50% decline in three minutes due to liquidations prompted by abnormal price fluctuations. Despite the incident, the exchange stated that it is actively developing a compensation plan for the affected users to be unveiled within the next three days.

OKB Price Flash Crash

The token’s drop was due to a Flash Crash—marked by a sudden and quick decline in the value of a cryptocurrency or stock in a very short period, usually followed by a rapid recovery on the same trading day.

As of writing, OKB is currently valued at $47.07 and was down by 9.1% for the last 24 hours, as per the date from CoinGecko.

According to a statement, the exchange reported that the price of OKB dropped from 50.69 to 48.36 USDT, resulting in the automatic liquidation of numerous margined positions. This triggered significant volatility for the token over about three minutes, with the token hitting a low of 25.1 USDT before the market eventually stabilized.

“We are very sorry for the inconvenience. Team is working for the compensation plan and improvements to the spot risk system. Thanks for your patience,” Jay Hao, also known in X as @star_okx, posted.

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Consequently, Wu Blockchain reported that the panic surrounding the token plunge led to a Bitcoin drop below $39,000. In addition, BRC-20 tokens Satoshi (SATS) and Ordinals (ORDI) experienced the most significant decline among the top 100, indicating a sell-off in Asian markets. Currently, Bitcoin is at $39,964.17 and has increased by 2.3% in the last 24 hours.

Compensation

“We understand this situation is unusual and apologize to impacted users. Compensation will be provided to users who experienced losses as a result of abnormal liquidations, including users of flexible loan, margin trading and multicurrency trading products. A detailed compensation plan will be released in 72 hours,” OKX assured.

Further, the exchange expressed its commitment to enhancements its margin position tier rules, risk management controls, and liquidation mechanism to prevent any potential abnormal liquidations in the future.

ICE in OKX Issue

On the other hand, Ice Blockchain stated that it had with OKX to list its ICE coin last December, adhering to an exclusivity period despite interest from other exchanges. However, the blockchain noted that after the ICE coin listing on OKX, the community encountered several issues.

Ice Blockchain highlighted community issues, including difficulty finding ICE, trading restrictions, and errors, following the listing on OKX.  In the Chinese community, users faced additional issues, including the inaccessibility of ICE for those who didn’t receive it through distribution, an inability to purchase ICE coins, and confusing responses from OKX support implying geographic restrictions imposed by the Ice team, which were neither requested nor approved.

The firm stated that these problems were communicated promptly to OKX, but no concrete actions have been taken to address the concerns.

“OKX always has different listing policy in different jurisdictions based on local regulation requirements and retail customer protection perspective. For example, a token open to A country’s customer doesn’t mean it’s accessible to B country’s customers. It’s our policy for long time. It’s sad for the inconvenience and misunderstanding between our teams. We will keep to work with your team and try our best to satisfy the customers,” OKX CEO responded.

This article is published on BitPinas: OKX To Compensate Users After OKB Price Flash Crash

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