Earlier this week, it was revealed that OKEx had frozen all crypto withdrawals from its platform over concerns about a private key holder. OKEx is a leading crypto-asset exchange that processes a material percentage of the spot and futures volume in the industry.
OKEx said that one of its private key holders was working with a public security bureau. He had been out of contact since he started working with the bureau, so they could not process withdrawals.
As a result of this news, the price of OKEx’s native OKB Coin
” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”coin slid. The Coin
” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”coin fell around 10% in the hour after this news was released.
Despite subsequent reassurances by company CEO Jay Hao, the Coin
” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”coin has continued to slide lower.
Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom
OKEx’s OKB Coin
A coin is a unit of digital value. When describing cryptocurrencies, they are built using the bitcoin technology and have no other value unlike tokens which have the potential of software being built with them.
” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”Coin Slides Even Lower
OKB has dropped 20% in the past 24 hours as fears have persisted about OKEx, despite reassurances by the company that user funds are safe. It’s worth noting that companies like Crypto Quant, which tracks crypto market data, have noted that no funds have moved out of the company’s known Bitcoin wallets. This suggests that user funds are safe.
Some believe that OKB is falling due to an increase in short exposure.
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Implications on DeFi
Analysts think that even if OKEx’s functionality returns to normal soon, investors will continue to migrate their capital to decentralized exchanges. Centralized exchanges have been seeing increasing pressure over recent weeks and months from regulators, which culminated earlier this month with the CFTC charging BitMEX over derivatives violations.
Qiao Wang, a notable crypto analyst, says that the ongoing situations with…