The OKX cryptocurrency exchange will pay out to anyone who lost money on January 23 due to a flash crash involving its own coin, OKB.The price of OKB tokens fell 48% in less than 15 minutes, from $46.80 to $25.10, at around 9 am GMT on Tuesday. This resulted in the loss of $6.5 billion in diluted market value before a quick recovery.As of the time of publication, the token is trading for $45.94.
“After touching 48.36 $USDT, the liquidation of multiple large leverage positions was triggered successively,” OKX staff wrote. “In addition, the market impact caused the currency price to fall, further triggering the liquidation of pledged loans, leverage transactions, and cross-currency transactions, which ultimately caused the price to drop within a short period of time down to 25.1 $USDT.”
As part of its commitment to “fully compensate users for additional losses caused by abnormal liquidation,” the exchange has promised to release a detailed compensation plan within the next 48 hours.The day of the big price swings in the cryptocurrency markets was partly caused by the sale of Bitcoin by Grayscale Bitcoin Trust (GBTC) in order to satisfy redemption requests from investors in its exchange-traded fund.In order to pay off creditors, the struggling cryptocurrency exchange FTX sold shares of the GBTC ETF for about $1 billion.
Over the past year, OKX, a cryptocurrency exchange, has concentrated a large portion of its efforts on regulatory compliance.The company declared on December 29, 2023, that it would delist a number of privacy coins, including Horizen, Zcash, Dash, and Monero.The company stated on January 2nd that in order for U.K. users to comply with the new regulations set forth by the Financial Conduct Authority (FCA), they must fulfill risk assessment questionnaires, which must be completed before they can start trading.