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Crypto exchange OKX has started an investigation into the abrupt 50% decline in the value of its native token $OKB.
Cryptocurrency exchange OKX has launched an investigation following a rapid 50% decline in the value of its native token, $OKB. The unexpected plunge saw $OKB’s value drop to $25.1, prompting OKX CEO Star Xu to address the matter.
While the CEO did not delve into specific details, Xu said the OKX team is actively investigating the recent volatility in $OKB prices, promising to provide a report on the matter at a later time.
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
While it’s unclear what was the reason behind the quick price drop, CryptoQuant CEO Ki Young Ju noted in an X post that “no notable outflows” from OKX’s major asset reserves have been registered so far.
$OKB, @okx 's exchange token, fell by 25% in the past 30 minutes, with no notable outflows from major asset reserves so far.https://t.co/PQ06Wsix82 pic.twitter.com/JsNnvuoDVA
— Ki Young Ju (@ki_young_ju) January 23, 2024
Spot On Chain, a blockchain analytics platform, highlighted that the price decline coincided with the deposit of 176,154 $OKB (equivalent to over $8 million) to OKX from 10 previously dormant crypto addresses. These deposits occurred approximately a week before the incident, Spot On Chain said, calling the move “suspicious.
According to the firm, the wallets might belong to a single entity, however, the connection between this entity and the subsequent price drop remains uncertain.
🚨🚨 $OKB token suddenly fell sharply (40%) and our system marked ten dormant whales depositing 176,154 $OKB ($9.58M) to OKX 7 days ago.
— Spot On Chain (@spotonchain) January 23, 2024
➡️ All 10 wallets received a total of 176,154 $OKB 4 years ago (20 Feb 2020) and had no action after that.
➡️ They deposited all tokens to OKX… pic.twitter.com/EQmiHOinmd
Launched in 2018, $OKB serves as the native token for the OKX exchange, primarily functioning as a utility asset within the OKX ecosystem. $OKB holders can get trading fee discounts when using the token for transaction fees on OKX and can attain varying VIP privileges on the trading platform. As of press time, $OKB is trading at $46.3, according to CoinGecko data.