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OKB, the native token of the OKX exchange, experienced a sudden and sharp plunge on the afternoon of January 23, UTC+8. The token's value plummeted from $52 to a low of $25 before gradually stabilizing. The rapid drop has raised concerns within the cryptocurrency community.
#OKB, a token of the #OKX exchange, saw a sudden dump of 𝟓𝟐% 😱😱
— Wise Advice (@wiseadvicesumit) January 23, 2024
Now it is almost back to the normal price.
Was this a glitch or a result of some whale dumping? 👇 pic.twitter.com/5Qilrhue5y
🚨 OKX platform coin $OKB suddenly drops from $52 to $25, begins return to normal levels.
— Elja (@Eljaboom) January 23, 2024
What is this 👀 pic.twitter.com/WTUlIG1bPe
The sudden decline prompted OKX CEO Star Xu to address the matter. While specific details were not disclosed, Xu assured the community that the OKX team is actively investigating the recent volatility in OKB prices. The CEO committed to providing 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
Meanwhile, CryptoQuant CEO Ki Young Ju noted that, as of now, there have been "no notable outflows" from OKX's major asset reserves.
Spotlight on Recent Deposits
Spot On Chain, a blockchain analytics platform, brought attention to a potential correlation between the price decline and 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 sudden plunge, leading Spot On Chain to label the move as "suspicious." The platform highlighted that these wallets may belong to a single entity, but the connection to the subsequent price drop is unclear.
Amid the investigation, HashKey Group, a leading digital asset financial services group in Asia, and OKX have announced plans to collaborate in promoting compliant virtual asset innovation and industry development in Hong Kong.