thecryptobasic.com
The native token for popular crypto exchange OKX crashed over 50% in a bizarre fashion, with observers speculating on the reason behind the decline.
Amid a broader crypto market sell-off, holders of OKB, the native token for popular exchange OKX, witnessed an even more shocking development. The price of the token tanked and dropped by over 50% in the space of five minutes.
The decline saw prices drop from $52 to $25 on the OKB/USDT pair on the platform before making a swift rebound to around $45.89 at the time of writing. Notably, the token still remains at 13% off its daily high, with holders yet to get a clear message on the reasons behind the shaky price action.
It is also noteworthy that the declining figures on the OKB pair is reportedly different from other data providers. CoinMarketCap shows that prices declined to $39.4, while Coingecko data quotes the lowest price as $45.
OKB Flash Crash
OKX company’s Global Chief Commercial Official, Lennix Lai, downplayed the development, saying on X that it is “nothing much.” According to the official, OKX would update the community after it digs into the data.
Meanwhile, on-chain analytics tracker Spot on Chain believes the bizarre price action may be linked to a batch of recent OKB deposits to the platform. Precisely, ten previously dormant whales, possibly belonging to one entity, moved 176,154 OKB (approximately $9.58 million) to OKX one week ago. Spot On Chain believes the recent flash crash is suspicious and may be linked to activity by an unknown entity.
🚨🚨 $OKB token suddenly fell sharply (40%) and our system marked ten dormant whales depositing 176,154 OKB ($9.58M) to OKX 7 days ago.
➡️ 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— Spot On Chain (@spotonchain) January 23, 2024
According to an announcement made by OKX, the recent decline in market prices has led to the triggering of multiple large leverage positions’ liquidation. This, in turn, has triggered the liquidation of staked lending, margin trading, and cross-currency transactions. To mitigate the impact of these abnormal liquidations, OKX has pledged to fully compensate its users for any additional losses incurred.
On the bright side for OKX, the development has not led to any significant outflow from the platform. The platform’s Bitcoin (BTC) and Ether (ETH) reserves remain largely untouched as users seem unconcerned about the OKB drop.