In less than fifteen minutes on January 23rd, OKB’s value fell from $46.80 to $25.10.
A detailed compensation scheme would be unveiled in the next three days.
Users affected by the recent flash collapse of OKX’s native token, OKB, will be compensated by the cryptocurrency exchange.
Investors and dealers were understandably worried when the token’s value plummeted on January 23, prompting this disclosure.
In less than fifteen minutes on January 23rd, OKB’s value fell from $46.80 to $25.10, a precipitous 48% decline. Because of this precipitous fall, the diluted market capitalization lost a substantial $6.5 billion. But the token was resilient; it quickly recovered and was trading at $47.59 at the time of writing.
Detailed Compensation Scheme Underway
The rapid decline was attributed by the OKX team to the selling of several substantial leverage holdings. The token’s value continued to fall as a result of market forces, which in turn caused leverage trades, cross-currency transactions, and the liquidation of pledged debts.
As a way to make up for the chaos that the flash collapse produced, OKX has promised to compensate users. Users have been promised by the exchange that a detailed compensation scheme would be unveiled in the next three days. After the event, this approach is considered as a way to stabilize market confidence and keep users’ trust.
Exchanges in the cryptocurrency sector are progressively shouldering the burden of safeguarding their consumers from market abnormalities and technological malfunctions, a trend that OKX has chosen to follow by offering compensation. Given the inherent risks and volatility of the sector, this strategy is vital. Notably, the OKB flash collapse happened at the same time when the wider crypto market was seeing substantial changes.