- On January 23rd, the OKB token of the OKX crypto exchange fell by 50%.
- At one point, the asset’s price reached $25.
- The platform team has launched an investigation and promised to provide a report.
On January 23rd, the native OKB token of the OKX cryptocurrency exchange fell by approximately 50%. At one point, the price reached $25, according to TradingView. Meanwhile, earlier in the morning the asset was trading near $52.
At the time of publication, the OKB token’s price had risen to $46. In connection with the unexpected drop, the exchange has launched an investigation, as announced by its CEO Jay Hao.
According to the OKX CEO, the team is investigating the recent volatility and will provide a report on what happened. Over the past 24 hours, there have been no significant outflows from the platform’s main reserves, noted CryptoQuant CEO Ki Young Ju.
It should be noted that OKX regularly publishes Proof of Reserve (PoR) reports. According to the documents, the total reserve ratio exceeds 100%.
Later, Spot On Chain platform analysts reported that the price drop was preceded by a deposit of 176,154 OKB on the OKX exchange from 10 previously inactive addresses. All transfers were made seven days before the incident:
It is worth recalling that recently OKX delisted anonymity tokens. In addition, the exchange’s mobile app became unavailable for Android OS users in India.
Update: OKX stated that they will compensate for losses associated with the sudden OKB token drop:
“The platform will fully reimburse users for any incremental losses associated with forced liquidations, including leveraged trading and collateralized lending. A specific compensation plan will be announced within 72 hours.”
