{"id":160596,"date":"2024-01-23T17:27:25","date_gmt":"2024-01-23T17:27:25","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=160596"},"modified":"2024-01-23T18:08:34","modified_gmt":"2024-01-23T18:08:34","slug":"okxs-token-nightmare-over-50-plummet-in-3-minutes-sparks-chaos","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/okxs-token-nightmare-over-50-plummet-in-3-minutes-sparks-chaos\/","title":{"rendered":"OKX&#8217;s Token Nightmare: Over 50% Plummet in 3 Minutes Sparks Chaos"},"content":{"rendered":"<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\"><strong>OKX\u2019s native <a href=\"https:\/\/crypto-economy.com\/cryptocurrency-exchange\/\" target=\"_blank\" rel=\"noopener\">exchange<\/a> token, OKB, experienced a flash crash, plummeting by more than 50% in just three minutes.<\/strong> This sudden drop was triggered by a series of liquidations due to an abnormal price fluctuation.<\/span><!--more--><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\"><strong>The token\u2019s value dropped from a high of $50.34 to a low of $25.17 before <a href=\"https:\/\/coinmarketcap.com\/currencies\/okb\/\" target=\"_blank\" rel=\"noopener\">recovering<\/a> to $47.75.<\/strong> The 24-hour trading volume surged by 2,100% to $79 million, according to CoinMarketCap. OKX, one of the leading cryptocurrency exchanges, confirmed that it would compensate users for losses caused by the liquidation cascade, including on-chain trades.\u00a0<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Today, OKB experienced unexpected volatility. The market has quickly stabilized, and we&#39;re actively developing a compensation plan, set to be finalized within 72 hours.<\/p>\n<p>We apologize for any inconvenience caused and are committed to enhancing our risk management protocols.\u2026 <a href=\"https:\/\/t.co\/GxJ2M0dOS3\" target=\"_blank\">pic.twitter.com\/GxJ2M0dOS3<\/a><\/p>\n<p>&mdash; OKX (@okx) <a href=\"https:\/\/twitter.com\/okx\/status\/1749807410603266072?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">January 23, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\"><strong><em>\u201cThe platform will fully compensate users for additional losses caused by abnormal liquidation, including pledge lending\/margin trading\/cross-currency transactions,\u201d<\/em><\/strong> OKX <a href=\"https:\/\/www.okx.com\/es-es\/help\/update-on-okb-volatility?channelId=18748396\" target=\"_blank\" rel=\"noopener\">wrote<\/a>. The specific compensation plan will be announced within 72 hours.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">Flash crashes are not uncommon in the crypto markets, where thin liquidity is often distributed across multiple venues. For OKB, the market depth of 2%, a metric that quantifies the capital needed to alter the asset\u2019s value by 2%, ranges from $224,000 to $184,000. <strong>This indicates the liquidity and stability of the OKB market.<\/strong> This means that a sell order of more than $224,000 could trigger another price cascade.<\/span><\/p>\n<h2 style=\"text-align: left\"><span data-preserver-spaces=\"true\">OKX Remains Strong Despite Recent Token Crash\u00a0<\/span><\/h2>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-160598\" src=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/01\/OKBToken.jpg\" alt=\"OKX's Token Nightmare: Over 50% Plummet in 3 Minutes Sparks Chaos\" width=\"825\" height=\"300\" srcset=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/01\/OKBToken.jpg 825w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/01\/OKBToken-300x109.jpg 300w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/01\/OKBToken-768x279.jpg 768w\" sizes=\"(max-width: 825px) 100vw, 825px\" \/><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">With a market capitalization of $2.8 billion, <strong>OKB holds the position as the fourth most significant exchange token currently in circulation, as reported by CoinGecko.<\/strong> This underlines the substantial presence of OKB in the market. Despite the flash crash, OKB remains a significant player in the crypto <a href=\"https:\/\/crypto-economy.com\/bear-market\/\" target=\"_blank\" rel=\"noopener\">market<\/a>. OKX has pledged to further optimize spot leverage gradient levels, lending risk control rules, and liquidation mechanisms to prevent similar problems from happening again.\u00a0<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">In light of the current market indicators, the immediate future of OKB appears to be trending downwards. However, these indicators also hint at a more intricate scenario. Despite the prevailing bearish trends, the potential for a reversal or a steadying of the market cannot be ruled out.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">This incident serves as a stark reminder of the volatility and risks inherent in the crypto market, even for major tokens like OKB. <strong>As the dust settles, the crypto community will be watching closely to see how OKX handles this situation<\/strong> and what measures it will implement to safeguard against future flash crashes.\u00a0<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">The incident also underscores the need for investors to exercise caution and conduct thorough research before diving into the volatile world of cryptocurrencies.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>OKX\u2019s native exchange token, OKB, experienced a flash crash, plummeting by more than 50% in just three minutes. This sudden drop was triggered by a series of liquidations due to an abnormal price fluctuation.<\/p>\n","protected":false},"author":32,"featured_media":160597,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[70,74],"tags":[5536,9826,5026],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/160596"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=160596"}],"version-history":[{"count":1,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/160596\/revisions"}],"predecessor-version":[{"id":160600,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/160596\/revisions\/160600"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/160597"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=160596"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=160596"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=160596"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}