Crypto News- OKX’s native exchange token, OKB, experienced a staggering 50% plunge within a mere three-minute timeframe this Tuesday, triggered by a series of liquidations prompted by an unusual price swing. However, OKB managed to rebound from its low point of $25.17 to $45.64. During this volatile period, the 24-hour trading volume surged by an impressive 2,100%, reaching $79 million, as reported by CoinMarketCap.
OKX Token Plummets 50% in Flash Crash as Liquidation Cascade Unfolds on Crypto Exchange
In response to the unforeseen liquidation cascade, OKX assured users of compensation for their losses, extending coverage to include on-chain trades. The exchange platform stated, “The platform will fully compensate users for additional losses caused by abnormal liquidation, including pledge lending/margin trading/cross-currency transactions.” The specific compensation plan is expected to be unveiled within 72 hours. Furthermore, OKX expressed its commitment to enhancing risk control measures and liquidation mechanisms to prevent the recurrence of similar issues, pledging to optimize spot leverage gradient levels.
OKX’s OKB Token Bounces Back After 50% Flash Crash: Compensation Pledged and Safety Measures Strengthened
It’s worth noting that flash crashes are not uncommon in the crypto markets, often exacerbated by thin liquidity spread across various platforms. The market depth of OKB, indicating the capital needed to move the asset by 2%, stands at $224,000 to $184,000. This implies that a sell order exceeding $224,000 could potentially trigger another price cascade.
Despite the tumultuous events, OKB boasts a market cap of $2.8 billion, solidifying its position as the fourth-largest exchange token in circulation, according to CoinGecko. The recovery from the flash crash, coupled with the compensatory measures and strategic adjustments, reflects OKX’s commitment to safeguarding user interests and maintaining the stability of its native token.