October 23, 2020

Altcoin NewsZ

Daily Cryptocurrency Update

OKEx’s OKB Crypto Slides Another 20% as Fears Around Exchange Fester

Earlier this week, it was revealed that OKEx had frozen all crypto withdrawals from its platform over issues a few non-public key holder. OKEx is a number one crypto-asset alternate that processes a fabric share of the spot and futures quantity within the business.

OKEx stated that certainly one of its non-public key holders was working with a public safety bureau. He had been out of contact since he began working with the bureau, so they might not course of withdrawals.

Because of this information, the value of OKEx’s native OKB coin slid. The coin fell round 10% within the hour after this information was launched.

Regardless of subsequent reassurances by firm CEO Jay Hao, the coin has continued to slip decrease.

Associated Studying: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

OKEx’s OKB Coin Slides Even Decrease

OKB has dropped 20% up to now 24 hours as fears have continued about OKEx, regardless of reassurances by the corporate that consumer funds are protected. It’s price noting that firms like Crypto Quant, which tracks crypto market information, have famous that no funds have moved out of the corporate’s identified Bitcoin wallets. This means that consumer funds are protected.

Some consider that OKB is falling because of a rise in brief publicity.

Associated Studying: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

Implications on DeFi

Analysts suppose that even when OKEx’s performance returns to regular quickly, traders will proceed emigrate their capital to decentralized exchanges. Centralized exchanges have been seeing growing stress over current weeks and months from regulators, which culminated earlier this month with the CFTC charging BitMEX over derivatives violations.

Qiao Wang, a notable crypto analyst, says that the continued conditions with decentralized exchanges will drive capital to decentralized exchanges, particularly swap and futures platforms:

“Laborious to overstate the significance of 1) Ethereum L2s and scalable L1s coming on-line, and a couple of) What occurred to Kucoin/Bitmex/Okex during the last 2 weeks. Timing can’t be higher for decentralized futures/swap exchanges to lastly take off in 2021.”

Decentralized futures and derivatives platforms, usually, have struggled because of excessive block instances and generally excessive transaction charges. However with the introduction of scaling options, there could also be decentralized derivatives experiences that emulate that of centralized platforms.

Associated Studying: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Picture from Shutterstock
Charts from TradingView.com
OKEx's OKB Crypto Slides One other 20% as Fears Round Trade Fester