Popular cryptocurrency trading platform OKX has recently revealed it will reimburse users impacted by a sudden OKB token flash crash, which saw its native token plunge by nearly 50% in less than 15 minutes, from $46.8 to $25.1.
According to available data, the flash crash saw the value of the token’s market capitalization briefly plunge by $6.5 billion before it quickly recovered, to now trade close to the $46 mark again.
The exchange explained that a series of large leveraged positions liquidated one after the other after the cryptocurrency’s price hit $48.36 USDT led to a market shock. This triggered further liquidations in pledged loans, leverage transactions, and cross-currency transactions, causing the price to plummet to $25.10 USDT per token.
The cryptocurrency exchange has committed to “fully compensate users for additional losses caused by abnormal liquidation” within the next 72-hour period. This incident coincided with significant volatility in the broader cryptocurrency market that saw the price of BTC drop below the $40,000 mark.
The drop was partly related to Grayscale Bitcoin Trust’s sale of Bitcoin to satisfy investor redemptions, with the estate of collapsed cryptocurrency exchange FTX having sold nearly $1 billion worth of shares in the recently converted spot Bitcoin exchange-traded fund (ETF).
The volatility is also coming shortly after a whopping $2 billion worth of the flagship cryptocurrency Bitcoin ($BTC) have recently started moving across several wallet addresses that seemingly belong to a single entity. The funds had been dormant since 2019, having only moved in 2013 before that.
The funds were consolidated from 49 different Bitcoin addresses and condensed into just five addresses, with each now holding between 8,000 BTC and 12,000 BTC.
If the funds do belong to a single entity, it’s likely that they’ve been spread across a larger number of Bitcoin addresses as it aims to secure its funds by spreading them out and keep them in cold storage.
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