Cryptocurrency exchange OKX has signaled a rapid downturn in the entire crypto market this week, with prices plummeting nearly 50% in a brief timeframe.
“The platform will fully compensate users for additional losses caused by abnormal liquidation.”
OKX Aims to Compensate Users by Week-End
Cryptocurrency exchange OKX announced the news to its 393,100 followers on X (formerly Twitter), that it will aim to resolve the plan internally and release to its investors within 3 days.
“The specific compensation plan will be announced within 72 hours.”
At the time of publication, OKB price stands at $46.72. Over the past 7-days it has dropped 14.35%.
However, on Jan. 23, OKB experienced a sharp brief decline falling from $52 to $25, approximately 50%, causing significant stress on user’s investments.
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OKX to Put Mechanisms in Place to Avoid OKB Issues in Future
The exchange further explains that it plans to put mechanisms in place to avoid sudden market swings in the crypto markets affecting investors large leverage positions:
“We will further optimize spot leverage gradient levels, pledged lending risk control rules, liquidation mechanisms, etc. to avoid similar problems from happening again.”
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Leveraging is essentially borrowing funds to multiply the potential returns of your crypto investment. It can be very profitable, but at the same time, also very risky.
OKX currently provides options of 10x and 20x leverages under full liquidation mode.
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