OKX exchange to compensate users after 48% token flash crash
The crash briefly wiped out $6.5 billion in diluted market capitalization.
Cryptocurrency exchange OKX will compensate users who were affected by a flash crash in its namesake token (OKB) on January 23.
Around 9 am GMT on Tuesday, the price of OKB tokens crashed 48% from $46.80 to $25.10 in less than 15 minutes, wiping out $6.5 billion in diluted market capitalization before a swift recovery. The token trades at $45.94 at the time of publication.
"After touching 48.36 $USDT, the liquidation of multiple large leverage positions was triggered successively," OKX staff wrote. "In addition, the market impact caused the currency price to fall, further triggering the liquidation of pledged loans, leverage transactions, and cross-currency transactions, which ultimately caused the price to drop within a short period of time down to 25.1 $USDT."
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