Is OKX Safe? OKB Price Plummets 52%, Reasons Remain Unclear

Key Points:

• OKB’s value fell from $52 to a low of $25.
• The cause of this sudden decrease is currently unknown.

On Jan 23, Wu first reported that OKB price plummets 52% from $52 to $25, before partially recovering to $44. Cause of drop unknown.

The OKX platform coin, OKB, experienced a sudden sharp drop at 9:00 UTC as of January 23, falling from US$52 to a minimum of US$25.

OKB saw a loss of over 14% in its market capitalization, declining from an initial value of $3.1 billion to $2.7 billion. However, OKB’s price has been slowly climbing back to its primary value and is trading around $45 USD. The cause of this drop is currently unknown.

Readmore: OKX Ordinals Market Has Recovered And Compensation Will Be Paid To Affected Real Users

The Reason Behind OKB Price Plummet Still uncertain

During the recent “power outage” incident involving OKB, OKX’s founder and CEO, Mr. Star Xu, expressed that he is uncertain about the situation. He mentioned that the team is looking into the price variations and will inform the community after getting a clear understanding.

The OKX platform introduced the OKB token, an ERC-20 token on the Ethereum mainnet, in May 2018. As of now, it ranks 28th on CoinGecko and 26th on CoinMarketCap in terms of market capitalization. The total supply of 300 million OKB tokens was minted in 2019.

Possible Correlation Between Bitcoin and OKB Price Drop

The sudden drop in OKB’s price coincided with Bitcoin’s drop below the 39000 level. The OKX team has launched an inquiry into the matter, though the reasons behind these fluctuations remain unknown.

Bitcoin has slightly rebounded since. Interestingly, such Bitcoin movements are considered force majeure events.

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