When the whole world mourned over the losses from the UST/LUNA crash, OKX users sighed in relief to have been saved from the major hit. OKX, a leading cryptocurrency exchange, was the only major crypto exchange to alert its users when the LUNA/UST crash began. Through its preventive measures and risk management task force, the exchange was able to prevent its users from staking UST when the price volatility jerked.
OKX is a crypto platform that provides financial services to its users to facilitate trading and investing. OKX is a slowly emerging crypto exchange with incredible growth rates. Last year, the exchange recorded an increase of over 700% in the total trading volume with a 480% increase in trade execution.
OKX is one of the few cryptocurrency exchanges that has been closely monitoring the changing trends in the crypto market. For the LUNA/UST crash, the exchange recognized the suspicious movements prior to the crash and immediately created a task force that analyzed the coins’ movements by adjusting risk parameters, analyzing leverage, and monitoring for system weaknesses.
On May 8, 2022, the task force identified the price volatility of LUNA when it began dropping. The exchange automatically alerted its users to stop staking UST on OKX Earn, a crypto earning aggregator platform. OKX also released the UST that was already staked for users to immediately trade or sell it off.
In response to the sudden crash and OKX’s successful prevention, the OKX director, Lennix Lai said, “Seismic crypto market movements like we’ve seen this week tend to deliver some pretty brutal lessons. We’re seeing a flight away from direct investment in DeFi protocols in the wake of UST breakdown.”
Lai also added, “The reality is that centralized exchanges are set up to provide much greater levels of protection for investors, and I’m glad that OKX was able to take care of its users in this case.”
OKX divided the stake release from users’ possession in two waves to prevent the platform from any huge loss. On May 8, UST’s price was above $0.90, OKX saw this as a sign of an upcoming crash and first released around $360 million of UST from 7,000 users.
Later on May 10, the exchange released an additional 139 million UST from 2,400 users who staked the coin. The price dropped by $0.80 during this time. Later UST pummeled down to less than $0.50 but by then, the exchange had already sold off all the users’ UST that they staked and delisted UST/LUNA from its platform. In this way, OKX users saved themselves from falling into the hole of the crypto crash.
OKX Global CMO Haider Rafique prides on being part of the only major crypto exchange to prevent its users from loss by saying, “Having spent several years as a day trader myself, I can honestly say that I have never seen another exchange go to the lengths to protect its users that OKX does. We are the only major exchange to have taken these steps, and I’m very proud that in this case, we were able to protect our users from incurring significant, often life-altering losses.”
As a centralized crypto exchange, OKX benefits its users by helping them in investing for the right cryptocurrencies.
About OKX
OKX is a Seychelles-based cryptocurrency exchange and a self-custody ecosystem, The platform has over 20 million users from more than 180 international markets. It is rated as the best crypto exchange place for retail and professional investors on a global scale.
OKX has become a common platform for individuals who share the same interests in the crypto and DeFi industry, opening doors to becoming an authentic global community. We empower people to learn, trade, game, and explore everything crypto within an expansive ecosystem of wealth creation opportunities. Beyond the OKX Exchange, MetaX is our DeFi portal into the world of Web 3.0, metaverse gaming, NFTs, and the decentralized economy.
For more information on OKX, visit the official website: okx.com
OKX social media:
- Twitter: @okx
- LinkedIn: linkedin.com/company/okxofficial/
- Telegram: t.me/OKxOfficial_English
