Earlier this week, it was revealed that OKEx had frozen all crypto withdrawals from its platform over concerns about a private key holder. OKEx is a leading crypto-asset exchange that processes a material percentage of the spot and futures volume in the industry.
OKEx said that one of its private key holders was working with a public security bureau. He had been out of contact since he started working with the bureau, so they could not process withdrawals.
Analysts think that even if OKEx’s functionality returns to normal soon, investors will continue to migrate their capital to decentralized exchanges. Centralized exchanges have been seeing increasing pressure over recent weeks and months from regulators, which culminated earlier this month with the CFTC charging BitMEX over derivatives violations.
Qiao Wang, a notable crypto analyst, says that the ongoing situations with decentralized exchanges will drive capital to decentralized exchanges, especially swap and futures platforms:
“Hard to overstate the importance of 1) Ethereum L2s and scalable L1s coming online, and 2) What happened to Kucoin/Bitmex/Okex over the last 2 weeks. Timing cannot be better for decentralized futures/swap exchanges to finally take off in 2021.”
Decentralized futures and derivatives platforms, in general, have struggled due to high block times and sometimes high transaction fees. But with the introduction of scaling solutions, there may be decentralized derivatives experiences that emulate that of centralized platforms.
Chainlink (Ticker: LINK) rebounded from its short-term corrective downtrend on Wednesday as its price surged 9 percent on a 24-hour timeframe. The LINKUSD exchange rate established an intraday high near $ 14.11 on Binance exchange, up 21.95 percent from its week-to-date low. The pair’s gains appeared despite a broader sell-off in the cryptocurrency market, wherein […]
Ethereum has seen an explosive price performance over the past three weeks. In the span of just around 20 days, the asset has surged from $ 245 to a local high of $ 415. As of the time of this article’s writing, the leading cryptocurrency trades hands for $ 394 — just shy of the […]
Ethereum has been consolidating alongside Bitcoin and most other major altcoins throughout the past several days. This consolidation phase comes close on the heels of the strong upwards movement that sent the cryptocurrency surging from recent lows of $ 230 to highs of $ 415 that were set last Saturday. Ever since it faced a […]