OKEx Burns 3 Million OKB as It Continues to Expand OKChain Ecosystem
The leading cryptocurrency spot and derivatives exchange platform, OKEx has successfully concluded its 7th buy-back & burn scheme for the platform’s native OKB utility tokens. The latest round that started on December 1, 2019, till Feb 29, 2020, witnessed a buy-back of about 3,183,344.61 OKB tokens worth close to $17,500,000.
Following the completion of the token burn, the number of OKB tokens currently in circulation has reduced further by around 3 million. In turn, the reduced supply of tokens will translate to an increased value of remaining OKB in circulation. According to OKEx, the Buy-back & Burn scheme was constituted in May 2019 by earmarking 30% of the transaction fees generated from the OKEx spot market during each quarter.
Starting with 300 million OKB tokens in circulation, OKEx has so far burnt a total of 17,161,709.06 tokens to bring the total down to 282,838,290.94 OKB. Apart from that, another 700 million unissued tokens were also burnt to ensure that there are no new tokens entering the market anytime in the future. With the effective destruction of excess tokens and those secured from the buy-back program, OKB has entered absolute deflation, becoming the world’s first fully circulating platform token.
“In the past two years, we have been exploring how to enhance the value of OKB. We have come a long way and are now extremely confident in our ability to drive value through OKB to our users, treating it as an essential foundation to our trading ecosystem and a bridge that connects OKEx to our valued users,” said CEO of OKEx Jay Hao.
The robust token management mechanism implemented by OKEx has already shown results. Earlier this year, the value of OKB registered a 25% growth in the month of January. It is further supported by the recent introduction of OKB Spot Margin Trading along with 18 other assets. Holders of OKB get additional privileges in the form of better leverage and reduced interest rates, discount on trading fees Jumpstart quota for new tokens, payment at designated merchants, priority listing and more.
Regarding OKB Jay Hao said, “The value of OKB lies in the privileges and functionalities it has to offer to its owner. I always stress that traders should own OKB only out of their rational estimate on the token’s value rather than speculation.”
Other Factors Driving OKB
OKB is the utility token of the entire OKEx ecosystem. Meaning, any developments within the ecosystem, whether they are good or bad will have an impact on the value of this token. So far, OKEx has been doing everything right, and probably much better than others in a few aspects. Some of the recent developments other than the Buy-back and Burn program that has had a positive influence on OKB include the successful launch of OKChain testnet accompanied by its very first dApp OKEx DEx – a decentralized crypto exchange.
The new OKChain on testnet currently offers 5 main features which include the ability for users to create their own cryptocurrencies, support for decentralized exchanges, publishing DeFi applications, creating and executing smart contracts and mapping bitcoin cross-chain.
Partnerships and collaborations between OKEx and other companies have also contributed to the rising value of OKB. With over 35 partners around the world, the platform is now offering solutions to a range of everyday use cases like payment, transactions, trading service software, wallets, loan and finance, cybersecurity, tourism, lifestyle, entertainment, social networking, e-contracts, O2O and gaming. In addition, there are plenty of options for users to start trading OKB as the token is currently available on 8 major fiat gateways including US dollar, euro, Korean won, Vietnamese dong, Indonesian rupiah, etc., along with listing on 50 spot exchanges in over 141 countries and regions around the world.
Image by Larry White from Pixabay