Cryptocurrency trade OKEx introduced the eighth spherical of buyback for its platform’s proprietary OKB token.
In a June 5 announcement, OKEx introduced the beginning of the eighth and largest buyback of OKB tokens. From March 1 till Might 31, the trade purchased and burned over three.5 million OKB tokens, which at its present worth of $5.35, interprets to a complete worth of over $18.7 million.
OKEx’s OKB buyback initiative was launched in early Might 2019, when there have been nonetheless 300 million of the tokens in circulation. After this final burn, a complete of over 20.67 million OKB tokens have been burned.
All of the burns end in a present whole variety of tokens in circulation below 280 million OKB, for a market cap simply wanting $321 million. The burned tokens are despatched to what OKEx fittingly calls a “black-hole tackle.”
OKB is a deflationary token
Per the announcement, the aim of the burns is to not affect the token’s worth, however to as a substitute encourage the event of an ecosystem primarily based on OKB. In February 2020 OKEx additionally burned 700 million of unissued OKB tokens and promised to not difficulty any extra tokens. The agency claims:
“This [decision] transformed the OKB token into a completely deflationary token in addition to the world’s first totally circulating platform token.”
Sooner or later, OKEx guarantees that the tokens will probably be moved to their native blockchain, OKChain, however to this point there’s only a take a look at community. In keeping with a March 2019 announcement, the agency is creating the blockchain and plans to additionally launch a decentralized trade on it.
OKEx bets on derivatives
Since March, OKEx has been the world’s prime Bitcoin (BTC) futures trade by quantity and is continuous to aggressively push to broaden additional.
Simply yesterday, the trade launched Ether (ETH) choices contracts on its buying and selling platform and introduced that EOS choices will probably be launched on June 18. The agency’s CEO, Jay Hao, instructed Cointelegraph that he believes derivatives are vital for the crypto ecosystem:
“Derivatives are elementary for the event of the crypto ecosystem and for attracting institutional funds. Once you take a look at conventional markets, derivatives usually account for greater than 4 instances the commerce volumes of the underlying asset. But, in crypto, spot buying and selling continues to be a lot bigger. That will not be the case for for much longer.”
Hao additionally instructed Cointelegraph that the agency’s derivatives market is three to 4 instances greater than its spot market. He additionally stated that he expects that derivatives will quickly grow to be 4 or 5 instances bigger than spot markets in the entire crypto market. He concluded:
“Crypto has grown exponentially in the previous couple of years but in comparison with conventional markets and asset lessons, it is nonetheless tiny. We want a complicated, attention-grabbing, sturdy, and various derivatives market to take crypto to the following stage.”