The OKEx cryptocurrency exchange has resumed the withdrawal of cryptocurrencies. Many Chinese users are ready to leave OKEx or reduce the volume of trading on this platform.
According to the OKEx notification, the exchange opened the withdrawal of digital assets on November 26 at 11: 00 Moscow Time. A few days ago, OKEx launched a compensation program for users, which includes discounts on commissions. The reward depends on the trading volume during the period when the withdrawal of cryptocurrencies was suspended. Despite the loyalty program, many Chinese users of the platform plan to reduce the amount of deposits on this platform after the resumption of withdrawal.
Alex Zuo, vice president of the Chinese cryptocurrency wallet Cobo, said that the firm will still trade on OKEx, but will transfer one-third of the money to other exchanges to diversify its investments. Zuo said he still believes OKEx is a reliable exchange, but there may be many uncertainties in the future. Zuo is confident that after the situation with OKEx, trading volumes on this exchange will decrease. Therefore, the management of Cobo began to consider the possibility of opening accounts on other cryptocurrency exchanges, including FTX, Coinbase and Bitstamp.
Daniel Wang, founder and CEO of the Loopring decentralized protocol, believes that if OKEx really had enough assets for mass withdrawals, the exchange would allow them to be withdrawn immediately. Wang added that the reward program launched by OKEx does not impress as a marketing strategy to retain dissatisfied users. However, according to Skew, open interest in trading bitcoin futures and options remains high. OKEx still maintains a leading position among exchanges for trading cryptocurrency derivatives.
The executive director of CryptoQuant, Ki Young Ju, suggested that large clients of the exchange will be able to manipulate the market before and after the opening of the withdrawal of cryptocurrencies. However, there is another scenario: if the “whales” want to leave OKEx, they can convert their bitcoins to other cryptocurrencies for fast transactions.
In addition, some hedge funds may send BTC or USDT to OKEx for arbitrage transactions. Ju said that if a large number of bitcoins are transferred to individual wallets, this will reduce the supply on the exchanges and will have a good effect on the bitcoin exchange rate. But it seems that events went according to a different scenario. Today, the bitcoin exchange rate fell from $18,900 to $16,300, later recovering to $17,200.
Flex Yang, founder and chief executive of Hong Kong-based Babel Finance, said OKEx offers a variety of derivative products that can keep experienced traders engaged. According to Yang, even if OKEx customers decide to leave the site, they will still return to it after a while.
Recall that on October 16, OKEx suspended the withdrawal of crypto assets due to the fact that one of the holders of private keys was unavailable, “taking part in the investigation”. Later, the management of the exchange announced the involvement of lawyers to solve this problem.