OKEx Continues Withdrawing Before 27 November, Holds New Compensation Program

OKEx, possibly trying to prevent a mass exodus of funds during a five-week freeze on withdrawal lifts this week, on Tuesday said it would offer a mix of compensation and rewards to users who suffer from the withdrawal process being suspended.

Meanwhile, a spokesperson for the Malta-based crypto exchange has confirmed with CoinDesk that the date to resume its cryptocurrency withdrawal service will be before November 27 Hong Kong Standard Time (GMT+8) as previously disclosed.

  • Data from CryptoQuant shows OKEx has been testing the reopening of its withdrawal system, as 0.02 BTC (BTC, +3.19%) has been moved from the OKEx wallet.
  • Ki Young Ju, chief executive of CryptoQuant, said in a tweet that the reopening of withdrawal services on OKEx could lead to price volatility due to demand for “mass withdrawals”.
  • OKEx’s recent announcement to compensate users frustrated with the withdrawal suspension appears to be the exchange’s way of trying to retain those who intend to leave the exchange as soon as services resume.
  • Users who have deposited, held tokens or traded during the withdrawal hold period will receive 20% of OKEx’s total revenue from futures contracts and swap transaction fees for the past seven weeks. This will come in the form of an incentive fund that will be issued as a one-time payment, according to a news release dated November 24. Details: https://bit.ly/KompensasiRewardOKEx
  • Users will receive payments based on their “assets and transaction conditions”, the release said. OKEx’s native token, OKB, will have double weight as an asset.
  • OKEx will also offer a commission rebate card with a minimum value of 100 tether (USDT, +0.08%) to users with assets worth more than 10,000 tether before November 23, at 23:00.
  • Despite the negative news, OKEx remains the No. 1 for bitcoin futures open interest, currently worth $1.27 billion, according to Skew data sources.
  • There is speculation that some OKEx users, most of whom are Chinese, are switching to Binance, another exchange that is relatively new to China.
  • Huobi, the third exchange started in China, recently suffered user losses due to rumors alleging that one of its senior executives had been arrested.

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