Native exchange tokens have become common throughout the past several years – often made more enticing through fee discounts or inclusion in exchange governance. Yet, a growing number of exchanges have leveraged this initial use case into something more. OKEx launched their OKB token several years ago as a representation of OKEx value. Recently, they’ve added the OKT token as a native currency for the OKExChain. As part of this project, they intend to create a fully-realized platform for decentralized applications. This follows three years of active testnet development.
This is roughly in line with the Binance SmartChain, the leading exchange-driven dApp platform. The two differ substantially in their governance aspects. The Binance SmartChain is exclusively and specifically under the centralized control of Binance. In contrast, the OKExChain will be fully decentralized and transparent. The development and release of the OKExChain caused an associated rise in the OKB cryptocurrency. More recently, market influences suppressed the price, but OKB rose in parallel with the rest of the market.
OKEx Jumpstart Mining
Late last year, OKEx announced their OKEx Jumpstart project accelerator will allow users to stake OKB as a means of mining newly launched cryptocurrencies. Users can stake their OKB up to 14 days before the project launch and earn a high yield without the associated issues inherent to more decentralized financial options.
This benefits both OKB holders and new projects by generating interest through incentives. The first project launched through the accelerator saw over $10 million in OKB staked, all within the first few minutes of availability. The associated staking requires no lock-up time and users may remove their funds at any time.
Despite great strides in their internal ecosystems, OKEx has suffered several setbacks in the recent past. Chief among them was an extended withdrawal freeze caused by the inability to communicate with one of the exchange’s founders. While ultimately not a malicious act, the failure of backup systems concerned investors – causing a temporary drop in the price of OKB.
The founder in question, Star Xu, has had several run-ins with Chinese authorities. Cryptocurrency’s legality in China shifts frequently and maintaining function in the Chinese market is difficult at best. Moving forward, OKEx is sure to remedy the situation in question.