Crypto Exchange OKEx announced the eighth buyback round for its platform-owned OKB token.
In an announcement on June 5, OKEx announced the start of the eighth and largest repurchase of OKB tokens, From March 1 to May 31, the exchange bought and burned more than 3.5 million OKB tokens, which is a total of more than $ 18.7 million at a current price of $ 5.35..
The OKB buyback initiative from OKEx started in early May 2019when it was still 300 million tokens in circulationAfter this last burn a total of more than 20.67 million OKB tokens burned.
All of the burns result in a current total of 280 million OKB tokens in circulation.with a market capitalization of just under USD 321 millionThe burned tokens are sent to an address designated by OKEx as the “Black Hole Address”..
OKB is a deflationary token
According to the announcement, the purpose of the burns is not to affect the price of the token, but to promote the development of an OKB-based ecosystem. In February 2020, OKEx also burned 700 million unsubscribed OKB tokens and promised not to issue any more tokens, the company says:
“This (decision) turned the OKB token into a fully deflationary token and the world’s first fully token token.”
In the future, OKEx promises that tokens will be moved to the OKChain native blockchain. So far, however, there is only one test network. According to an announcement in March 2019, the company is developing the blockchain and is also planning to start a decentralized exchange..
OKEx relies on derivatives
Since March, OKEx has been the world’s leading Bitcoin (BTC) futures exchange and continues to aggressively push for further expansion.
Just yesterday, the exchange started the options contracts in Ether (ETH) on its trading platform and announced that the options in EOS will be launched on June 18Jay Hao, the company’s CEO, told Cointelegraph that he believed it Derivatives are important for the cryptocurrency ecosystem::
“Derivatives are critical to the development of the cryptocurrency ecosystem and the acquisition of institutional funds. When we look at traditional markets, derivatives typically represent more than four times the trading volume of the underlying asset, but in cryptocurrencies. Spot trading is much larger, so it won’t be long. “
Hao told Cointelegraph that too The company’s derivatives market is three to four times the size of the spot marketHe also said he was expecting derivatives soon become four to five times larger than spot markets in the entire cryptocurrency market, Completed:
“Cryptocurrencies have grown exponentially in recent years, but they remain small compared to traditional markets and asset types. We need a sophisticated, interesting, robust, and diverse derivatives market to take cryptocurrencies to the next level.”