First the KuCoin hack, then the legal woes of BitMEX and now, keys lost at OKEx: the exchanges make life harder for bitcoiners, by hampering the rise of Bitcoin (BTC) to $ 12,000.
Fort Boyard crypto-exchange version: in search of the lost keys
In a press release published on its website, OKEx announced the suspension of withdrawals for all cryptocurrencies on October 16, 2020.
The press release explains that the exchange could no longer contact a private key holder : the latter is currently cooperating with public security officials in the context of several investigations.
The CEO of OKEx, Jay hao, assured that the functionalities of the platform remain operational and that the funds are safe: according to him, these investigations are in no way related to the exchange and transactions can be carried out as planned, upon the return of the owner of these keys.
These statements did not allay the concerns of users, especially as Whale Alert had detected a suspicious $ 15 million transaction from the platform.
Meanwhile, Chinese media Caixin revealed that one of the exchange’s co-founders, Mingxing “Star” Xu, had been detained by police authorities for a week.
OKEx is far from OK!
The markets reacted badly to the news: within 30 minutes, the price of Bitcoin fell 2.5% from $ 11,500 to $ 11,200.
The news momentarily broke the $ 11,300 support line twice, while the $ 11,100 – $ 11,300 area is a major support to defend the $ 11,000 and attack the $ 12,000.
However, the price recovered to around the $ 11,350 mark. As for the native token of the exchange, B OK, it recorded a larger decrease and lost 16% in about twenty minutes. The price of the token has since stabilized at around 5.2 USD.
The tweet of Jay hao Reassuring its users that other trades “were unaffected” and that funds on the exchange were safe, was not enough to keep prices from falling.
Source : Image via Twitter
OKEx is the second largest trading platform in terms of volume of derivatives, behind Binance for trading spots, which explains the immediate negative repercussions on the price of Bitcoin.
OKEx has lost the keys to the $ 12,000 for Bitcoin. The price of Bitcoin may not correlate with other assets, but it does correlate with the health of crypto exchanges. Will Bitcoin be able to absorb the losses due to these OKEx problems without going below $ 11,000? BTC has already proven its strength. He hadn’t shied away from the KuCoin hack, he absorbed the losses fairly quickly following the CFTC’s announcement of BitMEX’s legal problems. Will all the exchanges go there before the end of this complicated year?
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