Crypto Exchange OKEx Reveals Four Major Business Partners for its Global OKB Utility Token

OKEx, one of the world’s largest futures digital currency exchanges, revealed an update on November 22 regarding its four main business partners for OKB, the trading platform’s globally accessible utility token, which is aimed at “connecting digital asset projects.”

According to a press release shared with Crowdfund Insider, the OKB token will be listed on Ledger’s hardware wallet, which will help crypto traders and institutional clients keep their digital assets safe and secure in cold or offline storage. Ledger reportedly has clients in 165 different countries and has sold around 1.5 million of its wallets.

OKB is now also listed by Aliniex, the largest over-the-counter (OTC) exchange in Vietnam, and Bvnex, a leading Vietnamese fiat/crypto exchange. Cryptomall, an online retailer, will also be accepting OKB.

As mentioned in the release:

“These partnerships are part of OKEx’s mission to collaborate with mainstream and localized partners, making the OKB ecosystem more comprehensive for its global user base. OKEx and these partners share a similar mission to deliver professional, transparent, and secure trading tools to investors.”

Established in 2017, the Aliniex exchange lets traders purchase and sell digital currencies using Vietnam’s national currency, the Vietnamese Dong (VND). Following the recent integration, Aliniex will support the OKB/VND trading pair. Customers will be able to use OKB to pay for purchases such as file sharing, borrowing crypto-assets, and booking rental cars, making hotel reservations, or phone cards.

Cryptomall is an online retailer that leverages blockchain tech to eliminate fake or fraudulent products from its virtual marketplace. The company keeps all transaction records on the blockchain. The transactions are tracked from the manufacturer all the way to when the buyer acquires the items. Following the Cryptomall integration, OKEx customers can buy over 1 million items via the online retail company with the OKB token.

Andy Cheung, head of operations at OKEx, stated:

“Ledger, Aliniex, Bvnex, and Cryptomall all share OKEx’s vision to innovative, industry-leading services to cryptocurrency users globally. We are pleased to partner with these companies to expand OKB’s utility, making it easier for traders to participate in the cryptocurrency markets all over the world.

Malta-based Crypto Exchange OKEx Joins Global Blockchain Platform Klaytn to Promote DLT Adoption

Malta-based digital asset exchange OKEx announced recently that it will be joining the global blockchain platform Klaytn, which has been developed by Kakao’s subsidiary Ground X.

On October 25, OKEx’s management noted that blockchain project Klaytn is preparing to onboard the digital currency exchange into their growing ecosystem, which aims to promote the adoption of distributed ledger technologies (DLT).

OKEx will reportedly be joining several other industry participants including Samsung Blockchain, IDG Capital, and Shinhan Bank. OKEx believes the new partnership will give the exchange an opportunity to develop a more stable blockchain sector while connecting to various networks and portfolios in the DLT ecosystem. 

Commenting on the partnership, Andy Cheung, head of operations of OKEx, remarked: 

“Exchanges and projects itself should work together to define and adopt standards that will promote digital asset adoption globally.”

Leading crypto exchange Binance recently joined Klaytn’s governance council. Malta-based Binance and 24 other member companies including LG Electronics, Unionbank of the Philippines and Celltrion, will be taking important decisions related to Klaytn’s ongoing business and technical operations.

After announcing its partnership with Klaytn, OKEx stated in a press release that it had secured another 14 partnerships with major service providers to encourage the adoption of OKB, the exchange’s utility token. 

Cheung stated:

“The 14 new partnerships is a shot in the arm for OKB. Together with our community, we will continue to explore the possibility of OKB. By offering a wider array of applications, OKB holders will be able to enjoy the fruit of blockchain technology and the appreciating value of our token.”

Last month, OKEx denied allegations of engaging in manipulative practices such as wash trading on its crypto trading platform. The exchange noted that the allegations made in a report published by the Blockchain Transparency Institute were “not accurate and misleading.”

OKEx Announces New Initiative to Develop Global Compliance Standards For Cryptocurrency Exchanges

OKEx, a Malta-based digital assets exchange, announced on Friday the launch of its new initiative to create a Self-Regulated Organization (SRO) aimed at standardizing cryptocurrency exchange practices and policies. The initiative was announced at the DELTA Summit by Enzo Villani, a former Nasdaq executive who joined OKEx as the company’s Head of International Strategy and Innovation.

“This SRO will be an independent, membership-based organization that is neutral and open to exchanges of all sizes and jurisdictions. Member exchanges will work together to define and adopt standards that will promote digital asset adoption globally, educate governments and regulators, and develop metrics and criteria for trading, listings, and reporting.”

While sharing more details about the initiative, Andy Cheung, Head of Operations for OKEx, stated:

“Cryptocurrencies are global and decentralized, and the industry remains nascent, thus regulations by jurisdiction are not enough. The only way for exchanges to grow and deliver impact is by joining together to develop practices and policies that will set a global standard and adapt to regional regulatory frameworks.”

OKEx also noted that it invites other exchanges to join the company in establishing standards for market-making, listings, delistings of digital assets, and other items critical to the growth of the entire industry. Enzo Villani, Head of International Strategy and Innovation at OKEx, added:

“While other organizations have introduced initiatives to elevate standards for crypto exchanges, most are focused on one jurisdiction. We applaud their efforts and OKEx will determine which ones are important to our customers. Our initiative is focused on creating a global SRO that can provide international standards. We are in discussions with other exchanges and market participants to join us in formalizing a global SRO.”

Wash Trading: Blockchain Transparency Institute Reveals Kraken, Coinbase Remain Cleanest Crypto Trading Platforms [u]

The Blockchain Transparency Institute (BTI) has published its updated market surveillance report which revealed that US-based digital asset exchange Kraken and Coinbase are among the cleanest trading platforms in the crypto industry.

On September 19, the BTI released its 5th market report that examines and verifies reporting of crypto exchange trading volumes. The institute has been publishing reports since August of last year, and through its internal algorithms, BTI determines actual (real) trading volumes by removing all wash trading.

The agency’s report noted:

“Since the start of 2019, global wash trading has reduced by 35.7% among the real Top-40 exchanges. The process of sharing our data reports with many of these exchanges has resulted in enhanced mechanisms for detecting wash trading accounts and shutting them down.”

BTI’s report mentioned that the cleanest digital currency exchanges since its previous reports continue to be San Francisco-based Coinbase and Kraken. Delaware-registered Poloniex and Korean exchange Upbit are also among the cleanest crypto trading platforms, the report noted. 

OKEx and Bibox are the exchanges with the highest amount of wash trading, BTI’s report revealed.

The agency’s report also noted that the US and Japan are ranked the highest when it comes to digital asset exchanges with the most accurate reporting. 

BTI’s reports stated:

“This can be due to several factors, the main of which is the legal and regulatory standards in these countries. However, stricter regulatory frameworks do not always produce the cleanest exchanges.”

In March 2019, Bitwise Asset Management also published a report on Bitcoin (BTC) trading volumes. The San Francisco-headquartered index fund provider found that around 95% of BTC trading volume, as reported on CoinMarketCap, was attributed to wash trading.

Wash trading is an illegal market manipulation tactic in which multiple traders place several buy and sell orders simultaneously on the same asset, in order to artificially inflate trading volumes. This gives the impression that the asset being traded has a lot more demand than it actually does.


OKEx’s management claims that BTI’s report is “fake and misleading.”

In statements shared with Crowdfund Insider, the exchange noted:

“OKEx is not involved in and does not tolerate any wash trading activities on our [trading] platform.”

OKEx alleged that BTI’s analysis lacks the comprehensiveness required to deliver accurate results. As explained by the exchange:

“Due to the complexity of derivatives instruments trading, thousands of trades could be placed per day by a single user via collocated machines. Attempting to use retail-oriented parameters such as website/mobile traffic in any research is de-facto an apples-to-oranges comparison.”

OKEx also noted that it is committed to surveillance.

“We have adopted different measures to prevent and stop any attempts of wash trading. We have a trading surveillance team working 24/7 to monitor the trades on OKEx. We also partner with AML companies and consistently upgrade our KYC system to ensure that our market is healthy.”

OKEx has also joined the Data Accountability & Transparency Alliance (DATA), which is led by crypto data site CoinMarketCap, in an effort to maintain transparency.

Citing Money Laundering Concerns, South Korean Exchange UpBit Delists Privacy Coins Monero (XMR), ZCash (ZEC), DASH

South Korean digital asset exchange Upbit announced on September 20 that it will delist several privacy-oriented cryptocurrencies including Monero (XMR), Dash (DASH), and ZCash (ZEC).

Upbit’s management noted in a blog post that it would also cease trading for PIVX, a privacy-focused proof-of-stake (PoS) currency that uses the Zerocoin protocol. Other coins being delisted by the exchange include Haven (XHV) and BitTube (TUBE).

The six digital currencies will be delisted by September 30. Upbit has already stopped supporting deposits for the coins.

The exchange’s management said it will cancel orders submitted before the end of the transaction support in Korean won (KRW), Bitcoin (BTC), Ether (ETH) and USDT markets.

The exchange’s notice stated that the privacy coins were being delisted in order to prevent money laundering and the inflow from external networks. 

Earlier this month, the South Korean arm of Malta-based crypto exchange OKEx also announced its plans to halt trading for privacy-focused digital currencies including XMR, DASH, ZEC, Super Bitcoin (SBTC) and Horizen (ZEN).

OKEx will stop supporting the coins on October 10, 2019. The exchange said it was delisting the assets in order to comply with the new guidelines released by the Financial Action Task Force (FATF).

FATF’s updated rules require that virtual asset service providers (VASPs), including digital asset exchanges, to carefully monitor transactions and obtain know-your-customer (KYC) information from their users.

The agency’s new guidelines state that VASPs should identify digital currency transfers that take place between different parties if the amount being transacted is more than $1,000. 

FATF’s rules could theoretically be enforced by more than 200 countries by mid-2020, however, it would be difficult to completely prevent anonymous transactions due to the decentralized nature of cryptocurrencies.

New Financial Action Task Force Rules Force OKEx to Delist Privacy Coins Monero, Zcash, Dash

The South Korean arm of Malta-based digital asset exchange OKEx announced that it will no longer support five major cryptocurrencies due to new international financial regulations.

OKEx Korea’s management noted that it would suspend trading for privacy-oriented digital currencies including Monero (XMR), Zcash (ZEC), and Dash (DASH). The exchange will also halt the trading of Super Bitcoin (SBTC) and Horzen (ZEN) on October 10, 2019.

OKEx’s management said it suspended trading of the coins because they’re focused on maintaining financial privacy. 

The Financial Action Task Force (FATF) has introduced new guidelines that require virtual asset service providers, including crypto exchanges, to carefully monitor digital currency transactions and obtain know-your-customer (KYC) information from their customers.

FATF’s new rules recommend that businesses identify crypto transactions that take place between two parties if the amount being transferred is over $1,000. 

US Treasury Secretary Steven T. Mnuchin noted (during the 2019 Orlando Plenary of the FATF in June 2019):

“I commend efforts by the FATF to address the growing misuse of cryptocurrencies and other virtual assets by money launderers, terrorist financiers, and other illicit actors.”  

FATF’s guidelines could theoretically be enforced by over 200 countries by mid-2020, however, it may be impossible to completely prevent private transactions due to the decentralized nature of blockchain networks.

The five cryptocurrencies being delisted by OKEx make it almost impossible to accurately identify the sender and recipient of a transaction

An OKEx spokesperson clarified that coins would only be removed from OKEx’s South Korean platform.

OKEx will continue to support the coins on its other trading platforms.  

OKEx Donates $4.5 Million Worth of Bitcoin to Perpetual Swap Market Insurance Fund

OKEx, a Malta-based digital assets exchange, announced earlier this week has donated $4.5 million worth of Bitcoin to its perpetual swap market insurance fund to encourage customer confidence in trading cryptocurrencies. OKEx reported that last year it introduced perpetual swap trading along with the new risk management system which their customers widely benefited from. The platform revealed:

“Since the adoption of the new risk management system, the exchange has recorded zero clawback for the futures and perpetual swap markets, even under extreme volatility. The donation to the perpetual swap insurance fund will now provide an extra layer of protection to the customers, further ensuring that all customers’ interests are safeguarded.”

Speaking about the donation, Andy Cheung, Head of Operations of OKEx, shared:

“We strive for developing a healthy trading environment. No clawback has occurred on OKEx perpetual swap since its launch. We introduced a new risk management system to strike a better balance between avoiding early liquidation and maximizing traders’ benefits. We believe the $4.5 million donation can give extra confidence for customers trading on our platform. Developing a robust crypto marketplace where everyone can trade freely in a fair manner is something that has always been our mission.”

Cheung went on to add:

“Customer satisfaction is the core of our service. The key to delivering the best user experience to our customers is security. Our founding members and executives are all tech and internet experts, allowing us to lead in product and technology development. As believers in Bitcoin and blockchain, we are dedicated to bringing more positive changes to the existing financial system, bridging the traditional and crypto markets with our technologies.”

Bitfinex Lists OKEx Native Token “OKB” & OKLink Stablecoin “USDK”

Cryptocurrency exchange OKEx announced on Wednesday the listing of its native token, OKB, on another leading cryptocurrency exchange, Bitfinex. Bitfinex will also list USDK, which is a stablecoin co-developed by OKLink, a blockchain technology company, and Prime Trust.

“Empowering OKEx’s ecosystem, OKB allows OKEx users to perform various tasks such as setting up an OKEx partner exchange, settling trading fees, and subscribing for new tokens on the token sale platform OK Jumpstart. With multiple use-cases, OKB has been capturing more market share over the months, according to the data revealed on CoinMarketCap.”

While sharing details about the listings, Andy Cheung, Head of Operations of OKEx, stated:

“We aim to foster a new economy with blockchain technology. To achieve de-intermedium and financial inclusion, we do not work as an isolated island. We believe the key to prompt the market growth requires teamwork, which is the reason for us joining forces with other leading industry players to spark new chemistry. OKB being listed on Bitfinex is just the beginning, it marks the recognition of our native token and platform from our peers, and we will continue to explore further opportunities in all-kinds of collaboration with other industry players. We never rest on cultivating a fair and transparent trading market and welcome partners with similar mindset to work together.”

OKEx added that the nine new trading pairs will officially open on Bitfinex from June 13th and includes USDK/USD, BTC/USDK, ETH/USDK, USDT/USDK, EOS/USDK, OKB/USD, OKB/BTC, OKB/ETH, and OKB/USDT.

OKEx Lists OKLink & Prime Trust’s Stablecoin USDK

OKEx, a Malta-based digital assets exchange, announced on Monday its new listing of USDK, a US Dollar-pegged stablecoin co-launched by its strategic partner OKLink and Prime Trust. According to OKEx, the stablecoin will be listed on OKEx’s fiat-to-token (C2C) trading platform against six fiat currencies, which are CNY, VND, GBP, RUB, EUR and TRY, and spot trading platform with 11 trading pairs.

“USDK is a ERC-20 stablecoin co-developed by OKLink, a blockchain technology company, and Prime Trust, a US-licensed trust company. Every USDK is backed by 1 USD from the Prime Trust Special Account. With a guaranteed 1:1 conversion rate between USDK and USD, the monetary value is 100% reserved. Also, an audit firm will provide monthly reports for maximum transparency to the public.”

Speaking about the stablecoin, Andy Cheung, Head of Operations of OKEx, stated:

“We are excited about the listing of USDK. With the support of the new stablecoin, we are one step forward to foster a new blockchain-driven economy, encouraging financial inclusion through achieving disintermediation. We understand the pains in terms of third-party auditing. But with this new launch of a compliant stablecoin, we hope to provide our users a secure and reliable trading experience guaranteed by high transparency and regular audit. In the future, we are looking forward to incorporating USDK into more decentralized applications within OKEx’s ecosystem.”

OKEx went on to add thatit will launch a 2-day campaign together with OKLink, offering a 1% conversion premium exclusively to the platform’s users. During the promotion period, users can convert USDT to USDK at a special rate of 1 to 1.01.

OKEx Announces Listing of Native Token OKB on CoinMarketCap

OKEx, a Malta-based digital assets exchange, announced on Friday it has listed its native token, OKB, on CoinMarketCap. The crypto websites have also announced their partnership.  Together with the 11 exchanges that are in collaboration with CoinMarketCap, OKEx is dedicated and opened to working with other market leaders to enhance the industry’s overall standard for the whole ecosystem.

While sharing more details about the collaboration, Andy Cheung, Head of Operations of OKEx, stated:

“The crypto market is a rapidly-developing space, and its trading volume is fully contributed by traders. While we are contributing to the development of the industry, we are also facing the challenges of unethical practices generated by external factors. At OKEx, we are committed to building a robust blockchain ecosystem, and this commitment extends to our stakeholders and other external resources associated. We are excited to join hands with CoinMarketCap to cultivate an all-rounded, fair, and transparent trading market for digital assets. With a third-party reliable source, traders can make their own choice whether to trust an exchange, and I believe they will realize OKEx is here for them.”

OKEx added its official global utility token OKB is now listed on CoinMarketCap for traders.

Terra Unites with Fantom to Accelerate Mainstream Stablecoin Adoption

Terra, a project building the next-generation payment system based in Singapore and Korea,  has partnered with South Korean based Fantom, a DAG-based smart contract platform for real-time cryptocurrency payments, to accelerate the mainstream adoption of its stablecoin. Terra and its alliance of eCommerce partners will join forces with Fantom and the Fantom Enterprise Alliance to bring blockchain-based payment systems to both online platforms and offline retailers across various industries.

“We believe that wide adoption is key to creating a successful stablecoin. Ultimately, trust in Terra will come from the ability to easily use Terra to purchase goods and services we value in everyday life,” explained Terra Co-founder Terra Daniel Shin. “Terra has worked tirelessly to develop a stablecoin suitable for mainstream adoption, and we are excited to partner with Fantom and its Enterprise Alliance to provide a blockchain payment solution to offline retailers and consumers across all industries.”

Together, Terra and Fantom plan to address the challenges of cryptocurrency adoption among enterprises by releasing Terra’s SDR-pegged stablecoin on Fantom’s blockchain platform, Opera (not to be confused with The Phantom of the Opera). Fantom has partnered with key players in a wide array of industries to build the Fantom Enterprise Alliance.

[easy-tweet tweet=”.@terra_money partners #DAG-based #smartcontract platform @FantomFDN #blockchain #cryptocurrency #crypto #terra #stablecoin”]

Most notably, Fantom forged a partnership with the Korea Food-Tech Association—an organization with over 90 food tech member companies valued at around $177 billion USD. Industry giants Oracle and SBCK (a subsidiary of SoftBank Korea) are also onboard as major strategic partners. This partnership allows Terra to expand the use case of its stablecoin and enables Fantom to provide its partnering enterprises, developers and dApp consumers with a reliable method of payment.

“Since day one, Fantom has been dedicated to its vision of creating a decentralised world driven by the mainstream adoption of cryptocurrencies and emerging technologies,” added Fantom CEO Dr. Byung Ik Ahn. “We share a common vision with Terra and are excited to find ways both companies can collaborate in the online and offline payments market. Terra is a leading project backed by industry giants, and together, we will reform the payments industry. ”

Fantom began 2019 with a new listing in OKEx’s partner exchange, CoinAll while Terra worked on new crypto programs in Mongolia. Terra Alliance, with its collective, annual transaction volume of $25 billion and 45 million users, aims to build the future of money by developing a stablecoin and a blockchain payment system. Its growth is propelled by an eCommerce alliance across Asia, which includes TMON, Baemin, and Carousell.

Crowdfund Insider reached out to Terra’s Daniel Shin via email for more information about the platform, specifically if Terra is sufficiently capitalized:

“We raised $32 million during our seed round, which was more than our target.  We have a great relationship with our investors, who are eagerly waiting for our upcoming product launch. We have also put in place a number of safety measures to ensure that fraudulent activities won’t take place, and have been working closely with financial institutions to ensure that our product is compliant with local regulation.”

Malta-Based Digital Asset Exchange OKEx Launches New Product “Perpetual Swap” to Crypto-Base Financial Suite

OKEx, a Malta-based digital assets exchange, announced on Monday the launch of its new product, Perpetual Swap, as part of its crypto-based financial product suites. According to OKEx, users may now perform perpetual swap, futures contract, and spot trading with margin and leverage at one stop.

OKEx described Perpetual Swap as a peer-to-peer, virtual derivative developed by OKEx to enable traders to speculate the direction of the price of digital assets such as Bitcoin. The product has a mechanism very similar to futures contract, but with no expiry, and settlement occurs daily. Each swap contract has a notional value of $100-equivalent BTC. Users may go long a position to profit from the increase of a digital asset’s price, or short a position to profit from the decline of a digital asset’s price, with a leverage of up to 100x. Perpetual Swap’s features include the following:

  • No expiry – positions can be held indefinitely
  • Trade closely to the underlying reference index
  • Leverage level – 1-100x are available
  • Track the price of the spot market through a funding mechanism

Users can also do the following:

  • Mark Price mechanism helps to avoid unnecessary liquidation
  • Lower transaction fees than other similar products in the market
  • Fast settlement – swaps are settled daily, profits can be withdrawn daily;
  • Partial liquidation system – minimizing the market impact during forced liquidation
  • Tiered margin system enables traders to adjust their leverage level according to their risk appetite and market condition

Lennix Lai, Financial Market Director of OKEx, went on to add:

“This marked a key milestone for OKEx. The launch of perpetual swap demonstrated our continuous commitment to build a complete financial ecosystem on blockchain and crypto. With the new offering, investors and traders can select the products which best fit their trading and hedging strategies. However, we would like to remind our users that due to its highly leverage nature, implementing risk control strategies are equally crucial in trading.”

Interesting Bitcoin Whale Trades Highlight Shortcomings of Exchanges & Crypto Trading

Recent, huge Bitcoin trades have generated a lot of chatter from the Cryptoati.

Not too long ago, an enormous sum of BTC “woke up” and moved around $720 million worth of Bitcoin. Speculation is that it represents crypto from the Silk Road days. That represents a significant percentage of Bitcoin float and an amount that can easily move markets if the holders attempt to liquidate.

One recent trade in particular is interesting due to the speculation that the trader is using a hedge to drive some pretty cool gains (if you are the trader).

There is a good post on Medium that explains it all but, in brief, a leveraged transaction of $416 million on OKEx was rolled up as the exchange shut down the transaction when the account did not hold enough crypto to cover the exposure.  The trader in question had $20.8 million in digital assets and OKEx extended $395.2 million for the trade.  When the trade went sideways, OKEx took over the position and the trader was out their $20 million. But due to the size of the position, the market is simply not large enough to absorb a sale thus OKEx is in a bind. This creates significant downward pressure on the price of BTC.

The cool thing about the transaction is the fact there is speculation that the trader had offset the long position with a short on many other exchanges thus hedging his or her position. The “sell wall” of all that Bitcoin means the short is doing well for the trader but OKEx is stuck holding the digital bag.

OKEx is an exchange with a clawback policy, so when situations like this occur, it can take traders profits to cover their losses. This clawback will probably not please OKEx traders. The cost to the innocent traders was pegged at $15 million. Richard Gardner, CEO of Modulus, believes OKEx (and other exchanges) need better management. If not,  “they put the whole industry at risk.”

This is the type of trading that wouldn’t easily take place on a fully regulated exchange and thus highlights the risks of unregulated digital asset marketplaces. But then this is the world of crypto.

If you are interested in reading more on this go to the blog posts here

OKEx Crypto Exchange Founder Questioned in Shanghai ICO Fraud Investigation

The founder of controversial crypto exchange OKEx has been questioned by Shanghai police regarding a case of suspected ICO fraud, reports.

The supervisor of the Shanghai Weifang Xincun Police Station, Lu Jun, issued a statement claiming that Shanghai police questioned OKEx founder Winxing (Star) Xu yesterday in connection with a suspected fraudulent offering of an ICO (initial coin offering) called “WFEE coin.” Xu is described as “a shareholder of the WFEE project,” but was in Shanghai on business unrelated to crypto-trading.

All investigative materials gathered by Shanghai police will be transferred to Beijing, where the main investigation is underway, said Supervisor Lu:

“The report materials submitted by investors last night and today will be handed over to the Shanghai Pudong New Area Economic Investigation Detachment early tomorrow, and then the investigation department will hand over the materials to the Beijing Haidian District Public Security Bureau. The specific case handling unit is the Beijing Municipal Public Security Bureau.”

The OKEx exchange’s contact page lists phone lines in Hong Kong, Canada, Ireland, Singapore and Russia. OKEx also announced in April that it is expanding to Malta.

Andy Cheung, Head of Operations at OKEx, urged the public to maintain healthy skepticism regarding the reports:

About 8 hours later, Cheung returned to Twitter to claim that it was Star Xu who had called police after he was accosted by a group of people in Shanghai.

Police arrived and “invited” everyone to the station, he says, where, “those people was (sic) detained.”

It was at the station, says Cheung, that the people who accosted Xu, “raised a fraud complaint against Star.” Xu then stayed on for questioning, “to clarify,” says Cheung.

Cheung then explains that Star Xu is no longer closely involved at OKEx.

OKEx has been in a lot of hot water lately.

First, their move to Malta was reportedly inspired when Japanese regulators issued a warning to OKEx’s Japan operation.

OKEx was also accused of, “participat(ing) in market manipulation so severe that it led to a market crash in April.”

This was followed by accusation from researchers in August that OKEx, which has claimed it is the number one exchange by volume in the world, has been over-reporting trading volume by 80-90%.

OKEx also infuriated users last month when it executed a substantial “whale” bitcoin trade that it couldn’t fill and so instituted a “socialized clawback” of $15 million dollars from other users to cover the order, a move permitted in OKEX’s Terms of Service.

Exchange Rankings Shake Up: Researchers Say Two-Thirds of Crypto Trade Volume is Fake

Two-thirds of all trade volume in crypto- or $6 billion dollars per day- is faked, say researchers at the Blockchain Transparency Institute (BIT), and many of the world’s “top” crypto exchanges aren’t even coming close.

The researchers made their conclusions after comparing the order books of 131 exchanges with web traffic data provided by third party sites, including SimilarWeb.

The BIT findings confirm those made by investor Silvian Ribes, which were published in March.

The BIT study also confirmed Ribes list of, “exchanges that appear to be doing accurate volume reporting,” including Bittrex, Kucoin, Cryptopia, and Bithumb, whose numbers indicate a modest amount of trade volume per visit.

“Accurate exchanges” report a volume/user to unique visitor ratio of between 2% to 5% (3.5% on average).

This contrasts with reports from questionable exchanges, which indicate some are reporting volume-to-visitor ratios of up to 655 000%.

For example, if volume reports from self-declared “Top 10” Chinese exchanges LBank and ZB are to be believed, exchange visitors would have to be trading an average of $214 000 and $74 000 respectively, figures the BIT calls “outlandish…(given that) known high liquid markets Bitfinex, Binance, and Coinbase fall between $5,000 and $8,500 per visitor per day.”

Low visits to both ZB and LBank suggest those exchanges have been wash trading to boost volumes over 390x and 4400x respectively.

When recalculated using third-party web traffic numbers, volume figures at “suspect” exchanges consistently fell in line with the 3.5% averages reported by more credible exchanges.

Singapore-based exchange Huobi and Hong Kong-based exchange OKEx also didn’t fare well under scrutiny, with Ribes determining, and BIT confirming 80-90%, volume over-reporting from these exchanges.

Chinese exchange Bibox is also accused by the BIT researchers of overstating its volume by 85%.

On the bright side, the BIT confirmed that the Asia-based exchange Binance is indeed doing the biggest crypto trading volume in the world, followed by the migrating exchange Bitfinex, which requires a minimum deposit of $10 000 USD from users for sign up.

Coinbase maintained its rank as the number one US exchange, and Korean exchange Bithumb surged ahead of rival Upbit to take its rightful place as the largest Korean crypto exchange by volume, according to BIT.

Kucoin and Cryptopia exchanges also advanced up the ranks to #19 and #26 as cheaters fell. Both Kucoin and Cryptopia have reported vol/visitor ratios of less than 1%.

Many “copycat” exchanges using plagiarized interfaces also fell to the bottom of the ranks.

All told, the BIT has concluded that over 70% of exchanges listed in the popular  website CoinMarketCap’s top 100 have been faking their trade volume through wash trading by at least 3x.

CoinMarketCap recently tried to address criticism of its exchange-by-volume rankings by splitting its rankings into both “reported” and “adjusted” volume categories.

[easy-tweet tweet=”All told, the BIT has concluded that over 70% of exchanges listed in the popular website CoinMarketCap’s top 100 have been faking their trade volume through wash trading by at least 3X #Cryptocurrency”]

Digital Asset Exchange OKEx Joins SharesPost Security Token Network in Global Expansion Push for Trading

SharesPost has announced that OKEx, a Hong Kong based digital assets exchange, is joining their Global Liquidity and Settlement System (GLASS).

SharesPost received approval to operate as an Alternative Trading System (ATS) earlier this year – a necessary move to trade in securities in a compliant manner. GLASS was announced soon after the approval. GLASS is a compliant, global network of exchanges and OTC pools facilitating the trading, certification, and custody of security tokens and tokenized assets. In 2017, SharesPost managed its first initial coin offering and in 2018 announced plans to integrate trading of digital securities into the SharesPost platform.

OKEx is an interesting platform that is a leading digital asset exchange providing global users with a digital asset-only trading platform. Currently, OKEx offers over 400 token & futures trading pairs enabling users to optimize their strategy. The OKEx platform serves many customers from over 100 countries but not the US due to a regulatory hurdle that the partnership with SharesPost will address.

Jason Lau, OKEx’s VP of Business Development, says they are pleased to see GLASS gaining credence in the crypto community;

“There is a growing demand for a decentralized liquidity and settlement solution in the market. Combining SharesPost’s regulatory infrastructure and OKEx’s deep pool of digital asset liquidity, GLASS will offer exchanges the most efficient, lowest cost way to settle compliant security tokens trades.”

By connecting trading platforms with a global network of licensed entities, GLASS seeks to ensure that security token transactions will adhere to local securities laws.

As the network develops, member exchanges are expected to be able to expand their user bases and supported asset types, including private growth equity assets, tokenized assets, and other emerging security products. OKEx will also be able to settle trades for other GLASS member exchanges in countries where it has the appropriate licenses.

Greg Brogger, founder and CEO of SharesPost, described the move by OKEx as a signal to their commitment for trading compliant blockchain based securities. Brogger added that GLASS will help generate liquidity for thinly traded tokens;

“In the aggregate, exchanges on the GLASS network already represent the world’s single largest pool of token liquidity.  We are pleased that all participants will benefit from the network’s economies of scale and network effects.”

Modulus CEO Slams Cryptocurrency Exchange OKEx Decision to Clawback Failed Whale $416 Million Bitcoin Position

Last Friday, OKEx blogged about a failed whale that posted a huge long position on Bitcoin. The unnamed whale booked an order for 4,168,515 contracts. The Hong Kong digital asset exchange explained the predicament and ensuing action:

“The client with user ID 2051247 initiated an unusually large long position order (4,168,515 contracts) at 2am on July 31 (HKT) and triggered our risk management alert system. Our risk management team immediately contacted the client, requesting the client several times to partially close the positions to reduce the overall market risks. However, the client refused to cooperate, which lead to our decision of freezing the client’s account to prevent further positions increasing. Shortly after this preemptive action, unfortunately, the BTC price tumbled, causing the liquidation of the account.”

OKEx has a “societal loss risk management mechanism” in place. The vehicle kicks in when the insurance fund is not able to cover the total margin call loss. This setup means that users who have a net profit across all three contracts that week will be subject to a crypto clawback. OKEx takes a portion of trader profits to cover the difference due to the action of, in this case, one single unscrupulous trader.

The cost to innocent traders? Approximately $15 million.

CEO of Modulus, Richard Gardner, slammed the action of OKEx – while recognizing its right do take such an action. Modulus is a developer of trading and surveillance technology for global equities, derivatives, and cryptocurrency exchanges.

“Based on the contract users agreed to, OKEx is within its rights to employ its clawback. But the fact remains that they never should have put their users in that position to begin with,” Gardner stated. “The exchange should’ve never executed the original order. I’ve read reports are calling it an ‘unusually large’ position. Unusually large, in this context, may qualify as the understatement of the year.” [emphasis added]

OKEx said the following actions have been taken:

  1. Inject extra 1000 BTC from OKEx’s own capital pool into the insurance fund.
  2. During the settlement at 4pm August 3, 2018 (HKT), if any attempts of malicious manipulation of the settlement price are found, we will delay the settlement process for 10 minutes and manually adjust the price back into a reasonable level before delivery or settlement. The account which made the malicious attempt will be suspended immediately.

OKEx will also implement a new series of risk management “enhancements” including the adoption of a scaling margin ratio where bigger positions will require higher margin ratios. There will also be fixed margin limits applied per account to diminish the potential for “unusually large” positions.

OKEx states that once an unrealized loss reaches a certain level, the shortfall will immediately be covered by the insurance fund. Their execution engine will “take over the forced liquidation orders and route to the market as soon as possible with a relatively aggressive execution algorithm to prevent further liquidation losses.” Once the insurance fund runs dry, traders will be at risk to their “socialized clawback.”

As for Gardner, he says that every time an exchange fails due to proper planning and risk management, the crypto industry gets another black eye in the press.

“Perception is everything. If exchanges don’t do right by their users, providing them with proper security, they put the whole industry at risk.”



CEO Sasha Ivanov: WAVES Token Now Trading on Huobi & OKEX

A few days since its airdrop distribution of football tokens (or soccer tokens in the US),  during which Waves Platform said that it would distribute 150,000 cryptocurrency tokens to the wallets of its users free of charge (users must first create a wallet on their platform and then like them on Facebook), the Waves team is celebrating its newest GOAAALLLL, an exchange partnership;  the WAVES token is now trading on Singapore-based Huobi, against BTC and ETH.

“This is the next great news that we are excited to share with the community,” exclaimed Waves Founder and CEO Sasha Ivanov. “Now that WAVES is added to the three leading crypto exchanges, we’ve made it possible to hundreds of millions of users across the world to join the trading. As the work continues and we look forward to releasing the first generation of the smart contracts, it’s great news that WAVES is gaining traction with exchanges and their customers.”

According to Huobi, the schedule for the listing is as follows:

1. WAVES deposit – 08:00 Jun 21 (GMT +0)

2. WAVES/BTC and WAVES/ETH trading – 08:00 Jun 22 (GMT +0)

3. WAVES withdrawal – 08:00 Jun 24 (GMT +0)

[clickToTweet tweet=”OLE, OLE! #WAVES token now trading @Huobi_Pro #crypto @wavesplatform #blockchain @sasha35625 ” quote=”OLE, OLE! #WAVES token now trading @Huobi_Pro #crypto @wavesplatform #blockchain @sasha35625″]

The new listing follows the previous week announcement of WAVES being added to Hong Kong-based OKEX, now trading against BTC, ETH, USDT and OKB.

Founded in 2013, Huobi has offices in Singapore, the US, Japan, Korea and Hong Kong, and a trading community that spans 130 countries. Daily trading volumes are said to now approach half a billion dollars, across BTC, USDT, ETH, and HT pairs. Margin and OTC trading are available for certain pairs.

The Waves ecosystem consists of a secure decentralised exchange (DEX), user-friendly smart contracts and the capability to issue and exchange tokens instantly. In June 2016, Waves completed the ICO, raising over $16 million (30,000 bitcoins). The most notable token sales on the Waves platform include MobileGo, ZrCoin, PrimalBase and Starta Accelerator.

The mission of the Waves Platform is “to reinvent the DNA of entrepreneurship around the world by providing a shared infrastructure and easy-to-use, highly functional tools to make blockchain available to every person or organisation that can benefit from it.”

Neufund is Next Crypto Startup to Set Up Shop in Blockchain Friendly Malta

Neufund, a Berlin based Blockchain equity crowdfunding platform, has announced it will establish a “strong presence” in Malta to support its rapidly expanding ecosystem. Neufund has taking an interesting approach by enabling the tokenization of equity and raising capital on the blockchain. Malta has quickly established itself as a Blockchain friendly ecosystem in Europe. Neufund said it will bring European know-how and a team of experts skilled in both Regtech and Blockchain development to Malta.

This past February, Silvio Schembri, Parliamentary Secretary for Financial Services, Digital Economy, and Innovation of Malta, announced the creation of Distributed Ledger Technology (DLT) Regulation. Since then, Malta has received investments pledged by some of the world’s largest cryptocurrency exchanges, such as Binance and OKEx. These two crypto exchanges have relocated to Malta – a country that wants to be known as the Blockchain island. Malta recently announced a number of bills regulating the emerging blockchain industry: MDIA (Malta Digital Innovation Authority) Bill, Technology Arrangements and Service Providers (TAS) Bill, Virtual Currencies (VC) Bill. Last Friday, Malta proposed a set of rules for initial coin offerings (ICOs) and the country is seeking feedback on the consultation now.

The Hon. Joseph Muscat, Prime Minister of Malta, has described the country’s vision for blockchain technology stating;

“Millions of people already attribute value to virtual currencies, which has created an entirely new market. The concept sounds confusing right now, but I have no doubt that it will form the base of a new economy in the future. Just as we attribute value to pieces of paper, so too will future generations attribute value to electronic storage systems.”

The joint effort between Malta and Neufund is being described as another step towards becoming the worldwide leader in creating a Blockchain-friendly ecosystem and establishing a rich environment and a stable ground for blockchain companies.

Founded in September 2016 by Zoe Adamovicz and Marcin Rudolf, the two entrepreneurs have created a network of smart contracts operating on the Ethereum Blockchain that allows any type of company (blockchain-based or not) to issue equity tokens , in a public or private placement. Neufund’s Platform seeks to combine the benefits of classic VC rounds with the ease of Blockchain technology – based and operating under “German crypto-friendly jurisdiction.”

Neufund has already secured capital for future investments on the Neufund Platform, provided by over 1,000 investors, including experienced VCs like Frank Thelen, Freigeist, Christophe Maire, Atlantic Labs, and corporate funds like, Innogy and a number of crypto industry leaders.

“Looking at Malta’s vision and progress in creating a complete blockchain ecosystem, we have decided to engage our know-how and offer support in building the blockchain future of this progressive thinking E.U. member state,” commented Zoe Adamovicz, CEO and Co-Founder of Neufund. “Together with Malta’s Government, we want to kick-start the creation of crypto-friendly laws with Malta’s DLT framework initiative already serving as a great foundation. And we hope to influence a positive change in the banking industry with other upcoming projects. We are impressed by the deep understanding and openness shown by Malta’s Government that serves as a great example to regulators all over the world being a live example that actions and official statements speak louder than words.

Schembri commented on Neufund’s announcement explaining stable and integrated markets require the long-term vision of sustainable and inclusive growth.

“Naeufund shares Malta’s view on how to create an ideal ecosystem for investments,” said Schembri. “We are looking forward to work with Neufund as it diversifies the market of crypto products in Malta, adding its equity fundraising of Neufund Platform on blockchain, thus bridging the gap between the on-chain and off-chain world. We are pleased to be accompanied by companies such as Neufund in becoming the #BlockchainIsland.”

Unikrn’s Crypto Token “UnikoinGold” Now Available on OKEx & Bittrex

Unikrn, a high-tech betting platform for esports, announced on Wednesday its new crypto token, UnikoinGold, is now available on OKEx and Bittrex.  As previously reported, Unikrn was launched in late 2014 as a regulated and licensed sport bookmaker that was founded by Rahul Sood and Karl Flores. While sharing details about the UnikoinGold launch, Sood stated:

“Esports and video games have completely blown up, and our customers are now using their Unikoins in over 100 countries worldwide. Across Asia, Europe and North America, interested users now have the best options available in their regions to access UnikoinGold. Our team takes pride in working alongside exchanges we’ve vetted, and OKex is clearly among the best in the world.”

Chris Lee, CEO of OKEx, then commented:

“We are excited to provide another trading option to our users. Our teams have been focused on bringing online new tokens and futures, and it’s great to see our efforts pay off. We welcome UnikoinGold and their community as we continue on our quest to best serve our users.”

Unikoin recently closed its historic crowdsale with over 112,000 ETH collected, which the company claims is the largest token sale and the decentralized token in esports and gaming history. In 2015, Unikrn raised $10M in venture finance from Mark Cuban, Shari Redstone, Elisabeth Murdoch, Ashton Kutcher, Guy O’Seary, Tabcorp, Indicator Ventures and Hyperspeed Ventures.