OKEx Offers Clarification Amidst Allegations of Manipulating Bitcoin Futures Market
Originally published on: OKEx Offers Clarification Amidst Allegations of Manipulating Bitcoin Futures Market
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April 06, 2018
OKEx, the cryptocurrency trading platform owned and operated by OKCoin in Hong Kong has denied allegations of its involvement in the attempted manipulation of its bitcoin futures market. In a statement published on the platform’s website, OKEx offered a robust repudiation of such claims by addressing all the different rumors that had been making the rounds over the matter.
Setting the Record Straight
The platform began by giving a brief account of the events that transpired leading up to the attempted manipulation of their bitcoin futures market as well as the rollback step taken by the platform. The statement also touched on the establishment of “price limit rules” that will prevent the recurrence of such manipulation in future.
Commenting on the spinning rumor mill that had been on overdrive since the incident, OKEx maintained that it is reputable digital asset firm with millions of customers. The statement also offered a defense for the platform’s choice to rollback all futures contracts data saying that it must protect its customers. The platform also clarified its position as a provider of order book services and that it doesn’t participate directly in any of the trades.
On the subject of knowingly manipulating the market or being involved in the attempt to manipulate prices, OKEx declared that its revenue stream comes solely from trading fees and it earns nothing from price volatility. Hence, it has no reason to manipulate the market prices. The statement offered a complete and robust denial of the manipulation charges maintaining that it is committed to maintaining the market stability of which price manipulation would be counterproductive to such goals.
One of the more potentially damning aspect to the rumors that had been ubiquitous on the internet in the aftermath of the rollback had been screenshots of charts purportedly from the OKEx platform. The statement addressed these screenshots calling them a false representation of the market situation on the platform. It also made sure to offer up legitimate screenshots, asking the general public to compare and take note.
The Crux of the Matter
On Friday, March 30, 2018, OKEx temporarily halted bitcoin futures trading on its platform after noticing some irregular activities. According to a statement by the platform, between 9 pm and 10:30 pm UTC, many irregular selloffs occurred on the platform prompting red flags to be raised immediately. These selloffs forced the quarterly price of bitcoin to fall significantly below its market price.
In response, the platform halted all trading activities and after which it decided upon exhaustive internal consultations to rollback all futures contracts data. The rollback was for all weekly, bi-weekly, and quarterly transactions, undoing all transactions up to 8:47 pm UTC on Friday, March 30, 2018. As part of measures to compensate its customers, OKEx also announced a seven-day waiver for transaction fees. The platform also declared that it would continue to launch more incentive campaigns to reward loyal customers.