LONDON, MAY 18, 2022 --Many crypto investors lost a lot in this month's Luna / UST crash . But users on world-leading crypto exchange OKX were protected from losses, with the exchange's risk protection system triggering to protect hundreds of millions of dollars in user funds. OKX was the only major exchange to protect its users in this way during the LUNA / UST crash.
The exchange's protective measures came into effect initially on May 8 when OKX's risk management system identified volatility in the price of LUNA. At this time, OKX alerted all users who were staking UST on OKX Earn (the exchange's crypto earning aggregator platform) and released users 'UST from staking so that it could be traded or sold.
This release of users'UST from staking came in two waves. On May 8 OKX released more than 360 million UST belonging to more than 7,000 users. The price of UST at this time was still above $ 0.99. On May 10, OKX then released over 139 million UST belonging to more than 2,400 of its users from staking. The price of UST at this time was above $ 0.80. UST would go on to plunge to a price of a fraction of a cent.
This high level of protection for users was possible because OKX is a centralized exchange. The platform had a task force watching LUNA and UST, adjusting risk parameters, analyzing leverage and looking for system weaknesses. It was this that allowed it to alert users of the impending crash and release their assets, giving them a chance to trade or sell them.
Commenting on the developments, OKX Director Lennix Lai said, “Seismic crypto market movements like we've seen this week tend to deliver some pretty brutal lessons. The reality is that centralized exchanges are set up to provide much greater levels of protection for investors, and I'm glad that OKX was able to take care of its users in this case. ”
Speaking about OKX's measures to protect users, OKX Global CMO Haider Rafique said, “Having spent several years as a day trader myself, I can honestly say that I have never seen another exchange go to the lengths to protect its users that OKX does. We are the only major exchange to have taken these steps, and I'm very proud that in this case we were able to protect our users from incurring significant, often life-altering losses. ”
OKX is a place where people can trade, invest, and hold thousands of cryptos, digital assets and collectibles. The company is experiencing incredible growth. In 2021, the total trading volume on the platform increased more than 700%, while the number of trades executed on the platform increased 480%.
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About OKX
OKX is a leading crypto trading app, and a Web3 ecosystem. Trusted by more than 20 million global customers in over 180 international markets, OKX is known for being the fastest and most reliable crypto trading app of choice for investors and professional traders globally.
Since 2017, OKX has served a global community of people who share a common interest in participating in a new financial system that is designed to be a level playing field for everyone. We strive to educate people on the potential of crypto markets and how to invest Beyond the OKX trading app, our Web3 wallet, known as MetaX, is our latest offering for people looking to explore the world of NFTs and the metaverse while trading GameFi and DeFi tokens.
To learn more about OKX, download our app or visit: okx.com