OKex Token is up over 45% as it breaches the $5.5 mark. The rise in the exchange token began after it made the announcement of the launch of it’s Blockchain ecosystem, OkChain, followed by burning 70% it’s from it’s total supply.
The price of Okex at 3: 10 hours UTC on 11th February 2020 is $5.89. It is trading 48.7% higher on a daily scale. Alysa Xu, the CSO of Okex tweeted,
OKChain Testnet is now live! It has been a long time coming but I am extremely proud to share with everyone our very own decentralized public chain. OKChain will act as a foundation for the entire OKEx ecosystem.
The primary reason for the rise is the fact that with the launch of the testnet, Okex has decided to burn about 70% of its designated supply. The announcement notes,
Following the launch of the OKChain testnet, we will burn a total of 700 million non-issued OKB coins.
Only 300 million tokens ever came into circulation, with the market buy-back being used to perform periodic burns. Reportedly, the supply is currently maxed out at 286,021,636 OKB; the token’s supply will only decrease from here.
As reported earlier on CoinGape, Stellar Foundation performed a similar move with XLM , increasing it’s price massively.
Currently, BNB (187.5 million) has the least abundant supply followed by OKB and HT (500 million). Moreover, the total market capitalization of HT and Binance is over $1 billion, whereas OkB’s Mcap is about $350 million.
Similar to Binance chain, Okchain will look to independently run the economics of OKex Exchange along with powering it’s Decentralized Exchange (DEX). It will also support smart contract implementation and cross-support for other cryptocurrencies.
Effect on other Exchange Coins
The tremendous rise in Okex is having a positive effect on other exchange tokens as well. The second most popular Chinese exchange Huobi’s crypto Huobi Token (HT) gains nearly 20%.
Binance [BNB] coin, which leads the space w.r.t. total market capitalization also reflected small gains of about 3%. LEO, the exchange token of Bitfinex also posted gains with the rise in exchange tokens.
A successful decentralized distribution and secure operation of the exchange will eventually lead to positive valuation for the tokens in the future.
How do you think Exchange Tokens will perform in the future? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com