OKB token from OKX exchange
OKB occupied the third position in the global ranking of centralized exchange tokens by market capitalization in February 2023. Why is there such a strong interest among users?
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The developers and OKB's purpose
OKB is an exchange token that was launched in 2019, two years after the foundation of the parent exchange OKX based in the Seychelles. The company was established by Chinese entrepreneur Mingxing “Star” Xu, a bachelor of applied physics from Peking University of Science and Technology, with Jay Hao (current CEO of the exchange). As of February 2023, OKX ranks 8th on CoinMarketCap's list of the best spot cryptocurrency exchanges.
In the OKX ecosystem, the OKB token is of great importance.
Firstly, it provides a discount up to 40% on transactions (depending on OKB amount). The size of the discount is also affected by a user's trading volume.
Participating in the OKX Earn exchange project grants OKB holders passive income.
Thirdly, OKB provides access to the OKX Jumpstart platform where it can be staked for rewards.
It also grants OKB owners the voting right regarding the exchange's functionality and other tokens listed on OKX.
Moreover, OKB is used to facilitate spot and derivative trading, as well as for the development of scalable applications.
Top 5 Centralized Exchange Tokens by Market Cap
Source: CoinMarketCap
OKB: Its Unique Features and Tokenomics
The OKB token was originally built on the Ethereum network (using the ERC-20 standard and PoS algorithm), but was later transferred to the OKXChain blockchain.
The initial release of OKB comprised 1 billion tokens.
The initial OKB issuance amounted to 1 billion tokens, with 700 million immediately frozen. This includes 300 million coins distributed to exchange users via a loyalty program and 400 million managed by the OKX team.
The remaining 300 million were allocated in the following order:
- 40% — to the developers and the project;
- 10% — to investors;
- 50% — to AirDrops and rewards.
OKX burns tokens once a quarter thereby increasing the value and attractiveness of OKB among its holders. To redeem the coins, 30% of the proceeds from fees are allocated.
Apart from its parent exchange, OKB is traded on numerous other platforms. Approximately 50% of the total trading volume is provided by the OKX exchange.
Dynamics of the OKB exchange rate in 2019-2023
Source: CoinMarketCap
- OKB had a daily trading volume of $56.6 million as of the end of February 2023;
- The token hit its all-time high of $52 back then;
- OKB's market cap is $3.12 billion;
- The circulating supply amounted to 300 million;
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