OKEx is about to open withdrawals, but can it continue to maintain its position as one of the "Big Three"?

October 16, 2020 is a day worth remembering for most participants in the blockchain industry, because on that day, OKEx, a world-renowned cryptocurrency exchange, suddenly announced the suspension of withdrawals. As soon as the news came out, it immediately became the headline news of major industry media that day, and even attracted hot reports from traditional media.

On the next day, all kinds of shocking news and bizarre stories about OKEx and the so-called private key manager began to circulate in the circle, which can be said to confirm the saying that "the experts are among netizens". However, it must be said that OKEx, as an important representative of the industry, did cause a lot of panic because of the suspension of withdrawals. Then some people began to sell the so-called "OKU" (USDT of the OKEx platform) at low prices in various channels.

On the same day, I made some comments on the incident, and I focused on dissuading those who sold OKU at a low price from panicking. Now it turns out that those who sold at a low price may be upset, after all, OKEx officially announced the opening of the withdrawal function last night.

If OKEX's suspension of withdrawals a month ago was "Jing Ke's dream", then now it can only be described as "the moment of waking up from the dream". However, many people will be curious, even if OKEx reopens the withdrawal function, can it still maintain its position as one of the "Big Three" because of the impact of this incident?

A blessing in disguise.

When we look back at the whole process of OKEx's suspension of withdrawals, we will find that the story seems to be always so interesting. The reason is that no matter when, panic is always likely to cause stampedes, just like the Bitcoin market in 2018. When those who sold the mining machines they bought for tens of thousands of yuan by kilograms felt not only frustrated but also desperate.

Perhaps those who sold their OKU at a low price would feel lucky at the time, because they did not lose all of it and even got back a lot of it. But what they didn’t know was that many big OTC investors quietly bought a lot of OKU. I know of at least a few people who received more than seven-digit OKU.

Therefore, this incident actually really affects those novices who have just participated in cryptocurrency trading. They may have never encountered such a problem, but for those old leeks, they have made a lot of money.

Although OKEx has been nicknamed the "Happy Beans Platform" for some time, when the panic is over, some of the "Happy Beans" may have increased in value. Some netizens even commented that OKEx is the only cryptocurrency exchange that can still operate normally after being "checked".

For OKEx, this is also a story of "a blessing in disguise". After all, since the birth of Bitcoin, there have been ups and downs and setbacks. This time, it has allowed OKEx to practice how to deal with crises. It is a good training opportunity for the entire team. At the same time, in a sense, it may become a "textbook case" for analysis.

How can OKEx make a comeback?

Of course, to say that this incident will have no impact on OKEx must be an ill-considered "dirty joke". For most users who have been restricted from withdrawing money for a month, they will definitely choose to withdraw their assets as soon as possible on the day when withdrawals are allowed. This is understandable, after all, everyone is still a frightened bird.

The author also believes that OKEx had anticipated the occurrence of this situation a long time ago, and they will definitely take a series of actions to deal with such problems, and the means of recovery will definitely include various welfare activities. Perhaps for exchanges and users, a large wave of red envelope grabbing activities may be on the way.

Of course, if OKEx launches a welfare activity for users, other exchanges will naturally not lag behind and will inevitably bring activities that provide users with more benefits. I can't help but get excited when I think about this.

OKEX However, after nearly 10 years of development in the cryptocurrency industry, many of the early growth dividends have come to an end. After all, the overall situation has been determined. What is left to the market is that users will choose which exchange provides services and sets an example that suits their tastes better, and this is the real point of competition.

Therefore, as OKEx is still an old exchange, there is no need to worry too much. As long as it continues to "stay true to its original aspiration" and provide better experience to users, it will still stand at the top of the industry.

However, for the entire industry, the OKEx incident may have more far-reaching impacts, and this is what we should be more concerned about.

Is compliance the trend?

In the month when OKEx suspended withdrawals, there is a piece of news that deserves our attention. On November 2, Ashley Alder, CEO of the Hong Kong Securities Regulatory Authority, said at the Fintech Week event that a licensing system for crypto assets will be introduced, and all crypto trading platforms will be regulated, regardless of whether they trade security tokens.

The news is considered to be another turning point for cryptocurrency exchanges to truly become compliant. This is very different from the previous SFC which only regulated assets that met the legal definition of securities or futures. This regulation is part of the global control of cryptocurrency exchanges.

As the most important player in the crypto asset contract market, Hong Kong is bound to be a battleground. OKEx, which started out as a contract company, happens to have an office in Hong Kong, which means that OKEx may become one of the first regulated trading platforms. If this goes well, it will definitely bring more room for imagination to OKEx.

OKEX On the other hand, some people may question that OKEx was investigated this time because it is engaged in cryptocurrency trading-related businesses, but as far as I know, this is not the case. The real reason is that something in previous years affected its private key keeper. Of course, there is indeed a problem that the private key keeper did not store the private keys separately, but in fact, it was not just one executive who was investigated this time, but several. To put it bluntly, it happened that several private key managers who were backed up were forced to be investigated, which led to the suspension of withdrawals, rather than the various weird reasons and absurd stories written by those compilers.

When we look back at what happened in the past month, there is always a feeling that the cryptocurrency industry is going to end, but Bitcoin is soaring into the sky as if it had taken stimulants, breaking through layers of obstacles one after another, and only slowing down after breaking through the high of $18,000. It can be said that it is a cold winter on one side and spring on the other.

It is worth mentioning that according to reliable sources, some private key managers of OKEx have ended their assistance in the investigation and returned to their jobs, which is why there was an announcement last night. Of course, this also means that OKEx has not committed any so-called illegal acts, and those rumors are self-defeating.

When Bitcoin recently recovered from the 2018 plunge, people no longer called it the "tulip bubble", but instead it became a hot commodity sought after by celebrities, funds and financial institutions. Similarly, after experiencing this suspension of withdrawals, OKEx will inevitably appear in the industry with a new attitude. This is the end of the story, as beautiful as a fairy tale. (Blockchain Knight)