Ripple’s chief legal officer has countered the U.S. Securities and Exchange Commission (SEC)’s allegations following the crypto firm’s proposal to limit its penalty to no more than million. The legal chief highlighted that the SEC is “raging” and emphasized that, unlike the Terraform Labs case, there are no victims to compensate in Ripple’s case. […]
Bitcoin News
Okx Exchange Announces Plans to Compensate Users After OKB Token Flash Crash
Following a sudden plunge in the value of its native token OKB, which fell over 50% in a matter of minutes, Okx exchange has committed to developing a compensation plan for users caught in the resultant wave of automatic liquidations.
Okx Exchange to Roll Out Compensation After Unexpected OKB Token Flash Crash
Okx exchange experienced a flash crash of its native token, OKB, which plunged over 50% in value on Jan. 23. The sudden drop in price, from .69 to a low of .10, caused a flurry of automatic liquidations of margined positions, leading to a brief period of intense volatility. Okx has since stabilized the situation and is actively developing a compensation plan for the affected users.
This abrupt price movement occurred at 9:07 a.m. UTC, with the token recovering to trade at .27. Okx, in a statement, attributed the volatility to the automatic liquidation of several margined positions after the token’s value fell from .69 to .36.
Okx has acknowledged the unusual nature of this event and extended apologies to the impacted users. It stated, “Compensation will be provided to users who experienced losses as a result of abnormal liquidations, including users of flexible loan, margin trading and multicurrency trading products.” A detailed plan regarding the compensation is expected to be released within the next 72 hours.
Furthermore, Okx is investigating enhanced risk management controls and liquidation mechanisms to prevent future similar occurrences. The exchange’s response includes a promise to optimize various aspects of its trading platform, including spot leverage levels, pledged lending risk control rules, and liquidation mechanisms.
Despite the swift recovery of OKB’s price to around .00 and a significant increase in trading volume, concerns about market depth and liquidity remain. The crypto market, known for its volatility, poses risks where significant sell orders can trigger price cascades due to the thin liquidity spread across multiple trading venues. OKB, with a market cap of .8 billion, ranks as the fourth-largest exchange token by circulation.
How do you think Okx handled this situation? Share your thoughts and opinions about this subject in the comments section below.
The First DEX To Compensate Gas Fees Starts Offering Sky-High Rewards for Liquidity Providers
EmiSwap decentralized AMM exchange is a new powerful player on the DEX market that plans to draw liquidity from major protocols by offering 100% Ethereum gas compensation, one of the best rewarding terms for liquidity providers, and distributing NFT items among them.
The exchange came live on March 31 and has already reached almost 0,000 TVL (or liquidity) and attracted more than ,300,000 during the early adopters’ pre-seed sale and the seed round sale of their native governance ESW token. The price of 1 ESW token jumped from .11 to .23, a 110% increase. EmiSwap is now running a private investment round at .23 that will last for about a month, then the ESW will be available on launchpads at .37, following that they will start listing on other exchanges.
EmiSwap is the first project of the EmiDAO alliance and its members – Alpha Sigma Capital investment fund, DigiFinex, Bitmart, Emirex, and HollaEx centralized exchanges, IDCM, and Everest KYC provider – take an active role in managing and promoting the new product.
What are the most appealing aspects of EmiSwap that are likely to allow for mass adoption, hype, and liquidity attraction? Let’s find out.
High rewards for early liquidity providers
The EmiSwap management team focuses on offering the most favourable terms on the market to attract liquidity providers from competitive protocols. EmiSwap usually pays 0.25% from any operation on the exchange to LPs, but during the first 100 days after launch, the rewards are multiplied. Here is what EmiSwap offers:
- 100% Ethereum gas fee compensation for any activity (creating a pool, making a swap, or adding liquidity) in ESW governance tokens.
- 30,000 ESW for each 1 million DAI trading volume is distributed among LPs proportionally daily (which increases the basic reward for providing liquidity by two).
- Additionally, over 40,000 ESW is allocated to LPs daily.
- As ESW is a governance token, it allows its holders to get 0.05% rewards from trading volume daily and vote on product developments.
- Limited-edition NFT cards will be allocated to LPs during this campaign (read on to learn more).
What does that mean? We have calculated a possible scenario of how promising is EmiSwap in terms of reward generation for liquidity providers.
Calculations example: One possible scenario and 107% APY
- You provide liquidity worth 0,000 for ETH/DAI token pair.
- You pay 100 USDT for gas and get 435 ESW as compensation.
- Total liquidity on EmiSwap is 20,000,000 DAI, which means your share is 5%.
- Daily trading volume is 3,000,000 DAI, thus 7,500 DAI is distributed among LPs daily. You receive 37,5 DAI every day.
- Additionally, 90,000 ESW (30,000 ESW for each 1 million trading volume) is allocated to LPs proportionally. You receive 450 ESW daily.
- Furthermore, liquidity providers get 6,150 ESW for every 1,000 blocks. There are 6,800 blocks daily, so 41,820 ESW will be distributed among LPs. Your reward is 201 ESW daily.
- Your daily reward, in this case, is 37,5 DAI + 651 ESW. You also get additional income from ESW holdings,05% daily.
- In this case, you will earn 1125 DAI + 19,530 ESW monthly.
According to the EmiSwap calculations, once TVL on EmiSwap reaches 20 million DAI in the case described, this makes a 107% Annual Percentage Yield (APY) for providing liquidity on EmiSwap (excluding 0.05% rewards for ESW tokens).
NFT Cards for liquidity providers
EmiSwap is not only the first DEX to compensate Ethereum gas fees. It also offers limited-edition NFT cards that increase user’s profits while using the exchange or can be sold on marketplaces.
For liquidity providers, EmiSwap will issue a limited collection of 1001 cards. These cards will be allocated to users who provide liquidity and cross every 0,000 TVL. The more liquidity you add as you cross the milestone, the rarer the card you get. In general, there will be 1 Mythic Card, 10 Legendary, 40 Epic, 150 Rare, 300 Uncommon, and 500 Ordinary Cards.
Time to compete, NFT collectors!
Mt. Gox Will Compensate $1 Billion in Bitcoin, But Will Not Sell Until 2019
The Mt.Gox debacle, originating from the devastating 800,000 Bitcoin hack in 2014, continues, with recent court documents showing that creditors may finally get the money and Bitcoin they deserve.
Civil Rehabilitation Process Finally Begins
Mt.Gox is undoubtedly the cryptocurrency exchange with the most amount of notoriety, suffering the first notable Bitcoin hack, losing over 800,000 Bitcoin. Since the hack, legal battles have raged between the exchange and its creditors, the thousands of users of the exchange who lost Bitcoin in the hack.
Kobayashi became the topic of discussion in the cryptocurrency community, as he sold thousands of BTC on exchanges, causing substantial fluctuations in price. Some attributed a large majority of 2018’s downward price movement to his sell orders, reportedly selling over 30,000 BTC over the span of six months.
On June 22nd, Nobuaki Kobayashi, the now infamous Mt.Gox trustee, released a document giving an update on the Mt.Gox’s legal situation. According to the document, Mt.Gox has finally got the go-ahead for the commencement of the civil rehabilitation process. The start of the civil rehabilitation process will temporarily pause Mt.Gox’s ongoing bankruptcy court case, assuring that all debts are paid before the continuation of the bankruptcy proceedings.
The aforementioned document released by Mr.Kobayashi made it clear that users slated to get a “Bitcoin Claim” will receive Bitcoin instead of Japanese Yen, in accordance with Japanese civil rehabilitation law.
Kobayashi wrote:
“In bankruptcy proceedings, non-monetary claims are converted into monetary claims based on the valuation as at the time of the commencement of bankruptcy proceedings. In contrast, in civil rehabilitation proceedings, non-monetary claims are not converted into monetary claims at the time of commencement of the civil rehabilitation proceedings.”
That means that Kobayashi is now legally unable to sell any more of the BTC in his possession for Yen, or at least until the bankruptcy case recommences.
Creditors To Receive Repayment In Q1 Of 2019
Those affected by the Mt.Gox hack will have until October 22, 2018, to make any claims over the Bitcoin stash which Kobayashi holds. Once compiled and verified, the civil rehabilitation requests will be submitted to Japanese courts, by February 14, 2019, at the latest.
CNBC acknowledged the Bitcoin debt repayment in their Fast Money segment, affectionately called Bitcoin’s ‘Funeral’. Brian Kelly, Founder and CEO of the BKCM cryptocurrency and blockchain invest firm, gave three reasons why BTC “isn’t dead yet.” One of these reasons being Mt.Gox’s well-received move to pay off its creditors, despite fears of a large selloff.
Kelly noted that the distribution of the Bitcoin owed will not happen until “Q1 of 2019”, adding that the creditors will not be able to sell their Bitcoin until then.
Brian Kelly added:
“Everybody thinks there is going to be a wave of selling. Not happening now!”
This delay, albeit only 8-9 months, should help to reduce any risk of the propagation of the bearish price movements seen since the start of 2018.
Featured Image from Shutterstock
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Coincheck Exchange to Compensate Hack Victims From Next Week
Japanese cryptocurrency exchange Coincheck has said it plans to compensate victims of its January hack starting next week.
CoinDesk