Since last Friday, OKB (the native coin of the OKX exchange) has jumped by about 108% as of Thursday afternoon. The main reason is that OK...
Since last Friday, OKB (the native coin of the OKX exchange) has jumped by about 108% as of Thursday afternoon. The main reason is that OKX announced it will permanently remove tens of millions of OKB tokens from circulation.
About OKX and OKB
OKX, based in San Jose, is the second-largest crypto exchange in the world by daily trading volume. In 2018, it launched OKB, a token with a fixed supply of 300 million. Over time, OKX has reduced this supply through buybacks and burns.
Originally, OKB was built on Ethereum’s blockchain (ERC-20 token), but later it moved to OKX’s own blockchain. Today, OKB is used for programs on the exchange and has been accepted by payment processors, financial services, and even some merchants.
The Big Supply Cut
This week’s surge came after OKX decided to burn over 65 million OKB tokens from earlier buybacks and its Treasury reserves. After this, the total supply of OKB will shrink to just 21 million, creating a strong demand-supply shift.
Scarcity Effect
Interestingly, this new fixed supply is the same as Bitcoin’s 21 million cap.
Right now, OKB trades around $93, much cheaper than Bitcoin. Some investors might see it as a lower-cost alternative to Bitcoin, possibly even a hedge against inflation. However, there’s still no clear proof that Bitcoin—or any cryptocurrency—can consistently protect against inflation.
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