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What Is OKB and How Does It Work?

Posted on September 6, 2022

Despite the breadth and depth of cryptocurrencies and blockchain technology, many cryptocurrency investors and communities continue to pay attention to new cryptocurrency projects and protocols.


One of the most successful projects operating in the crypto landscape is OKB, which has grown to occupy the top 20 list of largest cryptocurrencies based on market capitalization. With a total market capitalization of over $5 billion as of this writing, OKB has shown significant growth since its inception in 2018.

But what exactly is OKB?


Contents

  • What is OKB?
  • How does OKB work?
  • What are the advantages of OKB?
    • Discounted Business Rates
    • Access to OKX Earn
    • Appreciating Price Trends
    • pre-scheduled shortage
    • Access to OKX Jumpstart
    • Other key benefits
  • Is the OKB token a worthy crypto investment?

What is OKB?

An image showing the bitcoin token and a price increase

OKB is the native cryptocurrency of Malta-based cryptocurrency exchange OKX. The OKX platform is the de facto European counterpart to the major Chinese exchange, OKCoin.

Cryptocurrency exchanges are among the largest entities in the industry and provide an essential gateway for users to adopt cryptocurrencies and purchase their coins. This is why you should always choose the safest cryptocurrency exchanges if you plan to get into cryptocurrency. Although we are seeing increasing demand for decentralized exchanges, more traditional exchanges like OKX are still the biggest players in the entire crypto ecosystem.

The figures who founded OKX and its native coin, OKB, are the same people behind OKCoin. Jay Hao is the CEO of Maltese exchange OKX, while Mingxing Xu is the CEO of OK Group.

As the native cryptocurrency of the OKX platform, investors can buy, hold, and use OKB to transact cryptocurrencies. While the concept of OKB is the same as other cryptocurrencies, it also has its own advantages. So, let’s explore the possibilities with OKB.

How does OKB work?

A blue Blockchain Network graphic

OKB operates on the OKX blockchain itself, which means that users can perform several different actions with the asset.

OKB holders can earn passive income through OKX’s Earn program. This allows users to stake OKB as assets to take advantage of trading fees within the exchange. They also have the right to vote on future proposals within the OKX ecosystem.

As a dedicated token attached to the OKX exchange, which obtained a Dubai virtual asset license in 2022, the OKB utility is tied to its exchange. While it is possible to invest in the asset with the expectation of future growth, the asset works by helping functions within the exchange itself.

Other benefits within the OKX platform include significant discounts on transactions within it and the ability to invest in OKX’s Jumpstart pool of new cryptocurrency projects, offering investors the opportunity to adopt early tokens before they are officially adopted. widespread.

Although there are many things that investors can do through OKB within the OKX ecosystem, the true utility and purpose of the asset is obscured by the fact that no white paper is attached to the asset. Although investors may see this as a red flag, the danger of a carpet flip is mitigated by the fact that the token has operated for some time without incident.

What are the advantages of OKB?

OKB Coinmarketcap Overview

So why should cryptocurrency traders and investors pay attention to OKB? The answer is that cryptocurrency is a great tool to access more investment options within the OKX exchange and beyond. When it comes to making your cryptocurrency stretch further, the OKX Learn Page explains what benefits the OKB offers.

Discounted Business Rates

Simply having OKB tokens in your OKX account will save you huge amounts of money on trading fees. This will increase your profitability over longer periods.

OKB holders can save up to 25% on trading fees across the entire OKX exchange by keeping their accounts topped up with the crypto asset.

Access to OKX Earn

OKB holders can also gain access to OKX Earn, which opens the door to the platform’s suite of savings schemes that can generate advantageous benefits for users of the exchange.

Appreciating Price Trends

It is also worth noting that OKB has generally appreciated over time as a standalone cryptocurrency. Like other coins pegged to exchanges like BNB, OKB has grown in value over time and stands 3,400% above its January 2019 lows. However, the asset has declined in the wake of the widespread crypto market crash. .

OKB to USD Chart by Coinmarketcap

pre-scheduled shortage

On May 4, 2019, OKX started its OKB buy-and-burn program, where 30% of spot market transaction fees are used to buy back OKB. To date, OKX has burned some 48,372,387.94 OKB, which helps ensure that it has a healthy level of scarcity and that its price continues to grow over time.

Access to OKX Jumpstart

By having a default volume of OKB, OKX holders can participate in the Jumpstart feature of the platform. As we discussed, Jumpstart allows users to invest in initial cryptocurrency projects that the platform has vetted accordingly and listed as a safe and high-potential project.

The terms of access vary from project to project, but the scheme can empower eagle-eyed investors to take part in high-quality crypto projects that have yet to see mass adoption.

Other key benefits

Along with the ability to use C2C lending and better participate in margin trading, having OKB also gives you voting rights on how you think the future of the OKX platform should be shaped.

A screenshot of the OKX home page

Is the OKB token a worthy crypto investment?

The OKB token has its advantages, but only for the right type of investor. We believe the token is a good asset for users of the OKX exchange, but it loses its luster without the unique features of the OKX platform.

Also, investors should remain wary about the asset’s lack of a whitepaper, which means its creators can lead OKB in a different direction with little or no warning. However, a carpet change is unlikely, given the age of the asset. Finally, investors should note that OKB has struggled, like all other cryptocurrencies, in the wake of the 2022 cryptocurrency market crash. This has caused the value of OKB to fall more than 50% from its 2021 highs. in the last few months.

However, if you’re an OKX user wanting to fully embrace the exchange’s intuitive feature set, OKB is likely to be an essential purchase that can help deliver money-saving benefits over time.

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