Our weekly roundup of news from East Asia curates the industry’s most important developments.
OKX token’s 48% flash crash
Cryptocurrency exchange OKX briefly experienced a 48% flash crash of its native token, OKB, on Jan. 23.
OKB’s flash crash on January 23 (X).
In less than an hour’s time, around $6.5 billion in diluted market capitalization was wiped out before the token recovered its losses. OKX reported that an overall market sell-off on the day of the incident triggered “the liquidation of multiple large leverage positions,” which was then exacerbated by the liquidations in “pledged lending, margin trading and cross-currency transactions.”
The price of OKB tokens fell from $48.36 to $25.10 within minutes before rebounding. At the time of publication, OKB tokens are trading at $48.77.
In a post-mortem update, the firm disclosed that liquidations were triggered by “50.69 to 48.36 USDT” in OKB, or less than a 5% price move. The exchange has since pledged to reimburse users for all OKB-related losses caused by the flash crash.
“We will further optimize spot leverage gradient levels, pledged lending risk control rules, liquidation mechanisms, etc., to avoid similar problems from happening again,” OKX said. “We understand this situation is unusual and apologize to impacted users.”
Hong Kong tech firm to invest $12.8 million in Web3
Network security firm Integritytech HK Limited announced on Jan. 24 that it will invest $100 million Hong Kong dollars ($12.79 million) to construct a “Digital Wind Tunnel Evaluation Center” to examine the security applications of new technologies such as 5G, artificial intelligence, blockchain and Web3 in the region. The company stated:
“Through this cooperation and the construction and operation of the Hong Kong Digital Wind Tunnel Evaluation Center, it will help the company replicate and promote the digital security testing and evaluation experience accumulated in the Mainland in Hong Kong, further…
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