OKB is one crypto asset that has risen against the tide and registered impressive returns. What is this coin and is it OK to invest? While crypto analysts have high hopes for OKB, our advice remains: Do your research and invest only as much as you can afford to lose.
The last few months have been very painful for the cryptoverse. Most coins are already reeling from the bitter crypto season, and the recent collapse of FTX only worsens the situation. However, some crypto assets have risen against the tide and registered handsome returns. One such coin is OKB, which has seen a nearly 50 percent increase in value over the past three months. But what is OKB, and why has it nearly doubled in value in the last 90 days? Tag along to find out.
OKB is the original digital currency of the popular cryptocurrency exchange OKX. This is an ERC-20 token that serves as the platform’s global utility token. In addition to using tokens to pay transaction fees, OKB holders can also access various benefits and discounts on the OKX platform.
The coin was released after OKX, known as OKEx at the time, completed its initial coin offering (ICO) on July 24, 2017. Initially, a total supply of one billion OKB coins was announced, with 300 million coins released into circulation. However, it is a deflationary coin, which means that developers use a monthly ‘Buy-Back-Burn’ mechanism to ensure that the supply of OKB continues to decrease, thereby increasing the value of the token and demand in the market.
In September 2020, OKEx burned 700 million OKB tokens after the exchange launched a testnet for OKChain, the exchange’s proprietary blockchain. This reduces the total supply of tokens to 300 million.
OKB rally when many coins suffer for three months
For the reasons mentioned above, OKB is quite popular among crypto enthusiasts. In fact, the token represents a continuous growth rate over the past 90 days, even though the market has gone through one of its most depressing bearish phases.
Source: OKB/USD (CoinMarketCap)
In the past three months, the coin has rallied up to 50 percent, while the main coins like Bitcoin and Ethereum takes a back seat. This growth has added about $6.87 to the previous selling price of $13.84. The coin is gaining support from buyers as it is reflected in technical indicators like Relative Strength Index (RSI) or Moving Average Convergence Divergence (MACD).
The coin took a minor blow after FTX collapsed. In the last seven days, OKB reflected a slight bearish pattern as the coin fell by 2.49 percent. However, experts believe that the coin will recover in the following weeks as investors will use this money to buy other coins. OKB is predicted to grow around $1.06 in the coming week.
The reason behind this growth spurt
The company changed its name to OKX in January 2022. The exchange has grown a lot since then. It has also increased its sponsorship and expansion drive. For example, in May of this year, McLaren announced OKX as the main partner of the F1 team. A few months later, in July, OKX signed on as the official crypto exchange partner for football giants, Man City FC.
On the expansion front, in July this year, OKX got an agreement to serve customers in the United Arab Emirates. The exchange also released plans to set up a regional hub in Dubai, with 100 employees. Most recently, on November 4, OKX also registered itself as a digital asset business in the Bahamas and plans to open an office in Nassau with at least 100 employees.
All the growth and expansion of this network has been positively affected by OKX’s native cryptocurrency, OKB. In fact, just the news of the expansion to the Bahamas caused a 25 percent increase in the value of the token. OKB went from $16.25 on November 3 to $23.88 on November 8.
However, the collapse of FTX caused OKB to momentarily give up most of its gains, as the token fell to $ 17.38 on November 14. However, other positive developments before the meltdown have helped the token retrace to $ 20.60 at the time of writing.
For example, in the month leading up to the FTX meltdown, OKX listed several trending coins on the platform. For example, in September, the exchange listed the emerging meme coin project, Tamadoge. The following month, it added Aptos, a crypto project developed by a former Meta developer, to its list of offerings.
In October, OKX also launched a new block trading feature, allowing institutions and HNIs to place large crypto trades with no price slippage and minimal market impact. A month later, OKX announced that its block trading market had surpassed $100 million in trading volume.
The OKB technical indicator also points to future price appreciation. For example, in November, the token recently formed a golden cross after the 30-day moving average crossed the 200-day moving average. The golden cross is generally viewed as a bullish indicator. All of these factors have a positive effect on OKB and provide good buoyancy.
Crypto analysts and experts have high hopes when it comes to OKB. At the time of writing, the token is changing hands at $20.63, down nearly 3.49 percent from the previous day. This is in line with the rest of the crypto market, which is down 1.50 percent in the last 24 hours.
However, based on its increasing utility and popularity, OKB is expected to touch $31 by the end of 2022 and $86 by 2025. That said, cryptocurrencies are very volatile and can fluctuate greatly, even with the strongest growth indicators. Therefore, you should do your research and invest only as much as you can afford to lose.
(Edited by: Shoma Bhattacharjee)
First published: IST