On Oct 16, the crypto index lost approximately $7 billion as traders panic-sold following bearish news from a leading crypto exchange. As we reported earlier today, Malta-based exchange OKEx caused fear, uncertainty, and doubt (FUD) in the crypto sphere as news emerged that they had suspended all crypto withdrawals. The reason for this action was that the exchange couldn’t get in contact with one of its key holders.
OKEx published a notice explaining that one of the exchange’s key holders has been “out of touch”, thus preventing “associated authorization” for crypto withdrawals from completion.
The exchange attempted to quell fears by clarifying that customers’ funds remain safe under their custody. They added that withdrawals should resume immediately once the concerned private key holder can authorize the transaction.
Unfortunately, the clarification wasn’t enough for some crypto enthusiasts who feared that OKEx was yet another victim of a regulatory crackdown by authorities. Many day traders have since limited their long traders across other spot and derivatives platforms, causing the crypt market to plummet.
Shortly after the news broke, the BTC price dropped by almost 3%, and OKEx exchange’s native token OKB plunged 15%.
UNI Price Benefits For OKEx Incident
UniSwap’s governance token UNI was among the biggest gainers in the crypto market over the past 24 hours. As most of the cryptocurrency market succumbed to bearish news from the OKEx exchange, the UNI price initially underwent a sell-off before rebounding sharply.
This price action could be attributable to traders realizing that the UNI token represents one of OKEX’s rivals. Unlike the OKEX exchange, Uniswap’s decentralized protocol embraces the “Not-Your-Keys-Not-Your-Crypto” approach and thus discourages the practice of holding clients’ funds.
This approach prevents the occurrence of a similar incident to what is currently taking place at centralized platform OKEX, where missing private keys are barring access to user funds.
Jeff Dorman, the CIO at Arca, addressed the UNI dump-and-pump in his Friday tweet.
“After initially [getting dumped] on the OKEx news, $UNI is now rallying. An incorrect knee-jerk reaction, followed by prevailing common sense as market interprets (correctly) that a DEX should rally when a CEX has problems,” Dorman noted.
The UNIUSD pair is up 3.56% to trade at $3.306 during press time as per data from TradingView.
UNIUSD chart by TradingView
FIL Price Rally Halted
The long-awaited decentralized data storage network FileCoin (FIL) that earlier made headlines with its record $205 Million ICO in 2017 finally went live on mainnet on Oct 15.
The project’s native token, FIL, started today’s trading with a strong rally above the $60.00 and $65.00 resistance levels. FIL, which represents one of the most anticipated crypto projects since the advent of ETH according to Gemini CEO Tyler Winklevoss, climbed higher and even touched $75.
However, the coin succumbed to a bearish fundamental affecting the entire crypto market and corrected lower. The FILUSD pair is currently down more than 11% to trade at $45.76 during press time.
FILUSD chart by TradingView