SBI–Zodia venture to shut down amid Japan crypto regulatory hurdles

OKX is set to compensate users after its native exchange token, OKB, experienced a rapid 48% flash crash on Tuesday. OKB price fluctuationThe crash occurred within a brief three-minute window, triggered by a series of liquidations resulting from an abnormal price fluctuation. During the event, OKB's diluted market capitalization plummeted by $6.5 billion. At around 9 a.m. GMT on Tuesday, the price of OKB dropped from $46.80 to $25.10, representing a 48% decrease within 15 minutes. However, the token has since recovered, currently trading at $47.63 at the time of writing. The crash led to the triggering of liquidations for large leverage positions, causing a cascading effect on pledged loans, leverage transactions and cross-currency transactions.Photo by Nicholas Cappello on UnsplashCompensation planOKX responded promptly, pledging to fully compensate users for any additional losses incurred due to abnormal liquidation. The exchange aims to launch a specific compensation plan within the next three days, taking into account users who engaged in on-chain trades. In a statement on Tuesday, the platform suggested that it is committed to enhancing "margin position tier rules, risk management controls and liquidation mechanism" to prevent similar issues in the future. The flash crash coincided with a day of notable price swings across cryptocurrency markets, partly driven by the Grayscale Bitcoin Trust's (GBTC) sale of bitcoin to meet investor redemption demands on its exchange-traded fund (ETF). Additionally, the bankrupt crypto exchange FTX has been selling nearly $1 billion worth of GBTC ETF shares recently, further contributing to market volatility. Focusing on complianceOKX has been actively focusing on regulatory compliance in recent times. On Dec. 29, the exchange announced the delisting of several privacy coins, including Monero (XMR), Zcash (ZEC), Dash (DASH) and Horizen (ZEN). Subsequently, on Jan. 2, the platform introduced additional requirements for United Kingdom users to comply with the new Financial Conduct Authority (FCA) regulations, including the mandatory completion of risk assessment questionnaires before engaging in trading activities. Flash crashes are a common occurrence in cryptocurrency markets, often attributed to thin liquidity distributed across multiple venues. The 2% market depth for OKB indicates that a sell order exceeding $224,000 could potentially trigger another price cascade. Notwithstanding that, oftentimes it can be difficult to pinpoint the precise reason for a flash crash. In 2021 global crypto exchange Kraken experienced a flash crash that saw token prices drop by in excess of 50% over the course of one hour before recovery was achieved. While some suggested it was caused by a technical glitch, Kraken founder Jesse Powell dismissed that notion, pointing instead to the possibility of a large-scale sell-off by a service user. Despite this recent challenge, OKB remains a significant player in the cryptocurrency space, boasting a market cap of $2.8 billion, making it the fourth-largest exchange token in circulation, according to CoinGecko. 

BingX embarks on rebrand to further service offeringBingX, the Singapore-headquartered cryptocurrency exchange platform, has taken the decision to rebrand the business.Improving the trading experienceThe platform, originally known for its role in guiding newcomers into the crypto space through copy trading, claims that the move is designed to elevate the trading experience for users by prioritizing simplicity, efficiency and security.This transformation includes a substantial overhaul of BingX’s visual identity, highlighted by a streamlined logo that caters to the practical needs of traders. The changes extend to the platform’s color palette and typography on digital platforms, all aimed at making the trading process more intuitive and user-friendly.Photo by Patrik Michalicka on UnsplashBroadening market appealWhile initially recognized for its focus on crypto beginners, BingX is now broadening its horizons. The platform introduces advanced features catering to a diverse range of crypto enthusiasts, from novices to seasoned traders. This expansion underscores BingX’s adaptive approach to the dynamic cryptocurrency market, addressing the evolving needs of its user base.Megan Nyvold, Head of Branding at BingX, outlined that the rebranding aligns with the company’s enduring vision of democratizing crypto trading globally, emphasizing diversity and creating professional, user-centric trading environments.From ‘Trading Made Easy‘ to ‘Empowering Traders’In tandem with the visual changes, BingX has also unveiled a new tagline, transitioning from “Trading Made Easy” to “Empowering Traders.” This shift emphasizes the company’s commitment to supporting traders at all levels, ensuring access to reliable and transparent services.In a blog post published by the company on Thursday, Nyvold stated:”Over the past five years, BingX’s vision to build a gateway for the next billion crypto users has been unwavering. As part of this evolution, we have refined our core values with a renewed emphasis on promoting diversity. As we introduce our refreshed brand identity, we reaffirm our assurance of empowering our users, focusing on a more professional and user-centric trading environment that aligns with our vision for collective success.”This latest move is one of a number of ongoing efforts BingX has made this year to further develop the business. In July, the company introduced AstraBit to the platform, an automated algorithmic trading and portfolio management tool, to enhance and automate the crypto trading experience for its platform users.The following month, it introduced a Multiple Deposit Addresses feature to enable greater flexibility and convenience for service users. September brought a collaboration with WunderTrading, adding the use of its automated trading bots to BingX platform users. Earlier this year, the company had integrated crypto portfolio tracker CoinTracking with the platform, in an effort to allow service users to generate reports for tax purposes with ease.BingX was founded in Singapore in 2018 by Josh Lu. The platform claims to have five million service users.

In a recent announcement OPNX, the Seychelles-incorporated cryptocurrency bankruptcy claims platform co-founded by the creators of the now-defunct hedge fund Three Arrows Capital (3AC), has revealed its decision to cease all operations.Photo by Kelly Sikkema on UnsplashFebruary 14 shutdownIn a message to its users, subsequently shared on social media on Thursday, the OPNX team expressed its commitment to ensuring an orderly closure, urging users to settle all positions by Feb. 7 and withdraw their funds from the platform before Feb. 14, as all withdrawal functionality will be disabled thereafter. The team expressed gratitude to the OPNX community, acknowledging their dedication and trust throughout the platform's existence. Short for "Open Exchange," OPNX served as both a hybrid bankruptcy claims platform and a crypto exchange, enabling users to trade creditor claims of bankrupt crypto companies. The origin of OPNX can be linked to two defunct crypto entities — Coinflex and 3AC. Seychelles-based Coinflex was a crypto yield platform that was forced to suspend withdrawals in June 2022. It subsequently entered into a bankruptcy process. Coinflex co-founder Mark Lamb joined forces with 3AC’s Kyle Davies and Su Zhu to found OPNX. In October, Coinflex creditors sued Lamb, alleging that he had appropriated Coinflex's intellectual property, customer base, employees and technology to establish OPNX. Mired in problemsWithin its short existence, OPNX has been mired in problems. From the very outset, there was little goodwill for the new venture, given that many crypto sector participants took a dim view of Zhu and Davies due to the turmoil the collapse of 3AC caused within the industry. In April of last year, OPNX claimed to have significant venture capital backing, only for many of the VC entities mentioned to quickly deny such claims subsequently. The following month, the local regulator in Dubai, the Virtual Assets Regulatory Authority, formally reprimanded the OPNX founders for promoting an unregulated business within the Emirate of Dubai. In August, it emerged that VARA had hit OPNX and its founders with a hefty fine. Following the closure announcement, the native OX token of OPNX experienced a significant price decline. Over the course of the past 24 hours, the token unit price has fallen 13.6% to $0.007981. The failure of 3AC led to Teneo, the firm responsible for liquidating 3AC's assets, subpoenaing Zhu and Davies for concealing details of their physical whereabouts through messages on social media platform X. The closure of OPNX adds to the challenges faced by Zhu and Davies, as Teneo is actively seeking to recover $1.3 billion directly from the co-founders. The claim asserts that Zhu and Davies engaged in substantial leverage with investor funds after the insolvency of their hedge fund. In September 2023, Singapore's central bank issued nine-year prohibition orders against Davies and Zhu, citing alleged violations of the country's securities laws at Three Arrows Capital. All the while, crypto community sentiment remains negative where OPNX and its founders are concerned. Taking to social media, Ikigai Asset Management’s Travis Kling didn’t mince his words, stating:”I mean it from the bottom of my heart when I say **** these criminals.” As OPNX concludes its operations, the unfolding events surrounding its co-founders and their association with the failed hedge fund continue to draw attention to the need for the industry to raise its standards.