What is OKB (OKB) How it Works & Where To Buy It?

OKB is the native exchange token of the OKX cryptocurrency exchange. It positions itself as a token that allows OKB holders to receive generous trading discounts – it’s also used to power interactions in the OKX ecosystem.

The reduction in trading fees is what gives OKB tokens their utility. Users trading on the OKX exchange is incentivized with paying nominal transaction fees if they hold OKB tokens.

The OKB token is the 7th largest exchange token in the world by market capitalization.

How The OKB Token Works

Understanding the OKB token and its utility is relatively simple when you compare it to similar exchange tokens on the market. For example, holders of the BNB token receive discounts when trading on the Binance platform.

Similarly, the OKB token allows users to pay transaction fees at a discounted rate when trading on the OKX platform.

The OKB tokens are solely created and distributed by OKX and users can purchase the tokens on the open market.

Additionally, the OKX exchange has announced that OKB tokens will receive more utility as the OKX ecosystem grows and the OKX exchange keeps growing.

The current trading volume on the OKB exchange is indicative of the tremendous growth the OKX platform has seen since its launch.

The OK blockchain foundation ensured that the OKB token plays an integral part in the success of the platform, while still rewarding faithful OKB holders.

What Is OKB Used For?

The OKB global utility token was built with certain functionality in mind. It was to serve as a utility token that would grow as the OKB ecosystem and OKX exchange grew. Essentially, the more trading volume on the platform, the more OKB coins would be purchased to lock in trading discounts for users.

The OKB stock or crypto coins available on the exchange would have a fully-fledged market that was driven by users purchasing the token for trading discounts, to earn rewards from OKX ecosystem growth, and ultimately, any additional utility that OKB tokens would receive.

OKB price statistics highlight that the principle worked phenomenally well, much like how other exchange tokens have seen similar success.

Additionally, OKB tokens can be profitably traded by users – their volatility makes them appealing to experienced traders.

There have been multiple exchange tokens that have grown to become some of the most influential cryptocurrencies on the market. For example, the BNB token (utility token of Binance) has become the 4th largest cryptocurrency in the world by market cap.

The success of exchange tokens like BNB is an indicator of how exchange tokens grow and form a core part of blockchain ecosystems.

Where To Buy OKB Tokens?

The best place to buy OKB tokens is on the OKX exchange.

OKB tokens haven’t been around on the market for too long. They were only launched in 2018, and have been subject to significant price appreciation since their inception. OKB token is the 76th largest cryptocurrency in the world by market capitalization.

OKB tokens are only available and frequently traded on a few centralized crypto exchanges. Before you’re able to purchase OKB, you’ll need to deposit fiat money onto an exchange, and sequentially OKB tokens will be credited to your OKB digital wallet on the exchange.

In addition, to OKX, you You can also buy OKB on:

1. Gate.io

All of the specified exchanges allow users to buy, sell, transfer and store OKB tokens in a digital wallet on the exchange. You can use your debit or credit card to purchase OKB tokens on centralized exchanges.

How long have OKB tokens existed?

The OKX exchange was first launched in 2017, sequentially OKB tokens were launched in March 2018.

Since the OKX exchange’s launch, it has garnered a significant amount of user adoption and the platform has some of the highest trading volumes. The native utility token, OKB, has seen similar success since its launch.

What’s controversial about OKX and OKB tokens?

When researching various cryptocurrencies, especially exchange tokens, it’s important to consider the controversies surrounding them. OKX and the OKB have been surrounded by controversy since their inception.

Let’s take a look at the top two controversies surrounding OKX and OKB tokens

• OKX Founder Arrested By Chinese Police – The founder of OKX (formerly OKEx) was arrested by police in 2020. Information regarding his arrest was speculative but many believe it was regarding money laundering and other financial crimes.

  The arrest of the founder sparked controversy in the community and many users withdrew their funds from the exchange, fearing that they would lose their funds.

• Suspended Trading On The OKX Platform – There have been numerous occasions where users of the OKX platform have experienced restrictions on trading. Most notably was after the arrest of the founder, as well as in 2018 when the platform suspended trading after a ”whale” caused trading irregularities after making a ”wrong way bet’‘.

 

How many OKB tokens are there?

At the time of writing, OKB has a circulating supply of 60,000,000.00 OKB tokens (20% of the total supply).

The total supply of OKB is 300,000,000.

Can OKB be mined?

OKB is an unmineable cryptocurrency. OKB unlike Ethereum can’t be mined.

The creation and distribution of OKB tokens are determined by the OKX foundation.

However, many individuals can earn rewards by staking OKB tokens for a certain duration.

Certain centralized exchanges offer different staking terms, with differentiating APY %.

What is the market cap of OKB?

The market cap of OKB is:

OKB market cap = total amount of coins in circulation x current market price of OKB

OKB Market Cap = 60,000,000.00 OKB x $19,15 = $1,15 billion (76th largest market cap)

OKB’s current market cap makes it the 7th largest exchange token on the market. It is behind BNB, CRO, FTT, LEO, KCS, and LEO.

It is currently one of the top 100 cryptocurrencies by market capitalization and continues to grow in popularity as the OKX platform attracts more users.

The market cap fluctuates according to circulating supply and market price.

 

Biggest Competitors Of OKX and the OKB Token

The OKB falls under the category of exchange tokens – tokens that platforms release as utility tokens.

The main utility of exchange tokens is that they provide users with discounts on the relevant trading platform.

When considering the competitors of OKX and the OKB token, it’s important to factor in the biggest centralized exchanges and their utility tokens.

The biggest OKX and OKB competitors are:

1. Binance Exchange (BNB)
2. Crypto.com (CRO)
3. FTX (FTT)
4. Bitfinex (LEO)
5. KuCoin (KCS)
6. HTX (HT)

 

What are the future plans for OKX and OKB Token

The future plans for OKX and the OKB token involve adding more utility to the token and growing user adoption – for both the platform and the token.

The competition among top centralized exchanges is stiff. Exchanges prioritize user adoption, UX experience, and proving a secure and affordable trading platform.

OKX is currently experiencing rapid growth and has onboarded more than 20 million users, amassing a daily trading volume of more than $10 billion.

The success of the OKX platform and the OKB token relies on innovation and driving more user adoption than competing platforms. The various derivative options available on OKX make it an appealing option for some traders.

Pros and Cons of OKX and OKB Token

Pros:

• Low Trading Fees – OKX has significantly lower trading fees than most other centralized exchanges, The nominal trading fees position OKX as a convenient and affordable crypto trading platform, with access to several crypto tokens.
• High Trading Volume On The Exchange – The OKX exchange has onboarded more than 20 million users and has a daily trading volume of more than $10 billion. The user adoption and high trading volumes prime the OKB token for success in the future.
• Formidable Partnerships – The OKX blockchain foundation has tied up partnerships with some of the major brands in the world, including the likes of Manchester City Football club.

  It’s also in a strategic partnership with Alameda Research, founded by Sam Bankman-Fried, who’s also founded the massively popular FTX exchange. Any prospective digital asset projects require a large community and strategic partnerships to ensure a fruitful future for the project.

 

Cons:

• Only 20% Of OKB Tokens Are In Circulation – OKB has a total supply of 300,000,000 tokens but there are only 60,000,000 tokens in circulation. The circulating supply is essentially only 20% – this poses a significant price volatility risk once more tokens are added to circulation.
• Founder Has Previously Been Arrested – The founder of OKX, Star Xu, has run into trouble with authorities multiple times. The founder was arrested in 2020 after authorities cited concerns about potential money laundering.

  The exchange’s reputation, and its utility token OKB, took quite a knock. The founder and OKX were slammed in the media, with outcries from platform users that were fearful of their accounts being locked.

  Negative publicity of this degree, especially in the crypto space, almost always deters future retail investors from signing up to the mentioned platforms.

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