Blockchain General News

OKEx to roll back futures transactions after Irregular sell-offs

OKEx, Hong Kong-based cryptocurrency trading platform announced today that it would roll back futures transactions on the exchange. A tanking market and irregular sell-offs inspired the move.

What prompted the move?

OKEx suggests that an irregular sell-off was noticed when a particular user exited several of his positions, causing a mass sell-off. This pulled down the value of all bitcoin futures causing panic everywhere.

The platform first updated the users on their websites about the liquidation in a statement that read, “At 5:00-6:30 on Mar 30, 2018 (Hong Kong Time), a number of users performed unusual transactions to manipulate the price of BTC quarterly futures contract, making it deviate greatly from the BTC index. Based on our team’s investigation, the user closed a huge amount of positions at market price without considering the cost, causing it to drop to an unusually low level. We will disclose the transactions details in further notice.”

In the meanwhile, the markets had already entered a state of frenzy. Transactions for the futures remained suspended for a few hours, and the users shared several screenshots on social media as well. These pictures denoted the falling prices of bitcoin which rebounded at $6,000 after going down to $5,200. The reversal didn’t last long as prices plunged further to $4,755. At the same time, CoinDesk was showing bitcoin prices steady at $7,000 which showed a massive 20 percent discount from global levels.

Users left stunned after the shock announcement

OKEx received raging criticism from its users who suggested that the platform didn’t work efficiently to stop such a sell-off. They conclude that this irregularity happened due to malicious intents. Some users have also commented that OKEx is involved in this activity as well. However, no reports or comments came from the platform or other media agencies about such an involvement.

At the time of writing, the platform released another statement on its official website about rolling back of the futures. Here is what the statement read, “We had successfully rolled back the futures contracts data to 4:47:54 Mar 30, 2018 (Hong Kong Time), when the last transaction was completed. All the futures contracts will be delivered at 17:40:00 Mar 30, 2018 (Hong Kong Time) according to the delivery prices listed below. The transfers between user futures account and spot account will be rolled back as well and will be processed after futures contracts delivery.”

Note that the platform made another major announcement yesterday, suggesting to pull off bitcoin cash (BCH) trading due to lack of liquidity in the currency. The closing of this market was followed by the sell-off which created a hotbed for rumors.

Bitcoin, on the other hand, has had a hard first quarter. At the close of the quarter, the coin is trading at a 50-day low and barely held its $7,000 mark, falling often. Prices of major cryptocurrencies have dropped dramatically too, causing investors to lose millions of dollars. Regulatory clarity about the status of cryptocurrencies is also a significant factor behind this huge slack.