OKB

What is OKB?

OKB is the native token of the OKX cryptocurrency exchange and the OKX ecosystem as a whole.

Like many cryptocurrency exchange tokens, OKB gives users of the exchange platform various benefits and rewards, as well as the ability to vote on prospective token listings.

OKB is the central asset of the OKX ecosystem, which encompasses far more than just the OKX exchange. Along with offering users a multi-currency wallet and access to services like margin and options trading, the OKX ecosystem also encompasses the MetaX network, cloud mining services, and incubation platform Jumpstart.

The OKX platform was previously known as OKEx, standing for OK Exchange, but rebranded to OKX in January 2022 to reflect the company’s expansion of its suite of digital asset investing products. These comprise a decentralized blockchain, an NFT marketplace, a decentralized mode featuring a cross-chain dashboard, and a self-custody Web 3.0 wallet. The OKX NFT marketplace is based on the Ethereum ERC-721 and ERC-1155 standards and features three markets. The “primary” market is for high-profile collections, the “secondary” market allows trading of previously bought tokens, and the “My NFT” market allows users to mint and sell their own creations.

When Was OKB Launched?

OKX, then known as OKEx, was launched in spring 2017 as an offshoot of the OKCoin platform established in 2013 in China. OKX was registered in Malta and operates under a separate legal entity.

OKB began its existence in March 2018 as a fungible ERC-20 token on the Ethereum blockchain. OKB’s Ethereum contract address can be found here.

Who are the Founders of OKB?

OKB is the native token of the OKX ecosystem, which was founded by CEO Jay Hao, who brings twenty prior years of experience in semiconductors. Hao has developed a range of codecs including UVLED, ASIC, FPGA, as well as multimedia codecs and SOCs for multimedia processors.

Interestingly, Hao’s LinkedIn profile page also says that he serves as the OKX Chief Customer Service Officer, in order to ensure that global users’ concerns are heard and the platform’s products and services can continue to improve.

Also credited as a co-founder of OKX is Mingxing Xu, the founder of OkCoin in China.

How Does OKB Work?

There are three main uses of the OKB cryptocurrency, which serves as the native token within the OKX ecosystem.

Firstly, like many other exchange tokens, users who hold OKB can avail themselves of discounts when using the OKX exchange platform. These discounts can range as high as 40% depending on the amount of OKB held by the users.

It must be noted that the exchange divides users into two groups: regular and VIP. Regular users are given a “level” depending on how many OKB tokens they hold. VIP users are given a similar level based on their trading volume, and both sets of users get discounts based on their level.

VIP users can also take out larger loans from the platform based on their level, with VIP8 users allowed to take out 130 BTC or 6.5 million USDT.

Passive income via the OKX Earn platform is another good reason to hold OKB. OKX Earn provides multiple choices of investment services, including products of crypto value-added, staking, loan-invest, and DeFi services, all of which grant the user interest.

Jumpstart, a platform designed for the incubation of upcoming blockchain projects and Initial Exchange Offerings (IEO), is another OKX system that uses OKB. These Jumpstart campaigns require the staking of OKB tokens. Users who decide to stake OKB on a project will receive native assets from that project.

Notably, Jumpstart participation requires OKX account creation and level 2 KYC (Know Your Customer) verification, as well as a certain threshold of OKB holdings. Jumpstart participation can also be geo-restricted, with users in some countries or regions unable to take part due to various local regulations.

What Makes OKB Unique?

OKB is unique because of the wide-ranging utility it provides across OKX, a rapidly-growing name in the cryptocurrency industry.

OKX and its suite of products are considered by many to be very much in the upper echelon of crypto service providers. And yet, the company has embarked on a path of greater decentralization and transparency, judging by many of its recent actions.

In addition, OKX appears committed to growing the value of the OKB token thanks to the establishment of a “Buy-Back & Burn” program in May 2019. Using 30% of the trading fee income from the spot market, OKX buys back OKB tokens from the secondary market and burns them.

The 16th round of Buy-Back & Burn took place between March and May 2022, with over 3.75 million OKB, equivalent to $68 million, being sent to an Ethereum address that can’t be accessed by anyone.

How is the OKB Network Secured?

While the OKX ecosystem has its own blockchain, known as the OKC blockchain, the OKB token isn’t used for consensus on this blockchain. In fact, the OKC blockchain has its own token called the OKC Token, or simply OKT. The OKC blockchain uses a delegated proof-of-stake consensus mechanism based on Tendermint and was developed using the Cosmos SDK. The OKC blockchain is also 100% compatible with the Ethereum Virtual Machine and is IBC interoperable.

OKB, meanwhile, remains an Ethereum ERC-20 token and can reside on the OKC blockchain thanks to its Ethereum interoperability as well as Ethereum itself. OKB is used as a utility token on the OKC blockchain, with OKT functioning as its native token that is staked for consensus.

What is the Use of OKB?

Beyond trading fee discounts, Earn, and Jumpstart, OKB has several other uses within and outside of the OKX ecosystem.

OKX Loans is a platform offering both fixed and flexible loans that allow users to generate yield from their crypto assets without needing to sell their holdings. Within OKX Loans, users can borrow OKB or use OKB to collateralize their loans.

Various services that accept cryptocurrency payments also accept OKB, and the OKX website lists these services under the categories of security, financial, and utility services. Smart contract auditors like CertiK and Beosin fall under security, while the financial category includes services like the Bitpie wallet and Coinrule’s trading products.

Who Controls OKB?

OKB is controlled by OKX, the company previously known as OKEx. Registered in Malta, the company began as a centralized crypto exchange but rebranded to showcase its shift into decentralized technologies.

By moving into decentralized finance and play-to-earn gaming as a springboard, the company is “dropping the E and dialing up the X” to highlight its shift into the world of Web 3.0.

OKX and the Chinese exchange OKCoin are backed by OK Group, which provides blockchain services and infrastructure. The OK Blockchain Foundation was used as the issuer of OKB tokens.

Meanwhile, OKX has made several high-profile marketing moves to bolster this move into the future, none more so than a partnership with English Premier League champions Manchester City Football Club. This deal sees the OKX logo take prominence on City’s training ground and on the team’s training kits. With sport being a primary route to market taken by many crypto platforms, OKX has also linked up with Ryder Cup golfing legend Ian Poulter. 

Poulter, often called “the Postman” for his consistently brilliant performances at the sport’s premier team event, joined forces with OKX to bring golf into the metaverse, launch Poulter NFTs and fan tokens, and educate golf fans on cryptocurrency.

How Much OKB Is In Circulation?

When OKB was first issued, the total supply was defined at 1 billion OKB, with 300 million on the market and 700 million locked for a 2022 release.

The initial distribution for the tokens had 40% going to the founders and the project itself, 10% to investors, and 50% earmarked for airdrops and rewards.

Of the 700 million locked OKB tokens, 100 million were to go to early investors, 200 million were to remain with the founding team, 100 million were allocated to the OK Blockchain Foundation, and 300 million were left for public awards.

However, following the launch of the OKC blockchain’s testnet in February 2020, OKX decided to burn the unissued 700 million OKB tokens and promised no more additional future issuance.

This locked the OKB supply at 300 million and meant that OKB was the industry’s first fully circulating platform token. This means that there are only 300 million OKB in existence, but the proportion of those in circulation continues to decrease thanks to the Buy-Back & Burn initiative.

The OKB Buy-Back & Burn reports are published on the OKX website, and the veracity of their claims can be validated by scanning the burn address.

How Do You Buy OKB?

OKB is the native token of the OKX platform, and one of the best places to buy it is right on the OKX exchange. That’s where it enjoys the highest liquidity, especially paired with stablecoins such as USDT and USDC. However, OKB is also one of the top 50 cryptocurrencies on the market, and so it is listed by many exchanges across the world, including competing trader-friendly platforms. You can also pick up OKB on decentralized exchanges (DEX) like Uniswap.

Is It Possible to Buy OKB Instantly?

Trading on a centralized exchange (CEX) platform is usually instant, especially when using spot platforms. This is usually because this sort of trading is done using an internal ledger while all underlying assets are held by the CEX.

Purchasing OKB on a DEX might not always be quite as quick, however. DEX transactions have to use the blockchain, and blockchains tend to take a little time to collect transactions into a block, publish them, confirm, and finalize them.

This is especially true with Ethereum, where it could take a few minutes for transactions to go through. However, many DEXes now use Layer 2 solutions to solve this problem, and that makes trading very quick and inexpensive.

How Do You Store OKB?

Most cryptocurrencies are stored in wallets. Many utility tokens, or tokens that can be used in some way, require you to store them in private, self-custody (also called non-custodial) wallets in order for you to actually take advantage of their utility.

However, platform or exchange tokens like OKB can be different. Simply storing these tokens on your exchange account can be enough to avail yourself of fee discounts and other bonuses.

They may require you to enter the “staking” interface of the trading platform, and putting your OKB to work in Jumpstart will also require you to lock your tokens away for a certain period of time.

OKB Energy Consumption

OKB is an ERC-20 standard token without its own underlying blockchain. For this reason, it can’t really be accused of consuming energy in the same way as blockchains like Bitcoin and Ethereum, both of which have their own chains. In fact, the Ethereum blockchain provides security and consensus for the OKB token.

The OKX ecosystem also runs the OKC blockchain, but its consensus mechanism—delegated proof-of-stake—is highly efficient in terms of energy consumption thanks to its reliance on a limited number of validators.

Is OKB a Good Investment?

Betting on OKB could, in many ways, be considered an investment in OKX itself. The various benefits that the token provides, such as fee discounts, could themselves see greater demand as the use of the platform itself grows.

The company’s pledge not to issue any more OKB tokens and the Buy-Back & Burn program that they instituted also make interesting economic sense for potential investors. While most fiat currencies tend to be inflationary, and some extremely so, OKB is the opposite.

The locked maximum supply and the regular burning of the currency mean that, as long as the platform sees significant use, the supply of the OKB token will continue to tighten. This reduced supply, all other things being equal, warrants an appreciation in price.

Of course, investing in any cryptocurrency has risks. And, just like OKB investors might benefit from the success of OKX, a downturn in the platform’s fortunes might see the token struggle, too.

The controversy surrounding the co-founder Mingxing Xu in 2020 was an example of this risk. However, very few cryptocurrencies are exempt from these sorts of problems, and OKX can certainly stake its claim to being one of the most exciting, forward-thinking groups in the industry.