What is OKB (OKB)?
Launched in 2018, OKB is an ERC-20 token issued by the OK Blockchain Foundation and plays an important part in facilitating the OKX ecosystem. One of the principal benefits of holding OKB tokens is to get discounts of up to 25% on trading fees on the OKX cryptocurrency and derivatives exchange.
Holders of OKB can also participate in OK Earn and Jumpstart. The former enables you to earn more OKB tokens by subscribing to a savings scheme, while the latter gives users access to promising early crypto projects.
Of course, like other cryptos, you can also invest and trade in OKB tokens on secondary markets, and some online and offline merchants also accept it as payment. To help boost the price of OKB, the OK Blockchain Foundation buys back tokens and burns them.
|Did you know?|
Many outlets report OKX as being based in Malta, but this is incorrect. After leaving China, OKX was planning to move to Malta when the country was pitching itself as ‘Blockchain Island’, but it actually relocated to the Seychelles.
OKB (OKB) Basics
OKB is an ERC-20 token based on the Ethereum blockchain. This means that post-Merge, it is a proof-of-stake network, and transaction fees must be paid in Ether (ETH).
There is a total supply limit of 300M OKB tokens, and the OK Blockchain Foundation runs a buy-back and burn program. This uses 30% of spot market transaction fees to buy back OKB tokens, which are then burned. This is designed to put deflationary pressure on the crypto and thus increase its value. As of 6 November, 2022, 48,372,387.94 OKB had already been burned.
OKB Adoption & Usability
In addition to OKB’s utility across the OKX ecosystem, you can also use OKB with a number of partners, including various security, financial, and utility services. The token is supported by a number of popular crypto exchanges and wallets, and as of late November 2022 was the 15th biggest crypto in the world by market capitalization – just behind Shiba Inu, and ahead of Litecoin (according to CoinGecko).
OKB Network Fees & Speed
Because it is an ERC-20 token, OKB can suffer from the famous Ethereum network congestion and gas fees. However, with Ethereum having successfully completed the Merge and planning more upgrades to transition to Ethereum 2.0, these issues should eventually be addressed.
OKB Security and Safety
As an Ethereum-based ERC-20 token, OKB benefits from the gold standard security of the Ethereum network. However, as always, all cryptos can be vulnerable thanks to third-party platforms. This is especially true when it comes to exchange utility tokens, like OKB, because you need to keep them in your exchange account to access all their benefits (like trading fee discounts).
Security and safety tips:
- Don’t leave your OKB on-exchange for longer than absolutely necessary. If you are not currently trading, transfer them to a local wallet for short-term storage.
- For long-term storage, keep your crypto in a hard wallet.
- Always keep your wallet keys in multiple safe places – they cannot be recovered.
- Never tell anyone about your crypto holdings. No matter how secure your storage is, if you or your loved ones are physically threatened, you’ll probably hand over your personal keys.
Just like most cryptos, OKB has experienced significant price volatility since launching. For example, between January 2021 and May 2021, its price went from around $5.50 to over $44. At the time of writing, in November 2022, OKB was trading at just over $20 (according to CoinGecko data). Bear in mind that, because it is primarily a utility token for the OKX ecosystem, OKB’s price is inherently tied to the fate of OKX.
Final Word on OKB
There’s no denying that OKB is one of the more successful exchange utility tokens of recent years, and it has grown to have some value even beyond the OKX ecosystem. But, you should always remember that its fate is intrinsically woven into the fabric of the OKX exchange and ecosystem. And, as we’ve seen with events like the FTX collapse, any centralised exchange can fail.
Basically, OKB’s attractiveness very much depends on your crypto and trading habits. If you’re a big user of OKX, then it can make sense to keep at least some of your portfolio in OKB. If you’re not, then we’d say there are more suitable cryptos to hold.