What is OKB?

Last edit: March 17, 2023
Author: Gunavarshini
Reading time: 12 minutes

OKB is the cryptocurrency used on the OKX crypto exchange based in Malta, which is considered the European equivalent of OKCoin, a leading exchange in China.

Cryptocurrency exchanges play a crucial role in the industry as they provide a gateway for users to enter the crypto space and acquire coins.

Although decentralized exchanges are gaining popularity, traditional exchanges like OKX remain significant players in the ecosystem.

OKX and its native coin, OKB, were founded by the same individuals behind OKCoin, with Jay Hao serving as OKX's CEO and Mingxing Xu as the CEO of the OK Group.

Investors can use OKB to purchase, hold, and perform cryptocurrency transactions on the OKX platform, and it has its own advantages compared to other cryptocurrencies.

Quick facts

OKB is the native cryptocurrency of the Malta-based crypto exchange OKX.
OKB has a maximum supply of 300 million tokens.
OKB holders can enjoy benefits such as lower trading fees and access to exclusive features.

How does OKB work?

OKB is a cryptocurrency that operates on OKX's own blockchain. This provides users with several options for using the asset beyond just holding it as a form of investment.

One such option is OKX's Earn program, which enables users to stake their OKB tokens and earn a passive income. This program leverages trading fees within the exchange and allows users to earn interest on their tokens.

In addition to earning passive income, OKB holders also have voting rights on future proposals within OKX's ecosystem. This gives them a say in the platform's development and allows them to help shape the future of the exchange.

OKB's utility is linked to its exchange, OKX. As a dedicated token attached to OKX, OKB is primarily designed to assist functions within the exchange.

While it is possible to invest in the asset with the expectation of future growth, its primary purpose is to facilitate transactions and other actions within the exchange.

OKX offers other perks to users who hold OKB tokens, including significant discounts on transactions within the exchange and the ability to invest in OKX's Jumpstart pool of brand-new cryptocurrency projects.

This provides investors with the opportunity to embrace early tokens before they undergo mainstream adoption, potentially leading to greater returns on their investment.

However, one potential concern for investors is the fact that OKB does not have a white paper attached to it.

While this may be viewed as a red flag, the token has operated for some time without incident, which may help to mitigate the risk of a rug pull or other fraudulent activity.

Overall, OKB provides users with a range of options for using their tokens within the OKX ecosystem, with potential benefits for those who choose to participate.

What is OKB token used for

Investors and crypto traders can benefit greatly from holding OKB tokens in their OKX accounts.

OKB is a versatile cryptocurrency that offers several advantages within the OKX exchange and beyond.

Here are some of the key benefits of holding OKB:

Discounted Trading Fees

By holding OKB tokens in your OKX account, you can save a significant amount of money on trading fees. This can boost your profitability over longer periods.

Holders of OKB can save as much as 25% on trading fees throughout the OKX exchange by keeping their accounts topped up with the crypto asset.

Access to OKX Earn

OKB holders can also gain access to OKX Earn, a savings scheme that generates advantageous returns for users of the exchange.

This allows traders to make their cryptocurrency stretch further and earn additional passive income.

OKX Earn offers a suite of savings schemes that users can choose from, depending on their risk tolerance and investment goals.

Appreciating Price Trends

OKB has generally appreciated over time as a standalone cryptocurrency.

Like other exchange-linked coins such as BNB, OKB has grown in value over time and stands some 3,400% higher than its January 2019 lows.

However, the asset has declined in the wake of the widespread crypto market crash.

Pre-Programmed Scarcity

On May 4, 2019, OKX initiated its OKB buy-back-and-burn program, where 30% of the spot market transaction fees are used to buy back OKB.

To date, OKX has burned some 48,372,387.94 OKB, helping to ensure that it has a healthy level of scarcity and that its price continues to grow over time.

This pre-programmed scarcity feature makes OKB an attractive investment option for traders who are looking for long-term growth potential.

Access to OKX Jumpstart

By holding a pre-determined volume of OKB, OKX holders can participate in the platform's Jumpstart feature.

Jumpstart enables users to invest in early cryptocurrency projects that have been vetted by the platform and listed as secure and high-potential projects.

The terms of access vary from project to project, but the scheme can empower eagle-eyed investors to participate in high-quality crypto projects yet to experience mass adoption.

Voting Rights

Holding OKB also gives you voting rights on how you believe the future of the OKX platform should be shaped.

This allows traders to have a say in the development of the exchange and its features.

Additionally, OKB holders can access C2C lending and participate in margin trading, which can provide additional opportunities for profit.

What Influences OKB Price

Several factors can influence the price of OKB, the native token of the OKEx cryptocurrency exchange. The following are some of the significant factors:

Overall Cryptocurrency Market Conditions

Like all cryptocurrencies, the price of OKB is heavily influenced by the broader cryptocurrency market conditions.

When the market is bullish, the demand for cryptocurrencies increases, leading to an increase in the price of OKB. Conversely, a bearish market can lead to a decline in the value of OKB.

OKEx Exchange Volume

As OKB is a utility token of the OKEx exchange, the exchange's trading volume can impact its price. When there is a higher volume of trades on the OKEx exchange, the demand for OKB increases, which can drive up its price.

Token Buyback and Burning Program

OKEx has a token buyback and burning program, whereby a portion of the trading fees collected on the exchange is used to buy back OKB tokens, which are then burned to reduce the total supply of OKB.

This program can help to maintain the scarcity of OKB and potentially drive up its price.

Adoption and Integration

The adoption and integration of OKB into other platforms and services can also influence its price. If more platforms and services start accepting OKB as a payment method or as a utility token, its demand can increase, leading to a rise in its price.

News and Announcements

News and announcements related to OKEx or OKB can also impact its price.

Positive news such as partnerships or new feature releases can lead to an increase in demand, while negative news such as security breaches or regulatory action can lead to a decline in the value of OKB.

How To Buy OKB?

To buy OKB , you will need to:

Set up a wallet that supports the storage of OKB. Some options for OKB wallets include MyEtherWallet, Trust Wallet, and Ledger Nano.
Find a cryptocurrency exchange that supports the purchase of MATIC. Some popular exchanges that offer Polygon include Binance, Bitfinex, and Kraken.
Create an account on the exchange of your choice and complete the necessary identity verification processes.
Deposit funds into your account using a payment method supported by the exchange.
Search for OKB on the exchange and place an order to buy it using the funds in your account.
Once the order is complete, OKB will be credited to your account on the exchange. Make sure to transfer it to your wallet for safekeeping.

It is important to note that the process for buying OKB may vary slightly depending on the exchange you are using. Be sure to carefully read and follow the instructions provided by the exchange to ensure a smooth and secure transaction.

How To Stake Polygon (MATIC) ?

Set up a wallet that supports the storage of OKB. Some options for OKB wallets include MyEtherWallet, Trust Wallet, and Ledger Nano.
Find a validator or staking pool that allows you to delegate your OKB tokens. Some popular options include Staked, Binance, and Kraken.
Transfer your OKB tokens from your wallet to the validator or staking pool of your choice.
Follow the instructions provided by the validator or staking pool to complete the staking process. This may include setting up a staking account, choosing the amount of OKB you want to stake, and agreeing to the terms and conditions of the staking service.
Once your OKB tokens are successfully staked, you will begin earning rewards in the form of additional OKB tokens. These rewards will be credited to your account periodically, depending on the terms of the staking service you are using.

It is important to carefully research and compare different validators and staking pools before deciding which one to use. Be sure to consider factors such as fees, reputation, and track record when choosing a staking service.

Final Thoughts on OKB

Investors looking to invest in the OKB token should be aware that its lack of a white paper could be a cause for concern. This may indicate that its creators could alter the direction of the asset at any time without warning.

However, given the asset's age, it is unlikely that a rug pull will occur. Another factor to consider is that like all cryptocurrencies, OKB has struggled in the wake of the crypto market downturn in 2022. The token has seen its value plummet by more than 50% from its 2021 highs in recent months.

Despite these drawbacks, OKB can be a valuable asset for users of the OKX exchange. It provides access to a range of intuitive features that can help traders and investors maximize their profits.

One of the most significant advantages of OKB is discounted trading fees. By holding OKB tokens in your OKX account, you can save a considerable amount of money on trading fees. This can lead to increased profitability over the long term.

Another benefit of OKB is access to the OKX Earn program. This program provides users with access to a suite of savings schemes that can generate significant returns.

Additionally, holding OKB tokens can give users access to OKX Jumpstart. This feature allows investors to participate in early-stage cryptocurrency projects that have been thoroughly vetted by the platform.

Furthermore, OKB has appreciated in value over time and has grown to be worth 3,400% more than its January 2019 lows. OKB's value growth can be attributed to its pre-programmed scarcity, whereby a portion of the spot market transaction fees is used to buy back OKB.

OKX has burned over 48 million OKB tokens to date, helping to maintain its healthy level of scarcity and support its growth.

In summary, while OKB may not be suitable for all investors, it can be an essential purchase for OKX users looking to benefit from its range of intuitive features.

The discounted trading fees, access to OKX Earn, and participation in OKX Jumpstart can all lead to increased profitability over the long term.