Who should take care of the private key is a problem, but more urgently, there may be a group of old users who will leave OKEx forever.
On the morning of November 20th, OKEx founder Xu Mingxing publicly responded to the police investigation, saying that the company was acquired in an equity M&A transaction completed several years ago Fang was involved in a complicated judicial case and was required to participate in the investigation. He said: “At present, the judiciary has ascertained the facts and returned my innocence.”
On the previous day, OKEx announced that it would open free withdrawals before November 27, which has been 35 days since OKEx has suspended withdrawals.
OKEx is an overseas digital asset trading platform. It was founded in May 2017. It supports more than 30 legal currencies to purchase Bitcoin, Ethereum, USDT and other digital currencies through a variety of payment methods. It is second only to Huobi, Binance’s third largest digital currency exchange.
OKEx’s latest announcement stated that relevant staff have returned to work, and the platform will conduct security checks to restore the safe and stable operation of the hot wallet system to ensure the safety of users’ funds. At the same time, it emphasized that OKEx has insisted on 100% reserve since its establishment, and there will be no run on it.
Spurred by the good news, the OKEx platform currency OKB rose by 18% on the 20th. OKEx Exchange Affiliated CompanyOuke Cloud Chain (01499.HK) opened 9.84% higher, At one time, it rose by more than 23% during the intraday market, which swept away the gloom of the stock price in the past month.
Previously, OKEx founder Xu Mingxing and other persons in charge of platform private keys cooperated with the investigation by the public security organs, and they were in a state of disconnection for a time, which caused the platform’s authorization to be unable to complete, thus suspending the withdrawal of coins.
The private key of the digital wallet is equivalent to the password of the bank card. Without the private key, the withdrawal cannot be completed. The difference is that the private key is not set by the user, but a string of data automatically generated by the system for encryption and decryption. In other words, the password of the OKEx exchange wallet is managed by the person in charge of the platform.
After the “black swan” incident occurred in OKEx, the topic of who should control the private key authority of the centralized exchange was immediately hotly debated. Binance and Huobi also releasedThe private key was declared “very secure and no problem.”
After this turmoil, who should manage the exchange’s private keys is OKEx’s re-arrangement, but the more pressing issue is the retention of platform users.
The suspension of withdrawals for more than a month will inevitably cause old users to question the management and operation of the platform. After withdrawals are resumed, some users will definitely “take money away”, which not only tests OKEx’s reserve capacity , Will also produce a certain degree of permanent loss of old users.