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OKEx CEO Jay Hao: The Crash of a Token Is Not the End of DeFi, but a Lesson in Overheated Market Sentiment

2020.09.18 OKEx Public Relations

Malta, Sept. 18, 2020 — OKEx (www.okex.com), a world-leading cryptocurrency spot and derivatives exchange, has taken a stand against some of the unscrupulous practices surrounding the growing DeFi space, with OKEx CEO Jay Hao taking to Twitter to speak his mind. As a pioneer in helping to develop the DeFi space and as a centralized exchange, OKEx strongly condemns the irresponsible behavior of some of its peers, which has led to the loss of investor funds, confidence and a regression in DeFi's progress.

With the popularization of DeFi concepts and the creation of many wealth-making myths, chaos has begun to appear in the market. On Sept. 14, a liquidity-provider mining project supported by a leading exchange, launched on a DEX based on the exchange's smart public chain. The project was received with much anticipation from investors and even a "this is not an endorsement" endorsement from the exchange's CEO, enthusing about the "stir" it was causing.

However, just one day later, a total farce ensued. As the project's token price plummeted, causing a large number of users to suffer huge losses, the exchange's CEO quickly terminated the relationship with the project and deleted the tweets published in support. This irresponsibility and lack of empathy for investors by influential people in the space must be scrutinized if we are to truly earn people's trust and grow the industry together.

"The role of an exchange is to identify high-quality assets for users, not to abuse its influence and instigate a large number of users to buy a certain token, especially at this current stage of excessive market sentiment,” said OKEx CEO Jay Hao, adding:

“We call on industry participants, especially those leading companies with more resources and user trust, to pay more attention to our own corporate responsibilities and protect the interests of users. Of course, this kind of incident is not the end of DeFi, but a severe blow to user confidence and a lesson in overheated market sentiment."

A focus on innovation, not token price

With the continuous emergence of innovative DeFi products, the market value of DeFi continues to set records, yet the risks are also accumulating. For example, an investor can now use the same funds to form a long capital chain in different DeFi projects through staking and borrowing, which means that any problem in any link may trigger a huge chain reaction.

Therefore, for DeFi, the focus should be on the innovation and practicality of its products, rather than the performance of the project’s tokens in the secondary market, which is nothing more than a reflection of the product level.

The first OKEx Jumpstart Mining project, Zyro, for example, is a next-generation protocol for automated liquidity that is built on Zilliqa. Using this high-performance public chain, Zyro is able to increase efficiency while lowering transaction fees, making frictionless, high-frequency trading possible.

Thanks to the high practicality and huge demand, the governance token of the Zyro.finance protocol, ZYRO, attracted more than 100 million OKB staked within 24 hours, and its opening price soared to 0.58 USDT, marking a 480% increase. As of Sept. 15, the price of ZYRO had reached 0.6766 USDT, maintaining a steady rise.

Other DeFi projects that have been listed on OKEx recently, such as UMA, YFI, WBTC, LEND and COMP have also been assessed based on the superiority of their products, which naturally gives the token price strong support.

“The quality of the project is our first consideration when listing any token. We also examine the long-term development capabilities of the project and its ability to further promote the blockchain space. Regardless, investing in any crypto asset is high risk, and we urge OKEx users to also have an in-depth understanding of the project before trading, to try to avoid the influence of market sentiment and to make rational investment decisions,” Jay added.

END

About OKEx

A world-leading cryptocurrency spot and derivatives exchange, OKEx offers the most diverse marketplace where global crypto traders, miners and institutional investors come to manage crypto assets, enhance investment opportunities and hedge risks. We provide spot and derivatives trading — including futures, perpetual swap and options — of major cryptocurrencies, offering investors flexibility in formulating their strategies to maximize gains and mitigate risks.

Media contact

Vivien Choi
Email: [email protected]
Telegram: @vivienchoi

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Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.


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