OKEx announces impending reopening of withdrawals

After a month of confusion and wariness, OKEx users have finally received the response they have waited for. A few days after popular crypto-exchange OKEx announced that following an investigation done by the authorities, OKEx was “confirmed not to have been involved in any wrongdoing or illegal activities,” the exchange has now announced the re-launch of its withdrawal services from the 26th of November. While the same was previously scheduled for the 27th, according to the statement, the same has been preponed by a day.

The announcement read,

“OKEx is expected to open withdrawals at 8:00 (UTC) on November 26, 2020.”

The suspension of services contributed to many exchange users panicking. Even though OKEx tried to handle the situation with the little information it could provide, with an investigation ongoing, users’ confidence was affected. Given the scale of the operations involved and the suspension of services for nearly a month, OKEx remains vulnerable, especially with respect to user retention.

To make up for the suffering of its clients and to rewards users that have stayed on, OKEx has also introduced a compensation program. As per the program, users who made deposits, held tokens, or traded during the withdrawal suspension period will receive 20% of its total income from Futures and perpetual swap transaction fees over the last seven weeks. This will be a one-time payment in the form of an incentive fund issued to the users who fit the pre-requisites.

Users will receive payments based on their assets and transaction condition, noted the release. It further added,

” For users whose assets exceeded 10,000 USDT before 4:00 pm UTC on Nov. 23, OKEx will issue a commission rebate card valued between a minimum of 100 USDT and a maximum of 1,000 USDT.”

As of now, the OKEx markets have remained unaffected, but with withdrawals opening today, we may witness pricing volatility due to withdrawal requests in bulk. While there have been speculations that many OKEx clients might jump ship to Binance, as per reports, China-based crypto-wallet Cobo has decided to diversify its investment and reduce its position on OKEx to about one-third, according to the company’s vice president, Alex Zuo.

With corrections already setting in, the impact of this development might be felt on the Bitcoin [BTC] market in the coming days.