The Luna/UST meltdown earlier this month was devastating for many crypto investors. However, after the firm’s risk protection system kicked in, hundreds of millions of dollars in user assets on the largest cryptocurrency exchange OKX were safe. During the LUNA / UST catastrophe, OKX was the only large exchange to take such precautions for its users.
On May 8 the exchange’s safeguards kicked in after OKX’s risk management system detected LUNA price fluctuation. Users who had staked UST on OKX Earn, the exchange’s site for collecting crypto income, were notified, and their UST holdings were made stakeable again.
There were two waves of staking removal for users’ UST. More than 7,000 users’ UST were among the more than 360 million disclosed by OKX on May 8. Currently, UST is trading at a price higher than $0.99. On May 10th, OKX unstaked more than 139,000,000 UST, which belonged to more than 2,400 of its users. At this time, the value of one UST dollar was greater than $0.80. The value of the UST would eventually drop to pennies.
OKX is a centralized exchange, which allows for a very high level of security for its users. On the platform, a team kept an eye on LUNA and UST, making changes to risk criteria, looking into leverage, and looking for security holes. Because of this, users might have known that a disaster was coming and had a chance to sell their assets before the market crashed.
In OKX, users have access to thousands of cryptocurrencies, digital assets, and collectibles for trading, investing, and storing. The extreme expansion has been seen by the company recently. While the number of trades executed on the platform increased by only 20%, the total volume of trades on the platform increased by over 700% in 2021.
