What do Exchange Coins Offer Us: An in-depth analysis of OKEX’s OKB token

Coach K
Coach K
Nov 5 · 6 min read

With so many different exchanges and exchange tokens in the industry, it can be difficult to understand why we need them and what they do. Today we’re going to look at the ecosystem around OKEX’s OKB token. The crypto sphere has many different types of tokens and most of them have no Revenue model or use case attached to them. The greatest difficulty is the lack of liquidity making it very difficult to buy and sell them. OKEX’s OKB has a steady Revenue model behind it as exchange tokens always have funds rolling in like transaction and listing fees. Tokens can be used in a variety of ways. for example to pay for products and services to merchants who accept the OKB token as well as give customers discounted rates for holding the tokens to trade on the platform, as well as rewards, like loyalty programs.

Exchange tokens people use daily to save on transaction fees, many hold for benefits on the platform like with OKEX’s OK Jumpstart or to pay for goods and services. Having Liquidity gives users a very good use case to hold, buy, or sell and gives merchants confidence they can adopt the token as they can sell it without experiencing slippage. Furthermore, OKEX just added 14 different cryptocurrency ecosystems into their own. In order to build something that will last you need to provide users and merchants use cases.

We will look at all the various instruments and use cases of OKEX’s OKB token. The focus is to give you greater insights into what OKB is, what use cases it has, as well as metrics and a break down of some of their past and present programs.

OKB Token

OKEX Exchange: OKB Token

🚀Launched March 22, 2018

🔢Supply: 1 Billion

🔄Circulating Supply: 300M

🔥Burned Tokens: 8M roughly so far.

👀Adoption: 1M holders of OKB

📊 All-time high: $5.42
📊 All-time high date: 2018–06–19
📊 launch date: April 28, 2018
📊 OKB ERC-20 launch date: April 29, 2019

What about the other 700M tokens?

300M to users via a loyalty program and 400M belongs to OK Blockchain Foundation and Operations team.

Release delayed until 2020–2022, with a promise to update any announcements 6 months in advance to inform the public if they will extend the lockup or release in batches. As seen with Binance and burning team tokens may also be a possibility.

OKChain — The Plan

OKEX is Developing its own blockchain called OKchain. OKB will be the native token of OKChain Network, which will be used for Dapps (many focusing on DeFi), settling transactions fees. Currently running on Ethereum OKChain will be similar to what we know as Binance Chain which will include their own ecosystem. They are going to use a fast consensus algorithm, which can scale. OKChain is planning a decentralized exchange, Financial Dapps which will introduce DeFi which has a large financial backing in the OKUSD and many partnerships that I will highlight later that could potentially help their ecosystem grow. With OKB, you will be able to vote on your favorite supernode candidate similar to EOS in the future. Projects will pay super nodes OKB as a service fee in the future.

Happy Fridays (stopped in April 2019)

Paid out over 200M in BTC to its OkEx holders as they distribute 50% of profits to token holders. They have since ended this program and introduced a token burn.

The OKB Buy-Back and Burn Program

Using 30% of the transaction fees from the spot market they will buy back and burn OKEX tokens, so far as of their last burn 8Million and change tokens have been burned.

OK Jumpstart

A new utility token sale platform for IEOs using only OKB. The exchange as of early September was averaging a nice ROI, but since as with most IEOs on several exchange platforms saw a large drop. They have not completed an IEO for nearly 2 months the last one being September 11, 2019, but have said they will continue with the OK Jumpstart program.

From Crypto Differ

Use Cases for OKB

Not only is OKB used for saving on transaction fees it will have a robust ecosystem built around it in which users will be able to use OKB. Let's have a look into their current use-cases, which over time will continue its growth as OKEX only launched their ERC-20 blockchain in April approximately 6 months ago from the date of this article.

Security

Slowmist, Beosin and Certik

These projects are all focused on blockchain security. Slowmist’s focus is on auditing and being your own security guard. They protect exchanges, wallets, public chains and smart contracts. Beosin as well focuses on cybersecurity in similar ways as well as doing investigations of assets on-chain. Certik created the first hacker resistant system and conducted hundreds of security audits. The main point you can pay for any of these services in OKB.

Utility & Entertainment

Litex to top-up mobile and fuel cards, BitTorrent allows people to purchase a subscription, Tripio is a crypto booking service you can use to book your vacation, FishChainGame a hybrid blockchain game gives you a discount. Truechain maintains physical stores in Korea, Thailand and Vietnam, QLC you can top up your phone with, and Lucia lets you rent rooms.

OKB is used in all of the above to top-up cards, pay for subscriptions, book a trip, discounts on in-game purchases, and rentals.

Financial Services — DeFi

Kcash is a wallet using OKB and Bitpie is a wallet that lets users buy, sell and store cryptos. LinkEye lets users share credit with a financial management platform accepting OKB. Molecular Future lets you pledge OKB as collateral to borrow cryptocurrencies.

OKEX has a growing ecosystem and is providing users with a diversity of use cases. The team has to continue to create partnerships and grow the number of merchants and use cases. For the project to retain and grow the intrinsic value OKEX will need to push for the adoption of as many use-cases and merchant onboarding as they can. Each piece they add to the puzzle gives the OK network more strength and will co-relate to user and industry adoption. “A leader is one who knows the way, goes the way, and shows the way.” — John C. Maxwell

Joel Kovshoff

Coach K

Telegram/Twitter: @coachkcrypto

Coach K

Written by

Coach K

Cryptocurrency and Financial Markets Educator, Trader, Entrepreneur and Mentor.

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