Concerns Persist as OKX Burns Significant Amount of OKB
OKX is a crypto exchange that launched the OKB Buy-back and Burn program in 2019. This program was developed to buy back OKB tokens from the market every 3 months. Carried on the base of the exchange operating performance and market conditions.
KEY TAKEAWAYS
- OKB the token by OKX runs the Buy-back and Burn program to improve the token’s market health.
- Certain metrics indicate that OKB is still lacking in some aspects.
At last, the bought token are burned effectively reducing the overall supply of OKB tokens.
Ever since the launch this was the 19th round of the program. This round took place between 1st December 2020 and 28th February 2021. OKX bought 5,183,976.43 OKB tokens during this period, from the secondary market.
They bought the tokens at the cost of over $177 million. The tokens thus bought were then burned. they were destroyed and removed from circulation to reduce the total supply of OKB.
Buy-Back and Burn program helps maintain a stable and healthy market for OKB tokens. Ultimately leading to an increase in the value of the tokens. Furthermore burning tokens can also help prevent the dilution of the existing token holders’ value.
The last round was good enough in the favor of OKB tokens
During the 19th program, OKB witnessed a double in its price. It went from $21 to almost $57 by mid-February 2023. Indicating this was not only the increased burning that led to this, in fact, the bullish market for 2023 also played a major role.
However, despite the price hike, the network growth of OKB declined. This is because fewer new addresses were involved in transferring the token. Additionally, the social volume metric suggested that OKB’s popularity also took a hit during this period.
Emerging concerns persist
According to DeFilLama, OKX has experienced network growth ever since the start of 2023. As had many other cryptocurrencies. Nevertheless, the recent performance has been quite contrary to that. Despite a substantial increase in price during the past few months, the token’s price declined by over 16% in the last seven days.
Currently, it is trading at around $41.96 with over a $2.5 billion market cap. However, as per the data from Santiment, the weighted sentiment and MVRV Ratio suggest investors be optimistic. Not only that, the supply of OKB held by top addresses has recently increased, indicating persistent investor interest.