On November 20, the exchange responded to those allegations, essentially defending its decision and promising to provide evidence if the case goes to court. Curiously, it is at least the third time this year that OKEx has shown strange price volatility on their exchange.
Brief introduction to OKEx, major crypto futures trading player
OKEx was founded in 2017 as an international arm of the no longer operating Chinese exchange OKCoin. According to data from CoinMarketCap, it is currently the second largest player by volume, handling more than $1 billion worth of crypto trades per day. OKEx is based in Belize and has an operating hub in Hong Kong. Moreover, in April 2018, the company expanded its presence to Malta, citing their “confidence” in the local government’s approach to cryptocurrencies.
The exchange has been focusing on futures trading, which is basically an agreement to buy or sell an asset on a specific future date at a specific price, hence representing a risk management tool for investors.
On Nov. 3, 2017, OKEx launched its Bitcoin Cash (BCH) and Ethereum (ETH) futures trading, while its parent company OKCoin had been trading Bitcoin (BTC) futures since 2014. In December 2017, crypto futures received wider recognition after mainstream exchanges Chicago Board Options Exchange (CBOE) and Chicago Mercantile Exchange (CME) introduced BTC futures trading to the wider market.