Despite the breadth and depth of cryptocurrencies and blockchain technology, many investors and crypto communities still take notice of novel crypto projects and protocols.
One of the more successful projects operating in the crypto landscape is OKB, which has grown to populate the top 20 list of the largest cryptocurrencies based on market capitalization. With a total market cap of over $5 billion at the time of writing, OKB has shown significant growth since its 2018 inception.
But what exactly is OKB?
What Is OKB?
OKB is the native cryptocurrency of the Malta-based crypto exchange OKX. The OKX platform is the de facto European counterpart of the leading Chinese exchange, OKCoin.
Cryptocurrency exchanges are among the most important entities in the industry and provide an essential gateway for users to adopt crypto and purchase their coins. That's why you should always choose the safest cryptocurrency exchanges if you plan to get into crypto. Although we're seeing growing demand for decentralized exchanges, the more traditional exchanges like OKX remain the biggest players throughout the crypto ecosystem.
The figures who founded OKX and its native coin, OKB, are the same individuals behind OKCoin. Jay Hao is the CEO of the Maltese exchange OKX, while Mingxing Xu is the CEO of the OK Group.
As the native cryptocurrency of the OKX platform, investors can buy, hold, and use OKB to make cryptocurrency transactions. While OKB's concept is the same as the way other cryptocurrencies work, it also has its own advantages. So, let's explore the possibilities with OKB.
How Does OKB Work?
OKB operates on OKX's own blockchain, meaning users can perform several different actions with the asset.
OKB holders can earn a passive income via OKX's Earn program. This lets users stake OKB as assets to leverage trading fees within the exchange. They also have voting rights on future proposals within OKX's ecosystem.
As a dedicated token attached to the OKX exchange, which secured a Dubai Virtual Asset License in 2022, OKB's utility is linked to its exchange. While it's possible to invest in the asset with the expectation of future growth, the asset works by assisting functions within the exchange itself.
Other perks within the OKX platform include significant discounts on transactions within it and the ability to invest in OKX's Jumpstart pool of brand-new cryptocurrency projects, offering investors the chance to embrace early tokens before they undergo mainstream adoption.
Although there are plenty of things investors can do through OKB within OKX's ecosystem, the asset's true utility and purpose are obscured by the fact that no white paper is attached to the asset. Although investors may view this as a red flag, the danger of a rug pull occurring is mitigated by the fact that the token has operated for some time without incident.
What Are the Advantages of OKB?
So, why should investors and crypto traders pay attention to OKB? The answer is that the cryptocurrency is a great tool for accessing further investment options within the OKX exchange and beyond. When it comes to making your cryptocurrency stretch further, the OKX Learn page explains what benefits the OKB offers.
Discounted Trading Fees
The simple act of holding OKB tokens in your OKX account will enable you to save high volumes of money in trading fees. This will boost your profitability over longer periods.
Holders of OKB can save as much as 25% on trading fees throughout the OKX exchange by keeping their accounts topped up with the crypto asset.
Access to OKX Earn
OKB holders can also gain access to OKX Earn, which opens the door to the platform's suite of savings schemes that can generate advantageous returns for users of the exchange.
Appreciating Price Trends
It's also worth noting that OKB has generally appreciated over time as a standalone cryptocurrency. Like other exchange-linked coins like BNB, OKB has grown in value over time and stands some 3,400% higher than its January 2019 lows. However, the asset has declined in the wake of the widespread crypto market crash.
Pre-Programmed Scarcity
On May 4, 2019, OKX initiated its OKB buy-back-and-burn program, where 30% of the spot market transaction fees are used to buy back OKB. To date, OKX has burned some 48,372,387.94 OKB, helping to ensure that it has a healthy level of scarcity and that its price continues to grow over time.
Access to OKX Jumpstart
By holding a pre-determined volume of OKB allows OKX holders to participate in the platform's Jumpstart feature. As we discussed, Jumpstart enables users to invest in early cryptocurrency projects that have been vetted accordingly by the platform and listed as a secure and high potential project.
The terms of access vary from project to project, but the scheme can empower eagle-eyed investors to participate in high-quality crypto projects yet to experience mass adoption.
Other Key Perks
Along with the ability to use C2C lending and better participate in margin trading, holding OKB also gives you voting rights on how you believe the future of the OKX platform should be shaped.
Is the OKB Token a Worthy Crypto Investment?
The OKB token has its benefits, but only for the right kind of investor. We think the token is a good asset for users of the OKX exchange, but it loses its sheen without the exclusive functions on the OKX platform.
In addition, investors should remain cautious about the asset's lack of a white paper, which means that its creators may be liable to take OKB in a different direction with little-to-no warning. Nevertheless, a rug pull is unlikely, given the asset's age. Finally, investors should be aware that OKB has struggled, like all other cryptocurrencies, in the wake of the crypto market downturn in 2022. This has seen the value of OKB fall more than 50% from its 2021 highs in recent months.
However, if you're an OKX user who wants to fully embrace the exchange's suite of intuitive features, OKB is likely to be an essential purchase that can help to bring money-saving benefits over time.