It seems that with the latest OKEx developments Uniswap benefited the most as UNI increased by 10% as we are reading more in our latest altcoin news.
The crypto index lost about $7 billion as the traders were spiked by the panic and sold a portion of the holdings under the influence of the OKEx founder being arrested. The Malta-based exchange landed itself in the middle of the criminal investigation. The exchange suspended all its withdrawal options indefinitely as one of its private keys holders “is cooperating with a public security bureau.” However, the exchange later said that the investigation was a result of a staff’s personal issue. In the meantime, Uniswap benefited from the mayhem.
BREAKING: OKEX SUSPENDS WITHDRAWAL FOR AUTHORITY INVESTIGATIONhttps://t.co/1TJ0IS4wsq
— frxresearch (@frxresearch) October 16, 2020
In the meantime, the Chinese news website Caixin reported that the police arrested Mingxing Xu aka “Star” a week ago. He went out of the loop of the from the rest of the OKEx team ever since but UNI initially underwent a sell-off like any other crypto but the DeFi token rebounded after traders realized that it represented the OKEx rival which is Uniswap.
Uniswap discourages the practice of holding the clients’ funds and instead promotes the classic “Not-Your-Keys-Not-Your-Crypto” approach by protecting itself from the likelihood of losing cryptocurrencies or to lock them in the event of missing private keys just like in the case of OKEx. Jeff Dorman, the chief officer of New York-based Arca commented the same and called the UNI Dump-and-pump a “knee-jerk reaction”:
“Rational trading alert! After initially [getting dumped] on the OKEx news, $UNI is now rallying. An incorrect knee-jerk reaction, followed by prevailing common sense as market interprets (correctly) that a DEX should rally when a CEX has problems. [A] really good sign of a maturing market.”
The intraday upside came during the pressing worries about Uniswap’s centralization but as reported previously, community members claimed that the exchange handles more than the bigger quantity of UNI tokens for a few players that could have them change the network rules without needing the vote of the majority, as per the blog post, David Felton as a UNI holder said:
“Dharma, with its massive voting power of 15 million votes [in one address alone], already presents a threat to Uniswap’s sovereignty without this proposal, which will so powerfully entrench them in Uniswap governance they might as well just outright own the DEX.”
UNI dropped by up to 21 percent because of the FUD centralization.
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