【WIN an iPhone8 with OKEx】
Thank you for your continuous support for OKEx, we have decided to giveaway an iPhone 8 64GB (Unit price: HKD $5,988) for the first person to predict what the correct (or the closest) OKEx BTC/USD price would be on Nov 17, 2017 at 5:00pm.
All you have to do is:
1. [LIKE] the OKEX Facebook page (setting must be set to public);
2. [LIKE] this post, comment below with your proposed Bitcoin price on OKEx and tag 3 of your friends. For example: [5672 @marychan @lilyrose @patwong] ;
3. [SHARE] this post (setting must be set to public).
**Contest ends Nov 16, 2017.
**Winner will be announced on Telegram – https://t.me/okexofficial_en
OKEx (www.okex.com) is a global digital asset trading platform providing spot and derivative trading for cryptocurrencies such as Bitcoin/ Ethereum/ Litecoin etc.
Terms & Conditions:
1. The OKEx BTC/USD price will be taken on November 17th 2017 at 5:00pm HKT;
2. OKEx will pick ONE lucky contester to win ONE brand new iPhone8 64GB;
3. For winner residing outside of Hong Kong, we will send out the equivalent amount in Apple gift cards instead of the iPhone8. User must comply with the T&C of the gift card provider, OKEx will not be responsible;
4. Winner will be chosen by OKEx internally, results will be announced on Telegram – https://t.me/okexofficial_en;
5. Winner will be notified via Facebook private message on November 21st 2017;
6. Every contestant must complete all 3 steps and each contestant can only participate once. Any subsequent tries would be discarded;
7. OKEx will reserve the rights to disqualify any contestant based on any malicious activities.;
8. Editing of comment after submission is prohibited;
9. Any comments / pictures deemed inappropriate by OKEx will be removed immediately;
10. The winner of the contest will be notified of the location and time to pick up the prize; Failure to arrive at the arranged location and time would result to a forfeiture of the prize;
11. Personal information collected in this event is used only for this activity and is bound by the company’s personal data protection policy;
12. OKEx reserves the right of final decision on the interpretation of these Terms and Conditions.
Dear OKEx user, Ever since SegWit was activated on the Bitcoin Blockchain, the developer community has been constantly debating on how to scale this controversial cryptocurrency. Some believe that the block size should remain at 1M and scaling could be achieved by technology such as the lightning network. However, others are convinced that the best scaling solution is to increase the block size to 2M; also known as SegWit2x. Therefore, there is a chance that Bitcoin will experience yet another hardfork this year. If this is the case, then the fork is expected to occur on block 494784. OKEx would like to take this opportunity to reiterate that: as a company dedicated to promote Bitcoin application, we strive to provide the best services to our customers. Therefore, we will support all major Bitcoin technical development roadmaps and respect our customers’ individual desire. OKEx will follow the below protocol regarding the potential hardfork: 1. OKEx will support both withdrawal and trading of all split chain tokens from this hardfork, our users will have full control on their digital assets. 2. The spilt token supporting Segwit2x will be named as BT2, the token derived from the original chain will be named as BT1. If the hardfork occurs then BT1 will be renamed as BTC. 3. From October 17th 2017 whether the hardfork occurs or not, OKex will support the conversion between BTC and BT1 & BT2. One BTC can be converted to one BT1 & one BT2 and vice versa. At the same time, BT1/BTC and BT2/BTC spot trades will also be live. 4. If hardfork doesn’t occur, OKEx will cease the trading of BT1/BTC and BT2/BTC. The value of BT2 will turn to zero and users can convert their BT1 to BTC at a ratio of 1:1. 5. If hardfork occurs, OKEx will release BT2 based on users’ holding amount of BTC at a ratio of 1:1. In addition, all BT1 will be converted to BTC at a ratio of 1:1.
6. Since BTC is the base currency of OKEx, there might be a short period of price fluctuation on BTC pairs if hardfork occurs. User discretion is advised. 7. With regards of BTC Futures, the amount of BT2 distributed to contract holders would be determined by the snapshotted equity balance in BTC (Equity Balance = Margin + Realized PnL + Unrealized PnL). Please be also noted that there would be NO BT2 in Futures account. All deemed BT2 for contract holders would deposit to Users’ spot account in OKEx. OKEx would also consider to launch BT2 Futures subjected to market situation. Friendly reminder: 1. Digital asset is a high-risk investment instrument. Users should fully understand the risks and consequences involved in trading these cryptocurrencies. 2. Immediately before and after the potential SegWit2x hardfork until the network is stabilized, OKEx will suspend all BTC deposit and withdrawal. For your convenience, kindly arrange your deposit as early as possible before the Fork.
Photo credit: ETHNews According to the Ethereum Blog, a scheduled upgrade of Ethereum called Metropolis, is expected to take place on Monday, 16th October 2017. If you have been following the Bitcoin roadmap, you might be wondering whether this Ethereum upgrade – the Metropolis will lead to a chain split and generate yet another new token? And if so, how will the Metropolis upgrade affect the Ethereum price? Don’t worry; this article may shed some light to your concerns.
Metropolis is the third stage of the Ethereum’s four-stage upgrade road map. This update will occur through two separate hard forks, which are Byzantium and Constantinople.
Simply speaking, Metropolis represents changing the underlying Ethereum protocol and creating new rules. This solution is expected to reduce the malicious presences within the broader Ethereum ecosystem.
“Metropolis upgrade could fix the problem of difficulty adjustments, ‘returndata’ operations, ‘static call’ operations, new precompiles, a difficulty delay feature and embedding transaction return data in receipts.” Coindesk reported.
The outcomes of Metropolis
So, what is the impact of Metropolis upgrade? Vitalik Buterin, the co-founder of Ethereum mentioned this hard fork could provide a more efficient, secure and robust infrastructure for decentralized applications and developers. Here are some critical features of Metropolis:
Adoption of a new cryptographic tool (zk-SNARKs) improves privacy and auditability.
Smart contracts would be more secure.
Mining process will be faster and cheaper.
Impact on Ethereum price
How will the Metropolis upgrade affect the Ethereum price? This might be the hottest question among all Ethereum investors. However, the fact is: no one really knows and it will based solely on supply and demand.
There’s a chance that Ethereum price goes down as the mining process will be more difficult, on the other hand, the upgrade could spark more investors’ interest on Ethereum that may eventually push the price goes up.
Some Investors are worried that Metropolis would lead to a new token to be formed. But since this upgrade is anticipated, we tend to believe it is unlikely to lead to a split, especially when the community seems rather united on this issue thus far.
To conclude, Metropolis would make Ethereum network easier to use – faster and more secure, paving a better way for its future development.
It’s been two months since the commotion on August 1st which caused Bitcoin to split and BitcoinCash to be created. But just when the community is finally taking a breather from the Bitcoin feud, our eyes are now shifted to yet another major milestone for Bitcoin – SegWit2x.
What is SegWit2X
Commonly seen as a compromise, SegWit2X uses bit 4 signalling with an intention to re-unite the Bitcoin community by implementing both SegWit (BIP 141) and a 2 MB hardfork. The idea is not foreign and offers another alternative to scaling the Bitcoin Network.
In short, Segwit2X will activate an optimization similar to SegWit (BIP 141) proposed at the end of 2015 by Pieter Wuille which aims to solve the scalability issue of the Bitcoin blockchain network by increasing transaction volume but without increasing the block size. However, SegWit2x differs from BIP141 in a way that it would also increase the block size and as a result trigger a bitcoin hardfork. Segwit2x is now currently due to activate in November 2017. It is also worth noting that it was not put forward by, nor has it been endorsed by, Bitcoin Core, the network’s main open-source developer team. The road up to now has been most eventful so we have summarized the important dates into a timeline for your easy understanding:
The Hardfork Segwit2x will activate 90 days (12960 blocks) after Segwit sets in and will include a maximum block size limit of 8MB (but the codes are compressed to make it look like 2MB). It also comes with a max block weight limit of 8M and a max block sigop limit of 160k. Finally, a 1MB limit will be imposed on each transaction’s non-witness data for the sighash scaling. Although the increased block size might sound like a solution to Bitcoin’s scaling issue yet Bitcoin Core developer – Luke Dashjr suggested that ‘even 1 MB blocks are already clearly dangerous to Bitcoin’. The effect of the spilt is still under wild speculation and no consensus has been reached by the Bitcoin community so far. Lovers and Haters? As always there are 2 opposing sides for every decision to be made in the crypto world, the main players are illustrated below:
What’s at stake? The most obvious impact is that Segwit2x could enable a second Bitcoin hard fork in 2017, one that could potentially create another version of the Bitcoin Blockchain and yet another Bitcoin related cryptocurrency. Similar to what happened in August, you will most likely have both BTC and BTS(Bitcoin Segwit2x) balance; in other words, your token holding will double. At first glance, this might seem like a great thing since you now have more tokens in hand, however this doesn’t mean that the value will also double. It is worth noting that the value of both tokens will be determined based on market supply and demand. Yet a split would lead to an even bigger issue called Replay Attack. Since both the tokens will share the same private key, an attacker can take this as an opportunity to reuse transaction details on both blockchains.
What should I do? To minimise your risk during the spilt we recommend the following: 1. Ask your Wallet Provider – whether you are using a hardware wallet such as Trezor or keeping your Token on an exchange like OKEx, you should always ask what their policies are regarding the spilt. 2. Downsize your positions – before, during or immediately after the spilt. Let the network settle down and give the network sometime to operate smoothly. 3. Stay updated – with the current development and understand that the situation can change drastically in a short period of time. As a general reminder, one’s choice of what to invest needs to be made carefully. And remember: never invest, what you can’t afford to lose.
If you are new to the crypto space you might have come across USDT and mistaken it for US Dollars. Actually, you are not far off, that is exactly the intention of the development team behind the token.
Tether (USDT) is a digital asset based on the Omni Layer Protocol issued on the Bitcoin Blockchain. Its’ most distinctive feature is the ability to back every USDT with the equivalent amount of US dollars, redeemable by holders upon request through the Tether Platform. USDT could be seen as a cryptocurrency just like Bitcoin allowing users to transfer, store and spend accordingly as long as their wallet is Omni Layer enabled (Omni Wallet, Ambisafe or Holy Transaction). Created to replicate the value of national currencies, Tether provides an alternative to store value in the highly volatile Crypto market. Tether has no transaction fees, although external wallets and exchanges may charge one.
Image credit: Cointelegraph
Using tools provided by Omnichest.info, investors can easily check the amount of USDT in circulation on the Bitcoin Blockchain. This number can then be compared with audited bank balance statements issued by Tether Limited through their Proof of Reserves system.
Use Case for Individuals
USDT offers a solution for a wide range of individual investors according to their whitepaper. From day traders; to long term investors looking to store their Bitcoins securely; to tech savvy shoppers looking to avoid credit card fees or maintain their privacy; to philosophical users looking to change the world; to those looking to remit payments globally more effectively; to those in third world countries looking for access to financial services for the first time; to developers looking to create new technologies; to all those who have found many uses for Bitcoin. The main universal applications are as follow:
Transact in USD/fiat value, pseudo anonymously, without any middlemen/intermediaries
Cold store USD/fiat value by securing one’s own private keys
Avoid the risk of storing fiat on exchanges move crypto fiat in and out of exchanges easily
Avoid having to open a fiat bank account to store fiat value
Easily enhance applications that work with bitcoin to also support tether
Anything one can do with Bitcoin as an individual one can also do with tether
To conclude, USDT with the help of Bitcoin Blockchain strives to provide users with a price-stable asset for national currencies in a safe and transparent manner. ~Anonymous Elephant~
It’s official. All Chinese cryptocurrency exchanges announced their plan to cease all trading operation.
With the assumption that the condition would persist for a prolonged period, this article aims to evaluate the possible price dynamic changes on digital assets after such drastic measures.
To begin, I strongly agree that most domestic cryptocurrency exchanges should improve their corporate governance, investor protection, set forth a proper code of conduct and increase their transparency of policy on client money. ICOs is a bubble and it shall be heavily scrutinized by an accredited third party before they start soliciting public investors. While at the same time, China’s regulator should take into serious consideration on how cryptocurrency trading can be tamped by putting into proper regulatory framework — rather than a complete halt.
Bear in mind that China is NOT banning bitcoin and digital assets itself. Regulators in China essentially suspended the operation of centralized matching services provider exchanges which facilitates buy and sell by way of an automatic auction process.
In order to understand the dynamics between the market and its pricing power on cryptocurrency of a nation, you have to understand how price is eventually formed and how market price is affected by a variety of market mechanism.
For a market to work well and healthy, the structure should accommodate the needs of fundamental users (of the asset), investors, dealers and speculators.
Markets are generally quote-driven, order-driven or a hybrid of the two.
Quote-driven market means participants must transact with a dealer (or market maker). Dealer would quote prices at which they will buy and sell in a given quantity. Peer-to-peer, over-the-counter-type of market is generally being categorized as quote-driven market.
Order-driven markets allows all traders to place orders on a centralized order book. Orders are then matched using a consistent set of rules (continuous auction process, for instance) so to allow all traders to participant into the market equally. All regular stock exchange and all major cryptocurrency exchange such as OKCoin & OKEx are categorized as order-driven market.
Price Formation Process
Asset Price is formed based on supply and demand because investors tend to have varying level of information and views on the future value of an asset. The nature of quote-driven markets relies on market-maker to quote price. And its bid offer spread represents the costs for which market maker prepared to trade. Market maker would take into consideration their current inventory (or positions) in order to determine an appropriate bid-ask spread.
While order-driven markets are mostly based on a central limit order book, their transparency of a market depth has a substantially positive effect on improving price formation. Comparing with quote-driven, over-the-counter-type of market, its lack of transparency nature on liquidity would add a degree of uncertainty to traders and could lead to orders being priced more aggressively than is necessary.
Forgotten value of quote-driven price discovery process
Transaction costs are unavoidable, they are incurred each time an asset is bought or sold. While transaction is categorized into explicit costs (commission, fees, insurance, & taxes) which are clearly defined and easily measured with implicit costs (eg. Market impact & slippage). These normally require scientific approach to identify and measure.
An absent of a consolidate order book that facilitate continuous price auctioning would undoubtedly drive up the cost of transaction — traders would have to engage with unknown dealers or market makers and negotiate a price and quantity. Regardless how advance and robust the design of OTC matching platform is, it is still a peer-to-peer transaction and traders have to take into account of the counterparty risk — every time traders engage with a new counterpart. Market itself would price-in such risk and hence everybody has to pay more for finishing a transaction — comparing with a consolidated order-driven trading mechanism. The asymmetric of information between buyer and seller would imply a wider bid-ask spread and hence the explicit costs between both sides would be expectedly increase.
Trading volume of cryptocurrency in China alone accounted for 15–30% of the global crypto-market share through major exchanges such as OKCoin. On the other hand, suspension of order-driven exchange would push Chinese traders to OTC platforms like Localbitcoin.
China’s weekly volume on Localbitcoins spike exponentially after domestic exchange announced closing trading operations.
Yet, it is not hard to imagine a much wider bid-ask spread quoted on Localbitcoins than other Chinese exchanges, despite its huge volume after Chinaâ€™s regulatory crackdown.
Snapshot Best-Bid Quoted @ LocalBitcoin China
Snapshot Best-Ask Quoted @ LocalBitcoin China
Chinese traders might have to bear extra costs for a while.
Tradable Tokens play crucial role in blockchain-powered economy
Imagine in a foreseeable future, where global ICO and its blockchain application become a lot more regulated, transparent, promising and mainstream.
Token plays a crucial part in future blockchain-powered economy and helps create incentive for project supporters by assigning them a protocol-defined cryptocurrency (eg. Block rewards). At the same time, it is also a form of penalty — by destroying or reducing the deemed token — if the participant did something bad.
For a form of economic system to thrive long term, allocation of scarce resources (or asset) should be voted by all participants in the system in a fair and transparent manner. Essentially, the best and most pragmatic way is to price the asset (project) efficiently by way of the price discovery process in a fair and orderly market place.
Centralized order book is without doubt the best candidate and it has been a proven mechanism for years. Such marketplace is a fundamental element in a blockchain-powered ecosystem.
Pricing Power is a form of national competitiveness
Bitcoin is NOT a currency, yet. There are still 2 major hurdles for Bitcoin to be seen as a currency: prize volatility and its transaction processing speed.
May be Bitcoin can never be qualified as currency, yet it is becoming a commodity with similar characteristic as Gold or Silver. At the same time it is looking to become a solid complementary asset class to provide an investable asset with low correlation with traditional financial asset class. And its common use case is gradually becoming a “base currency” in crypto-world — despite its highly volatile characteristics.
Bitcoin, aside from its “digital gold” nature, is gradually becoming the base currency of all cryptocurrency. Almost all of tokens circulating in the market is available to be bought by bitcoin.
China has all the ingredients to become the world’s largest blockchain-powered economy. PBOC is reportedly close to the release of a government-backed digital RMB. And government officials of PBOC is well equipped on decentralized technology and its beauty on reducing operating cost, optimizing efficiency, and better measurement on monetary policy. Also the Chinese Ethereum community has put a lot of energy and devotion towards blockchain.
While China announced a complete ban on cryptocurrency exchange, it does not look very likely that other countries will follow China’s lead. While tightening regulation and increasing scrutiny on crypto-economy globally, China might lose its global pricing power over base digital currency like bitcoin — for the fact that there is no efficient price formation process in China.
While at the same time I strongly agree that most of the domestic cryptocurrency exchange should improve its governance, investor protection, set forth a proper code of conduct and increase its transparency of policy on client money, China’s regulator should take a serious thought on how it is going to put in a proper regulatory framework rather than enforcing a complete halt on all cryptocurrency trading.
Lesson should be learned from global oil market. China is currently the world’s largest net oil importer, but also a major victim on oil price volatility due to the lack of pricing power in the global oil market. Same thing happened in global iron ore. After years of struggling, China aims to gain its pricing power in launching yuan-denominated crude oil futures listed in Shanghai and hopefully the contract would attract oil users, refiners, traders and investors to participate and eventually a create a price benchmark. Lots of works still need to be done.
We noticed some price deviation, mispricing and volatility in OKEx’s Futures market due to the recent uncertainty and instability in BTC and LTC’s Spot Market.
In consideration of market stability and safety of client’s monies, OKEx’s would change the index constituents as below:
1) OKCoin.cn, OKCoin.com, Huobi, BTC China would be temporarily delisted from BTC and LTC’s index constituents from Sep 30, 2017 applicable to all OKEx’s Futures (Weekly, Bi-weekly and Quarterly)
2) Kraken, bitfinex would be added into component of BTC and LTC’s USD Index. Hence the updated index would be weighted and constructed with price from Bitstamp, Coinbase, bitfinex and Kraken.
3) 0915, 0922 and 0929-settled BTC and LTC Contracts would be settled in accordance with the calculated price from the current index. Upon settlement of 0929’s contracts, the aforementioned BTC & LTC Index, with updated constituents and weighting, would be employed for all OKEx’s Futures afterwards.
As a global leading exchange in digital assets, it is the OKEx’s core value and mission that we are striving to offer a flexible, best-in-class, trading services for digital assets. OKEx Technology Company Limited, as an international company, would continue to service global crypto-citizens while taking into the consideration of local rules and regulations.