One of the most unexpected moves in recent times by one of the most respected cryptocurrency exchange platforms has hit traders where it hurts the most. The platform had made a decision to change some of the terms which had already been outlined on about $135 million worth of contracts. This change has led to many traders being furious due to their many losses. Others have taken the time to observe the losses which one can incur when you are dealing with cryptocurrency.
This is the situation traders at the Hong Kong OKEx are facing as it is believed that this crypto exchange ensured that the settlement of the bitcoin cash contracts came earlier than expected which resulted in a great loss for traders. It is said that this action took place when the different prices of cryptocurrencies were on their way down. It is to be remembered and noted that the OKEx of Hong Kong is one of the most popular crypto exchanges out there. They are believed to handle more than $1 billion every day in terms of crypto exchanges.
This move for an earlier settlement is a move which took most traders by surprise and resulted in a lot of losses in the processes. One trader which lost a lot of funds was Qiao Changhe. He lost a total sum of $700,000 in the process. He asserted that the loss came due to the fact that the position was shut way before the prices and value as at the same level as the various market prices. This annoyance has made Qiao vow that he would no longer be funding OKEx with his total sum of about $5 million. It is also believed that most traders are also seriously contemplating withdrawing from the crypto exchange totally or at least partially.
Qiao asserted with full confidence that this means that the OKEx is slowly losing credibility and should be considered dangerous for most traders. It is however believed that the OKExhas released a statement rendering an apology to all who were affected by the early settlement. In the statement which was released, the OKEx explained that the decision to go for the earlier settlement was in an effort to ensure that the customers would not be safe as against the wind of volatility which would be associated with the bitcoin cash split which happened earlier this week. It also gave the reason for going ahead without informing their customers as a way to ensure that the market was not manipulated in anyway whatsoever.