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Compensation and Rewards Not Enough To Keep OKEx Disgruntled Users

After five weeks of restricting withdrawals from its platform, OKEx has resumed full services. However, disappointed users have expressed their reluctance towards returning to the platform, at least in full capacity. This is coming despite the promise of a compensation plan and rewards program.

On October 16 2020, OKEx announced an immediate suspension of all withdrawals from its platform. The reason contained in the announcement was that one of its Key Holders had “been out of touch”. This was as a result of his “cooperating with a public security bureau in investigations.”

As expected, this sudden restriction has not gone well with a lot of users on the platform, causing them several inconveniences. Under such circumstances, most customers would normally focus their attention on how the platform manages the situation. Perhaps, this is the reason why OKEx on their return to full service is promising a number of incentives for its users.

Withdrawal Resumes With Compensation Program

Having suspended withdrawals for five weeks, OKEx resumed full services on Thursday, November 26 2020 at exactly 8:00 UTC. This resumption of withdrawals comes with a compensation and loyalty program which is aimed at appeasing users that may be disgruntled.

The compensation plan by OKEx covers different categories of users with varying extent of rewards. The categories include:

  1. Users who have made deposits, held tokens or traded during the period in which withdrawals were closed
  2. OKB holders
  3. Users whose assets exceeded 10,000 USDT before 4:00 pm UTC on Nov. 23
  4. All platform users

OKEx shared details of this and the rules in a blog post which announced the reopening of withdrawals. Afterwards, unfolding events and also comments from some of the major customers on the platform has revealed a high level of dissatisfaction.

Users Don’t Seem Impressed

As earlier reported on 8BTC, less than 24hrs after the reactivation of withdrawals, over 12,549 Bitcoins had been moved from OKEx to Binance. This is not surprising, as threats of abandoning the OKEx platform either fully or partially had been made public by certain users.

Alex Zuo, the Vice President of China-based cryptocurrency wallet, Cobo had already made public the intention of his company to reduce the volume of their investment in OKEx. According to Zuo, his company had made the decision to diversify their investment, even though OKEx is still a trusted exchange.

He said;

We will still trade on OKEx but our investment will be much more diversified and [we] will reduce our position on OKEx to about one-third of our previous one. Even though we think OKEx is still a trusted exchange, there will be many uncertainties in the future.

Daniel Wang, founder and CEO of Loopring also expressed his dissatisfaction in how OKEx has managed the whole process. Wang does not think that launching a compensation plan and rewards program is good enough an exercise to appease aggrieved users. He is of the opinion that users should not have been made to go through the discomfort if indeed OKEx has the capacity to handle the situation.

If OKEx indeed has enough assets to prepare a scenario where bulk withdrawals take place, it would be a smarter move if they told users ‘go ahead and withdraw your tokens. We will guarantee you will receive your tokens immediately, said Wang.

The past few weeks has been a tumultuous one for OKEx and its users. From the internal shutdown exercise as described above to battling with restrictions of cryptocurrency services in China. All eyes will be on one of the major cryptocurrency exchanges in the industry to see how it navigates through this most trying moment.

 

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