OKEx’s First IEO Sale Questioned by Cryptocurrency Investors
Following the success of Initial Exchange Offerings on crypto exchanges of Binance, Huobi, Kucoin and Bittrex, OKEx’s first token sale hit another success. The initial offering of 500 million BLOC tokens was allegedly sold out in less than one second upon opening.
OKEx launched its first initial exchange offering (IEO) for BLOC token sale on its new token sale platform OK Jumpstart on April 10. Later that day, the crypto exchange proudly stated that BLOC token was highly oversubscribed by more than one million users after it opened at 20:00 (HKT) and the sale was completed in less than one second.
The exchange’s statement was immediately questioned by users. Some participants pointed out that the exchange seemed to print 200 million more OKB (the native token of the platform) than that it claims. Since a participant must have 500 OKB in his account to go through the following token purchase, over 1 million subscribers as OKEx claimed means there should be at least 500 million OKB in total. However, the current amount of OKB in circulation is only 300 million.
Some users complained they still failed to buy any BLOC even though they have successfully pre-subscribed the token, claiming there must be some dirty work behind it.
In response to these questions, OKEx CEO Jay Hao clarified on Weibo (Twitter equivalent in China) that there were over a million users ‘entered’ the subscription page, which did not represent the actual number of successful subscribers.
Angry users, particularly those who failed to get a piece of BLOC token, unwilling to believe whatever the exchange says, accuse the exchange’s management team of fraud and corruption.
A BLOC is trading at 0.055 USDT as of press time, that is ten-fold increase from its initial offering price (at $0.005). While according to data from OKEx, BLOC has seen nearly 40% decrease since the trading pair of BLOC against USDT was listed; and its native token OKB fell by over 16% over the past 24 hours.
According to the rules of OKEx’s IEO, participants are required to hold at least 500 OKB (native token of OKEx) for 7 consecutive days before the IEO, or they can purchase 3,500 OKB on the day of the IEO sale. These participants who want to earn a bucket from the trending IEO fail to get any BLOC but only hold OKB plummeting 30% in the past 7 days say they’ll delete OKEx app.