Exchange of words with OKX CEO Jay Hao on the volatile nature of the crypto industry

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Exchange of words with OKX CEO Jay Hao on the volatile nature of the crypto industry

The crypto world has been beleaguered in a rather challenging environment lately, experiencing immense highs in November 2021 and barely hitting extreme lows as the new year has set in. During 2022, things got out of hand through the downfalls of cryptocurrency companies like Celsius, Capital of the Three Arrowsand Moonjust to name a few of the biggest culprits that drive prices down.

More than most tend to follow Bitcoin as if it were the leading temperature in the overall crypto industry. In November, the price of Bitcoin exceeded $68,000, but in January it reached $35,000, proof alone of the extreme volatility inherent in these assets. But for those who are heavily situated in the space, whether on the blockchain side, the metaverse side, or even just the DeFi side, crypto is here to stay and will only get better in the long run.

Enter Jay Hao, CEO of OKX, a cryptocurrency exchange and digital wallet platform that boasts serious security. While many in the industry fear the worst, OKX is standing tall in the face of adversity and anticipating gains on the ground via new adopters and returning investors. Its wallet platform is receiving praise as the firm continues to push NFTs unconstrained. Even the Luna crash proved to be a lesson learned, highlighting OKX’s deep risk protection tools as its clients remained protected against TerraUSD’s disastrous depeg.

I was privy to a quick chat with the mind behind the exchange and welcomed his observations on the nature of the crypto industry as well as where OKX intends to thrive next.

Tech Times: Question about founding OKX: what did OKEx stand for, and why did you drop the name?

Jay Hao: OKX is moving towards a more decentralized future where digital assets intersect with other newly created experiences. The “X” represents the unknown and yet to be explored possibilities in the financial and virtual realms.

OKX builds much more than a centralized exchange. So it’s time for us to evolve our brand to reflect what we stand for and where we are headed. We want to venture with our users into the possibilities available to us. Finance (DeFi) and games (play-to-earn) are just the starting points.

So we dropped the E and dialed the X to start paving that path. We hope this change helps our users on their journey through our expansive platform.

OKX exchange manager Jay Hao.

TT: What sets your exchange apart from Coinbase or Crypto.com?

JH: We are not just for crypto experts. Our goal is to “make crypto mainstream”. We build new communities and see the role of a crypto exchange as a guardian of crypto reputation and appeal to the masses. We empower people to learn, trade, play, and explore all things crypto within a vast ecosystem of wealth-building opportunities.

OKX is the second largest spot and futures trading volume and one of the premier crypto exchanges. OKX also offers a wide range of derivatives and trading systems like portfolio margin mode and options trading, which others do not.

Beyond the OKX exchange, the OKX wallet is our portal to the world of Web 3.0, metaverse games, NFTs and the decentralized economy.

When it comes to security, OKX is one of the safest crypto trading platforms in the world and has never been hacked.

OKX also offers some of the lowest trading fees in the industry.

Related article: CryptoWatch: Bitcoin Dominates, DeFi Market Takes Big Losses, and Terra 2.0 Launches

TT: What type of security do you use? I just mentioned crypto.com, and it is considered the best because of its security. Are there any interesting cybersecurity settings you use on OKX?

JH: First, OKX has never been hacked. I think that says a lot about our security measures. Now, to deepen our security features, OKX has built a proprietary trading monitoring model to combat market manipulation and illicit behavior. We decided to build our own system because we found that current third-party tools were lacking when it came to identifying a wide range of manipulative behavior types in the crypto space. Some examples of the behavior that OKX’s internal tools would flag include users engaging heavily in wash trades and self-matching.

We also employ Hacken to run third-party penetration tests for our system and get verified. Our Cert.live Bug Bounty program continuously tests for security and resiliency. It is also verified by Hacken.

TT: How important is collecting and trading NFTs on your platform?

JH: OKX has over 1 million NFTs displayed and traded on its platform. Around 300,000 NFTs have been traded so far in 2022 alone.

TT: Are you working in tandem with metaverse companies, like Everdome, for increased adoption of these digital assets?

JH: Yes. OKX partnered with Everdome in May this year. In addition to acquiring significant land ownership in Everdome, OKX works with the Everdome team to bring their partners and others into the metaverse to create experiences that surprise and delight.

TT: What do you think of the current climate in the digital asset industry?

JH: Recent gross insolvencies and near insolvencies in the industry have taught us that many investors who entrust their funds to market makers or hedge funds have no control, or even visibility, over how their investment manager fund trades. These companies offer questionable risk management and transparency, and in some cases this has even led to investors’ funds being used to meet margin calls. That’s why we launched the OKX Custody Trading sub-account so that we can provide much-needed control and transparency and help everyone in the industry.

We have seen a domino effect following the LUNA incident, which is impacting companies whose high-yielding business models are not sustainable.

TT: Has OKX done business with 3AC, Luna/TerraUSD or Celsius? Why or why not?

JH: OKX applies strict risk management and has no special margin agreements with trading companies.

Like all major exchanges, we list Luna/UST and CEL. Many crypto investors lost heavily in the LUNA crash, but OKX users were protected from loss as our risk protection system was triggered to protect hundreds of millions of dollars in user funds . OKX was the only major exchange to protect its users in this way during the LUNA crash.

TT: Do you think there is widespread utility in stablecoins?

JH: I believe a fiat-backed regulated stablecoin within the banking system is the future of crypto payments.

TT: What is the most important thing you would say to a potential customer before they sign up for OKX?

JH: If this potential client is new to crypto, I would tell them to take advantage of all the learning opportunities we offer on our platform and take advantage of our Demo Trading feature to understand how trading works. Crypto is volatile and OKX encourages its retail clients to diversify their investments so that they are not overexposed and to consider investments with a long-term perspective. Acting responsibly and educating about investing is essential for crypto. We hope to see an increase in the number of people integrated into the crypto platform and markets, while helping them make better and more responsible investment decisions.

If this potential client is more advanced, I would tell them that OKX is the safest crypto trading platform. OKX has never been hacked, and we have already proven with the LUNA crash that we have the best risk protection systems to protect the interests of our users. On top of that, we offer some of the lowest trading fees in the industry and a wide variety of trading tools for all investor profiles.

OKX then heads into the metaverse with awesome incentives built into its business.

(Photo: OKX)

TT: What are some exciting upcoming projects, products or features on the horizon for OKX?

JH: First, OKX is launching big into Web3 and the Metaverse. In addition to the partnership with Everdome, the OKX Wallet is OKX’s Web3 portal for people who want to explore the world of DeFi, NFTs and the Metaverse. Also keep an eye out for future metaverse partnerships in the future…

Second, OKX seeks to ensure that people trade responsibly by providing more and better educational resources. In addition to its comprehensive and free OKX Learn platform, OKX offers special new features that will allow users to dive deeper into learning crypto…

Although I can’t say too much at this point, OKX will also soon be offering new ways for users to trade in a simpler and more streamlined way.

Read also : Fireside chat with Everdome CEO Robert Gryn on developing the metaverse in a hyper-realistic format

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