UniSwap’s governance token UNI was among the biggest gainers on Friday as the rest of the cryptocurrency market succumbed to a bearish fundamental.
The crypto index lost about $7 billion as trades panic-sold a portion of their holdings under the influence of OKEx. This Malta-based exchange landed itself in the middle of a criminal investigation.
In retrospect, OKEx suspended all its withdrawal options indefinity, saying that one of its private keys holders is “currently cooperating with a public security bureau.” The exchange later said that the investigation was a result of the staff’s personal issue.
Meanwhile, the Chinese news website Caixin reported that police had apprehended Mingxing Xu, aka “Star,” almost a weak go. He reportedly went out of the loop of the rest of the OKEx team ever since.
BREAKING: OKEX SUSPENDS WITHDRAWAL FOR AUTHORITY INVESTIGATIONhttps://t.co/1TJ0IS4wsq
— frxresearch (@frxresearch) October 16, 2020
The exchange clarified that customers’ funds remain safe under their custody, adding that they “will resume digital assets/cryptocurrencies withdrawals immediately once the concerned private key holder can authorize the transaction.”
But the statement was not enough for daytraders. Many of them interpreted the OKEx news as another legal blow to centralized exchanges. They started limiting their long traders across other spot and derivatives platforms, causing the market to plunge.
UniSwap Moons
UNI initially underwent a sell-off like any other cryptocurrency. But the DeFi token sharply rebounded after traders realized that it