Blockchain Investor Analysis

OKB

OKB

OKB
Current Price $4.43 (-8.43%)
OKB (OKB) is an exchange token that was issued by the digital asset exchange OKEx in 2018. It is an Ethereum-based ERC20 token that provides holders with discounts and other benefits within the OKB ecosystem.

Our Rating:

Market

Problem that it solves

The popular Malaysian-based OKEx Exchange launched the OKB token in March of 2018. The initial purpose is to provide exchange users a token that provides discounts on trading and transaction fees. OKEx planned to integrate OKB to its native chain, but instead it launched OKT to run alongside OKB.

Customers

The initial customers for OKB will be traders on the OKEx exchange. The exchange token provides users with voting benefits and discounts across the platform. As the OKEx ecosystem develops, the hope is for merchants, DApps, and more user to integrate with the platform, thereby utilizing the OKB token in the process.

Value creation

OKB provides users with tangible value via discounts and voting benefits, but its value is ultimately defined by its use across the OKEx ecosystem. As it stands, 11 internal and 32 external application use cases already exist.

Market structure

Many popular exchanges are following the lead of Binance in creating a native exchange token to give its users benefits along with building a foundation for future ventures. Having said that, the crypto community has grown increasingly skeptical of exchange tokens as they are seen as instruments to simply raise funds.

Market size

OKEx has amassed an incredible user base, especially in Asian markets. The OKB token will prove as successful as its exchange, OKEx. OKEx has made tremendous strides in recent years and continues to dominate the exchange market in APAC.

Regulatory risks

Asian countries have varying views of digital currency. While China is firmly against the transformative technology, countries like Malaysia keep a positive attitude while implementing harsh regulations.

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Competitive Advantage

Technology/blockchain platform

OKB was launched as an ERC-20 token in 2018 with OKEx intending to transition OKB to its OKChain mainnet in a few years. However, OKEx ultimately decided to launch an additional token named 'OKT', which will operate alongside its older brother OKB. OKB's value is primarily linked to the business performance of OKEx. In contrast, OKT was developed to provide more flexibility and freedom within the ecosystem.

Lead time advantage

OKB hit the market one year after Binance Coin and shortly after Huobi Token in 2018. They lack a lead time advantage, but exchange tokens operate on a different playing field than most digital currencies. Since OKEx has such dominance in the Asian markets, its late start should not hinder its performance.

Contacts and networks

Founded in 2017, OKEx has made impressive strides in developing their network of key players. After launching the OKB token, they partnered with Ledger and three other blockchain businesses to improve the token's ease-of-use and compatibility.

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Management Team

Entrepreneurial Team

The CEO of OKEx, Jay Hao, founded OKEx in 2017 after pursuing a few other blockchain ventures. Prior to blockchain, Jay worked in the semiconductor industry. Unfortunately, OKEx has little information available on the web regarding the rest of the team, but Jay frequently posts on the company site about industry trends, company updates, and new product launches.

Industry/technical experience

OKEx is simply too new of an exchange to determine industry experience. It's clear Jay has experience in blockchain, and he's built an impressive 200+ person team around him, according to LinkedIn.

Integrity

OKEx puts an emphasis on transparency due to the lack thereof in the exchange industry. The exchange publishes weekly company updates to ensure its users know what the team is getting up to.

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Token Mechanics

Token required

The OBK token provides access to various features of the OKEx ecosystem in addition trading discounts.

Value added

OKB adds value for active OKEx exchange users through its discounts. Beyond that, there is little to know value in OKB.

Decentralized

The OKEx token is the first fully circulated exchange token in the market.

Token supply

OKEx first issued 300 million OKB tokens with a plan to buy-back and burn tokens over time. However, they decided to issue the native OKT token for the mainnet, subsequently cancelling the issuance plan of 700 million OKB. OKEx is continuing its buy-back program, which limits the supply over time.

Public exchange

OKB can obviously be found on the OKEx exchange along with a handful of other trading platforms.

MVP

OKB has been operational on the OKEx exchange since 2018, but many are eagerly awaiting the rest of the OKB ecosystem so that the coin can achieve its true value.

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User Adoption

Technical difficulty

The user-friendliness of the exchange is directly correlated to that of the OKB token. The OKEx exchange is easy-to-use for experienced traders, which make up the main OKB holder demographic.

Halo Effect

Although OKEx often publishes articles detailing their many partnerships, few, if any, really jump off the page. They typically stay within the crypto space, partnering with wallet technology providers, blockchain financial services, and smart contract creators.

Buzz

OKEx has climbed towards the top of the exchange rankings in recent years, but they haven't generated significant buzz for the OBK token after it launch.

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Overall Score

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Blockchain Investor Analysis

The value of the OKB token is tied to the success or failure of the OKEx exchange. Given that OKEx launched a second token, OKT, which will be used on the company's proprietary blockchain OKChain, there seems to be limited upside for the OKB token as it will only really exist to provide discounts to traders on OKEx.

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