OKX CEO Star has accused Binance of causing the October 10th crypto market flash crash through irresponsible marketing practices. In a statement on the X platform, Star claimed that Binance's temporary user acquisition campaign, which offered a 12% APY on USDe and allowed it to be used as collateral like USDT/USDC, led to systemic risks. Users were encouraged to convert USDT/USDC to USDe for high returns, but the associated risks were not fully disclosed.
The campaign reportedly resulted in artificially high APYs, with some users achieving yields of over 70% by repeatedly converting USDe to USDT as collateral. This practice, perceived as low-risk due to the involvement of major platforms, rapidly accumulated systemic risk in the crypto market. As volatility increased, USDe decoupled, triggering a chain of liquidations and exacerbating the crash. The incident caused significant damage to global users and companies, including OKX clients, with recovery expected to take time.
OKX CEO Blames Binance for October Crypto Flash Crash
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