• 13 July, 2024
News

Price Fluctuations of CELT Token & its Disposal Plan by OKX

Cryptocurrency exchange OKX has released an official announcement on the February 27 price fluctuations of the CELT token. The CELT token price movement led to inquiries from “multiple users” in the market.

Per Celestial (CELT), the CELT price incident is an outcome of its “internal staff colluding with an external market maker” for market manipulation. Per OKX’s announcement, the 1.3 million USDT were agreed to reportedly be returned following the communication.

Acknowledging the steps taken by OKX, Celestial tweeted:

OKX is reported to deduct 2.01 million USDT from the five suspicious project accounts. OKX also states that 1 million USDT will be donated and airdropped to the affected users.

Sharing the news, Chinese reporter Colin Wu tweeted:

OKX’s user concerns’ investigation reveals interesting insights. OKX reportedly denies having a strategic partnership with CELT

Essentially a GameFI project, CELT is a recipient of investment totaling US$100,000 from OKX Ventures (September 2021). Per the investment agreement, the associated tokens get unlocked in under one year.

OKX clarifies that the said “tokens are locked in the OKX Ventures account” and its operations have ceased. OKX Ventures has “no connection with the project party,” per OKX.

To the question concerning the significant project disk fluctuation and internal employees’ involvement, OKX states 

In the early hours of February 28, we immediately launched an investigation after noticing the relevant public opinion. After investigation, we found five of the suspicious profit accounts and immediately frozen them.

The total assets frozen were 714,381 USDT. Some assets were previously transferred out of the platform. After repeated communication, the project party finally agreed to return 1.3 million USDT. During the investigation, no evidence of internal employees’ participation in the incident was found.

As for the disposal plan, OKX states as per OKX’s user service clause 4.15, OKX strictly prohibits malicious acts such as market manipulation, and has the right to return the illegal income from market manipulation to the damaged user.

OKX would “deduct all balances in 5 market manipulation accounts 2,014,381 USDT.” Apart from that, OKX would also reportedly “contribute 1 million USDT from its own funds.”

It is a rarity that a project admits to the token price pump and dump manipulation on the exchange, whilst also offering compensation. While OKX is reportedly a CELT investor, it refrained from selling the unlocked tokens.

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