OKEx, Malta-based cryptocurrency exchange, announced a new feature enabling its users to convert small balances to the proprietary token OKB of the company.
OKEx announced that the new product would allow the exchange users to convert all the crypto-asset balances of less than 0.001 Bitcoin (BTC) (roughly $7.38 at press time) into OKB. The upper conversion value limit is 0.01 BTC (roughly $73.84 at press time), there is no conversion time limit, but the conversion is only available if the price fluctuates below 5%.
Small balance handling is a key feature for long-term traders as it prevents users from wasting resources when trading multiple assets, a trader said. He added that small balances are a big problem when it comes to crypto exchanges “because they are funds that cannot be used” for trade.
Similar Feature That Binance has
Binance has a similar feature that allows users to convert small balances into their proprietary Binance Coin (BNB) token — often called dust. When the feature first launched at the end of April 2018, co-founder of Binance and CEO Changpeng Zhao joked on Twitter, “I hear the team has built a broom, who wants it?”
OKB allows users to pay less for trading platform fees, just like BNB. In February, OKEx explained in a post some of the advantages that OKB holders have on its exchange:
“There is only one trading fee discount program for OKB holders on OKEx, in which users only need to hold 500 OKBs to enjoy fee discounts. To receive the maximum discount, users only need to hold a maximum of 2000 OKBs.”
Jay Hao, OKEx CEO, urged traders to avoid speculating on OKB, stating, “A principle that I recommend all our users stick to is that if you do not fully believe in the long term growth of OKEx, then please do not trade OKB.”
OKEx has grown in importance within the crypto ecosystem significantly over the past year. OKEx recently became the world’s top exchange of Bitcoin Futures by daily trading volume, overtaking veteran BitMEX from industry.
Hao presumably believes that his platform’s growth is not appreciated by OKEx’s competitors; in February he blamed them for denying service attacks against the exchange.