The Recent $416 Million Con At OKex Turns All The Gaze On DGTX

The Recent $416 Million Con At OKex Turns All The Gaze On DGTX
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Crypto trading exchanges exist both to run a profitable business while facilitating traders’ investments in Futures contracts.  But that doesn’t mean that traders who win have to be stripped of their profits when the platform screws up on its math. It happened on OKex, and nobody is happy about it.

What Happened ?

So it’s on July 31, and there’s this anonymous trader on OKex who has decided to initiate a really huge number of contracts in Bitcoin Futures worth a whopping $416 million. However, the market doesn’t respond well and OKex decides to liquidate the trader’s position. After this, the market continues to fall and OKex ends up incurring a loss higher than the capital in the trader’s account. That’s when things go awry for everyone else.

Instead of footing the bill for the loss, OKex decides to strip off the profits from other traders to cover the huge loss. In fact, it’s been reported that traders who had winning positions ended up losing 50% of their profits to OKex.

That doesn’t sound OKay. It very much sounds like OKex decided NOT to take responsibility for their laxity and instead saw it fit to cover their losses by forcefully taking money from their customers. Never mind that OKex is a fee-charging trading platform that should have absolutely no business meddling with their customers’ accounts apart from the fee charged.

Bitmex

Bitmex is another trading platform that hasn’t quite lived up to the people’s expectations, although they have different tricks in dealing with tricky liquidations. At Bitmex, if liquidation happens and the market falls further, the loss is covered by cancelling the winning positions on contracts initiated by other traders, meaning that traders who expected profits get nothing. That’s a bit crude, too.

Digitex (DGTX) Has A Solution

Unlike with Bitmex and OKex where traders are never certain of receiving their full profits, Digitex offers total guarantee in maintaining your trading positions to the end and ensuring that you get all your profits from your winning positions. This means that no positions are cancelled and no profits are forcefully taken from you in the event of a loss incurred by the platform.

One reason that makes this work is because Digetex uses its tokens called DGTX to settle all profit and loss transactions on the platform (the Digitex Futures Exchange). As a good measure, Digitex maintains a sizeable trading bank with 20% (roughly 200m) of the total number of DGTX tokens in circulation.

With such a workable and trader-friendly system, Digitex is all set to change the way Crypto futures trading works by introducing a much fairer and guaranteed trading environment. With that, it goes without saying that if you open a Bitcoin Futures trading position on Digitex, you’re guaranteed that, no matter what happens, your position won’t be cancelled or your profits forcefully scooped.

The Digitex Futures Exchange is set to launch at the end of the year. If you’re interested in getting early access to zero-fee futures trading, you sign up on the waitlist.

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