OKX Star Attributes Bitcoin Decline to Structural Leverage, Rejects Dragonfly Investment Claims

OKX Star explained Bitcoin’s fall started 30 minutes before USDe lost its peg, citing leveraged trades, and clarified OKX invested in Dragonfly before Haseeb joined, with no reverse investment.

BTC
USDE

Summary

On Jan. 31, OKX Star responded to CZ’s tweet, noting Bitcoin’s decline began 30 minutes prior to USDe’s depegging and attributing it to structural leverage that amplified sell-offs. The executive emphasized Dragonfly never invested in OKX, adding that OKX had invested in Dragonfly before Haseeb’s arrival at the firm.

Terms & Concepts
  • Structural Leverage: A market condition where excessive borrowed capital is used in trading, amplifying both gains and losses.
  • USDe Depegging: An event where the USDe stablecoin's market price diverges from its intended peg value, usually around 1 USD.