This week’s industry update covers major policy shifts, key project developments, large funding rounds, and platform updates from OKX. The crypto market faced significant stress due to the UST depegging event, highlighting the importance of robust risk management systems and timely user protection.
Industry Headlines
Global Policies
- India’s Goods and Services Tax Council is considering a 28% tax on crypto-related services and activities.
- The European Union is planning to launch a pilot program for regulating Decentralized Finance (DeFi) ecosystems.
- U.S. Treasury Secretary Janet Yellen emphasized the need for stablecoin regulation, citing risks associated with assets like UST.
Project Updates
- Terra (LUNA) validators halted the network again to propose a recovery plan.
- zkSync, an Ethereum layer-2 scaling solution, announced it will issue a native token.
- LooksRare entered the third phase of its token release schedule.
Major Funding Rounds
- Web3 startup Naetion secured a $150 million investment from GEM Digital.
- Chainalysis completed a Series F funding round of $170 million at an $8.6 billion valuation.
- Talos raised $105 million in a Series B round, valuing the company at $1.25 billion.
OKX Platform Updates
Brand Activities
- OKX was an official sponsor of the F1 Miami Grand Prix, with branding prominently displayed throughout the event.
- OKX’s official Chinese Twitter account hosted a Space AMA on May 12 titled “Are Algorithmic Stablecoins a False Proposition?” featuring expert discussions on the impact of the UST incident.
- OKX partnered with Tencent Technology to launch a metaverse educational video series. The first episode, “Why is the Metaverse a Must-Win Arena for Internet Giants?” was published on Bilibili.
Product Improvements
Earn Products
- FITFI was officially listed on OKX’s Yu Bi Bao savings product on May 11.
- LUNA locked earning products were delisted from OKX Earn on May 13.
Derivatives Trading
- Leverage trading and FITFI/USDT perpetual contracts went live on May 11 across web, app, and API interfaces.
- Trading for LUNA, ANC, and MIR—including leverage, savings, and perpetual contracts—was discontinued on May 13.
NFT Marketplace
- OKX NFT Marketplace hosted a McLaren NFT whitelist raffle on May 9.
- Galaxy Blitz NFT was officially listed on the platform on May 13.
- The marketplace now features over 95.6 million NFT artworks.
OKX Chain (OKC) Data
- OKC recorded 2.449 million on-chain transactions over the past week, averaging 350,000 daily.
- 10,224 new addresses were created, with a daily average of 1,461.
- Total non-zero addresses reached 2,230,782, with overall addresses totaling 4,597,200.
Data sourced from OKLink.
User Service and Experience Enhancements
- OKX Earn’s risk management system automatically redeemed user assets from the chain when LUNA dropped to $65 and UST first depegged. Redemptions were processed at a UST price of $0.996, and users were notified via app, email, and Twitter. This action protected tens of thousands of users during extreme market conditions.
- MetaX’s asset swap interface was upgraded for smoother chain switching and wallet management.
- The UST trading pair was officially delisted on May 13 to allow for an orderly exit.
Market Analysis and Outlook
This week witnessed a black swan event: the algorithmic stablecoin UST experienced significant depegging amid heavy selling pressure. The Luna Foundation Guard (LFG) sold large amounts of Bitcoin to absorb UST liquidity and prevent further depegging. However, falling Bitcoin prices and worsening market sentiment triggered broad LUNA liquidations and intensified UST selling.
Secretary Yellen’s comments on the need for stablecoin regulation accelerated the decline of both LUNA and UST.
In the long term, the UST collapse may negatively impact institutional confidence in crypto—especially if the project fails entirely. The incident underscores the relative youth and vulnerability of the crypto market when faced with systemic shocks.
The event also made the market increasingly nervous. Even minor fluctuations in USDT prompted some investors to exit indiscriminately, worsening overall market conditions. Bitcoin prices neared the shutdown point for several major mining models, while ETH and WBTC approached critical liquidation thresholds. A breach of these levels could trigger cascading liquidations and further declines.
The trajectory of U.S. equities during the current加息 gap remains crucial. If stocks stage a recovery, crypto markets may also stabilize, gaining time to absorb excess fear and emotion.
Frequently Asked Questions
What is an algorithmic stablecoin?
Algorithmic stablecoins use smart contracts and minting/burning mechanisms to maintain peg stability instead of relying on collateral reserves. UST was one such stablecoin.
How did OKX protect users during the UST depeg?
OKX’s risk management system automatically redeemed user assets from链上 contracts when LUNA fell to $65 and UST first depegged. Users received their redeemed assets at a UST price of $0.996 and were notified through multiple channels.
Why are regulators focusing on stablecoins?
Stablecoins like UST pose systemic risks due to their size and structural vulnerabilities. Regulatory oversight aims to ensure stability and protect investors from depegging events and potential fraud.
What is OKX Chain (OKC)?
OKC is a decentralized, scalable blockchain supporting high-throughput DeFi and NFT applications. It enables fast and cheap transactions while maintaining compatibility with Ethereum tools.
How can I stay updated on OKX product changes?
Users can follow official OKX announcements via the website, app notifications, and social media channels. Regular product updates and market summaries are published weekly.
Where can I learn about safe crypto trading practices?
👉 Explore advanced risk management strategies and educational resources to better navigate volatile market conditions.