OKX CEO Attributes October 10 Crypto Crash to USDe Yield Campaigns
- OKX CEO Star Xu claimed the October 10 crash resulted from high-risk yield campaigns tied to USDe, causing over $19 billion in liquidations and affecting 1.6 million traders.
- Xu argued that systemic risk built up quietly due to user-acquisition campaigns promoting double-digit yields on USDe, which was treated like stablecoins such as USDT and USDC.
- The crash exposed hidden leverage, leading to a depegging of USDe and cascading liquidations across venues.
- Binance attributed the turbulence to macroeconomic shocks and market-structure issues, including Ethereum’s network congestion.
- Cathie Wood linked the crash severity to a software glitch at Binance, describing it as an “aftershock” of prior market instability.
The October 10 crypto crash was attributed by OKX CEO Star Xu to risky yield campaigns tied to USDe, leading to significant financial impact on traders. Binance cited macroeconomic factors and system issues as causes. The incident highlighted systemic risks within the industry.
Source (3.2)https://cryptobriefing.com/okx-ceo-claims-high-risk-usde-yield-campaigns-october-10-crash/?rand=59535
