OKEx, one of the biggest cryptocurrency exchanges in the world, has announced the launch of a cryptocurrency exchange creation programme called the ‘Digital Asset Exchange Open Partnership Program’.
According to the announcement, the programme is intended to “nurture a new generation of digital asset exchanges”.
In order to create a new cryptocurrency exchange, interested parties need to provide OKEx with a domain name, logo, and details of the management team. They are urged to possess “solid industry experience, quest for service excellence, and strong industry influence.”
Applicants must also deposit 500,000 OKB tokens into their accounts. This equals around $2.5 million at the current rate according to coincodex.com.
OKB is a utility token which was first sold in March of this year in packages of up to 100, each costing $100. They can be used to settle transaction fees on the exchange and traded for Bitcoin, Ethereum, and Tether.
Successful applicants will receive access to OKEx’s matching system (which links up buy and sell orders), cold and hot wallets (offline and online cryptocurrency storage), clearing system (which handles money transfer), customer support system, and know-your-customer and anti-laundering systems. They will also receive support from the OKEx technical team.
The programme is offering 100 places in its first phase. It is expected to begin in July.
The announcement also specifies the setup that the new exchanges must have. They will create their own native tokens, and distribute them as follows:
25 percent to themselves;
24 percent to OKB holders; and
51 percent to be mined.
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OKEx also specifies the mechanisms by which the tokens will be mined/released.
This looks like a white label service.
The term white label was originally coined in the music industry – a white label vinyl record was a release so new that it had not yet been marked, a much sought-after thing.
Nowadays, it refers to a service or product manufactured by one company and sold to another for re-sale under a different brand name. This is a method used across multiple industries – it is popular amongst electronics manufacturers, banks, and foreign exchange brokerages for example.
OKEx explains the motivation behind the programme: “Throughout the years, OKEx has already devoted numerous resources in developing a truly decentralized digital asset exchange. Still, taking many factors like customers’ needs and actual operations efficiency into account, a decentralized digital asset exchange is still an unfeasible idea with the current technology. That said, we will never stop innovating. And this Digital Asset Exchange Open Partnership Program, which is based on the concept of decentralization, is our best proof. We believe the program will make a difference to the blockchain industry and inspire more exciting ideas to come.”
OKEx is originally from China but now has offices in several countries around the world. In terms of daily trading volume, it generally vies for top position with Binance, another cryptocurrency exchange originally from China. OKEx has handled $1.1 billion worth of cryptocurrency trading in the last 24 hours and is currently in second place, but not by much.
In May the exchange launched a programme called ‘Prime Investors’ the purpose of which is to link together investors and high-quality blockchain projects. To qualify you need to own at least half a million OKB tokens. If you do, you gain access to projects approved by the exchange’s investment arm (OK Blockchain Capital).
In May we reported that the exchange’s CEO Chris Lee had quit to “start a new life.”