Bitcoin took a 3% hit as OKEx announced the temporary suspension of crypto withdrawals on 16 October. Reports state that the exchange is being investigated by the Chinese police, however, the nature of this investigation is still not clear. This news definitely caused a wave of panic across the crypto market causing altcoins also to lose chunks of their values.
Ethereum, the second-largest crypto in the market noted a fall of 3.94% upon the news break, but later met with another selling pressure which pushed it price lower by 2.5%. However, Ethereum had a secret weapon in its arsenal in the form of decentralized finance, which helped it bounce back from the second crash and its current value was at $368.73.
DeFi or CeFi?
The market observers have been assessing the reach of the impact following this news. Even though most have been focusing on the crypto assets, others have shifted focus to decentralized finance [DeFi] and how it could be an alternative to such events in the plain sight.
Uniswap’s UNI token saw the traders entering its market as the news went public. The UNI token took a hit initially going with the market flow and ETH’s reaction, but the following hour saw a glorious recovery making its way through.
“BREAKING: Cryptocurrency investors flock to $UNI as they realize it’s a safe haven against centralized exchanges.