27 Sep 2021
Asia-focused exchanges’ tokens plummeting in the wake of China banCrypto investors are fleeing centralized exchanges’ tokens for their decentralized counterparts after China once again bans crypto.
Source: CoinDesk, CoinGecko
The ban made the markets tumble, and the worst hit were the Asia-focused centralized exchanges’ tokens.Both OKB (OKEx) and Huobi Token plunged by over 15% within one hour after the People’s Bank of China announced the ban. Huobi Token has continued its decline and is down 39% during the last 7 days.The Chinese government has banned crypto several times before with limited success. Nevertheless, insiders argue that this is the most severe ban since it targets all virtual currency-related businesses and forbids overseas crypto exchanges from serving China-based users.Huobi and OKEx are such exchanges. Huobi announced that they will retire their existing Chinese user accounts by the end of this year.The ban led to increases in the prices of decentralized exchanges’ tokens. Investors are betting that the Chinese will be drawn to decentralized exchanges to circumvent the ban. Tokens like Uniswap, Sushiswap, Perp and dYdX have all gained double-digit percentages following the ban.