OKX and Binance Clash Over Causes of Devastating October 10 Market Collapse
The ongoing controversy surrounding the October 10 cryptocurrency market collapse has intensified, with OKX CEO blaming Binance for irresponsible marketing of its USDe token, which allegedly created systemic risks. Binance's promotional campaign offering a 12% APY on USDe is under scrutiny for blurring the lines between stablecoins and hedge funds, leading to significant market volatility and liquidations. Meanwhile, venture capitalist Haseeb Qureshi disputes these claims, suggesting they are politically motivated and implausible.
TLDR: OKX CEO Star claims Binance’s 12% APY USDe promotion blurred distinctions between stablecoins and hedge funds. Users created leverage loops by borrowing USDT against USDe collateral, repeating the cycle multiple times. Haseeb Qureshi notes Bitcoin bottomed 30 minutes before USDe moved, challenging the causation narrative. Technical failures including Binance API outages and Trump tariff announcements compounded October 10 volatility. The October 10 cryptocurrency market crash continues to generate controversy months after the event. OKX Chief Executive Star has publicly blamed Binance for creating dangerous market conditions through irresponsible promotion of USDe. The accusation centers on how Binance marketed the synthetic dollar without proper risk disclosure. Meanwhile, prominent venture capitalist Haseeb Qureshi has rejected the claims as implausible and politically motivated. Marketing Strategy Created Systemic Risk Loop Star outlined a specific sequence of events that allegedly caused the market breakdown. In his statement, he declared that “10/10 was not an accident. It was caused by irresponsible marketing.” Binance launched a promotional campaign offering 12% annual percentage yield on USDe tokens. The exchange simultaneously accepted USDe as collateral with the same treatment as USDT and USDC. However, USDe differs fundamentally from traditional stablecoins according to the OKX executive. No complexity. No accident.10/10 was caused by irresponsible marketing campaigns by certain companies. On October 10, tens of billions of dollars were liquidated. As CEO of OKX, we observed clearly that the crypto market’s microstructure fundamentally changed after that day.… pic.twitter.com/N1VlY4F7rt — Star (@star_okx) January 31, 2026 Ethena Labs issues USDe through a complex financial structure. The protocol raises capital by selling USDe tokens to investors. It then deploys those funds into arbitrage and algorithmic trading strategies. The resulting hedge f...
Comments
Log in to comment