OKX Founder Star Xu Questions Billionaire's Nonchalant Comments on Collapse Compensation
Star Xu, founder of OKX, questioned who the "Yue Buqun" of the crypto world is, criticizing competitors for the 10·11 incident that swept the global crypto market, affecting hundreds of billions of dollars in user assets, while the billionaire referred to related compensation in an interview as a voluntary act.
Star Xu pointed out that the incident caused immense losses and unspeakable pain for countless participants in the crypto industry, plunging the entire market into a prolonged winter, severely impacting the wealth, confidence, and hope of many.
The interview stated that Binance offered about $800 million in compensation to users who suffered losses on the platform, despite having no obligation to do so, describing it as a completely voluntary initiative.
Star Xu believes that the hundreds of billions of dollars in market losses and the suffering of countless users ultimately turned into a self-congratulatory "voluntary compensation" in this statement.
Previous public information indicated that the market liquidation scale on October 10 was about $19 billion, with some assets on the Binance platform experiencing decoupling and delays, followed by multiple rounds of compensation and support measures totaling nearly $800 million, including direct compensation, vouchers, and low-interest loans.
Market Mechanism: After extreme liquidation, platforms attempt to stabilize users and liquidity through capital compensation, with net capital inflows used as evidence of trust; critics emphasize that the total loss far exceeds the partial compensation, and the narrative focusing on voluntary actions may affect the allocation of responsibility for systemic risks, while the actual flow of users and funds still determines the platform's status.
Source: Public Information
ABAB AI Insight
Star Xu has long operated OKX and competes with Binance for global exchange market share, frequently discussing industry event responsibilities and narratives; CZ, as the founder of Binance, continues to respond to market controversies as a shareholder after stepping back from operations, emphasizing the platform's history of proactively covering user losses.
In terms of capital pathways, Binance uses trading revenue and part of its reserves for user compensation and institutional support after the collapse to maintain platform liquidity and net inflows; the motivation is to reduce outflows and address reputational pressure after large-scale liquidations, positioning compensation as a proactive choice beyond legal obligations, thereby reinforcing the argument that capital flow is more important than public narratives.
Similar cases include other exchanges launching compensation or loan programs after extreme volatility to compete for users, and platforms vying for control over the definition of responsibility through public statements during historical crypto events; the current market is in a post-liquidation reconstruction phase, with leading platforms influencing the distribution of funds and confidence through both capital strength and narrative.
Essentially, this is a struggle for narrative and capital power. After large-scale losses, platforms compete for the interpretation of events through selective compensation and net inflow data; the actual flow of user funds is more decisive for subsequent market share than public statements, while packaging partial compensation as voluntary generosity may weaken discussions on overall risks and responsibilities.
ABAB News · Law of Cognition
Partial compensation cannot cover the scale of total industry losses
Fund flows are a better measure of real trust than public statements
After extreme events, narrative control and capital control proceed simultaneously