OKEx, one of the biggest cryptocurrency exchanges in the world, is entering the staking market with its mining service, OK Pool.
Speaking in an interview on China’s messaging service, WeChat, Alina Yao, head of OKEx’s OK Pool, revealed that for the first time, the global exchange was moving into the highly competitive market.
Popularity in staking, a way to earn a passive income by ‘staking’ your support to a project, by, for example operating a masternode for it, has grown in 2019.
At the start of the year around $700 million globally had been staked on different projects, but by last month (July) this had grown to almost $8 billion (according to popular site StakingRewards), representing more than a tenfold increase in the size of the market.
One possible reason for the growth is that as the market has endured a tough bear cycle, more and more people have been turning to staking as a way to make money from cryptocurrencies.
An opportunity not to be missed
It is clear that OKEx sees the potential of this growing market, and it will be using a top ten cryptocurrency to move into the staking space, as Alina Yao explained:
“The competition in the staking field is equally fierce. Since 2019, more and more projects, exchanges, mining pools and wallets have entered the market, trying to gain a place in this new market, but how to break through is a problem for everyone,” she said.
“While OK Pool [will] continue to develop on the proof of work (PoW) mining business, OK Pool will use EOS as the starting point to tap into the staking business. It should be noted that OK pool is the top producer of EOS on the blockchain. It will strive to become the mining pool with the highest quality nodes and to deepen the public chain node community as well, so that OK Pool will become the second core business of OK Group behind futures trading, and to foster the development of the entire blockchain ecosystem.”
Alina Yao said that staking gave OK Pool the chance to diversify its services.
“In PoW mining, the established mining pools are more favourable with miners and basically they monopolize the entire industry. However, in proof of stake (PoS) mining, it is still at the stage of fierce competition and anyone has the opportunity to become the leader. OK Pool will first start from PoS and delegated proof of stake (DPoS).”
To find out more about OK Pool visit: www.okex.com/pool