Cryptocurrency Exchange OKEx has given $ 4.5 million in Bitcoin (BTC) to its perpetual swap insurance fund as a show of support for Warren Buffett Power Lunch.
More protection for traders
In a press release shared with Cointelegraph on July 23, the Malta-based crypto exchange revealed its contribution to the perpetual exchange market insurance, which amounts to what Tron's Justin Sun paid for lunch with Warren Buffett.
Andy Cheung, manager of the operations of OKEx, commented on the contribution and said "Power Lunch is a significant initiative to advocate the value of Bitcoin, blockchain and digital assets of traditional finance managers on Wall Street." Cheung added: [1
The insurance fund is used to pay the default value of a margin call before the clawback event is triggered. So the bigger the insurance fund, the less likely the recall will be. The feedback mechanism will therefore act as the last line of defense if a large-scale systematic event occurs. Insurance acts as a pillow to protect the merchant's profits from reaching the last defended line.
"The insurance fund minimizes the uncertainty and the trading risk for which traders' expected profits would be deducted, including the clockback risk," explains OKEx.
The donation is expected to go through July 24, which will roughly double the amount of the perpetual swap insurance fund.
However, as Cointelegraph reported earlier, Tron Foundation exposes Warren Buffett lunch to an unspecified date due to founder Justin Sun who became ill with kidney stones. Nevertheless, the given donation plan will not be affected, according to OKEx.
Cryptocurrency donations taking off
The charitable sector has increasingly adopted digital currencies, with leading industry players donating in a number of projects worldwide. This month, decentralized insurtech firm Etherisc launched a blockchain-based farmers insurance platform in Sri Lanka through a partnership with the insurance company Aon and the charity Oxfam.
Binance Charity Foundation announced an alliance of 47 organizations to create a token geared towards women's health. Binance claims that a blockchain-based means of distributing charity will address inefficiency and transparency issues that are allegedly present in traditional ways of giving charity.