Participating in initial token offerings, often called "new coin launches," can be a lucrative way to generate returns in the cryptocurrency space. OKEx Jumpstart is one such platform that offers these opportunities. This guide explains how you can get involved, even if you don't already hold the required OKB tokens, by utilizing low-cost borrowing methods.
Understanding OKEx Jumpstart Returns
Recent projects listed on OKEx Jumpstart have shown significant potential for returns if tokens are sold shortly after trading begins. Here’s a quick look at some historical examples:
- GODS: A 7-day mining period with an approximate annualized return of 200%.
- TONCOIN: A 2-day mining period with an approximate annualized return of 700%.
- DEVT: A 3-day mining period with an approximate annualized return of 400%.
It's important to note that returns can vary significantly between projects. The specific event running from December 14th to December 17th featured three projects that were not new listings but were already trading on other exchanges. While the returns for such events might be lower than for brand-new listings, they can still present a profitable opportunity.
👉 Check real-time project details and historical data
A Low-Cost Method to Borrow OKB
You don't need to own OKB outright to participate. OKEx's leveraged loan feature allows you to borrow OKB at an annualized cost of around 36%, which can be significantly lower than the potential returns from the Jumpstart event.
Follow these steps to borrow OKB using your existing cryptocurrency holdings.
Step 1: Enable Cross-Collateral Margin Mode
This mode allows you to use a variety of assets in your account as collateral for a loan.
- Navigate to the 'Trade' section on the OKEx platform.
- Click on 'Trade Settings' in the upper left corner.
- Select 'Account Mode'.
- Choose 'Cross-Collateral Margin Mode' and confirm your selection.
- You will be prompted to complete a short questionnaire. Answering incorrectly simply allows you to retry.
Prerequisite: Your account must hold at least 50,000 USDT in assets to enable this mode.
Step 2: Activate the Auto-Borrow Feature
To streamline the borrowing process, ensure the auto-borrow function is enabled within the same 'Trade Settings' menu. This automates the loan process when you initiate a transfer.
Step 3: Execute the Borrowing Process
OKEx uses two main account types: Funding Account and Trading Account. To borrow, you must first transfer collateral into your Trading Account.
- Transfer Collateral: If you plan to use BTC as collateral, transfer your BTC from your Funding Account to your Trading Account.
Borrow OKB: Use the 'Funds Transfer' function.
- Select OKB as the currency.
- Choose the transfer direction: from 'Trading Account' to 'Funding Account'.
- Crucially, check the 'Borrow Currency' option.
- Enter the amount of OKB you wish to borrow (the maximum per account for Jumpstart is typically 1000 OKB) and confirm.
The borrowed OKB will now be available in your Funding Account, ready to be used for Jumpstart participation.
Important Risk Management Note
Borrowing funds involves significant risk, primarily the risk of liquidation (often called a "margin call"). If the value of your collateral drops significantly relative to the value of your loan, your position could be automatically closed to repay the lender.
It is essential to monitor your margin ratio. This data is most easily viewed on the OKEx desktop platform. For example, using 1 BTC as collateral to borrow 1000 OKB might result in an initial cross-margin ratio of around 725%, but this ratio fluctuates with market prices. 👉 Explore more strategies for managing investment risk
How to Participate in the Token Offering
The OKEx Jumpstart model involves staking OKB tokens to earn new project tokens. The process is flexible.
- Navigate to the 'Jumpstart' section on the OKEx homepage.
- Click on 'View Details' for the active project.
- Select 'Stake' and choose the amount of OKB you wish to commit.
A key feature is flexibility: you can enter or exit the staking pool at any time, and rewards are accrued and can be claimed continuously throughout the offering period.
Frequently Asked Questions
What is OKEx Jumpstart?
OKEx Jumpstart is a platform that allows users to stake OKB, the native exchange token, to receive allocations of new tokens before they are listed on the open market. It provides early access to new projects.
Is there a minimum amount required to participate?
While there may not be a extremely high minimum, the platform's structure and borrowing prerequisites (like the 50,000 USDT requirement for cross-collateral mode) effectively set a barrier to entry for smaller investors.
Can I participate without any initial capital?
No, participation requires capital. The method described here allows you to use your existing cryptocurrency holdings (like BTC or ETH) as collateral to borrow OKB, rather than selling your assets to buy OKB outright.
What are the biggest risks involved?
The primary risks are project-specific (the new token losing value) and financial (liquidation risk from borrowing). The value of the new tokens you receive could fall below the cost of borrowing the OKB, and a market downturn could liquidate your collateralized loan.
How are the rewards distributed?
Rewards are typically distributed in real-time based on the amount of OKB you have staked and the total pool size. You can usually claim your earned tokens at any point during the staking period.
Can I use this method for other exchange launchpads?
The specific borrowing mechanism is unique to OKEx's platform. However, the general concept of using leverage to participate in initial offerings can be applied elsewhere, though the rules, costs, and risks will differ on each platform.