Author: Blocking Climber
In the encrypted world, there was no bankruptcy claims trading platform, and as more people lost money, it came into being.
As the world’s first public market for trading encrypted debt and derivatives, OPNX (Open Exchange) had a trading volume of only $13.64 on the first day of its launch, but this number quickly rose to $65 million in less than three months, with records still being broken.
The collapse of Three Arrows Capital’s leveraged bets brought Su Zhu, who was once on the rise, to a low point. Now, OPNX, founded by Su Zhu, Kyle Davies, and the CoinFLEX team, is showing signs of growth. Since the launch of the official website, claims, and derivative trading services just over four months ago, all of the exchange’s data has continued to hit new highs. As a result, several cryptocurrency institutions are opening up related claims services.
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How did OPNX achieve a high-performance turnaround in a short period of time, and can the eternal optimist Su Zhu really take off for the second time in his life?
The rapidly advancing new debt market
As a CEX project, the OPNX encrypted bankruptcy claims trading platform was jointly founded by Su Zhu and Kyle Davies, the founders of Three Arrows Capital, as well as Sudhu Arumugam and Mark Lamb, the co-founders of CoinFLEX. The team is mainly composed of more than 60 former CoinFLEX members.
At the beginning of OPNX’s launch, its 24-hour trading volume for spot and perpetual derivatives was only $13.64. In response, the company’s CEO Leslie Lamb said, “After the FTX incident, we reevaluated the liquidity form and finally decided to launch with the lowest liquidity. We don’t rely on internal market makers, nor do we prioritize external market makers.”
However, it turned out that relying solely on the founders’ reputation could not create platform depth liquidity. As a last resort, OPNX chose to launch a market maker program. It subsidizes 200 top VIP market makers with $5,000 per month and supports general market makers with incentives ranging from $50,000 to $500,000 per month based on trading volume.
With this as the trigger, OPNX’s daily trading volume has achieved a step-by-step increase from tens of thousands, to hundreds of thousands, to millions, and even tens of millions of dollars.
As of the writing of this article, OPNX’s daily trading volume has hit a new all-time high of over $65 million. In addition, the OPNX official Twitter account stated that more than 26 million FLEX have been converted to OX, 2.9 billion OX have been minted, 1.56 billion OX have been staked, and the staking rate is 53.6%.
As the trading volume of OPNX rises, the native governance token OX on the platform has also reached a new high.
From the chart, it can be seen that the OX price continued to rise in June. It rose from around $0.01 to $0.03, an increase of nearly 300%. The current OX price is $0.03162, with a total market value of $92,896,505, ranking 270th on CoinGecko.
Large amount of trapped crypto funds
In 2021, the cryptocurrency market welcomed an unprecedented super bull market, with the market value of the crypto market breaking through trillions of dollars, leading to more institutional and investor funds being invested.
However, since November 2021, cryptocurrencies headed by Bitcoin have entered a long and protracted bear market. Finally, starting from May last year, the Luna thunderbolt incident triggered a domino effect, and many well-known cryptocurrency companies and enterprises went bankrupt one after another. The bankruptcy of FTX in November last year has made the entire cryptocurrency industry in a predicament, and a large amount of investor funds have become long-term creditors due to their demands being unmet.
Based on this, OPNX announced that after months of discussions with creditors, in order to make up for mistakes and correct deviations, we have provided a solution for the existing $20 billion worth of funds in the current creditor market, that is, to help trapped crypto funds by establishing a bankruptcy claim trading platform.
Currently, institutions that are deeply involved in bankruptcy claim events include FTX, Voyager, Celsius, Genesis, BlockFi, Mt Gox, HodlNaut, and 3AC, among others. However, more than 90% of creditors have not provided their information to obtain proof of creditors.
On OPNX’s official website, the ongoing Celsius bankruptcy claim product is also displayed. In addition, it has been reported that the Internal Revenue Service (IRS) has filed a claim worth nearly $44 billion against FTX and its affiliates.
The crypto bankruptcy claim platform founded and promoted by Su Zhu has also inspired other institutions and investors. In early April this year, the bankruptcy claim trading platform Xclaim announced the completion of a $7 million Series A financing round; dYdX dealer wallet issued 2.62 million DYDX tokens (about $4.85 million) as a claim reward; and Binance is also working on providing claim smart contracts for victims of the Rug Pull project XIRTAM on the Ethereum mainnet and Arbitrum network.
In addition, the Foundation, a liquidity platform on the bankruptcy claim chain, announced that an address marked “wagmiclaims.eth” on the chain obtained a loan of $7,500 through NFT lending DeFi protocol by tokenizing its $31,307.81 FTX debt claim.
It can be seen that pursuing bankruptcy claims for debt has become a normal practice in the cryptocurrency market. With more institutions and funds getting involved, more bankrupt cryptocurrencies will have new ways to be unlocked.
The above trends are driven by demand-side appeals. The substantial progress made by OPNX in a short period of time is inseparable from the development of specific business and marketing methods.
As mentioned earlier, OPNX introduced a platform market-making mechanism after launching cryptocurrency spot and derivative trading functions in early April. Next, in May, it cooperated with RWA tokenization service provider Heimdall to launch a claim trading market, and in June, it released governance token OX and pledged services, as well as launched the first LaunchBlockingd project, Raiser. In addition, OPNX also stated that it is developing the platform credit currency oUSD.
In terms of marketing and promotion, OPNX has a diverse media matrix, especially with two official websites in Chinese and English for project promotion.
On social media platforms, OPNX is also very active, frequently releasing project progress updates and data achievements. So much so that some netizens joked that OPNX releases at least three dynamic messages on Twitter every day.
Previously, although the OPNX team already had more than 60 people and was supported by the teams of Three Arrows Capital and CoinFLEX, it has been releasing recruitment information recently, recruiting project partners and BD.
Therefore, based on current market reports and data performance, it can be said that OPNX is in the stage of rising projects and has great potential for future growth.
The imprint of failure is hard to erase
Since its inception, the cryptocurrency bankruptcy claim trading platform OPNX has been questioned. First, some media outlets joked that no one understands debt better than Su Zhu. Then, some analysts pointed out that can the debt trading market planned by Three Arrows Capital really save victims who have been trapped due to the bankruptcy of cryptocurrency companies?
From the formal launch of OPNX to today, more than four months later, obstacles and suspicions have continued to accompany it.
On April 4th, the OPNX spot and derivative market encountered a black opening day on the market, with trading volume being abysmal. But what was more insulting was that OPNX’s official Twitter account showed “frozen” and was in the doghouse for a day before it was thawed. Su Zhu himself had to explain on social media that the OPNX Twitter account had indeed been cancelled and that a Chinese community needed to be created.
In order to try to eliminate Su Zhu’s negative image in the Three Arrows Thunderbolt incident, Leslie Lamb, CEO of OPNX, told the media that Su Zhu and Kyle Davies had made significant contributions to early ideas and visions, but were no longer involved in OPNX’s day-to-day affairs.
In the following time, Su Zhu did indeed become the OPNX project progress announcer, mainly responsible for reporting good news.
Due to the news that OPNX’s previously announced project had raised $25 million in financing and the backing investment institutions, many institutions such as DRW, Nascent, MIAX, and Susquehanna denied investment statements. In response, OPNX said that these institutions were seeking economic benefits and were afraid of public opinion pressure, and were disappointed with their false statements.
It can be seen that OPNX is not currently recognized by major investment institutions.
In early May, the media reported that the Dubai Virtual Asset Regulatory Authority had issued a written condemnation to Su Zhu, Kyle Davies, and two other co-founders of OPNX and their CEO on April 18th. The authorities also said they would continue to investigate OPNX’s activities “to evaluate any further corrective measures that may be needed.”
But the most damaging criticism of OPNX was someone publicly writing that its daily transaction data was falsified. On June 18th, OPNX announced that its daily trading volume had exceeded $45 million, but 4 days later, crypto analyst Loris posted on social media that OPNX or “falsified transactions” may exist by analyzing OPNX’s BTC perpetual contract daily trading volume data and comparing it with the data of the top trading platforms.
Loris pointed out that the normal volume and price data displayed by the top trading platforms have consistent volume and price fluctuations and stable baselines. The volume and price data of OPNX show that the price fluctuations in the area where the volume amplification corresponds are extremely small, while the price fluctuations in the area where the volume reduction corresponds are very large.
In addition, the OPNX daily trading volume has a clear and independent pattern relative to price fluctuations, which indicates the existence of “false trading” in OPNX.
However, strangely, this tweet has been deleted and the original account cannot be found.
Conclusion
Heroes never die!
This is a classic line from Overwatch in the last scene of “Dying to Survive”. The protagonist of the movie was originally a racing champion who overcame his downfall and won the race again. However, it is unknown whether the ending was happy or not.
Today’s Su Zhu may not be given the title of “Hero,” but he can once again stand on the stage of the cryptocurrency market, dedicated to what appears to be seeking profits for victims of trapped funds in crypto. From this perspective, for now, Su Zhu is still more tenacious than Do Kwon and SBF.
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