Open Exchange (OPNX) Set to Close as Mystery Exchange OX.Fun Emerges Amid Confusion
Summary:
Open Exchange (OPNX) will halt operations on February 14, according to an email sent to users. The cessation of trading is slated for February 7, though withdrawals can continue until closure. Meanwhile, a new exchange called OX.Fun, which uses OPNX’s native token for derivatives trading, has been introduced, creating confusion about its relationship with OPNX. Despite initial success after its launch by the co-founders of the failed cryptocurrency hedge fund, Three Arrows Capital, trading volumes fell drastically prompting OPNX's closure. While it's unclear who is running OX.Fun, it seems to have achieved success with its derivatives volume. However, the sole reliance on OX tokens as collateral raises concerns.
Open Exchange (OPNX), spearheaded by Kyle Davies and Su Zhu, is slated to shutter operations on February 14th, as evinced by a February 1st email dispatched to clients and seen by Cointelegraph. Trading via the platform will cease on February 7th, however, withdrawals will stay available until the closure date. Simultaneously, a cryptic new exchange named OX.Fun seems to have been set up as a substitute for OPNX. It utilizes OPNX's native token, Open Exchange Token (OX), as leverage for derivatives trading and has seen significant promotion in the official OPNX Telegram channel. There is a paucity of information regarding who is operating the exchange and if there is any correlation to OPNX.
Launched in April 2023, OPNX was the brainchild of Davies and Zhu, co-establishers of the unsuccessful cryptocurrency hedge fund Three Arrows Capital (3AC). CoinFLEX's bankrupted co-founders, Mark Lamb and Sudhu Arumugam, were also part of OPNX's creators. Initially, it was promoted as a relaunch of CoinFLEX, but, following a legal squabble with CoinFLEX creditors, the OPNX team refuted any similarities with the two exchanges. Zhu was taken into custody for breaching a committal order during 3AC's bankruptcy procedures, with Davies facing a similar order. Zhu was released after a three-month incarceration period.
Despite initial successes in 2023, including $32,000 daily spot trading volume and $82 million for derivatives trading in November 2023, these figures dropped drastically to $23 and $1.2 million respectively at the closure announcement.
While OPNX's native token, OX, is being traded on assorted decentralized and centralized exchanges, including Uniswap, Gate.io, BingX, Bitget, MEXC, Poloniex, and others, a Telegram community of over 3,000 members continues to exist. Although MOX.Fun seems to be winning over the OPNX community, there is considerable confusion regarding the connection between the two.
However, OX.Fun seems to be making headway. On January 30th, its derivatives volume amounted to close to $39 million, according to its official analytics page. Despite dropping to a lesser $8 million, it still noticeably surpasses the volume on OPNX.
The OX.Fun app's user interface bears a resemblance to interfaces for decentralized derivatives protocols like GMX, dYdX, Level Finance and others. Yet, there seem to be discrepancies when compared to other protocols' functioning, specifically in deposit procedures.
It is still unclear who is overseeing OX.Fun or where the company jurisdiction lies. An individual, who sought answers regarding the platform's ownership, received a response stating no link between OPNX and OX.Fun, despite functioning as intended with regard to deposits and withdrawals.
Furthermore, potential users need to exercise caution due to the risks associated with the OX tokens - the sole collateral on OX.Fun. This implies users without OX would need to buy it to use the platform. Slippage rates are excessive, even for minor purchases, often crossing 50%. Liquidity on other platforms remains unverified.
Published At
2/5/2024 5:00:00 PM
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