OPNX, the cryptocurrency exchange co-founded in 2023 by Three Arrow Capital’s Su Zhu and Kyle Davies, announced earlier this month that it would be shutting down. Less than a week after prompting its users to withdraw their funds by February 14th, platforms catering to former users have started to emerge.
Crypto platform Ox.Fun has started a campaign to promote itself as an alternative to OPNX, according to Coin Telegraph. While the exchange’s features seem to be operating normally, there is no information available on who is behind the new platform.
While this is not necessarily unusual for a decentralized platform, everything indicates Ox.Fun operates in a centralized manner. The promise of yields of up to 200% when farming OX and a fee share of 69% for all referrals has raised further suspicion among former OPNX users.
No More Claims Trading
OPNX was launched in April of 2023 as an alternative exchange that allowed users to trade claims of bankrupt cryptocurrency companies. The idea was the brainchild of Zhu and Davies, who had previously co-founded Three Arrows Capital and would later face jail time.
The exchange notified its customers less than a year after launching that it would cease all trading on February 7th before ceasing operations on the 14th. No announcement of the closure was made via social media or the web platform, just in the same way no explanation was given to the users who received the email. Zhu, however, blamed the FTX recovery for the decision.
The effects of the announcement were swift, causing the value of the OX token to drop sharply by over 40% in only an hour. While the value of the token has rebounded slightly, holders remain uncertain about what will come next for the exchange’s cryptocurrency.
Taking the Bull by the Horns
While Fun.Ox has made no claims of being OPNX successor, Coin Telegraph reports that members of the OX Community remain confused about the ties between the two platforms. This confusion has been exacerbated by OPNX’s tweets in late January, as the last 3 referred to Ox.Fun in a positive way.
— OX.FUN (@OXFUNHQ) January 28, 2024
Zhu and Davies said they are advisers to Ox.Fun and that “the OX community will be focusing on Ox.Fun”. Outlets like Coin Telegraph have tried to get more information on who runs the site with no success, while some users report the site admins claim there is “no connection” between the two. No information on regulatory compliance is available either, raising even more questions about the platform’s legitimacy.
The platform offers a 200% yield on OX deposits for “completing daily trading missions”, rewards for being at the top of the leaderboards, 69% commission on referrals, and an OX giveaway. This, of course, has led many users to throw away all caution and join the platform despite the uncertainty surrounding it.
No Rest for The Wicked
Zhu and Davies got to become one of the most well-known names in the cryptocurrency world as the co-founders of Three Arrows Capital. This notoriety increased in June of 2022 when the crypto hedge fund collapsed, resulting in a fallout that took with it companies as big as BlockFi, Celcius, and Voyager.
Early investigations suggested that the collapse of the hedge was the result of poor decision-making and “potentially criminal behavior”. This led to the freezing of over $1 billion worth of assets tied to the pair, a 9-year ban from regulated activities, and their eventual arrest by Singaporean authorities.
In recent months, Zhu has been openly talking about his time in prison, claiming that “it’s definitely good for you”. His remarks have been seen by many as an attempt to rebuild his reputation, no more than “clever marketing” to continue pushing his newest crypto projects.