Kyle Davies and Su Zhu’s Open Exchange (OPNX) is set to shutter its operations on February 14, according to an email notification sent to users on February 1, as reported by Cointelegraph.
The cessation of trading activity will commence on February 7, with users still able to withdraw funds until the final closure date.
Intriguingly, a new exchange named OX.Fun has emerged seemingly to fill the void left by OPNX.
OX.Fun employs OPNX’s native token, Open Exchange Token (OX), as collateral for derivative trading.
It has garnered attention within OPNX’s official Telegram channel, although the identity of the individuals or entities running OX.Fun and their connection to OPNX remain unclear.
OPNX, launched in April 2023 by Davies and Zhu, former co-founders of the defunct cryptocurrency hedge fund Three Arrows Capital (3AC), also included Mark Lamb and Sudhu Arumugam, co-founders of the bankrupt crypto exchange CoinFLEX, among its creators.
Initially, OPNX was positioned as a reboot of CoinFLEX. However, subsequent legal disputes with CoinFLEX creditors led OPNX to assert that the two entities were entirely separate.
Zhu’s arrest for violating a committal order related to 3AC’s bankruptcy proceedings, with a similar order issued against Davies, added to the turmoil. Zhu was subsequently released after a three-month detention.
OPNX achieved some level of success in 2023, with daily spot trading volumes peaking at $32,000 and derivatives trading reaching $82 million by November.
However, at the time of its closure announcement, spot trading had dwindled to $23, and derivatives trading to $1.2 million.
Despite the discontinuation of OPNX, its token, OX, continues to be traded on various decentralized and centralized exchanges, maintaining a Telegram community of over 3,000 members.
OX.Fun has been actively promoted to the existing OPNX community, but many users are perplexed about the relationship between the two platforms.
OX.Fun briefly saw impressive trading volumes, with derivatives reaching nearly $39 million on January 30, although it subsequently dropped to $8 million the next day, still surpassing OPNX’s volumes.
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The user interface of OX.Fun bears resemblance to decentralized derivatives protocols like GMX, dYdX, and Level Finance, featuring the familiar “Connect wallet” button for linking user wallets to the platform.
However, unlike decentralized protocols, OX.Fun’s deposit page lacks a button for in-wallet transactions, requiring users to manually send funds to an external deposit address.
This setup suggests that OX.Fun operates as a centralized, custodial futures trading platform, where deposits are likely directed to an exchange hot wallet account.
Additionally, OX tokens experience high slippage, exceeding 50%, making it challenging for users who do not hold OX to utilize the platform.
Despite these developments, key information about OX.Fun’s executives and corporate registration remains elusive.
Attempts to reach out to the platform’s team via Telegram and the official website’s customer support yielded no responses.
Users seeking clarity on the connection between OPNX and OX.Fun, as well as information about the project’s leadership and investors, have also encountered unanswered queries.
Despite the lack of transparency surrounding OX.Fun’s operators, the platform continues to process deposits and withdrawals as expected.
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