Open Exchange, the new venture of 3AC’s Zhu Su and Kyle Davies, has had a rough first day. Early on Tuesday, it was forced to correct an article that identified its day one trading volume as $1.26 and revealed the actual figure to be $13.64—a shocking 982% more than initially reported. Additionally, by the afternoon, the exchange’s Twitter account was suspended without explanation.
Open Exchange’s Turbulent First Day
Open Exchange, the latest venture of Three Arrows Capital’s Zhu Su and Kyle Davies, and a collaboration with Coinflex has been plagued with setbacks and negativity since it was initially announced under the monicker “GTX” in January. Its first operating day seemingly didn’t go particularly well either based on the exchange’s own data.
In a now-unavailable tweet, Open Exchange admitted that its total volume in the first 24 hours was a measly $13,64. The firm’s CEO Leslie Lamb explained that the numbers are the result of the fact that it will strive to build liquidity over time without relying on internal market makers. According to Lamb, the decision was reached as a direct consequence of the collapse of FTX.
The disappointing opening of the exchange was reflected in the price of its token—FLEX—which was down more than 30% at the time of writing and stood at $1.80. The negativity plaguing OPNX didn’t end with its launch and a Twitter user known as FatMan warned all hopeful users they would be doxxed should the company go bankrupt—an outcome he considered likely.
Before the end of the day, Open Exchange suffered another setback as its Twitter account was suspended for unknown reasons.
What is OPNX?
The Open Exchange was announced under the monicker “GTX” in January to much ridicule and negativity. Despite the initial reactions, its founders, Zhu Su and Kyle Davies, as well as the company it was created in partnership with, Coinflex, not only remained adamants about its launch but also explained that the nickname “GTX” was indeed both a joke and a reference to FTX.
Subsequent announcements focused on the mission of the new exchange. It was envisaged as a place where customers could trade cryptocurrency-related bankruptcy claims. One of the posts even confirmed that even the claims connected to Three Arrows Capital—the bankrupt firm cofounded by Su Zhu and Kyle Davies—can also be traded.
The founders described OPNX as a “next-level” CEX that would build on the failures and experiences of previous ventures—failed and successful. They also estimated that cryptocurrency-related bankruptcy claims constitute a $20 billion, untapped market and tried to position the company as the best way for users that lost money to the slew of recent collapses to recover their funds.
This article originally appeared on The Tokenist
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