Apr 24, 2023

CEO Blasts Investors for Wanting “Upside with No Risk” with OPNX

The Open Exchange (OPNX) project has been met with a flurry of controversy after some of its alleged investors publicly distanced themselves from the crypto claims trading platform. On April 22, OPNX’s CEO Leslie Lamb took to Twitter to express her dismay over the matter, calling the behavior of the firms “disgusting” and “disappointing.”

OPNX was established by Kyle Davies and Su Zhu, the founders of the now-bankrupt crypto hedge fund Three Arrows Capital (3AC). On April 21, OPNX tweeted a video of Lamb thanking a number of “major investors” for their support. This list included AppWorks, Susquehanna (SIG), DRW, MIAX Group, China Merchant Bank International and Token Bay Capital Nascent and Tuwaiq Limited.

However, nearly half of the listed backers have since denied any association with the firm. Nascent, a decentralized finance (DeFi) trading firm, clarified that while it bought Coinflex (FLEX) tokens, it did not participate in a funding round for OPNX. Appworks, a Taiwan-based venture capital firm, stated that its funding had been “forcibly converted” from its initial holdings in CoinFLEX and that they “do not support what [Davies and Zu] did during the last days of 3AC.” DRW Trading also declared it is “not an investor in OPNX.”

In the wake of the public spat, FLEX, the primary token of OPNX, has dropped more than 21%, according to TradingView data. Cointelegraph reached out to Susquehanna (SIG), MIAX Group and China Merchant for clarification on their investments in OPNX but did not immediately receive a response.

OPNX’s pitch deck, which first circulated in January, claims that the platform will allow investors to buy and sell claims on bankrupt crypto firms such as 3AC and FTX. It purports to enable customers to use claims as collateral for trading and is expected to expand into other more regulated markets like stocks and equities.

The controversy surrounding the project comes after 3AC received a notice of default from crypto exchange Voyager Digital in June 2022, after failing to pay a loan of 15,250 Bitcoin (BTC) and 350 million USD Coin (USDC). The firm later filed for bankruptcy in July 1, and has been the subject of criticism from the crypto industry, with many of its creditors accusing its founders of running away from legal action.

Despite the negative publicity, CoinFLEX, the main company behind the OPNX project, has defended itself, claiming that it will help make customers of failed crypto ventures “whole again.” The firm has also announced plans to launch an NFT marketing agency, as well as a web3 agency, to help promote and sell NFTs. As part of its NFT marketing strategy, OPNX plans to use Twitter to target potential customers and build a larger customer base.

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