Launched by founders of defunct Three Arrows Capital, centralized exchange OPNX announces closure this month. Users advised to close positions and withdraw funds by February 14th. Founders reportedly shifting focus to new on-chain derivatives platform OXFUN.
OPNX, the exchange designed for trading bankruptcy claims and launched by the founders of collapsed hedge fund Three Arrows Capital (3AC), is shutting down due to the “recovery” of rival FTX‘s bankruptcy process. This is according to a statement by co-founder Su Zhu, signaling the end of a market niche created by the recent wave of crypto exchange failures.
Shutting Down This Month
The short-lived centralized exchange OPNX, founded by the team behind the collapsed hedge fund Three Arrows Capital, is set to close its doors this month. Launched just last year, the exchange offered trading of bankruptcy claims and cryptocurrencies. The announcement advises users to close all open positions by February 7th and withdraw their remaining funds by February 14th, as all withdrawal functionality will cease after that date.
While FTX announced plans to fully repay its customers at post-crash market prices earlier this week, claims on other platforms like OPNX were trading at significantly lower values. With FTX’s recovery, the demand for trading such claims seems to have waned, prompting OPNX’s closure.
Eyes On Ox.Fun
Both Zhu and Davies, the other co-founder of 3AC, are now focusing on Ox.Fun, a recently launched derivatives exchange built around the Ox token. They currently serve as advisors to the platform.
This closure highlights the dynamic and often short-lived nature of the crypto industry, where innovation and disruption coexist with risk and uncertainty. While OPNX aimed to fill a gap created by the fall of major exchanges, the evolving landscape and FTX’s recovery rendered it redundant. However, with their involvement in Ox.Fun, Zhu and Davies demonstrate their continued interest in the space, albeit shifting their focus to a different segment.
A Broader Pattern
This shutdown follows a broader pattern of financial struggles for the exchange’s founders, Su Zhu and Kyle Davies. Their hedge fund, Three Arrows Capital, suffered significant losses during the recent cryptocurrency market downturn, ultimately filing for bankruptcy in July 2023.
Despite the closure of OPNX, the founders seem to be shifting their focus. They have since moved operations to OXFUN, an on-chain derivatives exchange. Whether this platform will experience better fortunes remains to be seen, but the closure of OPNX serves as a stark reminder of the volatility and risks inherent in the cryptocurrency space.