A new crypto exchange has emerged as Open Exchange (OPNX) prepares to shut down, leaving users with uncertainties about its operators. According to an email sent on February 1 and reported by Daily Dose Crypto, OPNX, led by Kyle Davies and Su Zhu, will officially close its operations on February 14, with trading coming to a halt on February 7. Users will have until February 14 to withdraw their assets.
In the midst of this closure, a mysterious exchange named OX.Fun has surfaced, seemingly positioned to replace OPNX. OX.Fun utilizes OPNX’s native token, Open Exchange Token (OX), as collateral for its derivatives trading. It has been actively promoted within the official OPNX Telegram channel. However, key details about the individuals behind OX.Fun and their connection to OPNX remain elusive.
OPNX was launched in April 2023 by Kyle Davies and Su Zhu, co-founders of the unsuccessful cryptocurrency hedge fund, Three Arrows Capital (3AC). Mark Lamb and Sudhu Arumugam, co-founders of the now-bankrupt crypto exchange CoinFLEX, were also involved in OPNX’s creation. Initially marketed as a revival of CoinFLEX, OPNX asserted that it was a distinct entity following a legal dispute with CoinFLEX creditors.
Su Zhu faced legal issues related to 3AC’s bankruptcy proceedings, while Kyle Davies also encountered a committal order. Zhu has since been released after three months of detention.
Despite initial success, OPNX’s trading volume dwindled significantly. In November 2023, it recorded a daily spot trading volume of $23 and $1.2 million for derivatives, a significant drop from its earlier figures.
OX.Fun seems to be targeting the existing OPNX community for adoption. However, users appear to be perplexed about the connection between the two platforms.
OX tokens, associated with OPNX, continue to be traded on various decentralized and centralized exchanges, including Uniswap, Gate.io, BingX, Bitget, MEXC, Poloniex, among others. OX.Fun appears to have garnered some success, with its derivatives volume reaching nearly $39 million on January 30. However, this figure later decreased to $8 million, still surpassing OPNX’s volume at the time.
OX.Fun’s interface bears similarities to decentralized derivatives protocols, featuring a “Connect wallet” option. Nevertheless, it differs from typical decentralized platforms as it lacks in-wallet transaction buttons on its deposit page. Instead, users are instructed to manually send funds to an external deposit address, suggesting a more centralized, custodial approach.
One notable concern for users is that OX.Fun solely accepts OX tokens as collateral, forcing those without OX to acquire it to access the platform. However, OX tokens on Uniswap v3 have low liquidity, often resulting in high slippage, even for small transactions.
Despite its operation, little information is available about OX.Fun’s executives or its registration. Attempts to contact the team through official channels have yielded no responses. Users seeking clarity about the relationship between OPNX and OX.Fun or details about the project’s leadership have encountered difficulties in obtaining answers, further adding to the mystery surrounding the new exchange. Nonetheless, OX.Fun continues to process deposits and withdrawals as usual.