Three Arrows co-founder Kyle Davis describes the business model of the soon-to-be-launched exchange OPNX, which has aroused skepticism from the crypto community.
Davies and Su Zhu met at Columbia University where they founded 3AC in 2012. It operates as a crypto hedge fund, borrowing billions of dollars to fund trading activities.
But due to market-wide liquidity problems, it went bankrupt in July 2022 and has 3.5 billion in debt.dollar
However, in January It appears that the pair has teamed up with CoinFLEX founders Mark Lamb and Sudhu Arumugam to raise $25 million for the new exchange.
CoinFLEX suspended user withdrawals in June 2022, while most recently on March 7 Twitter accounts @DefiIgnas It posted a screenshot from OPNX’s landing page mentioning the $25 million fundraising, asking if you have any money stuck on the bankrupt crypto platform. Followed by the company’s offering.
after posting @DefiIgnas Saying that Davies reached out to him to explain OPNX collateral and token systems, @DefiIgnas said that over 20 million people have been affected by crypto bankruptcies, with about $20 billion in debt.
Essentially, OPNX intends to generate tokens for bankruptcy claims and to trade these tokens in the exchange’s order book.
Platform users can also trade Perpetual Futures using bankruptcy tokens as collateral.
OPNX Acquires CoinFLEX Assets, Including FLEX Tokens
However, the crypto community is skeptical about what OPNX is trying to be.one usersaid it “looks like a useful product,” but given 3AC’s reputation, “I would not endorse these products.”
There are also questions about guarantees, such as the discrepancy between the face value of claims. and what the user will get back likewise The question arises whether bankruptcy claims can be changed or not.
refer : LINK
picture LINK
The post Three Arrows co-founder is back with the soon-to-launch OPNX exchange appeared first on Bitcoin Addict.