The quartet of failed crypto entrepreneurs — Zhu Su, Kyle Davies, Mark Lamb, and Leslie Lamb — are already striking out on their latest venture Open Exchange (OPNX), a cryptocurrency and bankruptcy claims exchange that launched a mere two days ago.
So, what’s gone wrong in this incredibly short period of time?
Everything that could.
First off, liquidity has been laughably bad: a total of $1.26 worth of trades were made on the OPNX platform in its first 24 hours. Chief exec Leslie Lamb claimed that this was simply due to radical transparency, stating the firm will be “build[ing] up liquidity via a transparent public marketing program so everyone can see what’s inside the box.” Su added in a hashtag that it’s “building in public.”
Great, maybe next time wait to launch your exchange until liquidity is guaranteed so that users aren’t trading with absolutely no one with order books that are thinner than thin.
Meanwhile, the exchange token OPNX is utilizing, $FLEX — the coin formerly associated with the failed cryptocurrency lending platform CoinFlex — has seen its price plummet from all-time highs. The coin was trading for over $3.00 on March 26 and trading for $1.76 at the time of writing — down 40% in 10 days.
- Su and Davies are infamous in the crypto industry for founding Three Arrows Capital (3AC), which filed for bankruptcy in July.
- The duo must now appear in bankruptcy court in the British Virgin Islands, yet it remains unclear if they’ll show — according to a filing, they have not cooperated “whatsoever” with proceedings so far.
- Mark Lamb is the co-founder of CoinFlex, which suspended withdrawals in June due to liquidity issues. Leslie Lamb is his wife.
Twitter suspended the official OPNX account
The Twitter handle for the exchange (@OPNX_Official) has been suspended. It’s unclear why, but the ban was likely prompted by an influx of angry cryptocurrency users flagging Twitter Support with reports of “platform manipulation and spam.” If this is the case then the account will likely be reinstated at some point in the not-so-distant future.
According to the bird website, platform manipulation and spam entails posting misleading or deceptive links, misusing hashtags, fake engagement, and other suspicious activity.
Unfortunately, none of these problems even begin to near the main concern facing OPNX: that it will be offering assets it has no rights to and that it’s likely selling unregistered securities to retail-facing consumers.