If you’re feeling optimistic about the state of the cryptocurrency industry post-FTX’s dramatic collapse, here’s some bad news: FLEX, the token associated with CoinFLEX, a bankrupted crypto futures and lending exchange, has rocketed by 3,000%.
The crypto has jumped from five cents to $1.50 since it was revealed that it would be utilized as the token of choice for the new Su Zhu, Kyle Davies, and Mark Lamb-run cryptocurrency bankruptcy claim exchange, OPNX.
- Zhu and Davies previously founded crypto hedge fund Three Arrows Capital (3AC). The company went into liquidation earlier this year after failing to meet its margin calls.
- Since the liquidation, Zhu and Davies have refused to play ball with investigators looking into the firm’s collapse. They have so far refused to comply with a subpoena demanding they turn over 3AC’s financial records.
- Shortly after the collapse, Davies and Zhu apparently fled to Dubai. Their whereabouts are currently unknown and the closest anybody has come to pinning them down is to locate the luxury yacht ordered — but never fully paid for — by the pair.
Despite the fact that the only markets where you can trade FLEX are Uniswap — a decentralized exchange — and CoinFLEX, the intense upward pressure is still highly speculative. It’s also puzzling when we consider that there aren’t many specifics as to how FLEX can or will be used by OPNX.
In the public declaration, it states it will be capped at 100 million tokens, provide trading fee reductions, and be burned when utilized — a very ‘2017’ ICO pitch, similar to how CEL token was utilized on the now-bankrupt Celsius Network.
This can’t be real life
Meanwhile, few concrete details exist about OPNX itself, other than the fact its founders all remain in non-extradition United Arab Emirates, and a pitch deck asking for $25 million being passed around in January.
Its website describes its previous experiences as being flawed by “bet[ting] big” and “rely[ing] too much on trust.” It also says it has the right team in place for the job because CoinFLEX had “zero hacks” and 3AC managed a “60+ person team.” These statements are made entirely unironically.
The three executives are continuing on a journey near and dear to their hearts: bankruptcy. The Dubai-based claims exchange is hoping to draw the likes of retail investors and venture capital who have seen their savings and investments become stuck on exchanges or evaporate in overleveraged bets by hedge funds — the same individuals and VCs they already lost money on behalf of in 2022.
But as far as funding goes, it doesn’t seem to matter. The team is moving forward with plans for OPNX, seemingly unphased, getting all the funding it needs, and running with the name ‘Open Exchange’ (despite the fact that a startup involved in financial services called Open Exchange has existed since 2009).