Since the arrest of Zhu Su in Singapore a few weeks ago, his relatively new business venture Open Exchange (OPNX) has begun to falter.
Su and his business partner Kyle Davies (who conveniently handed his X account to the “Kyle Davies team” shortly before Su’s arrest) are more well-known for their defunct hedge fund 3 Arrows Capital, that suffered from undercollateralized loans, poor accounting practices, and a bad bet on a market that would never stop going up.
The pair joined forces with Mark Lamb, the disgraced founder of bankrupt cryptocurrency exchange CoinFlex, and his wife Leslie Lamb, who was also the failed firm’s former CMO, to create a cryptocurrency exchange that specializes in offering the trading of bankruptcy claims from failed cryptocurrency businesses.
As of reporting, the only bankruptcy claims they’re offering for trade are from FTX.
OPNX: Thin books, thin presence
While the four execs were never really able to get bankruptcy claims trading off the ground in any meaningful sense, they did find the time to create numerous cryptocurrencies for the platform. The main token, which goes by $OX, has seen its value plummet from all-time highs, down 93% from the peak in August. $OX has even fallen below its initial coin offering price, currently trading for half of a cent per coin.
The latest hit for OPNX came on the heels of Su’s arrest in September, when the token fell from $0.022 to its current price. It’s unclear how the platform or the token are affected by the arrest.
Regardless of the price of the exchange token, a more serious problem for OPNX seems to be thin order books. According to CoinGecko, the exchange had less than $200,000 worth of assets traded in the last 24 hours. For reference, Binance had between $4-6 billion in 24-hour volume and Coinbase had $1 billion in 24-hour volume.
This is to say that for now, one executive is in a Singapore jail, another is wanted by Singapore authorities (Kyle Davies), while the two others have more or less stopped any social media presence whatsoever.
At the time, the exchange token is floundering, hardly any bankruptcy claims are being offered for trading on the platform, and it appears that no one wants to utilize an exchange created by four business failures.