Open Exchange (OPNX), the trading platform founded by Kyle Davies and Su Zhu, is set to close on February 14, according to an email sent to users on February 1. Trading will cease on February 7, but users will still be able to make withdrawals until the final closure date.
A new exchange called OX.Fun has emerged as a potential replacement for OPNX. OX.Fun utilizes OPNX’s native token, Open Exchange Token (OX), as collateral for derivatives trading and has been heavily promoted on the official OPNX Telegram channel. However, there is limited information available about the individuals behind OX.Fun and their connection to OPNX.
OPNX was launched in April 2023 by Davies and Zhu, who were co-founders of the failed cryptocurrency hedge fund Three Arrows Capital (3AC). Mark Lamb and Sudhu Arumugam, co-founders of bankrupt crypto exchange CoinFLEX, were also involved in the creation of OPNX. Initially, OPNX was marketed as a reboot of CoinFLEX, but the OPNX team later claimed that the two exchanges were separate entities after becoming embroiled in a legal dispute with CoinFLEX creditors.
Zhu was arrested for violating a committal order during 3AC’s bankruptcy proceedings, and a similar order was issued against Davies. Zhu has since been released after three months of detention.
OPNX experienced some success throughout 2023, but by the time the decision to close was announced, its trading volume had significantly dropped. OX.Fun has emerged as a potential alternative and has already achieved some level of success, with its derivatives volume reaching nearly $39 million on January 30.
The user interface of the OX.Fun app resembles decentralized derivatives platforms like GMX, dYdX, and Level Finance. However, unlike these platforms, OX.Fun does not utilize in-wallet transactions for deposits. Instead, users are asked to manually send funds to an external deposit address, indicating that OX.Fun may be a centralized, custodial futures trading platform.
One concern for users of OX.Fun is the high slippage experienced when trading OX tokens. The platform exclusively accepts OX as collateral, meaning users must purchase the token if they do not already own it. However, OX has low liquidity, and slippage often exceeds 50% even for small purchases.
Despite its success, there is limited information available about the individuals behind OX.Fun and the company’s registration. Attempts to contact OX.Fun for further details have been unsuccessful. Users have also reported difficulty in obtaining information about the relationship between OPNX and OX.Fun. While there is uncertainty about the individuals running OX.Fun, the platform appears to be functioning normally for deposits and withdrawals.