Collapse of Open Exchange’s Local Currency (OPNX) Following Co-Founder’s Arrest
Open Exchange’s local currency (OPNX) has collapsed following the arrest of co-founder Su Zhu.
Drills with symbolic value OX
When Zhu was arrested in Singapore, it sparked a massive wave of selling pressure, leading to a sharp decline in the value of OX tokens. according to Alphabet scienceNearly $1 million worth of OX tokens were hastily dumped by token holders in the days following the news.
As a result, OX tokens fell as low as $0.010. Although there has been a slight recovery since the initial crash, the value of the token remains down more than 83% from its all-time high.
OX is the native cryptocurrency of OPNX, a specialized exchange designed to trade the claims of insolvent cryptocurrency companies such as FTX. OX token holders benefit from reduced trading fees on the platform and have a say in governance activities.
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OPNX launched in April amid controversy over its association with Zhu as well as Kyle Davis, co-founders of the now-defunct cryptocurrency hedge fund Three Arrows Capital (3AC).
Su Zhou’s Arrest
This month, Su Zhou’s arrest at Changi Airport in Singapore sent shockwaves through the Web3 community.
After failing to comply with court instructions, Zhou was sentenced to four months in prison after a deposit order was issued.
Tinio, the court-appointed joint liquidator of 3AC, revealed that a similar referral order had been made against Davies, whose whereabouts remain unknown at the time of writing.
As Cho begins his sentence, the liquidators are now focusing on “recovering assets that either belonged to 3AC or were acquired using 3AC funds.”
The Su Zhu saga has once again demonstrated that centralized cryptocurrency platforms cannot be trusted.
Zhu and Davies once controlled crypto assets worth about $10 billion, making 3AC one of the largest Web3 companies in the world.
However, falling cryptocurrency prices coupled with questionable trading strategies led to its assets being cleaned, and the company was unable to repay lenders. When 3AC went bankrupt, liquidator Tinio reported that both founders were uncooperative.
3AC is Exposed
3AC saw a major collapse in 2022 following the collapse of Du Kwon’s Terra ecosystem.
Excessive leverage on long positions across various crypto assets and borrowing large amounts of money led to their bankruptcy.
After the collapse, Cho and Davis defaulted on loans and went into hiding, leading to legal action being taken against them.
In May, they received a written reprimand from Dubai Asset Regulatory Authority (VARA) for operating this project.
Earlier this month, the Monetary Authority of Singapore (MAS) banned 3AC’s co-founders from conducting financial activity in Singapore for nine years each.
OX Symbol Gloom
The open exchange token (OX) is trading at around $0.0136, which represents a 35% decline in the past week and a 70% decline in the monthly time frame.
The current downward pressure on OX has led to a collapse of over $30 million in the token’s market cap, which is now hovering at around $53 million.
The future of the OX token and the Open Exchange remains uncertain as the cryptocurrency community grapples with the aftermath of Su Zhu’s arrest and the downfall of 3AC.
Investors and stakeholders are closely monitoring developments in this unfolding saga.
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