The highly controversial “Open Exchange” (OPNX) headed by once-failing Crypto CEOs has reached its $25 million fundraising goal, though the founders have yet to reveal their benefactors.
Meanwhile, crashed crypto exchange CoinFLEX has revealed that its restructuring deal has been approved by a Seychelles court, briefly increasing the price of its token.
OPNX Release Plans
according to a Twitter thread of DefiIgnas (later retweeted by co-founder Zhu Su), Kyle Davies contacted the DeFi researcher Monday night with the news that the fundraiser was now complete.
Leaked in January, the increase It will help build an exchange to settle the bankruptcy claims of other downed crypto exchanges and companies that let creditors dry up during the 2022 bear market.
“Users will be onboarded through a special purpose vehicle, which is sometimes called a bankruptcy remote entity,” Ignas explained. The exchange will comply with Know Your Customer (KYC) rules and will not be available to US citizens.
when officially Announced Last month, Zhu Su, once a co-leader of the now-defunct hedge fund Three Arrow Capital (3AC), said creditors had agreed that starting the new exchange would be “the smartest way to use our existing resources.” However, many were skeptical about the actual practicality of launching an exchange based on bankruptcy claims, which are highly personalized and not as fungible as standard tokens and cryptocurrencies.
Ignas said that similar claims on OPNX will be bundled and tokenized, to increase fungibility, and traded on the order book exchange. Withdrawals of these tokens will not be enabled to ensure that they do not end up in the hands of US citizens.
Clients can even use bankruptcy claims as collateral to trade perpetual futures. However, borrowing and borrowing for stablecoins and other cryptocurrencies will not be available.
The fate of CoinFLEX
On Tuesday, CoinFLEX published a blog post stating that its restructuring plan had been approved. While he awaits a written order from the court before providing further details, Ignas’ thread claims that OPNX will acquire all of CoinFLEX’s assets, including its “people, technology, and tokens.”
CoinFLEX CEO Mark Lamb joined the 3AC duo to create OPNX after a failed loan deal with Roger Ver left his company insolvent. The old exchange’s native token, FLEX, will now be used as OPNX’s primary token.
As specified by Ignas, FLEX will be able to be used to pay fees and will be subject to a buy-and-burn using 20% of OPNX proceeds. “There are currently 100 million FLEX tokens in circulation, of which 2 million have already been burned through fees,” he explained.
FLEX may also undergo a 1:1 rebrand with a new token, just like DeFi AAVE/LEND tokens.
Davies has also reportedly proposed to sue Genesis and Grayscale to maximize the value of the bankruptcy estate. This would follow a similar move by Alameda, which defendant Grayscale on Monday for not allowing its clients to redeem their shares for Bitcoin or Ethereum.
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