OPNX Hits $17M Despite Weak Start Caused by Low Liquidity

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Bank­rupt­cy claims exchange OPNX has launched a new OX gov­er­nance token to incen­tivize trad­ing of Cel­sius claims and oth­er cryp­to assets.

The new ERC-20 token offers trad­ing fee dis­counts as the firm looks to boost trad­ing volumes.

New Token Launch Boosts OPNX Trading Volumes

At press time, 133 peo­ple had either mint­ed or bought the asset, while the amount staked is cur­rent­ly 136 mil­lion OX.

Cus­tomers whose share of all staked tokens match­es their share of OPNX’s week­ly vol­ume will receive a 100% fee rebate. Stak­ers can also vote on deci­sions to change fees or list­ings on the exchange. 

Hold­ers of the exchange’s pre­vi­ous­ly launched FLEX token can receive OX in a 1:100 ratio.

OPNX is a bank­rupt­cy claims mar­ket­place co-found­ed by for­mer 3AC execs Kyle Davies and Su Zhu to trade claims of bank­rupt cryp­to firms. It offers cred­i­tors instant liq­uid­i­ty by buy­ing claims at a discount. 

The plat­form then assumes the risk of recov­er­ing the orig­i­nal claim once courts final­ize a debtor’s bank­rupt­cy distributions.

Despite pal­try num­bers ear­ly on, OPNX trad­ing vol­umes spiked to $17 mil­lion after the launch of OX. Zhu ini­tial­ly blamed poor OPNX vol­umes on a lack of liq­uid­i­ty caused by the absence of an inter­nal mar­ket maker.

OPNX Trading Volumes
OPNX Vol­ume Hits $17.5 Mil­lion | Source: Flexs­ta­tis­tics

Zhu and Davies found­ed 3AC to apply Zhu’s super-cycle the­sis that cryp­to prices will rise with grow­ing adop­tion despite short-term bear­ish devi­a­tions. The firm filed for bank­rupt­cy last year after the Ter­ra LUNA deba­cle tanked cryp­to prices. 

A US court rebuked Davies for fail­ing to respond to a sub­poe­na request­ing 3AC com­pa­ny infor­ma­tion. The pair have also only min­i­mal­ly coop­er­at­ed with liq­uida­tors appoint­ed to wind down 3AC’s bank­rupt­cy estate.

Why Only Celsius Claims?

At press time, OPNX only list­ed tok­enized bank­rupt­cy claims for Cel­sius cred­i­tors. Cel­sius col­lapsed last year after lever­aged invest­ments were hurt by the cryp­to mar­ket down­turn in July last year.

Vis­chal Shah, CEO of Heim­dall, the firm respon­si­ble for tok­eniz­ing OPNX’s claims, said that Cel­sius had a com­pre­hen­sive cred­i­tor list that sim­pli­fied the cre­ation of the new tech­nol­o­gy layer.

“Cel­sius has a com­plete­ly unredact­ed data­base, so it’s very easy to kind of mine that infor­ma­tion, and parse it in the way that you need and kind of work toward a seam­less val­i­da­tion [of claims].”

OPNX Celsius claims
Cel­sius Bids Start­ed at 30 Cents on the Dol­lar | Source: OPNX Exchange

The firm has not start­ed work on FTX’s bank­rupt­cy claim since bank­rupt­cy pro­ceed­ings have yet to release account infor­ma­tion, except for the top 50 creditors. 

Click here for the full back­ground of the col­lapse of FTX.

Shah said Heim­dall had tak­en a con­ser­v­a­tive approach to avoid bank­rupt­cy claim fraud.

“As a lot of this infor­ma­tion begins to drip feed, over time we’ll be able to take on FTX claims.”

FTX filed for bank­rupt­cy on Nov. 11, 2022, and is believed to be the largest cryp­to fail­ure. It owes its top 50 cred­i­tors $3 billion.

Shah said Heim­dall would soon open an intake por­tal for FTX claims.

For BeInCrypto’s lat­est Bit­coin (BTC) analy­sis, click here.

Disclaimer

In adher­ence to the Trust Project guide­lines, BeIn­Cryp­to is com­mit­ted to unbi­ased, trans­par­ent report­ing. This news arti­cle aims to pro­vide accu­rate, time­ly infor­ma­tion. How­ev­er, read­ers are advised to ver­i­fy facts inde­pen­dent­ly and con­sult with a pro­fes­sion­al before mak­ing any deci­sions based on this content.



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