Co-founder’s Arrest Triggers Crash in OX Token Value
The recent arrest of Open Exchange’s (OPNX) co-founder, Su Zhu, has had a significant impact on the value of the exchange’s native token, OX. Zhu is also known as the co-founder of the now-defunct crypto hedge fund Three Arrows Capital (3AC). News of his arrest led to a fire sale of approximately $1 million worth of OX tokens, causing the token’s value to plummet to an all-time low of around $0.010. Although there has been a minor recovery to $0.01462, the token remains down by more than 80% from its peak.
This sharp decline in value also resulted in a drop of over $30 million in market capitalization for OX, which currently stands at around $57 million. The OX token serves as the native currency for OPNX, an exchange that specializes in trading claims of insolvent crypto firms like FTX. Holders of OX tokens benefit from reduced trading fees and participate in governance activities on the platform.
OPNX’s Controversial Launch and Current Trading Volumes
The launch of OPNX in April faced controversy due to its association with the struggling CoinFLEX exchange and the co-founders’ involvement with 3AC. According to Coingecko data, OPNX’s spot trading volume is less than $20,000, while its derivatives market boasts a trading volume of nearly $70 million in the last 24 hours.
Implications of Zhu’s Arrest
Zhu was apprehended in Singapore on September 29 while attempting to flee the country. He now faces a four-month prison sentence following a committal order from a Singaporean court. Zhu and his partner, Kyle Davies, led the multibillion-dollar fund 3AC, which controlled about $10 billion worth of assets at its peak. However, the fund collapsed during last year’s market downturn. As a result of their actions, Singaporean authorities imposed a multi-year trading ban on the founders, and liquidators consistently complained about their lack of cooperation during the liquidation process.
Hot Take: OX Token Faces Steep Decline Following Co-founder’s Arrest
The arrest of Su Zhu, co-founder of Open Exchange and Three Arrows Capital, has had a detrimental effect on the value of OX tokens. The news prompted a significant sell-off, causing the token’s value to plummet to an all-time low. Despite a minor recovery, the token remains down by more than 80% from its peak. This decline has also led to a substantial drop in market capitalization for OX. The arrest adds further controversy to OPNX, which already faced criticism due to its association with CoinFLEX and 3AC co-founders. It remains to be seen how this event will impact the future of OPNX and OX tokens.
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