A look at OPNX co-sponsored by Su Zhu: Newly launched governance token OX attracts transactions, and debt transactions have no transactions for many days

In this round of bear market in cryptocurrency, giants such as Celsuis and FTX have gone bankrupt. Although creditors may receive partial compensation in the end, the complex bankruptcy procedures and financial problems may cause the litigation to continue for several years.

Kyle Davies and Su Zhu, the co-founders of Three Arrows Capital, and the co-founders of CoinFLEX jointly created a cryptocurrency debt (or claim) exchange, Open Exchange (OPNX), which allows users to tokenize their debts and cash them out in advance. OPNX is now online. At the beginning of its establishment, the platform's trading volume was extremely poor. With the recent issuance of a new governance token $OX and the opening of Celsius's debt claims and transactions, has OPNX ushered in a new opportunity for development? PANews observed that OPNX has gradually turned into a trading platform, and the trading volume of the debt platform it originally created is very small.

It is planned to support debt trading of 10 companies. The recent trading volume of rvUSD and CELSIUS is 0

As a platform featuring debt trading, OPNX plans to support claims trading for multiple bankrupt companies, including Celsius, FTX, Genesis, BlockFi, etc.

The first debt token launched by OPNX was based on the debt of CoinFLEX. According to the restructuring terms approved by the Supreme Court of Seychelles, CoinFLEX distributed 83.65 million rvUSD (Recovery Value USD Tokens) to creditors. CoinFLEX exchange stopped trading in April this year. Because the co-founder of CoinFLEX is also the co-founder of OPNX, the KYC information and account balance of CoinFLEX users can be seamlessly migrated to OPNX, which also brought the first batch of users to OPNX.

Since its launch in April, the price of rvUSD has fallen from a high of over $0.6 to the current $0.1875, with zero trading volume in recent days and little liquidity near the market price as of June 7.

On June 1, OPNX opened Celsius claims and transactions, and the token name is CELSIUS. Considering the scale of Celsius's 600,000 creditors, 85% of which are retail investors who owe less than $5,000, it is difficult for these people to complete transactions through OTC and other channels. OPNX also needs to acquire user groups at the beginning of its establishment, but OPNX also has no trading volume at present.

Although rvUSD and CELSIUS are both debt tokens, OPNX believes that the first claim transaction opened on the platform is CLESIUS. Perhaps considering the relationship between CoinFLEX and OPNX, rvUSD is issued by a special purpose company, and the claim process did not occur on OPNX. The debt tokens of CLESIUS and subsequent FTX are directly collected on the OPNX exchange. According to OPNX rules, the following four steps are required to complete the debt transaction of CELSIUS.

Registration: Create an OPNX account and complete KYC; Application: Provide debt details and submit a debt transfer application; Sign: Sign a debt transfer agreement; Transaction: Trade debts and obtain liquidity. Almost all trading volume comes from perpetual contracts.

While supporting tokenized debt trading, OPNX also opened spot and futures trading of mainstream cryptocurrencies such as BTC and ETH. Unlike the situation where almost no one trades debt tokens, the trading volume of OPNX perpetual contracts is on the rise. According to official website data, the total daily trading volume of OPNX is about 15 million US dollars recently.

As of June 7, the total trading volume in the past 24 hours was $8.508 million, of which spot trading volume was $148,000 and perpetual contract trading volume was $8.36 million, accounting for 98% of the perpetual contract trading volume. The trading volume of debt tokens is included in spot trading, and the spot trading volume comes entirely from trading of popular currencies such as BTC and FLEX. The trading volume of debt tokens rvUSD and CELSIUS is zero.

As things stand, OPNX has not developed into a debt trading platform, but is similar to a traditional cryptocurrency exchange. The vast majority of its trading volume comes from perpetual contract transactions of mainstream currencies such as BTC, and its spot trading volume also comes from mainstream currencies. Few debt tokens are traded and lack liquidity.

FLEX and OX Tokens

Since the co-founder of CoinFLEX is also the co-founder of OPNX, the user information and account balance of CoinFLEX can be directly transferred to OPNX. OPNX also decided to directly use CoinFLEX's native token $FLEX as the platform currency of the new exchange at the beginning, which made $FLEX jump from the platform currency of the bankrupt exchange to the platform currency of Su Zhu's new exchange, and the price rose more than 50 times in 3 months.

It can be seen from the OPNX official website that $FLEX is indeed the native token of the OPNX exchange. However, on May 31, OPNX re-issued a governance token $OX and launched the staking platform The Herd. OX is taken from the two capital letters of Open eXchange. The names of OX and The Herd may also be for the purpose of appearing auspicious in Chinese. Although $FLEX will be gradually abandoned, the rights and interests of holders have not been sacrificed.

According to the OX token whitepaper, the maximum supply of $OX is 9.86 billion, which is derived from the maximum issuance of $FLEX of 100 million minus the 1.4 million that have been destroyed multiplied by 100. $FLEX can be exchanged for circulating $OX at a ratio of 1:100. If you choose to exchange $FLEX for staked $OX, you can exchange it at a ratio of 1:125, with the additional amount paid by the OPNX Treasury.

Compared with other exchange platform coins, the special feature of $OX is that you can get the same proportion of free transaction quota in OPNX according to the pledge ratio, and only 50% of the handling fee is required for the excess. If a user's pledged $OX accounts for 2% of the total pledged amount and the transaction volume accounts for 4% of the total OPNX transaction volume, then the 2% transaction volume can be completely exempted from the handling fee, and the excess 2% transaction volume can also only require a 50% handling fee.

At this stage, in order to attract pledges, OPNX has an additional pledge multiplier, which is currently 12 and will decrease year by year. This means that as long as the pledged $OX accounts for 1% of the total pledged amount, transactions within 12% of the total transaction volume can be free of fees.

In addition, $OX is also a governance token that can vote to change the basic functions of the exchange, including fees, destruction mechanisms, listings, etc. In addition, pledgers can also profit from OPNX's real-world asset (RWA) business and reduce fees when generating tokenized real-world assets.

As a new exchange, OPNX’s operations do not seem to be compliant. The Dubai Virtual Asset Regulatory Authority issued a written reprimand to OPNX’s co-founder and its CEO on April 18, accusing them of operating and promoting their digital asset exchange OPNX without the necessary local licenses.

Summary

Although OPNX is a debt trading platform and has launched Celsius debt trading, the current trading volume of OPNX also mainly comes from perpetual contract trading of mainstream currencies, and the trading volume of debt tokens in the past 24 hours is zero. Although its trading volume is on the rise, the total trading volume of $15 million per day is still low.

OPNX initially used CoinFLEX's platform coin $FLEX as its native token. Although $OX was recently re-issued as a governance token, the equity of $FLEX has not been diluted and can still be exchanged for the same proportion of $OX. Due to the free staking fee for $OX and the additional staking multiples now, the cost of achieving free transactions in OPNX is not high.