Markets

OPNX reached $17 million despite a weak start stemming from low liquidity

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

The new ERC-20 token offers discounts on trading fees as the company looks to increase trading volumes.

New Token Launch Boosts OPNX Trading Volumes

At the time of publication, 133 people have staked or bought the asset, while the amount currently garrisoned is 136 million OX.

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

Holders of the FLEX token previously launched on the exchange can receive OX at a ratio of 1:100.

OPNX is a bankruptcy claims marketplace co-founded by former 3AC directors Kyle Davis and Su Zhou to trade claims of bankrupt crypto companies. It provides creditors with instant liquidity by purchasing claims at a discount.

The platform then assumes the risk of recovering the original lawsuit once the debtor’s bankruptcy distributions have been finalized by the courts.

Despite paltry numbers early on, OPNX trading volumes have climbed to $17 million after Launch OX. At first cho Blame OPNX’s weak volumes due to lack of liquidity caused by the lack of an internal market maker.

OPNX volume reaches 17.5 million dollars | source: Flexstatistics

Zhu and Davies founded 3AC to apply Zhu’s supercycle thesis that crypto prices will rise with increased adoption despite short-term downward anomalies. The company filed for bankruptcy last year after the Terra LUNA disaster sent cryptocurrency prices plummeting.

A US court reprimanded Davis for failing to respond to a subpoena requesting information on 3AC. The couple also cooperated only scantily with the liquidators appointed to end the bankrupt 3AC estate.

Why only percentage claims?

At the time of publication, OPNX has only listed the tokenized bankruptcy claims of percentile creditors. Percentage collapsed last year after leveraged investments were hit by the cryptocurrency market downturn in July last year.

Vischal Shah, CEO of Heimdall, the company responsible for tokenizing OPNX claims, said Celsius has a comprehensive payable list that simplifies the creation of the new technology layer.

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

OPNX Celsius Claims
Percentage bids start at 30 cents on the dollar Source: OPNX exchange

The company has not begun work on the FTX bankruptcy lawsuit because the bankruptcy proceedings have not yet disclosed account information, except for the top 50 creditors.

Click here for the full background of the FTX meltdown.

Shah He said Heimdall took a conservative approach to avoid fraud in his bankruptcy claim.

“As a lot of this information starts to trickle down, over time we will be able to get FTX claims.”

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

Shah said Heimdall will soon open an entry portal for FTX Claims.

For the latest Bitcoin (BTC) analysis from BeInCrypto, click here.

Disclaimer

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

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