Open Exchange (OPNX), a cryptocurrency exchange launched by Su Zhu and Kyle Davies, the disgraced founders of Three Arrows Capital (3AC), is currently embroiled in a controversial standoff with its supposed investors. The exchange has openly criticized its investors for denying association with the platform and claiming that they never backed it. The controversy began when OPNX shared a list of its supposed investors, which included venture capitals and trading firms such as AppWorks, Susquehanna (SIG), DRW, MIAX Group, Merchant Bank International, Token Bay Capital, Nascent, and Tuwaiq Limited. However, almost half of the listed investors have claimed that they never funded OPNX and denied association with the exchange.
AppWorks, one of the investors on the list, took to Twitter and revealed that it was a backer of CoinFlex, a cryptocurrency platform that launched Open Exchange with 3AC’s Zhu and Davies. According to AppWorks, its equity in CoinFlex was “forcibly” converted to OPNX. The firm made it clear that it had not committed any capital to OPNX and that it did not support the actions of Zhu and Davies. Other investors on OPNX’s list publicly announced that contrary to what the cryptocurrency platform had claimed, they hadn’t participated in its funding round or backed it in any other form. Nascent was the first to clarify that it had not pledged any funds to Open Exchange. This was followed by a tweet from DRW Trading stating that it wasn’t an investor in OPNX.
The public denial of association by several of its supposed investors has led to a rather controversial statement from OPNX, wherein it accused the investors of engaging in “ugly” tactics to seek financial gain while simultaneously denying association due to fear of social media backlash. Leslie Lamb, the CEO of OPNX, took to Twitter and described the investors’ conduct as “disgusting and disappointing.” The CEO further added, “Investors want all the upside with little to no risk. But I’m here to remind everyone that’s not how entrepreneurship works, if it isn’t already clear.”
The controversy has led to a decline of over 18% in OPNX’s primary token FLEX. The exchange has been criticized for its handling of the situation, with many questioning the legitimacy of the platform and its supposed investors. The incident highlights the need for greater transparency and accountability in the cryptocurrency industry, which has been plagued by fraudulent activities and scams in recent years.
It remains to be seen how OPNX will address the situation and regain the trust of its users and investors. The cryptocurrency exchange has yet to release an official statement regarding the controversy. However, the incident serves as a cautionary tale for investors and entrepreneurs alike, highlighting the importance of due diligence and transparency in the fast-paced world of cryptocurrency.
