Original author: Lisa, LD Capital
OPNX, formerly known as GTX, is an exchange that supports bankruptcy claims, spot and futures derivatives, jointly launched by Su Zhu, founder of Three Arrows Capital (Three Arrows Capital), Kyle Davies and Mark Lamb, co-founder of CoinFLEX, aiming to simplify the claims process and Build a public market for claims transactions and release trapped capital. OPNX tokenizes bankruptcy claims to trade on the order book trading platform, and allows bankruptcy claims to be used as collateral for contract transactions.
1. Development Timeline
In June 2022, the cryptocurrency derivatives exchange CoinFLEX experienced a liquidity crisis and announced a suspension of withdrawals.
In July 2022, CoinFLEX proposed a compensation plan for users, including issuing rvUSD (Recovery Value USD) representing the value of arrears, compensating users for CoinFLEX shares and locked FLEX tokens, and further distributing existing funds. rvUSD is currently showing a price of $0.15 on OPNX without any trading volume since August.
In August 2022, CoinFLEX applied for reorganization in the Seychelles court. The reorganization plan was approved with a vote of nearly 99%. Creditors will own 65% of the companys shares, and the CoinFLEX team will be allocated 15% of the shares. will continue to be a shareholder of the reorganized company.
January 16, 2023 The Block reports that Su Zhu and Kyle Davies teamed up with CoinFLEX to raise $25 million for new cryptocurrency exchange GTX.
On March 7, 2023, @DefiIgnas tweeted that GTX had completed US$25 million in financing, and the news was also confirmed by Su Zhus forwarding. @DefiIgna said in the same thread that OPNX will acquire all assets of CoinFLEX, including people, technology and tokens; FLEX will be their main token; there may be rebranding similar to AAVE/LEND.
On March 9, 2023, GTX was renamed Open Exchange (OPNX).
On April 4, 2023, Open Exchange (OPNX) announced its official launch, supporting cryptocurrency spot and derivatives transactions. There were only two transactions on the first day of launch, and the transaction volume was only $1.26.
On April 8, 2023, Open Exchange (OPNX) announced the launch of the Maker Program (Maket Maker Program) to incentivize market makers to provide liquidity. There are two main incentive methods:
One is that up to 200 VIP market makers can receive a monthly subsidy of US$5,000,
The second is to provide monthly incentives of US$50,000 to US$500,000 in proportion to the transaction volume.
On April 21, 2023, OPNX tweeted that its investors include AppWorks, Susquehanna (SIG), DRW, MIAX Group, China Merchant Bank International (China Merchants Bank Hong Kong Branch), Token Bay Capital, Nascent, Tuwaiq Limited, etc. However, the next day, DRW, Nascent, MIAX, and Susquehanna (SIG) all denied investing in OPNX. AppWorks officially tweeted that it did not invest money in OPNX, but was transferred into OPNX as an investor in CoinFlex. It is reasonable to speculate that these investors are all investors of CoinFLEX. After the restructuring, they were passively converted into OPNX equity. It is misleading to be described as strategic investors of the new project.
May 2, 2023 Open Exchange (OPNX) said it will launch a claims trading market in partnership with real world asset (RWA) tokenization service provider Heimdall. Heimdall will manage the verification, transfer and tokenization of real-world assets for OPNX users. After verification, all claims will be transferred and held in each platform’s dedicated trust (SPV). Tokens will then be issued against the trust and credited to the claimant’s account. Claims tokens reflect the pro-rata ownership share of claims in the trust.
On June 1, 2023, Open Exchange (OPNX) launched the governance token OX and the corresponding governance platform The Herd. The staking time of OX has five options: 2 weeks, 1 month, 3 months, 6 months, and 1 year. Similar to curve, the longer the staking time, the more voteOX will be obtained, and the corresponding staking interest will be greater.
On June 4, 2023, the OPNX debt trading function was announced to be online.
According to the operating instructions of OPNX, tokenizing claims for trading requires 3 steps:
1. Create an OPNX account and complete KYC
2. Provide detailed information about the claim and submit an application for transfer of the claim
3. Sign the consent transfer form
After completing the above steps, you can trade debt tokens on OPNX trading.
The platform currently has bond trading for Celsius and FTX, but there is little trading volume.
OPNX launched Justice Token on June 12, 2023. Justice Token is a series of tokens issued based on certain risk events. Each token has a total issuance of 1 billion, and 75% of the total supply will be allocated to OX within 6 months. Of the stakers, 20% is allocated to JT-OX’s liquidity providers, and 5% is allocated to the Milady community. The white paper clearly states that Justice Token, as a meme token, has no intrinsic value, no value support behind it, and no expected return. Currently, two Justice Tokens, DUDAS and FTM, have been launched. The annualized returns of OX pledges are 8.9% and 13.2 respectively. The total liquidity pool of the two tokens is only 40,000 US dollars and 10,000 US dollars.
On June 24, 2023, OPNX announced the launch of oUSD, a credit currency convertible with USDT 1:1. oUSD can be used as margin and all profits and losses from futures trading are based on$oUSDPricing, profitable traders will have positive$oUSDThe balance can be passed$oUSD / $USDT trading pair will$oUSDThe profit is realized as$USDT; A losing trader will have a negative$oUSDbalance (interest needs to be paid), the trader purchases$oUSD comesRepay negative $oUSD balance. when$oUSDThe price is greater than $1 and the user is motivated to sell$oUSD,when$oUSDWhen the price is less than $1,$oUSDUsers with negative balances have an incentive to buy and can repay borrowed positions at a cheaper price to maintain$oUSDPrices are stable.
On June 25, 2023, OPNX announced the launch of the first Launchpad project unsecured credit market Raiser (RZR). All OX pledgers share 10% of the RZR supply allocation. As of now, the product has not been launched. RZR was listed on OPNX on July 17, with an initial price of 0.164 USDT. However, there has been no trading volume so far. RZR has about 250k liquidity on uniswap, and the recent daily trading volume is about 10,000 USD.
July 26, 2023 One month after the first launchpad, OPNX has announced its second Launchpad project, UFC Champion Khabib Nurmagomedov’s new sports metaverse venture Gameplan. The investment is led by 3AC Ventures, and a portion of GPLAN tokens will be distributed to OX staking users. Users can own tokens of their favorite sports teams and contribute to team management, strategy and other related decision-making processes through token voting. Gameplan currently only has Twitter and Discord, and no official website, white paper or other relevant information has been found.
On August 6, 2023, Bloomberg reported, citing people familiar with the matter, that OPNX) proposed to inject FLEX digital tokens equivalent to US$30 million into the bankrupt Singaporean crypto lending platform Hodlnaut.
2. Token Economy
1. Total supply
Total supply of OPNX’s platform token $OX = (Total supply of $FLEX - $FLEX burned) * 100
9.86 B= ( 100 M — ~ 1.4 M) * 100.
The current OX pledge rate is approximately 70%.
2. Token utility
(1) Transaction fee refund
OX allows users to trade for free through staking. If the total OX pledge amount held by a trader is equal to or greater than its total OPNX transaction amount, 100% of the transaction fee will be refunded. For pledges exceeding the free transaction limit Participants will receive 50% of the transaction fee rebate on the remaining part, and all transaction fee rebates will be paid to currency holders in the form of OX.
(2) Transaction fee discount
Unstaking ox users also receive up to 50% off trading fees.
(3) Stake to receive OPNX Launchpad Justice Tokens airdrops rewards
(4) As collateral for futures trading
(4) Significantly reduce RWA tokenization fees.
3. $FLEX-$OX conversion
$FLEX can choose to convert $FLEX to $OX at a ratio of 1:100. If you choose to lock up for three months during the conversion, you can get a 25% bonus. The preferential exchange ratio of 1:125 will be on August 28, 2023 end of day. Currently approximately 35% of $FLEX has been converted to $OX.
Theoretically, the price of FLEX:OX should be 100:1. Since it is a one-way exchange mechanism, the price of FLEX should not be lower than OX. When the price of FLEX is lower than this ratio, users tend to redeem it for OX, so that the FLEX price returns to this ratio; when the price of FLEX is higher than this ratio, users will not choose to redeem it, but because they cannot exchange OX back FLEX makes arbitrage impossible.
https://ox.opnx.com/flex-statistics
3. Price performance
2022 flex plummeted after CoinFLEX announced withdrawal suspension in June;
After the news of GTX financing came out in January 2023, Flex came back to life and the price entered an upward channel, reaching a maximum of $2.8;
At the beginning of April 2023, Open Exchange (OPNX) was officially launched, and the business data was bleak. There were only two transactions on the first day of the launch. On that day, Flex plummeted after it was launched on OPNX, and then fell by more than 70%;
OX was launched on June 1, 2023, and FLEX entered the rising channel again in collaboration with OX. It began to rise significantly on June 5. Among them, two launchpad messages brought about an increase of about 33% and 14% respectively. So far this year, there have been A hundredfold increase.
From the perspective of total market capitalization, OPNX is close to $700 million, surpassing Bitget’s $640 million, Gate’s $560 million, Kucoin’s $540 million, and huobi’s $410 million.
Source: coingecko
From the perspective of business data, OPNX’s daily trading volume has grown rapidly from the single digits when it was first launched to more than 100 million US dollars. The vast majority of the trading volume occurs in contract transactions. The spot trading volume data only shows tens of thousands of US dollars. The trading volume It is far lower than Bitget, Gate, Kucoin and huobi. At the same time, OPNX transaction data has inconsistent fluctuations in volume and price, and the authenticity of the data has been questioned.
4. Debt trading track
The other two major players in the current crypto claims trading market are Xclaim and Claims-Market.
Xclaim was founded in 2018 to provide crypto claimants with transparent pricing and fast execution. Founder and CEO Matthew Sedigh has 15 years of experience in the corporate restructuring industry. Xclaim currently provides debt transactions on five bankruptcy platforms: Genesis, FTX, BlockFi, Celsius and Voyager. The discount range is about 20% to 40%. The number of transactions is 1,070, with a total amount of about US$356 million. The transaction model is mainly case by case.
Claims-Market is a claims product under the investment bank Cherokee Acquisition. It is aimed at users of all debt transactions, not just crypto. The general process of the transaction is that the seller signs the Seller Agreement and the Simple Assignment of Claim (SAC) (Simple Assignment of Claim, SAC) and lists its claims; the buyer signs the buyers agreement and chooses the appropriate quotation or bid; A Simple Claim Assignment Agreement signed by the seller and all exhibits are sent to the buyer confirming ownership. Claims-Market has also developed a Simple Pass Through Assignment (SPTA) to facilitate secondary trading of claims. Creditors have sold $190 million in claims so far in 294 transactions, according to the platform.
https://claims-market.com/transactions
In terms of products, OPNX is trying to create a highly liquid standardized order book market and debt collateral functions that the former two do not have.
V. Summary
From the perspective of product conception, OPNX is the most complete and comprehensive debt trading track, but from the perspective of actual operation, the trading volume of tokenized debt is extremely low, and the launch of FTX debt has not brought a turning point for it. The development of OPNXs main debt trading In the face of difficulties, breakthroughs are needed; at the same time, OPNX frequently launches various empowerments, and good news continues, but the quality of the launchpad project has been criticized; from the perspective of valuation, OX has a higher premium than other exchange platform tokens.
