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Leslie Lamb, the CEO of Open Exchange (OPNX), a crypto claims trading platform, took to Twitter to call out venture capital firms that had publicly distanced themselves from the project after being named as investors. On April 22, Lamb tweeted that the behavior of the firms was “disgusting” and “disappointing,” saying that they “want all the upside with little to no risk.”
He further reminded them that entrepreneurship does not work that way. Nearly half of the firms named by OPNX denied having invested in the platform, prompting Lamb’s response. As a result, the price of FLEX, the primary token of OPNX, dropped more than 21%. This article explores the developments in the Open Exchange saga, highlighting the events that led to the CEO’s Twitter outburst and the reactions from the broader crypto industry.
Background on OPNX and Its Backers
OPNX is a bankruptcy claims firm established by Kyle Davies and Su Zhu, the founders of the bankrupt crypto hedge fund Three Arrows Capital (3AC). According to the company’s pitch deck, which was first circulated in January, the platform will allow investors to buy and sell claims on bankrupt crypto firms such as 3AC and FTX. Unlike other claims market firms, Open Exchange purports to allow customers to use claims as collateral for trading. The company also stated that it could help “fill the power vacuum left by FTX” and expand into other more regulated markets like stocks and equities.
The drama surrounding Open Exchange began on April 21 when the company tweeted a video of Lamb thanking a number of “major investors” for their support. The list of investors named by OPNX included AppWorks, Susquehanna (SIG), DRW, MIAX Group, China Merchant Bank International, Token Bay Capital Nascent, and Tuwaiq Limited. However, nearly half of the firms listed denied having invested in OPNX and publicly distanced themselves from the project.
Nascent, a decentralized finance (DeFi) trading firm, claimed that it did not participate in a funding round for OPNX but had bought Coinflex (FLEX) tokens, which were first issued by the company’s previous manifestation. Taiwan-based venture capital firm Appworks clarified that its funding had been “forcibly converted” from its initial holdings in CoinFLEX and that it “does not support what [Davies and Zu] did during the last days of 3AC.” Capital market company DRW Trading also bluntly tweeted that it is “not an investor in OPNX.”
Lamb’s Twitter Outburst OPNX’s Defense
On April 22, Lamb took to Twitter to express his displeasure with the firms that had denied their association with OPNX. He called their behavior “disgusting” and “disappointing” and reminded them that entrepreneurship does not work that way. Lamb’s tweet sparked a Twitter spat between the CEO and the firms that had denied their investments in Open Exchange. The controversy surrounding the claims trading platform has elicited mixed reactions from the broader crypto industry, with some companies stating that they will refuse to associate with anyone who supports OPNX.
Despite the backlash from some of its supposed backers, CoinFLEX, the main company behind the Open Exchange project, has defended itself, claiming that it will help make customers of failed crypto ventures “whole again.” The company’s website states that it is “committed to serving the community of stakeholders impacted by the bankruptcy of 3AC and related entities, providing a transparent and open platform to trade in the underlying claims.” CoinFLEX also said that it will continue to work towards fulfilling its mission of helping “20M+ claimants.”
Conclusion
Lamb’s Twitter outburst followed nearly half of the firms named by OPNX denying their investments, causing the price of FLEX, the primary token of OPNX, to drop more than 21%. Despite the backlash, CoinFLEX, the main company behind the OPNX project, has defended itself, claiming that it will help make customers of failed crypto ventures “whole again.” This saga highlights the importance of transparency in the crypto industry and the risks associated with investing in new ventures.