OPNX’s Supposed Investors Claim They Didn’t Fund The Crypto Exchange admin January 30, 2022

OPNX’s Supposed Investors Claim They Didn’t Fund The Crypto Exchange

3ACBusiness and FinanceCoinFLEXkyle daviesNews

  • Open Exchange recently published a list of investors that supposedly participated in their funding round. 
  • Most of the listed investors have stated that they did not participate in OPNX’s funding round. 
  • The crypto platform has criticized the concerned investors and accused them of misrepresenting their involvement.
  • The exchange’s primary token $FLEX has lost more than 23% of its value following the controversy. 

Open Exchange (OPNX), founded by infamous crypto personalities Su Zhu and Kyle Davies, has run into trouble with a group of investors that the crypto platform claims were a part of its funding round. The investors have denied funding the exchange, leading to a controversial exchange of statements between the parties involved. Open Exchange was launched in February this year by Zhu and Davies, the men behind the defunct crypto hedge fund Three Arrows Capital (3AC). 

OPNX Criticizes Investors For Denying Association, Calls It An Ugly Move

OPNX took to Twitter earlier today to reveal the investors who had backed the crypto exchange. The list of supposed investors included AppWorks, Susquehanna (SIG), DRW, MIAX Group, Merchant Bank International, Token Bay Capital, Nascent, and Tuwaiq Limited. Open Exchange’s CEO Leslie Lamb could be seen thanking the investors for backing the exchange. According to the Twitter thread, the investors not only contributed capital but also provided feedback on product offerings, tokenomics, legal framework, etc. 

Of the investors that OPNX claimed participated in its funding round, almost half have denied giving any funds to the crypto exchange. Venture Capital firm Nascent responded to Open Exchange’s tweet and clarified that it did not participate in the platform’s fundraising round. A spokesperson for DRW told CoinDesk in a statement, “DRW is not an investor in OPNX nor are any of its affiliates investors in OPNX.” This was followed by a similar statement from Susquehanna (SIG) which read, “We have not provided any funding to OPNX and have no intentions to do so.”

Just to clarify, Nascent did not participate in an OPNX fundraising round, we invested in FLEX tokens in early 2021.

— Nascent (@nascentxyz) April 21, 2023

OPNX responded to the denials from its supposed investors by accusing them of seeking profits while simultaneously denying association with the exchange due to fear of backlash on social media. 

We believe in full disclosure of our institutional backers and key strategic partners. Should any party waver in their dedication to transparency and industry advancement, we express our disappointment at their misrepresentation and prefer not to have them as investors in future.”

Open Exchange’s response to investors

The controversy surrounding Open Exchange and its investors has led to a significant decline in the price of $FLEX, the native token of CoinFlex that will also serve as the primary token of Su Zhu’s crypto venture. FLEX’s price sank more than 23% shortly after the investors denied affiliation with OPNX. The token is currently trading at $1.06.

Source : Ethereum World News

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