Bankrupt Hedge Fund Launches New Crypto Exchange
The Singapore-based cryptocurrency hedge fund Three Arrows Capital (3AC) launched a new cryptocurrency exchange named Open exchange on Feb. 9, which has drawn the ire of several members of the crypto community.
1/ Introducing Open Exchange.
Open Exchange will start as the world's first public marketplace for crypto claims trading and derivatives.
Then become the world's most radically transparent CEX.
The claims waitlist is now open @ https://t.co/Q2HsUqSZ7E 🧵👇
— OPNX Official (@OPNX_Official) February 9, 2023
In light of the development, 3AC founder Zhu Su remarked that the project is aimed at atoning for the significant mistakes and hardship 3AC caused its customers.
Recall that 3AC and Coinflex founders on Jan. 16 collectively revealed that it was seeking to raise $25 million to run the upcoming crypto exchange. The duo targeted claims from bankrupt firms such as Celsius, Voyager, and FTX.
Thereafter, BitMEX co-founder Arthur Hayes disclosed on Feb. 6 that the 3AC and Coinflex founders have successfully raised the funds even though he didn’t reveal the source of the funds.
Crypto Community Reacts to the Launching of Open Exchange
Following the launching of Open Exchange by bankrupt 3AC and Coinflex, a crypto community member queried how the new establishment will not lead to another form of scam given the history of 3AC.
Open to what? getting scammed?
They lost their pride and money, but at least they haven't lost their stupidity, clearly https://t.co/PeJhlKVKD8
— Thales (Tahless’) || HXRO (✖️,✖️) (@ThalesHXRO) February 9, 2023
In the same vein, another crypto community member Laurence pledged never to trade in the exchange regardless of the good state of the crypto exchange about its liquidity, funding arbitrage, and trade fees, among others.
Meanwhile, one community member Melon viewed the development from a different perspective, stating that the rollout of the crypto exchange is a killer idea, stressing that many people complaining will still use the exchange and get liquidated like before.
Given the mixed reactions over the launching of crypto exchanges, there is a compelling need for relevant authorities to set clear-cut standards that must be met by every crypto exchange before being allowed to operate.