3AC Ventures, the new ecosystem partner announced by Open Exchange (OPNX) on June 21, signifies a pivotal step towards a decentralized future in the realm of trading claims against bankrupt crypto entities.
By investing in projects that contribute to the OPNX ecosystem and promote a decentralized future, this partnership promises to drive innovation and reshape the way we perceive and interact with digital assets.
However, considering the turbulent history of 3AC, it raises the question of whether investors will still trust the platform founded by Su Zhu and Kyle Davies, the masterminds behind the now-bankrupt Singaporean hedge fund Three Arrows Capital.
Controversy Surrounding The 3AC Ventures Partnership
Launched in April, OPNX initially experienced limited trading activity in its early days. However, the exchange has since seen remarkable growth, surpassing a daily average volume of $30 million.
To further expand its reach and impact, OPNX introduced its native token, OX, on May 31, achieving a fully diluted market cap exceeding $300 million.
Despite its recent success, OPNX faced criticism and negative reactions on Twitter when it announced its partnership with 3AC Ventures. This skepticism stems from the association of the ventures company with Zhu and Davies. The response on social media included offensive memes and disparaging comments.
holy shit this is a real tweet
— LilMoonLambo (@LilMoonLambo) June 21, 2023
But OPNX appears steadfast in its mission. The company asserts that its Claims product, launched earlier this month, offers a solution and a safe haven for individuals adversely affected by cryptocurrency crises. Claimants can promptly unlock their frozen claims and convert them into cryptocurrencies or utilize them as margin capital within the platform.
In response to the announcement, Davies on Twitter wrote, “3AC is dead, long live 3AC Ventures.” The landing page of the firm features the message, “3AC Ventures is focused on superior risk-adjusted returns without leverage,” and provides an email contact for users.
3AC is dead, long live 3AC Ventures https://t.co/61s8uQquOZ
— Kyle Davies
(@KyleLDavies) June 21, 2023
Three Arrows Bankruptcy And The Uncertain Whereabouts Of Davies And Zhu
In June 2022, Three Arrows faced financial collapse and filed for bankruptcy in the British Virgin Islands. This unfortunate turn of events resulted from a series of ill-fated leveraged trades amidst a bear market in the cryptocurrency industry.
Additionally, 3AC suffered from its exposure to the Terra Luna ecosystem’s $40 billion collapse in May 2022. Following the bankruptcy filing, both Davies and Zhu, the masterminds behind 3AC, seemed to have disappeared.
While their exact locations remain unknown, there have been speculations that Davies spends his time in Dubai, while Zhu is believed to be in Indonesia.
During its prime, the company reportedly managed an impressive $10 billion in assets. However, as the firm encountered financial troubles, it amassed creditor claims amounting to $3.4 billion.
Featured image from Alamy
Source: https://bitcoinist.com/bankrupt-3ac-reemerges-as-vc/