On Friday, trading platform OPNX announced its latest partner to help grow the project’s ecosystem. The partner, 3AC Ventures, uses a similar name and logo to Three Arrows Capital (3AC), a fallen hedge fund. In a Twitter long thread, OPNX explained that the partnership is aimed at providing investment support to various projects building within its ecosystem.
On his Twitter account, OPNX founder Kyle Davies wrote that 3AC Ventures is focused on encouraging innovation and promoting wider crypto adoption.
Why Did Three Arrows Capital Fail?
Before launching OPNX, Davies co-founded Three Arrows Capital, a crypto hedge fund that filed for bankruptcy last year. The company managed over $10 billion in assets.
According to blockchain data company Nansen, 3AC frequently opened leveraged positions as crypto exchanges let the firm trade with more money than it had. This trading strategy is always considered risky and did not work for the hedge fund, causing it to file for bankruptcy protection last July.
The news regarding 3AC going under prompted a crypto contagion. At the time, Bitcoin and other cryptocurrencies saw their prices fall sharply.
Crypto Enthusiasts Express Skepticism Over 3AC Ventures
Considering that the CEO of bankrupt crypto exchange CoinFLEX, Mark Lamb, is part of the OPNX management team, news about the 3AC Ventures launch was met with skepticism from crypto fanatics on Twitter. A user named OxShual wondered why Lamb and Davies were rushing to launch new projects, yet creditors of their previous failed projects haven’t been made whole.
Meanwhile, the CEO of Blockchain platform MetaTime, Yusuf Sevim, acknowledges the skepticism shown over 3AC Ventures due to its founder’s history but says the recent success Davies has achieved with OPNX could help him win the trust of some crypto enthusiasts.
The daily trading volume on the OPNX exchange has been growing in recent weeks, with the platform’s native token, OX surging more than 35% over the last seven days.
Sevim also has some advice for Davies. He tells the OPNX CEO to deliver on his promises and operate in total transparency if he wishes to build bridges with crypto players.
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