1/12 Kyle Davies reached out to me after this tweet.
The fundraising deal is done.
But they won't disclose who are the investors - as most exchanges don't.
He also explained how the exchange, collateral system & tokenomics works: 🧵
The fundraising deal is done.
But they won't disclose who are the investors - as most exchanges don't.
He also explained how the exchange, collateral system & tokenomics works: 🧵
2/12 There are over 20 million users who lost $20 billion USD due to the latest bankruptcies of CeFi companies.
Bankruptcies take years to resolve, as we've seen with the MtGox 9-year process.
Bankruptcies take years to resolve, as we've seen with the MtGox 9-year process.
3/12 So, millions of users are low-balled and sell their bankruptcy claims for cents on the dollar instead of waiting years for the bankruptcy process to conclude.
There's also no simple way to sell these claims, especially for investors who are too small for OTC deals.
There's also no simple way to sell these claims, especially for investors who are too small for OTC deals.
4/12 Users will be onboarded via a Special Purpose Vehicle, which is sometimes called a bankruptcy-remote entity.
They'll need to pass KYC (Americans not allowed).
They'll need to pass KYC (Americans not allowed).
5/12 OPNX will group similar claims to make them fungible (tokenized).
There might be different SPV’s for each estate, but they will try to have as few as us possible for fungibility reasons.
These tokenized claims will be traded on the order book exchange.
There might be different SPV’s for each estate, but they will try to have as few as us possible for fungibility reasons.
These tokenized claims will be traded on the order book exchange.
6/12 Withdrawals of tokens will not be enabled to avoid the risk of tokens interacting with Americans as users need to pass KYC and US citizens are not allowed.
7/12 OPNX will allow trading perpetuals for major assets with bankruptcy claims as collateral.
Lending-borrowing stablecoins or other assets won't be available.
Lending-borrowing stablecoins or other assets won't be available.
8/12 OPNX will acquire all assets of CoinFLEX including people, tech, and tokens.
$FLEX will be their main token.
$FLEX will be their main token.
9/12 Tokenomics: $FLEX is the exchange token:
• FLEX is used to pay fees (similar to BNB)
• 20% of revenue is used to buy and burn FLEX
• Early usage of FLEX (e.g., OI, onboarding claims, etc.) may be incentivized with locked FLEX.
• FLEX is used to pay fees (similar to BNB)
• 20% of revenue is used to buy and burn FLEX
• Early usage of FLEX (e.g., OI, onboarding claims, etc.) may be incentivized with locked FLEX.
10/12 Tokenomics (continued):
• There are currently 100 million FLEX tokens in circulation, of which 2 million have already been burned through fees
• Possible rebranding: it will be swappable at a 1:1 ratio (with no lock-up), similar to the AAVE/LEND rebrand
• There are currently 100 million FLEX tokens in circulation, of which 2 million have already been burned through fees
• Possible rebranding: it will be swappable at a 1:1 ratio (with no lock-up), similar to the AAVE/LEND rebrand
11/12 While I spoke to Kyle, I asked about the 3AC situation.
3AC was a very big client of Genesis/Grayscale and is likely to sue G/G.
This would follow FTX's Alameda which sued Grayscale and its owner Digital Currency Group over the structure of their large BTC and ETH trusts.
3AC was a very big client of Genesis/Grayscale and is likely to sue G/G.
This would follow FTX's Alameda which sued Grayscale and its owner Digital Currency Group over the structure of their large BTC and ETH trusts.
12/12 They suggested this in January as a way to maximize estate value.
Grayscale doesn't allow investors to exchange their shares for the coins in the trusts, which would help bridge the considerable net asset value gaps by selling them in the secondary market.
Grayscale doesn't allow investors to exchange their shares for the coins in the trusts, which would help bridge the considerable net asset value gaps by selling them in the secondary market.
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