OX token plummets after co-founder Zhu’s arrest

Once a key cog in former 3AC founder Zhu’s public rehabilitation, OX plummets on news of his arrest

article-image

MeshCube/Shutterstock modified by Blockworks

share

The price of Open Exchange’s OX token fell as much as 50% on Friday following news of co-founder Su Zhu’s arrest. 

Liquidators for Zhu’s fallen Three Arrows Capital (3AC) fund reported on Friday that Zhu was apprehended by Singaporean officials while attempting to leave the country. Zhu will reportedly be imprisoned for four months in an effort to compel him to cooperate with 3AC liquidation efforts. 

Shortly following the news, the price of the governance token for Open Exchange (OX), plummeted. At the time of publication, OX sits 43% lower on the daily at $.013, having recovered from lows of $.01035. 

Source: Aevo OX Perps chart

Part of the severity of the decline is attributable to limited liquidity for the asset. A single Uniswap v3 pool accounts for nearly 97% of the $5.88 million daily volume, which eclipses the $1.3 million in liquidity in the pool by a factor of four. 

Read more: Three Arrows co-founder Su Zhu arrested in Singapore, says liquidator firm

OX currently has a $33.2 million market capitalization. 

The OX project was founded as an exchange to facilitate trade in crypto bankruptcy claims for entities like Celsius, FTX and 3AC. It was meant to play a crucial role in the public rehabilitation efforts of co-founders Kyle Davis and Zhu.

Loading Tweet..

Zhu and Davis often implied that the collapse of 3AC was moreso due to misplaced market bets rather than fraud or criminal actions. Open Exchange was part of their broader initiative to reestablish themselves in the crypto industry.

According to a statement from Teneo, Davis is also committed to four months in prison, but his whereabouts are currently unknown.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

AERODROME TEMPLATE.png

Research

Aerodrome is a "MetaDEX" that combines elements of various DEX primitives such as Uniswap V2 and V3, Curve, Convex, and Votium. Since its launch on Base, it has become the largest protocol by TVL with more than $495B in value locked, doubling Uniswap's Base deployment.

article-image

The former Valkyrie CEO chats with Blockworks about what she has her eye on as Cypherpunk Holdings’ new leader

article-image

Thursday’s CPI report shows prices are coming down more quickly than analysts had anticipated, renewing hope that central bankers will cut rates in the fall

article-image

If we tokenize all assets in a speculative rush, the risk of creating illiquid markets and trapped value will manifest on a large scale

article-image

Plus, Trump is headed to the heart of Bitcoinlandia with a speaking appearance at the Bitcoin 2024 conference

article-image

Meanwhile, stocks rally after Jerome Powell finishes his Capitol Hill tour

article-image

Plus, Blinks have reshaped many people’s understanding of what blockchains are capable of