Su Zhu’s Arrest Plunges OX Token into Freefall, with Value Dipping 84% Below ATH and 40% in Just One Week
The recent arrest of Su Zhu, one of the co-founders of Open Exchange (OPNX), has sent shockwaves through the cryptocurrency market, resulting in a significant drop in the value of the OX token. According to Alphanomics, news of Zhu’s arrest has triggered a massive sell-off of OX tokens worth approximately $1 million.
This sudden wave of selling, coupled with negative sentiment surrounding Zhu’s arrest, has caused the OX token to plummet to an all-time low of around $0.010 USD. While there has been a slight recovery to $0.01258 USD, the token’s value remains 84% below its all-time high, 40% below in just a week. Furthermore, this sharp decline in OX’s value has also led to a market capitalization drop of over $30 million, leaving it at just $36 million at the time of writing.
OX is the native token of OPNX, a crypto exchange designed to handle transactions from cryptocurrency companies facing solvency issues, such as FTX. OX token holders benefit from reduced trading fees on the platform and participate in its operational activities.
However, OX faced challenges right from its launch in April 2023 due to the unfavorable market conditions and disputes between the co-founders of 3AC and CoinFLEX, the exchange’s parent company.
To date, the platform’s spot trading volume has not exceeded $20,000, while its derivatives market boasts a trading volume of nearly $70 million in the past 24 hours.
Regarding Su Zhu’s arrest, local media reported that he was apprehended in Singapore on September 29 while attempting to flee the country. Reports suggest that Zhu may face a four-month prison sentence as per the Singaporean court’s order.
Su Zhu, along with Kyle Davies, had led the $3AC fund, which managed assets worth billions of dollars. At its peak, the fund controlled assets valued at around $10 billion, making 3AC one of the prominent players in the industry.
However, it was precisely for this reason that 3AC became one of the first casualties in the wake of last year’s record market downturn. As a consequence, the Singaporean government imposed multi-year trading bans on the fund’s founders.
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