OPNX’s bankruptcy tokenization product is set to launch for Celsius users in a week. This offering will enable users with funds locked on defunct crypto platforms to unlock their value. This development comes after the exchange went live on April 4, providing spot and derivative trading, but with no rollout date for its main bankruptcy claim product.
OPNX’s Strategy
OPNX co-founder Mark Lamb has stated that the exchange aims to stand out from the competition by using a membership model based on staking bankruptcy claims to achieve benefits such as zero-fee trading. Additionally, the exchange will specialize in tokenized bankruptcy claims or Real World Assets (RWA), which will set it apart from other exchanges that list the same tokens but are not specialists in any particular area.
Lamb believes that focusing on RWA gives the exchange fundamental value outside of crypto and speculation, ensuring its longevity in the future. He also spoke about implementing a liquidity model that does not favor market makers.
Tokenization of Bankruptcy Claims
Trading bankruptcy claims is not a new concept, especially among well-resourced entities. However, the crypto bankruptcies of 2022 led to a “fragmentation of creditor class,” creating a $20 billion gap for OPNX to innovate using the disruptive potential of tokenization technology.
Although bankruptcy claims are not fungible, Vishal Shah, the CEO of OPNX’s partnering firm Heimdall, believes that they can be standardized if the right levers are pulled. Shah also clarified that OPNX takes away the uncertainty of dealing with bankruptcy claims, giving claimants tokens, which they are familiar with, to recoup locked funds or use for futures trading.
Celsius, which paused withdrawals on June 13, 2022, citing “extreme market conditions,” filed for bankruptcy on July 13, 2022, leaving 1.7 million customers stranded. Shah has confirmed that Celsius claims would be ready for tokenization soon after Memorial Day, which falls on May 29.
OPNX’s bankruptcy tokenization product is set to provide a valuable solution for users with frozen funds on defunct crypto platforms. With its focus on RWA and a membership model based on staking bankruptcy claims, the exchange aims to differentiate itself from competitors. The standardization of bankruptcy claims through tokenization technology has the potential to revolutionize this market, and OPNX is poised to lead the way.
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