The launch of the exchange project backed by the bankrupt hedge fund Three Arrows Capital (3AC) attracted a mob of angry community members who took to Twitter, expressing their disappointment with the state of the crypto space.
Open Exchange, a crypto exchange project that 3AC and Coinflex initially proposed, launched a website and opened a waitlist on Feb. 9. 3AC founder Zhu Su pointed out that the project is a way to atone for their past mistakes. However, many members of the community were enraged by the launch.
One community member questioned the name of the exchange and suggested that it may lead to a scam. They tweeted:
Open to what? getting scammed?
They lost their pride and money, but at least they haven’t lost their stupidity, clearly https://t.co/PeJhlKVKD8
— Thales (Tahless’) || HXRO (✖️,✖️) (@ThalesHXRO) February 9, 2023
Another community member swore to never trade in the exchange and bully the users of the exchange. “I don’t care how good the fees are, how good the liquidation mechanism is, or how good the funding arbs will be,” they wrote. In addition, a Twitter user even wished harm to those using the exchange.
Meanwhile, not everyone opposes the idea of an exchange that allows trading claims. A community member described it as a “killer idea” and said that those “crying in the comments” would use the exchange to trade their claims and get liquidated again.
On Jan. 16, 3AC and Coinflex founders started gathering funds for the exchange project. The project announced that they were looking to raise $25 million to target claims against bankrupt firms like FTX, Celsius and Voyager.
On Feb 4, BitMEX co-founder Arthur Hayes cited an anonymous source and said the 3AC founders completed the raise. Hayes expressed frustration and said that the bull market must be starting. He tweeted:
Little birdie told me @KyleLDavies and @zhusu completed their raise. Must be the beginnings of a bull market if these muppets get money less than one year after they torched $18 billion on shitcoins. I ain’t mad at ya, but homeboy needs his money back lift tickets be expensive
— Arthur Hayes (@CryptoHayes) February 3, 2023
TechCrunch founder Michael Arrington described it as the “saddest bullshit” he’s heard in a long time. Meanwhile, Macro Financial executive Nik Bougalis said that 3AC founders raising new funds is disgraceful and indicates everything wrong with the space, saying that anyone who provides funds to the 3AC founders should be “treated as scammers.“