OPNX co-founder Mark Lamb has announced that its bankruptcy tokenization product will be available for Celsius users in a week. The product will help users with funds frozen on defunct crypto platforms to unlock their underlying value and recoup their locked funds.
OPNX went live on April 4, offering spot and derivative trading. However, its main bankruptcy claim product was not given a rollout date until now. The bankruptcy claim product will be available for Celsius users from about May 29.
Distinct Strategies of OPNX
In clarifying OPNX’s strategy, Lamb said he wants the exchange to be distinct from others by operating a membership model based on staking bankruptcy claims. This model will derive benefits such as zero-fee trading. In addition, he spoke about employing a liquidity model that did not favor market makers. Furthermore, OPNX will specialize in tokenized bankruptcy claims or Real World Assets (RWA), which will offer differentiation from other exchanges that list the same tokens and are not specialists in any one area.
Lamb said focusing on RWA gives fundamental value outside of crypto and speculation, ensuring longevity well into the future. Trading bankruptcy claims is not a new phenomenon, particularly among well-resourced entities. However, Vishal Shah, the CEO of partnering firm Heimdall, explained that the crypto bankruptcies of 2022 led to a “fragmentation of creditor class,” opening a $20 billion gap for OPNX to innovate using the disruptive potential of tokenization technology.
Shah played down criticism that bankruptcy claims are not fungible and, therefore, untradable, saying, “If you pull the right levers,” you can standardize claims. Lamb added that OPNX takes away the uncertainty of dealing with bankruptcy claims, giving claimants tokens, which they are already familiar with, to recoup locked funds or use for futures trading if they so choose.
Celsius Claims Ready for Tokenization
Shah said Celsius claims would be ready for tokenization soon after Memorial Day, which falls on May 29. Celsius paused withdrawals on June 13, 2022, citing “extreme market conditions. The firm filed for bankruptcy on July 13, 2022, leaving 1.7 million customers stranded.
OPNX’s bankruptcy tokenization product will provide Celsius users with a way to unlock their frozen funds. The exchange’s unique strategies, such as staking bankruptcy claims, specializing in RWA, and a liquidity model that does not favor market makers, will differentiate it from other exchanges. The innovative use of tokenization technology will enable standardization of claims, making them tradable and giving claimants tokens to recoup their funds or use them for futures trading. With Celsius claims ready for tokenization soon, OPNX’s product can provide relief to the stranded customers of the defunct platform.