In a surprising turn of events, hybrid perps cryptocurrency exchange OX.FUN has come under scrutiny due to issues of over holding native token.
Data indicates that the crypto exchange supported by the co-founders of the defunct Three Arrows Capital hedge firm, mostly holds its own OX coin, which has raised concerns.
The concern comes over a slew of accusations over X, which raises questions about both its capacity for market manipulation and its financial health.
OX.FUN Insolvency Problem
OX.FUN, a gamified crypto derivatives exchange is countering allegations of insolvency. In a post on X, the platform claimed that NFT artist JefeDAO is behind a “social media campaign” designed to spread “coordinated FUD” (fear, uncertainty, and doubt).
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On February 24, OX.FUN addressed the insolvency rumors, asserting that “all withdrawals are processing normally.” The exchange further accused JefeDAO of attempting to exploit its services, stating that the artist’s funds were frozen due to breaches of the platform’s terms of service.
Is OX.FUN Overholding Its Own Token?
The hybrid cryptocurrency futures market OX.FUN has drawn criticism for holding an excessive quantity of its own OX coin. The platform’s holdings appear to be significantly biased toward its own coin, according to data.
This kind of behavior is dangerous since it may boost the OX token’s value unnecessarily, leading to an unstable market dynamic. This excessive dependence on a self-issued asset, according to critics, erodes confidence in the exchange, particularly with regard to liquidity and the capacity to process withdrawals.
The platform’s affiliation with the co-founders of the defunct Three Arrows Capital further complicates matters and contributes to the rising suspicion of OX.FUN’s business practices and prospects in the cryptocurrency market.
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OX.FUN: What Does Future Hold For the Exchange?
OX.FUN’s future in the cryptocurrency market seems increasingly questionable as trust declines and regulatory scrutiny increases, and many users and investors are wary of its viability.
Due to increased scrutiny of its practices, OX.FUN’s future in the cryptocurrency sector is still unknown. The platform’s excessive dependence on its own coin has raised concerns about its financial stability, particularly in light of growing regulatory pressure in the cryptocurrency industry.
OX.FUN’s association with the demise of Three Arrows Capital, a well-known industry failure, significantly erodes trust in the company. OX.FUN might have trouble keeping investors and consumers if these problems are not resolved.
Restoring trust in the exchange’s operations, enhancing financial standards, and promoting openness are all necessary to restore its reputation and guarantee long-term viability.
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