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CoinFLEX Tender Offer: OPNX Shares and OX Tokens

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Shared by Messenger • October 31, 2023

Dear CoinFLEX Stakeholders,

My name is Mark Lamb, and I am writing to you today as a fellow CoinFLEX stakeholder and a founder deeply committed to the success of OPNX.

When CoinFLEX went bankrupt in 2022, amidst a host of other crypto failures, my heart sank. It was not merely the destruction of my life's work, but also a harsh blow as many of my closest friends and supporters now became creditors. Yet, despite this setback, I knew my journey wasn’t over and I was more driven than ever to keep building.

We had a vision for everything a crypto exchange should be began to burn brightly in my mind — especially after the debacles and painful industry lessons of 2022. I also knew that I wanted to honor the trust placed in my team by all theose who had believed in us.

Many backers were ready to support us in building this entirely new venture. Most advised starting fresh with a clean slate and a new cap table. Yet, my heart yearned for a comeback — where all those who believed in our team initially would rally together once more towards the shared goal that united us all in the first place.

Earlier this year, a proposition was made to CoinFLEX’s creditors offering them equity in the new venture, OPNX. This gesture aimed at aligning our incentives and creating a collaborative force towards building a next-generation exchange.

I spent this year building OPNX with a team of people I care deeply about — most of whom, like you, experienced CoinFLEX’s rise, bankruptcy, and then the completion of one of crypto’s first successful restructurings — and all of whom have chosen to commit themselves wholeheartedly to turning our new vision into a reality. A vision where OPNX seeks to become the leading and most innovative exchange in the industry.

Executing this vision began with onboarding our very first RWA by solving the problem of crypto bankruptcy claims, implementing what we believe is the best exchange token model, portfolio margin architecture, recently developing a transparent on-chain collateral and provable liquidation system to be launched soon, and much more.

Now many months in, with these products developed, an EU license granted, key partnerships formed, launchpad projects onboarded like Khabib Nurmagomedov’s new Metaverse venture, over $10 billion volume processed and a fast-growing base of >5000 OX holders — we are significantly further along the path to actualizing this vision.

However, we now find ourselves at a critical juncture on our path. To ensure our goal is realized, we first need to address several matters that require your immediate attention.

Understanding the Context of The Offer

First, it’s worth noting that the point of engaging in the lengthy, arduous and extremely costly CoinFLEX restructuring process was to ensure that all of our prior supporters received an equity share of the new venture. It has always been our intention, in words and actions, to make this happen.

Second, creditors had the right to appoint themselves to the board of CoinFLEX (or email me) and halt CoinFLEX’s involvement in the new OPNX business. If they disagreed, the alternative path would simply have been building OPNX with zero ties to CoinFLEX. This would have resulted in CoinFLEX creditors receiving no equity stake. Instead, at all times, we have acted with the interests of these creditors in mind.

For the last ten months we extended numerous offers and engaged in hundreds of hours of negotiations, all in an effort to reach a fair and equitable agreement with CoinFLEX’s major creditors. But, as OPNX grew, so too did the unreasonableness of a minority of these large creditors.

The protracted nature of negotiations with these creditors was not due to a lack of effort on our part. Instead, it stemmed from the unwillingness of a disagreeable minority to move forward in any way.

As a result, we are now at a critical point where we must reach a final resolution for OPNX to thrive and for CoinFLEX creditors to participate in its success. The best path here for CoinFLEX creditors is fairness and collective benefit. It cannot be understated: the alternative of continued stagnation is truly destructive for all.

The Tender Offer: A Path Forward

In light of this, we’ve spent the past month working with many supportive creditors to formulate a Tender Offer to all CoinFLEX creditors. This final offer is available to all and is easy to participate in.

CoinFLEX creditors will be able to submit their creditor claim and/or shares, and in exchange for their existing stake in a bankrupt company, will receive shares in OPNX and OX tokens.

The Offer:

  • CoinFLEX creditors accepting this offer will collectively receive 25% equity in OPNX, distributed in proportion to claim size. Creditors who do not accept will receive nothing.
  • CoinFLEX creditors accepting this offer will collectively receive 1 Billion OX linearly and vesting over 10 years through their OPNX account or trustlessly via an automated DeFi platform such as LlamaPay, as per their collective preference.
  • The first 50% of creditors to sign up will receive ⅔ of this OX allocation, distributed proportionally to claim size. The second 50% of creditors to sign up will receive ⅓ of this allocation, distributed proportionally to claim size. Creditors not accepting this offer will receive nothing. This means that the first 50% of creditors to accept the offer will receive 2X the OX allocation as the second 50% of creditors. We are doing this to reward creditors for signing up quickly, so that the OPNX team can go back to focusing on building OPNX.
  • Every CoinFLEX creditor of claim size less than $250K USD accepting this offer within the allotted time window will receive the 2X OX bonus.
  • This offer will be valid for 14 days for anyone with a CoinFLEX claim above $250K USD. For less than $250K USD, the offer will be valid for 30 days to allow them time to be alerted.

This final offer is a culmination of our efforts to move OPNX forward and resolve these ongoing negotiations. We are proud of the work we’ve done with creditors to put this deal together and we believe it to be the fairest and most equitable resolution for everyone involved.

Prompt resolution means that the OPNX team can focus 100% on doing what we do best: building the most innovative exchange in crypto.

A Unified Way Forward

In the future, the OPNX team envisages a thriving community of all stakeholders actively supporting the success of OPNX as we grow the business, roll out frequent product updates and seek their input on key decisions for the exchange.

Building a business like this is challenging, but none of us would be here unless we truly believed we could realize our vision. Success is significantly more likely when we all work together in alignment. Our vision is clear, we have all the factors of success already in place and a path laid out before us. It is time to choose progress and make it a reality.

Thank you for your time and trust,

Sincerely,

Mark Lamb

Co-founder, OPNX