A tweet from OPNX, the crypto exchange backed by 3AC founders Kyle Davies and Su Zhu, announcing its new ecosystem partner caused a stir within the crypto community on Wednesday.
OPNX disclosed it has partnered with a venture firm called 3AC Ventures that would invest in projects building on the exchange’s ecosystem.
We are excited to announce OPNX's ecosystem partner— 3AC Ventures.
The partnership will invest in projects building in the OPNX ecosystem and working towards a decentralized future.
— OPNX 🐂 (@OPNX_Official) June 21, 2023
“3AC Ventures is focused on superior risk-adjusted returns without leverage,” read the message displayed on the firm’s website, which appears to be a stand-alone landing page with a link to an email address.
“3AC is dead, long live 3AC Ventures,” tweeted Davies, drawing criticism from a number of market participants who witnessed the fallout from the hedge fund’s collapse last year. Both Davies and Kyle were subpoenaed by the firm’s liquidators through Twitter, after remaining at large ever since the bankruptcy proceedings commenced.
With the liquidation proceedings for the 3AC hedge fund still ongoing, the launch of the new venture OPNX earlier this year took many in the crypto community by surprise. The decision to now launch a venture capital firm bearing the same name as the defunct hedge fund seems even more bizarre, but the 3AC founders appeared far from remorseful with their comments on social media.
no leverage, no debt, no fear
— Kyle Davies 🐂 (@KyleLDavies) June 21, 2023
Even more curiously, Zhu penned a series of tweets on the dangers of mixing venture capital and trading, naming Alameda, Jump Capital and even 3AC as those that fell into “this trap.”
“Mixing the two turbostarted DeFi summer, but not without long-term structural instabilities. Jump’s stealth bailout of Luna in May 2021 and subsequent secret deal to receive huge amts of tokens is only possible in a venture+trading world,” said Zhu.