The controversial founders of now-bankrupt cryptocurrency hedge fund Three Arrows Capital (3AC), Zhu Su and Kyle Davies, have announced the launch of a new ‘Justice’ token, targeted specifically at the whistleblower who outed Terraform Labs.
This comes just a little more than two months after the hedge fund founders announced that they would be operating another crypto exchange called the Open Exchange.
3AC Founders To Launch Justice Tokens
According to a Twitter post by Open Exchange, the FatManTerra Justice Tokens will be launched later this week and will be distributed equally between holders of RLB, LUNA, LUNC, and its native token OX.
Anonymous crypto sleuth FatManTerra was a major whistleblower who sparked interest in the investigations of Do Kwon’s Terraform Labs, leading to the eventual collapse of the blockchain company and several of its investors. While several parties have started legal proceedings against FatManTerra, Open Exchange claims these Justice Tokens will be used to compensate those affected by defamation.
1/ Given the commencement of legal proceedings against FatManTerra by several parties, the FatManTerra Justice Token will launch this week.
— OPNX 🐂 (@OPNX_Official) July 30, 2023
The surprise announcement of the ‘Justice’ token was met with widespread criticism from the crypto community. According to the whitepaper for the new cryptocurrency, Justice Tokens are a mechanism to return the cost of harm to the community affected by defamation.
However, the tokens are independent meme tokens without intrinsic value or backing and have a maximum supply of 1 billion.
What Is Open Exchange?
The cryptocurrency industry was thrown into disarray in May 2022 when the value of the Terra stablecoin and Luna coin dropped to zero. As part of the fallout, Singapore-based crypto hedge fund Three Arrows Capital (3AC), worth more than $10 billion at its peak, had to file for bankruptcy after incurring significant losses due to its staked Luna position returning almost nothing.
While the full fallout from the collapse of Terraform Labs and 3AC is still unfolding, the founders of 3AC have gone ahead to create a new exchange with the co-founders of CoinFlex. Launched in April 2023, Open Exchange terms itself as the world’s first public marketplace for crypto claims trading and derivatives.
The new exchange also launched with its own token called $OX along with a new staking and governance platform called The Herd. 75% of the total supply of Justice Tokens will be distributed over six months to $OX stakers in The Herd, while 20% will go to liquidity providers. The last 5% will be gifted directly to the Milady NFT community.
The value of $OX has skyrocketed by more than 288% since its launch. At the time of writing, $OX is trading at $0.038.
OX token price trending at $0.038 following announcement | Source: OXUSDT on Tradingview.com
Featured image from Bloomberg, chart from Tradingview.com