Discover how Su Zhu's arrest shook OX token values, why Ripple backed out of Fortress Trust, and Circle's new smart contract codebase, Perimeter Protocol.
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Su Zhu Arrested and OX Token Price Plummets 50%

Su Zhu Arrested and OX Token Price Plummets 50%

Discover how Su Zhu's arrest shook OX token values, why Ripple backed out of Fortress Trust, and Circle's new smart contract codebase, Perimeter Protocol.

Date:
Sep 30, 2023
| Issue
#
116

Welcome to the final edition of Datawallet Daily for the week, and rounding out a volatile September. As always, here are the top stories hitting crypto markets over the last 24 hours:

  • Su Zhu arrested and OX token plummets
  • Circle rolls out a smart contract codebase called Perimeter Protocol
  • Ripple decides against outright acquisition of Fortress Trust
  • Multichain pivots after security issues 

Before we get into the nitty-gritty, here's a rundown of where the crypto market is now.

Su Zhu arrested and OX token price plummets 50%

In a dramatic turn of events, Open Exchange's OX token plummeted nearly 50% upon the arrest of its co-founder, Su Zhu. Authorities in Singapore detained Zhu while he was trying to exit the country, and it appears he will serve a four-month prison term. The arrest aims to encourage his cooperation with the liquidation process of his now-defunct Three Arrows Capital (3AC) fund.

At the time of this writing, the OX token has recovered slightly but still sits 43% lower at $0.013. One contributing factor to the drastic price drop could be the token's limited liquidity. Nearly 97% of its $5.88 million daily trading volume is concentrated in a single Uniswap v3 pool, substantially outweighing its $1.3 million liquidity.

Originally conceived to facilitate crypto bankruptcy claims trading for platforms like Celsius, FTX, and 3AC, the OX project now faces uncertainty. It carries a current market capitalization of $33.2 million. The arrest has cast a shadow over Open Exchange's role in rehabilitating its co-founders' reputations, who had previously maintained that the collapse of 3AC was due to poor market plays rather than criminal activities. Co-founder Kyle Davis' current location remains unknown, but he is also sentenced to a four-month prison term.

Circle rolls out a smart contract codebase called Perimeter Protocol

Stablecoin issuer Circle Internet Financial unveiled Perimeter Protocol, a smart contract codebase, on Friday. The aim of this open-source foundation is to facilitate the creation of tokenized credit markets. In a blog post, Circle stated that Perimeter has the capability to support various credit use cases, such as invoice factoring, payroll advances, instant settlement for merchants, and credit trading for institutional investors. 

The company's white paper is publicly accessible, allowing developers to freely utilize the codebase and build products on top of it. This release also signifies the launch of Circle Research, a new division focused on open-source development. The introduction of Perimeter comes at a time when there is a growing interest in bringing traditional financial instruments, like credit, to blockchain-based applications, commonly known as the tokenization of real-world assets (RWA).

Ripple decides against outright acquisition of Fortress Trust

Ripple's CEO, Brad Garlinghouse, has announced that the company has decided not to proceed with the complete acquisition of Fortress Trust, despite previously signing a letter of intent. Garlinghouse shared this update on X (formerly known as Twitter), stating, "A few weeks ago, we signed a letter of intent to acquire Fortress Trust – however, we have now made the decision not to move forward with the outright acquisition. Nevertheless, Ripple will maintain its position as an investor in Fortress."

Multichain pivots after security issues 

Do you recall Multichain, the bridging network that experienced unauthorized withdrawals totaling more than $130 million? It was purportedly orchestrated by its CEO. In July, Multichain halted its operations after revealing that CEO Zhaojun and his sister had transferred a significant number of tokens from its bridging networks to externally owned addresses.

Now, certain developers from the platform are reentering the industry with a new venture called ValueRouter, which bears a striking resemblance to Multichain. And it is fair to say that people are not fond of it.

Other breaking news

That wraps up a rollercoaster week in the crypto market. From Su Zhu's arrest to Circle's new protocol, change is constant. To stay ahead, follow us on X. Thank you for reading Datawallet Daily.