Overview of OX Coin

OX Coin is the core of OX.FUN, a gamified derivatives exchange. The platform offers a gamified trading experience with deep liquidity across all popular trading pairs and features top-tier exchange token economics. OX Coin is used as collateral and currency for profits and losses within the exchange.

Traders can complete daily trading tasks to earn annual percentage yields (APY) of up to 200%, participate in trading competitions, place their tokens in copy trading and self-custody vaults to earn returns, and even earn MILK tokens from losing trades. OX.FUN allows users to convert the old Open Exchange Token (OX V1) into the new OX Coin (OX V2) within a limited time frame, with OX V2 minted on a 1:1 basis, and all received OX V1 tokens will be burned.

What is OX.FUN？

OX.FUN is a new gamified perpetual contract exchange built around $OX Coin. Its predecessor, Open Exchange (OPNX), was primarily a platform for trading tokenized claims, allowing users to trade claims from entities such as FTX, Mt.Gox, and Three Arrows Capital. However, OPNX shifted its product focus and ceased operations in late January, officially transforming into the perpetual contract exchange OX.FUN in early February 2024.

As a trading platform, OX.FUN’s core feature is perpetual contracts. The platform supports over 130 trading pairs, from top-market cap tokens and meme coins to niche tokens, with more regularly added. OX.FUN’s slogan is “Every trade is a winning trade” — closing a profitable trade earns OX Coin, while closing a losing trade rewards users with Milk Coin.

How does OX.FUN operate?

At the OX.FUN exchange has two parts: one is the meme coin perpetual contracts based on OX, executed on the OX Chain, and the other is the full-chain perpetual contract trading based on USDC, called OX.MARKETS. Here’s a brief introduction to the basic functions of these two components:

OX.FUN

You can earn a 100% annual interest rate on deposits with the most popular Memecoin perpetual contracts. OX.FUN operates on the OX Chain, where the only asset available for spot trading is OX Coin; all other assets are perpetual contracts. In addition to having over 100 popular meme coins, OX.FUN also includes leading tokens in the market, such as BTC and ETH.

OX.FUN is a hybrid CEX/DEX perpetual trading exchange in an early development stage, so the 24-hour trading volume is relatively low. Unlike other centralized and decentralized exchanges, all perpetual contracts on OX.FUN use its governance token, OX Coin, as collateral. It also employs a dual-coin trading model, where both profits and losses are settled using OX Coin. Profitable trades yield more OX Coin, while losing trades can earn Milk Coin, equivalent to OX Coin.

There are four ways to earn income on OX.FUN: perpetual contracts, copy trading, staking, and referrals.

Perpetual contracts are the main feature of OX.FUN. Previously, an OX farming function allowed users to earn up to 200% annualized returns in $OX by completing all trading tasks on the platform. This feature has now been discontinued and replaced with referral deposit rewards.

1. Perpetual contracts

The interface of OX.FUN is similar to other leading crypto exchanges like Binance and Gate.io. However, on OX.FUN, users can engage in basic perpetual contract trading, though there is currently no feature for pre-setting batch closures. In addition to using OX as the settlement currency, the trading interface integrates community channels, allowing users to share their trading opinions while preparing to buy long or sell short. All opinions can be easily shared on Twitter with one click. All trades use OX as collateral; profits yield more OX tokens, while losses result in receiving Milk Coin.

1. Copy Trading Vault

In the copy trading interface, users can see the competition between the two OX founders, Su Zhu and Kyle, and a leaderboard of other trading masters. In each Vault, users can view the trading masters’ PNL, the $OX staked by their followers, and the trading masters’ own $OX, which represents their investment capital. There is a profit and loss sorting function, and users can search for specific traders by name to view their profiles, trading records, and Twitter accounts. Users can copy their trades with one click and even apply to become a trading master themselves.

OX.FUN’s official Chinese Twitter account also shares the latest MEME team battle competitions, which interested traders can follow.

1. Earn More in Staking

This “prison” feature reflects Su Zhu’s dark humor, as it essentially represents the staking function. The “prison” is a passive income product that rewards stakers through a portion of fees collected and emissions from the treasury; the longer you invest, the more you earn. Previously, it had an independent label, but now it is categorized under “earnings.” On OX.FUN, users can earn rewards from OX_Prison through deposits and trading.

Deposit rewards: Non-OX deposits can earn 100% APY paid daily from OX_Prison.

Trading rewards: The yield from OX_Prison earned through trading corresponds to 0.1% of your trading volume, with an annual interest rate of up to 73%.

OX_Prison itself cannot be traded, but it can be used as collateral for trading, and users can also convert OX_Prison into liquid OX Coin.

1. Referral Rewards

OX.MARKETS

By referring friends to deposit on OX.FUN, you can earn referral deposit rewards. Level 1 referrals’ meme deposits can earn a 20% annual interest rate, while Level 2 referrals’ meme deposits can earn an additional 4% annual interest. Additionally, those you refer can earn the 100% annual interest rate offered in OX_Prison on all their meme deposits.

When your referred friends trade on OX.FUN, you can earn a 69% commission from all trading fees they pay, while they receive permanent trading discounts (50% maker fee discount and 28% taker fee discount).

If OX.FUN is the contract trading arena for meme coin enthusiasts, then OX.MARKETS is better suited for more professional traders. OX.MARKETS employs a bridgeless cross-chain technology that allows users to switch between mainnets at any time, supported by OrderlyNetwork technology. This means that no matter which chain your funds are on, you can trade directly on OX.MARKETS and settle on-chain, eliminating the friction of cross-chain fund transfers. Currently, it supports five mainstream mainnets, including Ethereum, Mantle, Base, Optimism, and Arbitrum.

OX.MARKETS offers up to 50x leverage, and in addition to profiting from trading USDC perpetual contracts, users can earn OX points, and Orderly Network’s Merits points through trading. OX points can be redeemed for OX Coin, with a weekly earning potential of 2 million OX points. OX.MARKETS also features a referral program; users can earn rewards by filling out an application form and sharing a link. Becoming an OX.MARKETS Pro member allows you to receive 40%-60% commission, while general traders can earn between 0%-20% commission on each trade shared.

OX Chain

If OX.FUN is the contract trading arena for meme coin enthusiasts, then OX.MARKETS is better suited for more professional traders. OX.MARKETS employs a bridgeless cross-chain technology that allows users to switch between mainnets anytime, supported by OrderlyNetwork technology. No matter which chain your funds are on, you can trade directly on OX.MARKETS and settle on-chain, eliminating the friction of cross-chain fund transfers. Currently, it supports five mainstream mainnets, including Ethereum, Mantle, Base, Optimism, and Arbitrum.

OX.MARKETS offers up to 50x leverage, and in addition to profiting from trading USDC perpetual contracts, users can earn OX points, and Orderly Network’s Merits points through trading. OX points can be redeemed for OX Coin, with a weekly earning potential of 2 million OX points. OX.MARKETS also features a referral program; users can earn rewards by filling out an application form and sharing a link. Becoming an OX.MARKETS Pro member allows you to receive 40%-60% commission, while general traders can earn between 0%-20% commission on each trade shared.

OX.FUN Team and Investors

Team background

The core team of OX.FUN includes Su Zhu, the founder of Three Arrows Capital and OPNX (the predecessor of OX.FUN), and co-founder Kyle Davies. Su Zhu previously worked as a trader at Deutsche Bank and Flow Traders and holds a degree in mathematics from Columbia University. Kyle Davies has experience at Credit Suisse. Another partner is 0xyima, the former head of Chinese operations at Bitget (Twitter: @0xyima).

Source: rootdata

Investment Institutions

In February 2024, OX.FUN secured $4 million in funding, with major investors including GenBlock Capital, Double Peak Group, and Emchain. This investment will be used for product development, talent acquisition, and market expansion. In January of the same year, it had just transitioned to the gamified perpetual trading platform OX.FUN, the platform has not yet introduced features like copy trading vaults and other passive income options. At that time, it only had daily trading tasks and leaderboard competitions, yet it still achieved $1.5 billion in $OX deposits and $20 billion in $OX trading volume.

OX Coin Tokenomics

$OX is the currency used on OXFUN to calculate profits and losses. When trading perpetual contracts on OXFUN, every time the token price changes by $1, you either gain or lose 100 $OX per contract. For instance, if you buy 25 ETH perpetual contracts and the ETH price rises by $10, your profit or loss would be 25,000 $OX.

This design ensures that the price fluctuations of $OX do not affect the closing price; instead, the perpetual contract price and the price of $OX jointly influence the profit and loss. Thus, compared to USD-denominated perpetual contracts, $OX-denominated contracts may expose you to greater price swings. For example, if both $OX and $BTC perpetual contracts double in price, your returns could amplify up to four times.

Additionally, all losses incurred on OXFUN are compensated with $MILK tokens. The maximum supply of $OX tokens is 9.86 billion, with 3.5 billion currently minted. The initial supply was created through a 1:1 bridging mechanism, where $OX tokens were minted by burning Open Exchange ($OX V1) tokens; this 1:1 conversion ended on March 15, 2024. You can only acquire $OX on the open market or through OXFUN’s “Buy OX” feature.

During the launch phase, the treasury will retain the ability to mint up to 9.86 billion tokens for community and team incentives, as well as to serve as an insurance fund for market maker losses. The final supply will be kept as low as possible.

$OX token distribution and release

The project has not officially announced any token issuance or token airdrop.

Is OX Coin a good investment?

OX Coin and its ecosystem showcase an innovative cryptocurrency trading model that combines gamified elements with professional trading functionalities. OX.FUN and OX.MARKETS offer diverse options for traders at different levels while developing the OX Chain opens up new possibilities for meme coins. The team’s strong background and Su Zhu’s excellent business development skills are evident from the previous successes of Three Arrows Capital and its investment portfolio. This solid investment backing lays a good foundation for the future growth of OX Coin.

However, investors should exercise caution. The inherent high-risk nature of the cryptocurrency market, combined with OX Coin’s unique pricing mechanism, may lead to greater price volatility. Additionally, the uncertainty surrounding the token distribution and release plan is another factor to consider.

Overall, OX Coin represents a new trend in cryptocurrency trading, with its innovative model and strong support giving it potential. Yet, like all cryptocurrency investments, thorough research is essential. One must weigh risks against rewards and only invest what one can afford to lose. The future development of OX Coin deserves continued attention, but investment decisions should be based on careful assessment and individual risk tolerance.