The crypto community has shown interest in an FTX relaunch as a means to compensate creditors and enhance trust in the industry. Renowned cryptocurrency expert Loomdart, co-founder of eGirl Capital, believes the platform could succeed if all users and creditors receive a portion of it. Over a million people have been affected by the FTX troubles, but these individuals have previously used the platform, making them potential drivers for growth.
Loomdart emphasizes the importance of exchange communities and notes that successful exchanges benefit from large and committed user bases. FTX’s community was thriving prior to its downfall. Loomdart proposes a new FTX version that could be launched by “airdropping” the newly minted exchange platform to the user base, incentivizing previous users to give the platform another chance.
The involvement of significant creditors who are also market makers serves as a further incentive for the relaunch. Bringing these market makers into the venture should provide them with opportunities to recoup their losses. They would be more likely to contribute to the platform’s success as a result.
However, Loomdart also makes it clear that a relaunched FTX should not involve Sam Bankman-Fried, its disgraced founder. He cites that Bankman-Fried will face legal consequences for the previous platform’s demise. Despite this setback, he points out that FTX was inherently a profitable business.
Recovery efforts for FTX have seen some progress. Claims against the exchange once traded at only 5 cents on the dollar but have now surged to 70-80 cents, suggesting a significant recovery of funds. FTX has managed to regain over $7.3 billion in cash and liquid crypto assets, sparking interest from Tribe Capital, a venture firm looking to lead a $250 million fundraising campaign for the new platform.
Recent developments in the FTX case have seen Bankman-Fried request a New York federal judge to dismiss most of the criminal charges against him. His lawyers argue that several of the charges were exaggerated, transforming civil and regulatory issues into federal crimes. Additionally, the US Internal Revenue Service (IRS) has filed tax claims worth a staggering $44 billion against FTX and its affiliated entities.
The FTX reboot proposition and the potential to compensate its users and creditors present an interesting scenario for the crypto community. However, much remains to be seen regarding the future of the platform as legal battles, and financial challenges continue.
Source: Cryptonews
