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The new exchange’s name appears to be spun out of “FTX.”
As part of efforts to launch a new crypto exchange, the founders of liquidated crypto hedge fund Three Arrows Capital (3AC), Su Zhu and Kyle Davies, have reportedly joined hands with CoinFLEX co-founders Mark Lamb and Sudhu Arumugam. According to a pitch to potential investors, the partners are looking to raise no less than $25 million to fund the creation of the exchange. They claim that the new exchange will be known as GTX. However, the founders also confirmed that GTX will specifically focus on claims against failed firms. Those include Celsius, Voyager, and more recently FTX.
Speaking about breaking into the claims market, they said:
“Our legal team will streamline and automate claims onboarding to GTX and make it the dominant marketplace for FTX and other bankrupt companies’ claims.”
Founders Share Rare Business Model for Proposed GTX Exchange
In a bid to live up to the hopes of becoming the dominant marketplace for claims, GTX will approach the market differently from most of its competitors. The exchange will allow its customers to use claims as collateral for trading. Per the pitch, the exchange will allow depositors o transfer their FTX claims to GTX and immediately get credited in a token called USDG.
Considering that the news of the proposed exchange comes barely two months after the implosion of giant exchange FTX, it appears that GTX is set to take full advantage of the situation.
Firstly, the exchange’s name appears to be spun out of “FTX.” Additionally, the new exchange also hopes to fill the huge vacuum left by the bankrupt exchange by expanding into regulated markets like the stock market.
Cryptocurrency exchange CoinFLEX ran into financial trouble sometime last year and halted withdrawals in June. Although it resumed partial withdrawals just a month after, it is now currently restructuring.
3AC on the other hand became bankrupt on June 27, with its founders disappearing from the public eye immediately. Now, however, both Su and Davies reportedly now live in Indonesia and the UAE, respectively.