Crypto

FTX 2.0: Kraken Co-Founder Argues Against Exchange Relaunch

Jesse Powell, co-founder of Kraken, has actually revealed issues about strategies to relaunch the insolvent FTX exchange. This comes following the current advancement in the global arm of the exchange, FTX.com, reboot strategies.

Auction Off The FTX Domain And Trademark, Jesse Powell Says

On Wednesday, August 2, Kraken co-founder Jesse Powell tweeted his issues about the strategies to relaunch the FTX exchange. This remained in action to another tweet by a previous FTX user, concurring that the exchange relaunch is “unnecessary.”

Powell thinks that going on with the FTX 2.0 strategies will be “worse than starting from scratch,” as there is no sufficient structure to start such a procedure. He stated the exchange has “no team, no tech, no licenses, no banking, and a tarnished brand.” 

The Kraken co-founder encouraged the trustee to “auction off the FTX domain and trademark to the highest bidder.” He declares the relaunch is just a “fee extraction attack” on “delusional” financiers. 

FTX 2.0 Coalition, a group of users who appear positive about a relaunch, slammed Powell’s remarks by means of Twitter, stating that the financial institutions are not “delusional.” 

However, the Kraken co-founder responded to the group’s tweet, keeping his position about the prospective reboot of the insolvent exchange. Powell stated in the response:

A lot of attorneys aren’t going to develop a safe and secure, performant crypto exchange. People with the ability have much better deals. To reproduce the competitive benefits used by FTX may not even be possible for a legitimate operation. Active traders proceeded to other exchanges months earlier.

A Recap Of FTX Relaunch Plans

Discussions around the reboot of FTX.com began in January when the business’s CEO, John J. Ray selected a job force to check out the possibility of rebooting the global arm of the collapsed crypto exchange.

In June, The Wall Street Journal revealed that FTX was “weighing various options,” consisting of relaunching as a joint endeavor. According to the report, the exchange thought about consumers’ settlement by providing them a share in the brand-new FTX.com.

On Monday, July 31, FTX revealed a draft creditor-repayment strategy, while proposing a reboot of the global arm of the exchange – readily available to non-U.S. users just.

This reorganization strategy will require a classification system for complaintants, with FTX.com users described as “Dotcom customers.” According to the draft, non-U.S. consumers might get non-cash factor to consider through equity securities and tokens rather of a complete money settlement.

In the wake of this current advancement, the main committee of unsecured financial institutions said that “business level negotiations” with the debtors, which are yet to take place, will begin soon.

FTTUSDT trading at $1.338 | Source: day-to-day FTTUSDT chart on Tradingview

Featured image from Reuters, chart from TradingView



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