Former Head of Institutional Sales at FTX, Zane Tackett, has proposed relaunching the defunct exchange by offering a token that represents creditor claims. This would allow creditors to at least receive some value, according to Tackett. He suggested that FTX should also offer a market for trading creditors’ claims on the bankrupt firm, similar to Bitfinex’s BFX token.
FTX Relaunch Plans and Challenges
The relaunched exchange would need to bring back all the products it offered when it collapsed in November. John Ray III, who was installed to lead FTX following its bankruptcy filing, has also suggested the idea of bringing the exchange back to life. However, this plan has several barriers. One of the obstacles is using recovered funds for creditors to finance the relaunch, which could reduce the amount that creditors would receive if the exchange fails once again.
Creating an Opportunity for Creditors
Tackett said that the proposed exchange could offer a market for FTX claims based on one token per $1 lost, allowing creditors to price their assets fairly. It would also provide immediate liquidity for those wanting to sell off their claims and allow others to have the opportunity for a bigger payoff. This concept is similar to the newly launched OPNX exchange for trading spot crypto and crypto bankruptcy claims.
The Way Forward for FTX 2.0
The success of the relaunched FTX would depend on how it is done, according to Tackett. He suggested that if FTX 2.0 is run like a nimble crypto company, it could succeed. However, he expressed concerns that the people currently managing it may not be the right ones to do the relaunch.
Source: The Block
