Jesse Powell Doubts FTX 2.0’s Potential
Kraken co-founder Jesse Powell criticized the proposed recovery plan for struggling exchange FTX 2.0. He believes starting from scratch would be better, as the platform lacks technology, licenses, banking, and has a damaged reputation. Powell suggests auctioning off the platform’s trademark and domain to the highest bidder.
Powell’s Concerns About FTX 2.0
- FTX 2.0 has no team, no technology, no licenses, and no banking.
- Powell sees FTX 2.0 as a fee-extraction attack on creditors.
- He doubts that building a robust and safe exchange is possible, even with the best legal minds.
- The competitive advantage of FTX has been lost as experienced traders have moved to other markets.
The FTX 2.0 Coalition Voices Opposition
The “FTX 2.0 Coalition” disagrees with Powell and advocates for the relaunch of FTX. They believe a reputable company with the necessary resources and expertise can effectively manage the exchange. They also see the 1.8 million creditor-customers as valuable assets for bootstrapping the relaunched platform.
FTX’s Proposed Reorganization Plan
FTX CEO John J. Ray III has started soliciting interest for the relaunch of FTX.com. Their proposed plan includes creating a rebooted offshore exchange targeting customers outside the United States. However, the official unsecured creditors committee claims they were excluded from the planning process, making the success of FTX’s revival uncertain.
Hot Take
Jesse Powell’s criticism of FTX 2.0 raises valid concerns about the platform’s ability to recover. However, the FTX 2.0 Coalition believes in the potential of a relaunched FTX. The future of FTX remains uncertain, and it will require a competent operator and the alignment of creditors to make a successful comeback.
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