What appears as an act from a meeting of crypto bureaucrats huddled around a table with calculators and spreadsheets, with a stroke of their pens, the administrators behind bankrupted FTX exchange have conjured up a concoction of emotions within even the most suborn members of the crypto community.
Even before the dust settles and the ink dries, crypto lovers are suddenly dealing with the possibility of the revival of the defunct crypto exchange FTX. This article explores the potential FTX exchange benefits.
Restart Plans Targeting International Customers
Bankrupted cryptocurrency exchange FTX is initially resuming its services but targeting customers outside the United States. According to the sources, the plan that will oblige some petitioners to agree to pool their assets towards the plan’s success has already seen the FTX token surge by 10%.
Read more: The Crypto Bunker: FTX’s Bold Plan for Surviving the Apocalypse
News on a possible FTX platform upgrade started filtering out way back on June 2023 via a Wall Street Journal (WSJ) report where the publication’s CEO, John Ray, stated the following:
The company “begun the process of soliciting interested parties to the reboot of the FTX.com exchange.”
The current efforts will cause a commotion among the crypto community and lawmakers, seeing that the exchange’s reputation took a severe body blow with creditors still burning the midnight oil with the complicated process of trying to compensate creditors.
“Dotcom Customers” to Pool Assets
According to an initial Plan of Reorganization filed with the U.S. Bankruptcy Court last Monday night, the exchange has delineated claimants into different groups based on their claims. The first group, dubbed “dotcom customers”, basically consists of FTX.com offshore customers, while the second one consists of U.S. Exchange customers (U.S. Customers). Next will be the NFT exchange customers, followed by unsecured, secured, and subordinated claims.
The general claims will include those from Alameda’s lenders or trading partners, while the subordinated claims consist of taxes and fines from penalties. According to the proposed plan, the “dotcom customers” must buy the idea of pooling their assets to birth the offshore cryptocurrency exchange.
For users with memories of the past FTX user experience, the possibilities may look like a mischievous genie that has been let out of its bottle. Whether it will see the light of day remains to be seen – it remains an extraordinary possibility in the FTX crypto investment saga.
FTX 2.0 Investor Benefits
The proposed reorganization plan provides several FTX investment opportunities for the different classes of debtors to try and attract them into pooling their assets to create FTX 2.0. However, the upcoming offshore exchange company won’t serve U.S.-based customers. The tricky part that puts the icing on the cake is the fact that creditors can decide whether to stake their proposed NFT investor benefits to the upcoming exchange rather than receive cash payouts.
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The bankruptcy administrators’ feedback from the creditors will determine the success or failure of this entire plan. The FTX 2.0 revival program also includes plans to pay willing creditors in cash and eliminate the FTT token, besides planning to sell other parts of the business in USD. Whether the entire FTX revival plan sees the light of day or not now sits in the hands of creditors, but what’s almost certain is that the FTT Token is anything but a gone deal.
Could FTX Emulate the Proverbial Phoenix?
While the founder of SkyBridge Capital and Ally of Sam Bankman-Fried (SBF) said earlier this year there was no hope for the revival of FTX, the exchange’s bankruptcy administrators are convinced FTX will invincibly transform into a phoenix and will experience a new birth to begin a new life from the ashes.
As they plan to return FTX from the flames, more beautiful than ever and clothed in new strength, the U.S. Department of Justice is doubling efforts to incarcerate SBF with a judge already issuing a gag order on him. FTX is suing its former CEO and other executives for misappropriating $1 billion of funds.
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