FTX Initiates Talks for Reboot, Fueling FTT Token Surge by 15%
FTX, the bankrupt cryptocurrency exchange, has commenced discussions to revive its operations and potentially rebrand, according to reports. CEO John J. Ray III is spearheading efforts to restart FTX.com, engaging interested parties in the process, as confirmed by sources familiar with the matter. Preliminary talks with potential investors, including Figure, have also taken place to support the relaunch of the international exchange FTX.com, possibly through a joint venture. Existing customers may be offered a stake in the revitalized entity as compensation. FTX’s native token FTT surged 15% in response to the news, hitting a seven-week high of $1.51 before settling at $1.45, according to CoinGecko.
FTX’s relaunch may involve rebranding while excluding the restart of its U.S. exchange, which represented a smaller portion of its business. Interested parties have been requested to notify the company and its advisors by the end of the week. FTX and Figure, another potential participant, have not yet responded to Decrypt’s request for comment.
FTX’s CEO, Ray, who took charge in November 2022 during the bankruptcy filing, initially mentioned the possibility of a reboot in January this year. He stated that viable business prospects had been identified. In April, lead attorney Andy Dietderich also hinted at the potential revival of the exchange, though no specific plan was outlined at the time.
Court documents from May revealed Ray’s efforts to explore the necessary steps for restarting the company. He reviewed and finalized FTX 2.0 materials to be distributed to investors. The restructuring plans of FTX are expected to be filed in Q3 2023, with a decision on the relaunch plans anticipated by the summer of 2024, roughly a year away.
Cryptocurrency partner Louise Abbott from Keystone Law stated that although the liquidator is open to all possibilities, no concrete plan for the exchange’s restart has been confirmed yet. If the plans materialize, significant capital will be required, and market trust will play a crucial role. There is speculation that FTX might offer investors a stake in the company, allowing them to participate in potential future growth. However, these discussions remain at a hypothetical stage for now.
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