FTX revival can delay because of long-broken user faith, observers noted 

FTX

  • Various crypto industry experts have shown doubt regarding FTX CEO John Ray’s target to possibly retrieve the crypto exchange, quoting trust issues and “second-class” treatment of clients as a consequence of why users may not “feel safe to go back.”

The ex-chief executive officer of FTX, Sam Bankman-Fried tweeted complimenting John Ray for seeing the retrieval of FTX, advising it is the best step for its clients. 

This thing happened after John Ray expressed to a media source on January 19, that he was acknowledging the reboot of the crypto exchange to make the clients complete. Ray highlighted that in spite of the fact that top officials are alleged of criminal wrongdoing, stakeholders have said that they have an interest in the likelihood of the platform coming back– witnessing the exchange as a “feasiable business.”

Travers also highlighted that from the closing down, FTX users have shifted “to other platforms, such as Binance.” He asked if those users will “feel safe to go back.” He directed the problem of FTX governance along with controls, with administrators giving information about some customers getting “special treatment” along with “back door switches.” Travers highlighted:

“How will users feel okay going back to a platform that served some clients such as second class?”

Digital assets lawyer Liam Hennessy, a collaborator at Australian law company Gardens, believes that it will be “very hard” for FTX – given the fame harm and absence of faith – to get clients or investors to “come close by them once more.”

Hennessy was also in doubt if FTX will ever be acknowledged for a license once more, stating that it is a very big question mark” which completely relies on decisions. The lawyer trusts that in some alongshore decisions, it will be swifter for the exchange to get a license acknowledged, but there will be no point in it if the intention of the users is not to give back. 

“To skip by the bands the big decisions will be like the US, UK, and Australia will be a significant challenge.”

Although, Lane asked if clients will ever trust FTX once more, stating that there is a high possibility that other firms searching to introduce a new exchange “purpose those assets” instead of creating their own confluence from scrape.

Source: https://www.thecoinrepublic.com/2023/01/21/ftx-revival-can-delay-because-of-long-broken-user-faith-observers-noted/