Relaunch Faces Serious Concerns from Kraken Co-Founder

Jesse Powell, Kraken co-founder raises his vier regarding the launch of FTX 2.0 on Wednesday, August 2nd. He tweeted in response to the tweet by the FTX owner that he also supports the disagreement. He added that FTX would be worse if it started from scratch.

FTX was a cryptocurrency firm that promoted the liquidity and transaction of coins and tokens. It allows the user to connect a wallet, place trade, buy, and sell digital currency like any other exchange. FTX stands for future exchange and it was founded by Sam Bankman Fried and Gary Wang in 2019. It was declared bankrupt on November 11, 2022.

Draft Plan of FTX 2.0 for Relaunch

The exchange’s new CEO John J. Ray III submitted a draft plan for the relaunch of the organization with the establishment of a new offshore exchange which is designed for U.S. users.

In this draft, the offshore users were called Dotcom customers, and U.S. users as U.S. customers. The priorities of Dotcom customers and U.S. customers were determined as “waterfall priorities” with each category receiving a pro-rata payout.

The official community of FTX unsecured creditors expressed their dissatisfaction regarding the matter. The community highlighted that FTX didn’t discuss the draft plan.

Powell’s Tweet About FTX Restoration

Powell’s tweet has a lasting effect on the industry as he highlighted the need for a skilled team, to build a secure, high-performing exchange. He specifies that talented people have more opportunities making it tough to repeat the competitive advantage that FTX once held.

However, Powell’s tweet met some criticism from the FTX 2.0 Coalition. This is a group of people supporting the revival of the FTX exchange. They are advocates of exchange rebooting. The group highlighted the need for a competent operator with experience, resources, and alignment with creditors to drive the revival process.

They also point out the 1.8 Million creditors that would play an important role in the restoration of rebooted FTX. Besides this, it also noted that there is a lack of alternatives and the exchange is facing confrontation on legal disputes with regular authorities.

The Wall Street Journal in June 2023 revealed that FTX was looking for options counting for a joint venture and releasing it as a joint venture. As per the report, the exchange considered customers’ reimbursement by offering them shares in the new FTX 2.0.

Conclusion

Besides, in this ongoing discussion, it is not clear whether the tarnished image of FTX will be cleared with the launch of FTX 2.0 or whether the doubts raised by Jesse Powell will raise concerns among society.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing