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- Rebooting FTX could take time, which creditors may not have as the reputation is already damaged on the international stage.
- The collapse of FTX has fueled the collapse of other crypto firms including BlockFi, Gemini’s Earn Program, and DCG’s Genesis Trading which just filed for bankruptcy under chapter 11.
New FTX CEO John J. Ray III is considering restarting the cryptocurrency exchange as he works to reimburse customers’ and creditors’ capitals. According to a report by WSJ, Ray has formed a task force to explore the matter. Moreover, Ray believes the company could gain more value by rebooting than liquidating all the assets. Notably, FTX has recovered assets worth approximately $5 billion including over $700 million in Solana (SOL).
However, Ray is convinced several FTX wallets are missing and may never be recovered, which makes the rebooting process a need to make customers whole. In his defense, SBF has claimed that FTX US was solvent even before filing for bankruptcy.
…Thus FTX US had at least $111m, and likely around $400m, of excess cash on top of what was required to match customer balances,
SBF noted in a recent post.
The nasty allegations are coming at the expense of FTX customers and creditors, especially global crypto traders with minimal jape of getting compensated soon. Moreover, there is still a hole of over $415 million caused by FTX hackers hours before filing for bankruptcy.
Notably, SBF has provided his side of the story regarding FTX assets claiming Sullivan & Cromwell (S&C) gave some misleading information.
Rebooting FTX could, however, takes time that creditors may not have as the reputation is already damaged on the international stage. Furthermore, few crypto traders could risk using FTX while other top exchanges like Coinbase, and Binance have handled the near market well.
Rebooting FTX Could Suppress Crypto Bear Market
The collapse of FTX has fueled the collapse of other crypto firms including BlockFi, Gemini’s Earn Program, and DCG’s Genesis Trading which just filed for bankruptcy under chapter 11. Billions of dollars were liquidated from the crypto market following the FTX collapse and the fear instilled has never fully dissipated.
Should FTX officials decide to reboot the crypto exchange, confidence in the Bitcoin market could significantly rise. Moreover, it would be a positive trend from the United States officials who are currently heading the FTX toward the crypto market.
Bitcoin price has managed to trade pre-FTX levels in the past week, following a huge cash inflow from whales. According to our latest crypto price oracles, Bitcoin is exchanging at a staggering $21k today on Friday 20th January 2023, up 25 percent in the past two weeks.
The total crypto market capitalization has also regained its $1 trillion level in the past week following the altcoin pump. Nonetheless, the possibility of a correction looms around as FTX officials prepare to dump about $5 billion to repay creditors.
