Despite the bankruptcy, the price of the FTX (FTT) exchange token has risen an impressive 32% in 24 hours. The positive trend is related to the news given by the company’s new CEO, John J. Ray III, who opened up the possibility of saving the crypto exchange.
At the moment, this is only an idea that the FTX CEO is thinking about, but it is already leading to positive effects regarding the FTT token.
We will see whether as the days go by, the growth of the native FTX token will be steady, or if it is just speculative movements dictated by the recent news.
Clearly, the idea of a potential reboot of the platform created by Sam Bankman Fried should really be taken with a grain of salt.
We are certain that John J Ray III is the right man to solve the problems of the disgraced platform. It should be noted though, that the main goal is to safeguard and reimburse customers.
John J. Ray III is thinking about rebuilding FTX and FTT soars
These are still just ideas circulating in the mind of John J. Ray III, no concrete point has been reached yet.
The CEO of the FTX platform is still struggling with issues involving fund recovery and customer activities.
Ever since he was given the job, the CEO’s first goal has been to recover debts and pay off clients of his new company.
What has been John J. Ray III’s move?
The move of the new CEO of the FTX platform was to assign a task force, which would explore the various businesses in the company, to find a business that would be profitable.
In the event there are, the CEO could indeed relaunch at least the international branch of the exchange.
Ray told the Wall Street Journal:
“There are stakeholders we are working with who have identified what they see is a profitable business.”
In the meantime, although it is still only speculation, the idea of a potential relaunch has sparked a desire among users to buy the FTT token. According to CoinGecko’s data, the native FTX token has reportedly surged +32% in just 24 hours. The price is about $2.37, an increase of more than 160% from its all-time low at $0.87 reached on 30 December.
It is not really clear why traders are still buying and selling the FTX token.
However, perhaps most confusing is that the token itself has never stopped being bought and sold. Most likely traders see more of an opportunity for a revival of the exchange platform than the current CEO.
Another hypothesis is that the volatility of a dying exchange token is very high, so traders could use it to their advantage.
This is not the first time that a restart of the FTX exchange has been discussed
FTX collapsed in November, the once-subdued platform was now given up for dead. The arrival of an expert in the bankruptcy field like John J Ray III, because of his experience, gave some hope concerning the debt repayment.
Clearly, the incumbent CEO’s task was to restore the company’s debts even at the cost of liquidating the company itself, including all crypto assets.
No one would ever have thought of a relaunch, given the serious damage done both in the company and in the market in general. So, the news of a “potential” restart, seems almost a surprise to all users of the platform.
But this is not the first time a possible reboot of the platform has been mentioned. Last week, the legal team of FTX’s creditors committee, left a statement explaining that the disclosure of FTX’s 9 million platform creditor customers could hurt a “potential” reboot.
Thus, keeping the client list private is a move by lawyers to safeguard their clients, with the hope of a platform restart.
Kris Hansen, a partner at Paul Hastings, a lawyer representing the creditors’ committee, said during a court hearing in Delaware:
“There were a lot of retail investors here and so there is intrinsic value within those lists and that’s not controversial, I think everyone agrees with that.”
Clearly the lawyer’s statement should be taken with a grain of salt; Hansen did not leak any news about an imminent relaunch. A lawyer’s job is to protect the client, in any possible scenario.
A damage to the company, related to revealing the names of FTX’s 9 million creditors, in addition to not benefiting the company, would also not benefit the creditors themselves. Therefore, a rescue and revitalization of FTX should also be considered, simply for the protection of the customer.
“So in balancing this, we looked at it and said we have two main tasks here. One is to assess the value associated with these assets from a sales perspective, and assessing the value associated with these assets for a potential restart is how we referred to it from our side. The restart is complicated.”
Celsius, another exchange undergoing Chapter 11 bankruptcy proceedings, recently released the names of its creditors, but not only that.
It also released crypto wallet IDs, transaction types and amounts, services used by customers, and amounts of tokens held. The loss of data generated many negative reactions in the crypto community.
As far as FTX is concerned, the strategy of the team of lawyers worked, and bankruptcy judge John Dorsey decided to maintain anonymity on customer names for another three months. While the request from FTX’s creditors’ lawyers was for another six months, the judge only allowed for half that time.
In conclusion, there is a small possibility that FTX will reappear active in the industry. Although everyone is wondering whether a “restart” is appropriate or not. We will be watching for future updates, both from the judges and from FTX’s new CEO.