Want to Buy Distressed Crypto Assets? 3AC Founders May Be Creating an Exchange For That Called GTX
The founders of now-bankrupt crypto hedge fund Three Arrows Capital and troubled crypto exchange CoinFlex have teamed up to create a new exchange focused on the claims of failed crypto projects.
Su Zhu and Kyle Davies, the founders of collapsed crypto hedge fund Three Arrows Capital (3AC), in collaboration with Mark Lamb and Sudhu Arumugam, who founded CoinFlex, plan to launch GTX, a new crypto exchange focused on claims trading.
Prominent crypto journalist Wu Blockchain first revealed the news in a Monday tweet, saying that the crypto executives are looking to raise $25 million for their new project. Su Zhu allegedly confirmed the news to the journalist, stating, “yes, no comment, just busy building it.”
According to the pitch decks circulating on Twitter, the team behind GTX claims that the crypto claims market is worth $20 billion. They want to provide liquidity to claimants by allowing them to “sell them to crypto while using claims as margin capital.”
The move comes just two months after FTX, once the third-largest crypto exchange in the world, collapsed, leaving more than a million creditors out of pocket. The new exchange ostensibly wants to take advantage of such failures by offering depositors the ability to transfer their FTX claims to GTX and receive immediate credit in a token called USDG.
GTX, the exchange's name, has also created some controversy as some noted that it is an "FTX" spin off. However, CoinFLEX has said they could rebrand CoinFLEX into this new entity and will not use GTX. "We will not use GTX; it currently serves as a placeholder name," the exchange said in a blog post.
Notably, the bad reputation of the crypto bosses behind the initiative has already cost them some potential partners. For one,
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