Crypto veteran Loomdart has come forward to support an FTX reboot as a way to make creditors whole and increase trust in the industry. During an episode of The Scoop, an interview podcast by crypto media The Block, his "quickest pitch" for FTX 2.0 included giving a piece of the exchange to over a million people impacted by the FTX scam. This would incentivize them to stay on the platform as the best exchanges have the biggest communities. The crypto advocate also noted that the fact that some of the biggest creditors of FTX are market makers further strengthens the chance to revive the platform.
Moreover, a fundraising campaign for the new platform led by venture firm Tribe Capital has drawn some interest. On the other hand, Sam Bankman-Fried, the disgraced founder of FTX, has asked a New York federal judge to dismiss most of the criminal charges brought against him by federal prosecutors. Further, the IRS has filed tax claims worth a staggering $44 billion against FTX and its affiliated entities.
Despite the legal issues, Loomdart stressed that, fundamentally, FTX was a profitable business which was indicated by the surge in FTX claims trading from 5 cents to 70 to 80 cents on a dollar. He argued that this showed the platform had recovered funds. In order to rebuild the exchange into a successful platform, many challenges have to be addressed including returning creditors and building trust with the users. If this can be done, FTX 2.0 could become the shining example of a successful cryptocurrency exchange relaunch.
Madilyn Robinson
- 2023-05-20
Rebooting FTX: Loomdart Seeks To Make Creditors Whole, Increase Trust In Crypto
Crypto veteran Loomdart wants to rebuild the FTX exchange in order to make creditors whole and increase trust in the industry. A fundraising campaign has drawn some interest, but Sam Bankman-Fried is still facing criminal charges by federal prosecutors, and the IRS has filed tax claims worth a staggering $44 billion.
