2022 was already a crazy year for investors and the crypto market. Not only did cryptocurrencies lose a chunk of their value, but a number of crypto-related projects were also halted. Similarly, the unstable conditions even paved way for the bankruptcy of a few crypto firms. As 2023 kicked off, the situation in the crypto market changed drastically. Numerous cryptocurrencies were seen to be in the green, with investors reigniting their confidence toward trading. Just recently, the disgraced Three Arrows Capital has expressed its plans to launch a new crypto exchange, GTX.
The news of the launch of this exchange was announced on Twitter. As tweeted by Wu Blockchain, it is clear that the launch is a collaboration between the founders of Three Arrows Capital and CoinFlex. Furthermore, the founders of the disgraced firm are also actively seeking to raise a total of $25 million for the project. As stated by Three Arrows Capital, the fundamental aim is to allow victims of the FTX collapse to access their capital. Similarly, the same people would be granted additional confidence toward investing, and stocks as well.
The founders of 3AC, Zhu Su and Kyle Davis, and the two founders of CoinFlex have launched a new project, GTX, which is raising a seed fund of $25m to trade claims from creditors. Su Zhu acknowledged the news to WuBlockchain: “yes, no comment, just busy building it”.
— Wu Blockchain (@WuBlockchain) January 16, 2023
The teams responsible for laying the foundation of GTX believe that the $20 billion crypto claims market must trade on a public marketplace. The main aim is to provide claimants with liquidity. However, this would be done by offering them the ease of selling them to crypto while using the claims as margin capital. Three Arrows Capital once used to be a Singapore-based hedge fund worth approximately $10 billion. However, it proceeded to file for bankruptcy in July 2022.
Three Arrows Capital- Riches to Rags?
The plans to launch GTX come amid the efforts of Three Arrows Capital navigating through its controversial bankruptcy. Numerous advisors tasked with working on the firm’s liquidity have accused the firm of not being cooperative. A founding member of Three Arrows Capital, Kyle Davies, came forward and stated that maximum cooperation was being ensured.
GTX hopes to appeal to more than one million FTX depositors who are now involved in bankruptcy proceedings. The founding teams believe that GTX could establish a leading position for itself within the upcoming two to three months. As soon as the platform gets up on its feet, it might actually fill a hole left by FTX. Similarly, with time, GTX could even expand its operations into the securities lending market as well.
