But it surely’s additionally comprehensible that FTX collectors are in search of a much less pungent exit. The FTX 2.0 reboot proposal is within the reorganization plan filed Monday, July 31.
FTX 2.0 Alternate Plans Have Excessive Hopes
Information of the submitting induced FTT tokens to spike from $1.34 to 1.55. However quickly after, they settled even decrease than earlier than. Anybody holding FTT tokens and scanning like a hawk for the chance had a quick window to promote with some cushion.
Because it seems, the concept has a number of downsides. To start with, it could be like bringing again Enron, or the Exxon Valdez, or Lehman Brothers.
What’s the level of that as an alternative of ranging from scratch just like the Kraken CEO steered?
“FTX 2.0 can be worse than ranging from scratch. No group, no tech, no licenses, no banking, tarnished model.” -Kraken CEO Jesse Powell, Aug 2
Moreover, it’s an overly-complicated scheme for crypto buyers.
What Investor Would Purchase FTT vs. BTC and ETH?
They’re simply going to promote FTT tokens to newbs who’ve by no means heard of FTX or SBF. Then, they’ll use their cash to purchase bitcoin and ether. In the meantime, they’ll elevate funds to pay the payments through the bear market.
Then, as crypto rallies over the long-term cyclical progress channel, they’ll purchase again or burn simply sufficient FTT tokens to maintain it pumping alongside whereas preserving any additional earnings from their BTC and ETH.
A revived FTX may supply yield-bearing accounts as an alternative of specializing in the tokens. However the scheme can be the identical. They might pay yields out with VC funding through the bear market, then BTC and ETH good points through the bull run, and maintain what’s left as earnings.
That is precisely what SBF did and mismanaged, letting it fall into insolvency. Why would anybody aside from the least educated, most susceptible new crypto retail investor even trouble utilizing FTX 2.0 as a intermediary custodian for his or her BTC and ETH?
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