The former Chief of Institutional Sales for FTX, Zane Tackett, reportedly suggested that the bankrupt FTX exchange should relaunch once more. He added that the firm needs to be elegantly run like a crypto firm for it to succeed, according to the report.
In his statement, FTX should restart its operation, offering tokens representing creditors’ claims. The former sales office of the defunct exchange believed that the token would hold some value in the hands of the creditors. Even if the relaunch plans failed, creditors would not lose anything they had not lost before, said the former FTX executive via his telegram channel.
In addition, Tackett suggested that FTX, along with the products and services it offered before it became bankrupt in November, should be revived. He added that a market should be provided where creditors of the collapsed exchange would be allowed to trade.
Tackett Gave an Example Of. A Bankruptcy Token
The Chief pointed out the BFX token created by Bitfinex exchange as a case study. He claimed that Bitfinex exchange made the BFX token for its creditors after it suffered a major cyber attack in 2016. He thereby urges that a token can also be created for FTX creditors in the like manner of BFX, whereby one token would represent $1 lost by a creditor.
Since there is no fair method by which FTX creditors can price a firm’s assets held, Tackett believed that converting their debts to equity, thereby exposing them to FTX investments, would greatly benefit the creditors. He said the idea would also offer instant liquidity to creditors who wish to sell their bankruptcy claim token and give holders an excellent opportunity for potential massive payoffs in the future.
Meanwhile, reports showed that Zane Tackett’s suggestions are similar to the idea behind the launching of the OPNX exchange earlier this month. OPNX was established by the CEOs of collapsed crypto hedge fund Three Arrows Capital and Coinflex platform shortly after the duo lost their footings due to the TerraUSD stablecoin’s collapse in 2022.
FTX Plans A Relaunch Of Its Operations
According to reports, Zane Tackett was not the only one pushing for the relaunch of FTX. John Ray III, the bankruptcy managerial CEO of FTX, also seconded the idea in January. In addition, the legal team representing FTX’s creditors also reportedly held several meetings centered on the rebooting of FTX in the past. The defunct firm evaluates the benefit of relaunching its operations and the tax implications and building a model to examine user experience.
Even though he strongly advocated for it, Tackett spoke on the disadvantages of relaunching FTX operations. First, he said part of the funds recovered to repay creditors would be used to support the relaunching exercise. Consequently, if the revived exchange fails again, creditors would receive lesser repayment than initially planned.
In addition, the former chief added that the reformative process would determine whether users would return to the renewed FTX. He opined that the renewed firm would fail if it is heavily regulated by policies that do not encourage innovations or services initially offered on the collapsed FTX. Tackett suggested that the rejuvenated FTX could work if it elegantly runs as a crypto firm. He displayed his doubt about the ability of the current FTX executives to handle a relaunch of the firm.
