The collapsed cryptocurrency exchange FTX may be restarted. Tribe Capital has an idea for that
The venture capital firm is reportedly seriously considering the possibility of "resurrecting" FTX.
Rumors in the cryptocurrency market indicate that San Francisco-based Tribe Capital is reportedly considering the possibility of introducing new capital into the failed FTX cryptocurrency exchange in order to restart it. It is worth adding that this company was its investor before. Bloomberg reported yesterday that Tribe Capital is considering a potential fundraising campaign.
FTX can be resurrected
San Francisco-based venture capital firm Tribe Capital is reportedly seriously considering the potential for relaunching a failed cryptocurrency derivatives platform. The FTX exchange went bankrupt in spectacular circumstances in November 2022. Information about its potential revival by introducing new capital into it appeared in the media on Tuesday, April 18 this year.
Even before the collapse of the FTX exchange, Tribe Capital invested a significant amount of funds in this platform. According to people familiar with the matter who were quoted by Bloomberg, the co-founder of Tribe Capital met with FTX's Committee of Unsecured Creditors in January this year to discuss an informal proposal to relaunch FTX's operations.
According to reports, the aforementioned venture capital company is considering the possibility of launching a fundraising campaign to resurrect the collapsed cryptocurrency platform. The campaign would be worth $250 million, with $100 million of that amount coming from Tribe Capital and its investors.
Tribe Capital was founded in 2018. This company, in addition to being a venture capital investor in FTX and FTX.US, has previously invested in a number of startups, including the popular American cryptocurrency exchange Kraken, the Bolt payment company, and the e-commerce provider Shiprocket. This enterprise currently manages capital worth over USD 1.6 billion.
The resumption of FTX activity is not yet confirmed
The new CEO of FTX appointed to conduct bankruptcy proceedings - John J. Ray III, intends to issue a decision in the near future on whether the relaunch of this exchange is feasible in the second quarter of 2023, according to a filing that has been filed with the bankruptcy court. The company is reportedly still in the early stages of evaluating such an idea, but is fully aware that restarting FTX would require a significant amount of funding, which would most likely have to come from a range of third-party investors.
In an official statement, FTX's Unsecured Creditors Committee said they are "continuously working with debtors primarily to evaluate all options to relaunch or sell the platform."