Connect with us
Active Currencies 14909
Market Cap $2,556,813,574,657.00
Bitcoin Share 51.55%
24h Market Cap Change $1.16

3AC and Coinflex founders join hands to launch new crypto exchange

2min Read

Share this article

  • 3AC founders have teamed up with Coinflex’s founders to raise money for a new crypto exchange.
  • The crypto industry welcomed the new venture with considerable criticism.

Su Zhu and Kyle Davis, the men behind Three Arrows Capital (3AC)), the defunct crypto hedge fund whose collapse triggered an industry wide string of bankruptcies, have joined hands with Coinflex co-founders Mark Lamb and Sudhu Arumugam to launch a new exchange. 

3AC founders looking to raise $25 million for GTX

According to a pitch deck, the new venture is a crypto exchange called GTX. The founding team pitched it as cross asset trading on a public marketplace. The objective of GTX is to tap the $20 billion crypto claims market and turn it into a tradable instrument in a public marketplace. The platform would let users use the claims against bankrupt firms in the crypto space as collateral for trading.

Su Zhu and his new partners are looking to raise $25 million for GTX. However, this looked like an attempt to capitalize on the fallout from FTX’s collapse. Additionally, the fact that FTX users are selling their claims at 10% of the face value raised doubts about the new venture. 

The pitch read:

“Our legal team will streamline and automate claims onboarding to GTX and make it the dominant marketplace for FTX and other bankrupt companies’ claims.” 

Crypto twitter skeptical of GTX

The GTX exchange was being pitched by people who were essentially at the helm of failed businesses in the past. Thus, the public remained skeptical of the new exchange pitched. Paired with the fact that many on crypto twitter are direct victims of 3AC’s risky business conduct, the criticism that followed was quite stark. 

Individuals apart, even fellow firms in the crypto space moved to distance themselves from this new venture. Crypto market maker Wintermute was among the first firms to criticize GTX. CEO Evgeny Gaevoy tweeted that his firm would not be investing in any projects affiliated with 3AC’s founders. 

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.