Three Arrows Capital's founders, Mark Lamb and Sudhu Arumugam, have raised $25 million to launch a new crypto exchange. Together with CoinFlex co-founders Mark Lamb and Sudhu Arumugam.
Their platform, GTX, will enable users to transfer their FTX claims and immediately receive credit in a token called USDG. Furthermore, they can utilize this platform to trade bankruptcy claims from other insolvent firms.
Disrupting the Status Quo
Recent reports indicate the founders of Three Arrows Capital (3AC), a failed crypto hedge fund, are seeking to raise $25 million from investors in order to launch GTX, a new cryptocurrency exchange. Led by CoinFLEX CEO Mark Lamb and chief marketing officer Leslie Lamb (Mark's wife), other executives from the firm also back this venture.
The team is hoping to fill the void left by FTX, who closed shop last year. Furthermore, they plan to extend their platform into other regulated markets such as stock trading.
They plan to revolutionize the status quo by providing creditors of insolvent crypto firms with a platform to trade claims. To do this, they plan to form a new company alongside CoinFLEX CEO Mark Lamb and co-founder Sudhu Arumugam.
A leaked pitch deck in January revealed CoinFLEX was joining forces with 3AC to develop the GTX crypto exchange, set for launch in February 2019. According to the deck, there is a $20 billion market for cryptocurrency-related bankruptcy claims and this new product could tap into that opportunity.
In addition to allowing creditors of insolvent companies such as FTX to trade their claims, the crypto exchange will also enable users to utilize these claims as margin for leveraged trading positions. Furthermore, they can sell these claims on the exchange's public order book.
Although it may appear to be a beneficial venture, the team behind it is not without its detractors. Some criticize it as a scam and warn investors they will likely lose money if they invest in it. On the other hand, others believe this project will improve market conditions overall.
The founders of 3AC, who recently filed for bankruptcy, are seeking $25 million from investors to launch GTX - an exchange that will enable creditors to insolvent digital-asset firms to trade their claims. They're teaming up with CoinFLEX founders Mark Lamb and Sudhu Arumugam on this venture which should launch before February 28th.
Getting Ahead in a Competitive Marketplace
Su Zhu and Kyle Davies - founders of Three Arrows Capital which collapsed last year - have joined Coinflex co-founders Mark Lamb and Sudhu Arumugam to launch "GTX," a new crypto exchange.
According to a pitch deck leaked on January 16, the exchange will focus on trading claims from failed crypto projects' creditors. The team estimates a $20 billion market for their product, based on the notional value of crypto claims.
In an effort to disrupt the existing marketplace, GTX plans to launch their exchange in February and hopes it becomes a top player within two to three months of launch. Unlike competing claims market operators, GTX allows customers to use their claims as collateral when trading.
Though this could be a lucrative proposition, it also carries significant risk. The recent collapse of Sam Bankman-Fried's FTX exchange and other bearish events within the industry have resulted in massive losses for retail investors.
That is why it is imperative to create a platform that can shield users from the risks of an insolvency. OPNX intends to do this by onboarding users through a Special Purpose Vehicle - which is a bankruptcy-remote entity - and adhering to Know Your Customer (KYC) requirements.
At present, the exchange only accepts bankruptcy claims from a few e-commerce and crypto companies. However, its product portfolio will expand in the future; eventually providing an extensive suite of cryptocurrency products including decentralized custody/clearing service as well as stocks/FX trading.
However, without a vibrant marketplace the exchange will struggle to stay in business. That is why the team is looking to launch an open public platform for trading crypto claims and derivatives as well as stock markets.
The exchange will initially launch in Singapore, with plans to expand into other jurisdictions. To do this, they need to secure a license from the Monetary Authority of Singapore.
Furthermore, it is essential that the exchange abide by the laws of multiple jurisdictions. It should have an extensive compliance program, including a systematic process for monitoring and regulating users, as well as an effective governance structure to guarantee transparency.
Changing the Way People Think
In an unprecedented move, the founders of bankrupt crypto hedge fund Three Arrows Capital (3AC) have joined forces with CoinFLEX co-founders to launch a new cryptocurrency exchange that will enable creditors of failed crypto firms to trade their claims. This venture, called GTX, is seeking $25 million in seed funding to launch the platform.
According to a pitch deck seen by The Wall Street Journal, GTX plans on trading bankruptcy claims from digital assets that have been liquidated. Based on this notional value of these claims, GTX estimates a $20 billion market for their product.
Su Zhu and Kyle Davies, founders of 3AC, are joining CoinFLEX co-founders Mark Lamb and Sudhu Arumugan to launch an exchange called Open Exchange (OPNX). This exchange is scheduled to go live later this year.
However, the project will reportedly only benefit those with claims against failed crypto entities such as BlockFi, Celsius Network, FTX, Genesis Trading, Mt Gox, Voyage Digital and 3AC. In order to guarantee the exchange stays operational and meets Know Your Customer (KYC) regulations, a special purpose vehicle has been created.
In their pitch deck, the founding team is mentioned as being supported by Digital Currency Group (DCG), who acquired $1.2 billion worth of liabilities held by digital lender Genesis Global Capital after it defaulted on its debts. DCG also owns CoinFLEX whose founders, including Mark Lamb, were wiped out in a recent restructuring.
Rumors swirl that the project has raised $25 million, though who funded it remains unknown. However, an exchange is expected to launch within a few months with FLEX as its primary token.
The project is expected to launch its full capabilities later this year, including a fully decentralized custody and clearing solution, stocks/FX, and other products. A claims waitlist is open now with users able to apply to be part of the platform's launch.
The team is also believed to be looking to purchase the remaining assets of CoinFLEX, which recently underwent restructuring. During this period, the price of CoinFLEX tokens surged briefly.
Changing the Way People Do Business
Su Zhu and Kyle Davies, founders of Three Arrows Capital, are seeking to raise $25 million for their new crypto exchange, GTX. This platform would enable creditors to failed 'crypto' projects to trade their claims.
Though it may be hard to envision such a concept in light of the crypto market's collapse, the idea has merit. Indeed, several industry players have already used bankruptcy claims as an opportunity for creating liquidity; this was particularly helpful for crypto exchange FTX which shut down last year after experiencing multiple high-profile crashes.
Trading in the bankruptcy claims market can be risky, but it remains an intriguing way to create liquidity and boost investor confidence. It's essential to note that these claims are highly personalized and not nearly as fungible as standard tokens and cryptocurrencies.
Recently, 3AC co-founders Su Zhu and Kyle Davies revealed their plans to launch a crypto exchange that will focus on representing failed cryptocurrency projects' creditors. It is reported that they hope to raise $25 million for their venture, which has been dubbed "GTX."
According to their pitch deck, they plan on creating a platform that would enable users to transfer their FTX claims to GTX and immediately receive credit in USDG token. Furthermore, they aim to establish an open marketplace where people can purchase or sell their claims at an agreed-upon fee.
As part of their development process, they are working closely with Coinflex co-founders Mark Lamb and Sudhu Arumugam. In an interview with The Wall Street Journal, these two stated their ambition to fill the power vacuum left by FTX's bankruptcy.
Furthermore, they plan to expand the exchange into other markets such as stocks and FX. Furthermore, they aim to provide zero-proof audits for user balances and introduce a portfolio margin feature pioneered by FTX.
Though still in its early stages, the plan has already gained widespread media coverage - a sign that there may still be hope for crypto space.
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.