SBF pushes FTX restart idea by issuing FTT tokens to creditors SBF pushes FTX restart idea by issuing FTT tokens to creditors
Crypto Trader host Ran Neuner first proposed the idea on Dec. 9, adding that it would make the new exchange the "biggest exchange in the world."
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Updated: Aug. 24, 2023 at 6:14 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
FTX former CEO Sam Bankman-Fried supports restarting the bankrupt exchange by issuing new FTT tokens to creditors and givingย 100% profits to token holders.
I continue to think that this would be a productive path for parties to explore! I *hope* that the teams in place will do so.
— SBF (@SBF_FTX) December 9, 2022
Crypto Trader host Ran Neuner first proposed the idea on Dec. 9, adding that it would make the new exchange the “biggest exchange in the world.”
In response, SBF tweeted that he thinks “that this would be a productive path for parties to explore.”
Crypto community criticizes SBF’s restart idea
However, the crypto community hasย criticized the idea and SBF’s support. Several users commented that SBF would be spending his time behind bars regardless of what happens to FTX.
Others also condemned Neuner’s suggestion, describing it as a Ponzi scheme idea in which the money of new users will be used to repay the creditors. Some users asked how much he was paid to make such a recommendation.
Given that you've already allocated 100% of the profits, where would the money to build such a thing come from?
— David "JoelKatz" Schwartz (@JoelKatz) December 9, 2022
FTT played an integral role in the running of FTX. At its peak, the token had a market cap of over $9 billion.
Meanwhile, reports that the token formed a significant portion of FTX’s assets triggered a bank run that led to the eventual insolvency of the exchange. Since then, FTT has crashed by over 90%.
According to CryptoSlate data, FTT has risen by 30% in the last 24 hours.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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FTX is a cryptocurrency derivatives exchange that offers futures, leveraged tokens and OTC trading.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.