FTX CEO’s Legal Billings Continue to Hint at ‘2.0 Reboot’ – The recently appointed CEO of FTX, John Ray III, who was tasked with overseeing the bankruptcy proceedings of the embattled exchange, hinted back in January that there might be a possibility of relaunching the exchange. Recent updates on his latest billing report indicate that efforts are indeed being made to make that a reality.
According to the filings, John Ray III dedicated 6.7 hours to tasks related to “2.0,” which is speculated to refer to FTX 2.0, a potential reboot of the exchange. Currently, there is no tangible evidence of a definitive plan to relaunch the exchange, except for internal sketches and speculative remarks. However, Ray has not completely dismissed the possibility. “Everything is on the table,” Ray told the Journal in January.
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“If there is a path forward on that, then we will not only explore that, we’ll do it.” During April, Andy Dietderich, the principal attorney representing FTX, indicated that there is a chance for the cryptocurrency exchange to resume its operations. Such a move would necessitate substantial capital and could potentially attract customer interest in the future exchange. However, Dietderich emphasized that this is merely one of several potential scenarios under consideration, and no final decisions have been made at this stage.
It has been reported that Tribe Capital, a venture capital firm, has shown interest in spearheading a funding round to revive the exchange. Nevertheless, industry experts have raised concerns about the feasibility of this plan due to ongoing technical shortcomings. Specifically, issues like high latency and software bugs, which have plagued FTX since its establishment and contributed to its financial downfall in 2022, have caused doubts regarding the viability of restarting the exchange.
Considering the extensive effort needed to address the issues in FTX’s trading engine and resolve other bugs, it might be more feasible to develop a completely new exchange without the associated challenges tied to the existing name. CoinGecko data reveals that FTX’s previous token, FTT, experienced a 12% increase following this news. However, if FTX were to be relaunched, it is improbable that FTT would have a significant role to play, as it is regarded as a security by the Securities and Exchange Commission.