FTX exchange could make a comeback amid VC interest, among other network news

FTX exchange could resume its operations in the crypto scene amid newly expressed interests among venture capital (VC) firms. The possibility aligns with previous assertions by the firm’s attorney, Andy Dietderich, who disclosed that FTX was discussing a possible do-over with stakeholders. Nevertheless, for the reboot to pan out, the exchange must amass a sizeable amount of money sourced from external investment or, in the dire case, the sale of the company’s assets.  

Venture capital considers capital influx into FTX

Based on a recent report, Tribe Capital, a San Francisco-based venture company, has expressed interest in injecting new capital into the defunct crypto exchange to facilitate its reboot. The venture capital’s co-founder, Arjun Sethimet, has already held talks with the committee of unsecured creditors at FTX concerning the proposal, which remains informal as of press time.

In its proposal, the VC intends to launch a fundraiser event toward the revival of FTX. The target raise is $250 million, alongside plans to pour in some of its own money and bring in limited partners. Reportedly, the expanse of this investment is around $100 million. Nevertheless, the amount of capital required for restarting the exchange remains unknown, but it could be colossal given the fundraiser efforts and the recent recovery of $73 billion in cash and crypto assets, and it is still not enough.

Also Read: FTX token price surges almost 100% on news of exchange’s possible return

The report shows that Tribe Capital’s relationship with FTX is beyond latency, going back to before the exchange’s Chapter 11 bankruptcy filing. The venture firm had invested in the exchange while it was still well under the leadership of former CEO Sam Bankman-Fried before the company imploded.

Besides FTX, Tribe Capital also holds investments with firms in the crypto playing field, including Binance US and Kraken. This indicates the VC is a deep-pocketed investor, and if the deal with defunct FTX formalizes, it could trump up to become a significant restart for the exchange.

It appears that whether the FTX exchange will successfully reboot is more about the ability to raise capital than it is to restore the trust and confidence of new and existing investors.

FTX officials comment on the capital influx report

FTX’s Official Committee of Unsecured Creditors (OCUC) has issued a Twitter statement concerning Tribe Capital’s proposed capital influx report, revealing an ongoing collaboration with debtors to evaluate every possible option that could see the exchange restart. They are also keen on creating value for FTX creditors.

The committee articulated that there was no clear timeframe for when the defunct exchange could resume operations or a possible sale. With this, the OCUC has called for interested investors and buyers to reach out to the debtors and the committee.

FTX celebrity promoter continued clampdown

In a different but related story, efforts to crack down on every celebrity that promoted or endorsed the since-shamed exchange continue. In the latest development, former NBA star Shaquille O’Neal is the most recent victim, served outside his Atlanta home.

Noteworthy, the basketball star had been hiding from lawyers for months.

FTX token price rises almost 20% on the possibility of an exchange reboot

FTX token price (FTT) has reacted to the possibility of a platform reboot, surging over 20% as news about a possible reboot continues.

FTT/USDT 1-day chart

At the time of writing, FTT is exchanging hands for $2.07, a 15% drop from the April 12 highs around $2.70 high, when news of the recovery of $73 billion kick-started the possibility of a relaunch. 

This shows that confirmation of the relaunch could be the ideal catalyst to solidify the uptrend.