Skip to content Skip to sidebar Skip to footer

Like the gargantuan corpse of a slain god, FTX offers plenty of dining options.

Here is The block:

Su Zhu and Kyle Davies, the founders of collapsed crypto hedge fund Three Arrows Capital (3AC), are hoping to raise $25 million to launch a new crypto exchange called GTX, according to two separate presentations obtained by The Block.

News of the fundraising comes two months after exchange giant FTX implosed, leaving more than a million creditors out of pocket. The new exchange is taking advantage of the situation offering depositors the opportunity to transfer their claims from FTX to GTX and receive immediate credit in a token called USDG, the pitch deck said.

The name of the exchange is even a spin on “FTX”, with one of the GTX pitch decks opening on the line “because G comes after F”.

Once you’ve finished laughing, you might consider crying. In case you have already put down the events of the last year, Singapore-based crypto hedge fund Three Arrows Capital (3AC) collapsed after being blown up by margin calls – with several other crypto players caught in the aftershocks.

Well, don’t despair: the architects of 3AC are back, bringing with them Mark Lamb and Sudhu Arumugam, the co-founders of CoinFLEX – which filed for restructuring last year after June’s crypto tumult forced a suspension of withdrawals.

If that pedigree hasn’t already made you cringe, we have one of their pitch decks (h/t Kadhim Shubber), which we’re sharing for your “enjoyment”.

You can download the complete PDF hereor take advantage of our selection of highlights.

The pitch starts in earnest with some primo dataviz. We think it’s meant to be like a snowball, but we can’t help but remember the iconic James Bond canon intro. Potential investors are probably hoping for this to end with less red on the screen.

The next slide pledges to fill the “power vacuum” left by FTX. Perhaps the most telling phrase is the plan to “appeal to rights holders’ appetite for crypto-trading” – implying that those burned by FTX’s collapse will be prepared to more fun when it comes to crypto. Shit, maybe they’re right. You can’t trust people.

Then comes a similar leap of faith: that your boyfriend, who has $4,000 locked up in FTX, is simply looking for a new YOLO opportunity.

GTX, naturally, is the answer (if you ignore places like Cherokee Acquisition, where our colleagues report that FTX claims are already trading for 10-14 cents on the dollar).

For no particular reason, we’re going to highlight the phrase “Collateral value guaranteed by debt firms” because it seems never as a foreshadowing.

A few slides on it, top right, it’s a gem.

He keeps on:

Creditors can continue to hold their claims until maturity or choose to sell them to crypto, while using the claims as margin capital.

In fact, we can’t be mad at this, it’s so evil.

The deck promises battle-tested technology, which, given the pedigree of its founders, is presumably similar to how the Death Star was tested in battle.

Look, if you’re not already sold, remember all they need is $25 million. The time to market is “As soon as possible by the end of February”, so don’t miss this opportunity!

Source link

Leave a comment