• Three Arrows Capital (3AC) and CoinFlex founders are creating a new crypto exchange focused on claims trading, called GTX.
• The exchange plans to raise $25 million and offer depositors the ability to transfer their FTX claims to GTX and receive immediate credit in a token called USDG.
• The crypto claims market is estimated to be worth $20 billion.
The founders of now-bankrupt crypto hedge fund Three Arrows Capital (3AC) and troubled crypto exchange CoinFlex have announced plans to launch a new exchange focused on the claims of failed crypto projects. Su Zhu and Kyle Davies, the founders of 3AC, in collaboration with Mark Lamb and Sudhu Arumugam, who founded CoinFlex, plan to launch GTX, a new crypto exchange dedicated to claims trading.
Prominent crypto journalist Wu Blockchain revealed the news in a Monday tweet, citing that the crypto executives are looking to raise $25 million for the project. Su Zhu allegedly confirmed the news to the journalist, stating, „yes, no comment, just busy building it.“ According to the pitch decks circulating on Twitter, the team behind GTX claims that the crypto claims market is worth $20 billion. Their goal is to provide liquidity to claimants by allowing them to „sell them to crypto while using claims as margin capital.“
The move comes just two months after FTX, once the third-largest crypto exchange in the world, collapsed, leaving more than a million creditors out of pocket. The new exchange seeks to take advantage of such failures by offering depositors the opportunity to transfer their FTX claims to GTX and receive immediate credit in a token called USDG.
The name GTX has generated some controversy as some people noted that it is an „FTX“ spin off. However, CoinFLEX has declared that they could rebrand CoinFLEX into this new entity and will not use GTX. They are currently in the process of raising $25 million for the project.
GTX will be the first crypto exchange to offer claims trading. It will provide a platform for claimants to convert their claims into a tokenized form so that they can sell them for crypto, while also using them as margin capital. This could provide claimants with an opportunity to recoup some of their losses from failed crypto projects.
The team behind GTX is confident that their project will be a success. With $20 billion worth of potential claims trading, the project could provide a great opportunity for claimants to recover their losses. Furthermore, it could provide a much-needed boost to the crypto industry as a whole.