By Michael Scott
FTX management is mulling reviving the defunct crypto exchange platform following a detailed review process. A recent filing indicates that FTX chief John Ray had conducted a detailed review in the previous month to devise a reboot plan for the embattled crypto exchange.
Court Filing Details Plans to Revive FTX
The filing detailed the management considered reviewing and finalizing the 2.0 revival of Bankman-Fried’s troubled crypto exchange. The submissions on Case No. 22-11068 before the court captured the monthly staffing records alongside the compensation of Ray III.
The filing indicated that FTX management, under the stewardship of John Ray, undertook several activities to catalyze the crypto exchange revival. It outlines that Ray explored the process to reboot the crypto exchange and the conclusion of FTX 2.0 materials due for distribution to the investors.
The activities are documented within the Summary of Time and Fees section, where Ray incurred $1040 for an activity lasting below an hour in assessing the reboot material. The document furnished to the court indicates that the Ray-led team engaged services from the cybersecurity service provider Sygnia.
The cybersecurity consultant Sygnia would reinforce the safeguards the crypto trading platform deployed. Further, it would facilitate the assessment of the term sheet and illustrate the restructuring plan for FTX.
The filing demonstrates that John Ray executed process reviews as furnished by Perella Weiberg Partners LP. The investment bank and chief executive had documented communication regarding the potential reboot plan.
Is FTX Crypto Exchange Viable to Survive Restructuring Plans
Reviving FTX has featured in the past pronouncements made by the current chief executive. Earlier, he floated the revival idea with plans to restart the now-defunct exchange in January 2023. Ray indicated that various stakeholders engaged in the restructuring efforts admitted the FTX business as viable for revival.
FTX attorney Andy Dietderich recently portrayed signs of rebooting the exchange, though they ruled out they had a clear path discussed. He admitted that reviving the company for domestic or global activities would involve raising additional capital.
The recent filing shows that Ray led the restructuring team into reviewing bidders expressing interest in FTX 2.0. VC Firm Tribe Capital has previously expressed interest in leading a funding round to reboot the exchange. The firm though a previous investor, submitted a willingness to retain the FTX name.
The mention of the potential to reboot FTX is attracting increased scrutiny from the crypto community. In the initial projection of reviving FTX in January, Ray revealed a discovery of $5.5 billion for the bankrupt crypto exchange. The April report estimates the assets recovered at $7.3 billion, with FTX projected to restart by April 2024.
FTT Market Outlook
The positive news of the FTX revival is propelling the FTT token to a new milestone. The FTX native token rallied 16% on May 22. At press time 17:05 UTC, FTT is exchanging hands 8.7% up at $1.09, as shown in CoinGecko data.
The daily trading volume rallied 428.80% to estimate $28.696 million, with the 7-day price run increasing by 1%. Further review of FTT shows the token is a popular asset at Bitget, with the leading trading pair FTT/USDT yielding $377762 trading volume in the past 24 hours. FTT is also popular on Bitvavo and Gate.io platforms.
FTT is exchanging hands 98.72% below its all-time high of $84.18, realized on September 9, 2021. Nevertheless, the FTT price is 30.55% higher than its lowest price of $0.827479 on December 30, 2022.
A scrutiny of FTX’s performance shows that FTX’s 1.10% growth is outperforming the global crypto market, which increased by 1% in the past seven days. Nonetheless, FTT is underperforming cryptos within the Ethereum ecosystem that have rallied 12.70%. As such, the community portrays a bearish perspective, as over 59% are still uncertain about FTX’s future.
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