What are the chances of FTX raising funds...

[adaseb]

Looks like SBF is at it again and basically trying to lure investors into investing into FTX. He is looking to raise +$6B or so. I think he is trying to sell some FTX bonds which are paying 10% per year for 3 years and then converted into common stock.

Now I realise that Bitfinex did something similar when they got hacked back in 2015. They raised I think $1B very quickly. And their valuation is much lower back then than FTX today. However they got hacked... SBF committed fraud.

They seem to generate $10-20B in volume daily and $1B in revenue per year. Seems like a profitable company however.... will anyone actually invest billions after what he did? Will people actually still trade on FTX after all this mess?

I give this 10% chance of succeeding....

[Johnyz]

If there’s a hype probably someone will invest.
If the purpose to raise funds is to compensate all the losses and stay in the competition then why not. This might not be so easy for them because of what happened, most probably there’s already a trust issue with them. The question is what if SBF committed another fraud? This might be double kill for FTX. Well, we will see if they will push it through.

[adaseb]

If there’s a hype probably someone will invest.
If the purpose to raise funds is to compensate all the losses and stay in the competition then why not. This might not be so easy for them because of what happened, most probably there’s already a trust issue with them. The question is what if SBF committed another fraud? This might be double kill for FTX. Well, we will see if they will push it through.

Well here is the issue. And this is where I am lost.

Apparently since he filed for Chapter 11, he is no longer the CEO and no longer running the company.

He is trying to raise funds but what will he get out of that since he is no longer the CEO. He posted some interview earlier saying he is raising funds but then the FTX Official posted saying that SBF is no longer in charge and not to pay attention to him anymore.

So I am really confused what he is trying to do.

[ultrloa]

If there’s a hype probably someone will invest.
If the purpose to raise funds is to compensate all the losses and stay in the competition then why not. This might not be so easy for them because of what happened, most probably there’s already a trust issue with them. The question is what if SBF committed another fraud? This might be double kill for FTX. Well, we will see if they will push it through.

How could they trust FTX? there financial status are really in bad shape where they have huge money needed to compensate to their millions of users. For sure investors most likely taking suicide for there money if they push this plan because let say even if they could raise funds from those private individual to pay there users the question there is are those people will go back to the platform to use their exchange? I think not they already get out with the problem and how could they came back on the platform where give them huge stress due to financial issues?

[jossiel]

I believe that there are still few that would bite on this. Like, they're thinking that this is crypto and it can be dumped fast but the same as the opposite of it, recovery.

Those that have the funds and can afford to lose it for the second time around would take the gamble. But as for me, I'd never touch any of these shits from FTX/Alameda.

[Baofeng]

I believe that there are still few that would bite on this. Like, they're thinking that this is crypto and it can be dumped fast but the same as the opposite of it, recovery.

Do you think so? I thought investors are smarter than that? and assuming that SBF has plans to raise funds, who are going to be lured on his scam? I mean scheme? And if there is something that history will teach us in crypto, it's that once your reputation has been damage here, its' going to be very difficult to come back.

Those that have the funds and can afford to lose it for the second time around would take the gamble. But as for me, I'd never touch any of these shits from FTX/Alameda.

So I will say that the amount of money investors lost like the reported Tom Brady and Giselle money, I doubt although there are still video off Tom and SBF together, that they are willing to reinvest again.

[GreatArkansas]

(.....)
Now I realise that Bitfinex did something similar when they got hacked back in 2015. They raised I think $1B very quickly. And their valuation is much lower back then than FTX today. However they got hacked... SBF committed fraud.

Exactly! This is what other people also suggesting, FTX can do what Bitfinex did before. FTX Exchange is a huge exchange, I believe it is the second biggest exchange after Binance and as you can see, their trading volume is huge too, so what if they continue to operate and continue to earn money by trading fees and other exchange-related operations?

On the other side, FTX did something terrible, suspected that they used customer's fund, so the issue here is different from Bitfinex before which I believe it's very difficult to regain trust of people again.

[CryptoBuds]

If there’s a hype probably someone will invest.
If the purpose to raise funds is to compensate all the losses and stay in the competition then why not. This might not be so easy for them because of what happened, most probably there’s already a trust issue with them. The question is what if SBF committed another fraud? This might be double kill for FTX. Well, we will see if they will push it through.

Well here is the issue. And this is where I am lost.

Apparently since he filed for Chapter 11, he is no longer the CEO and no longer running the company.

He is trying to raise funds but what will he get out of that since he is no longer the CEO. He posted some interview earlier saying he is raising funds but then the FTX Official posted saying that SBF is no longer in charge and not to pay attention to him anymore.

So I am really confused what he is trying to do.

Although on paper he has resigned as CEO of FTX, I believe he is still running things. As far as I know, the resignation is in his favor because if FTX does not raise capital to restore business, FTX will officially go bankrupt at that time as the CEO of FTX, he will not be able to start a new company or participate in any other projects. This is why he resigned shortly after FTX filed for bankruptcy, but if they can really successfully raise capital to get back in business, he will definitely return as CEO.

[Chato1977]

this is going nowhere from my perspective , because while FTX is in a bad shape now a kicked CEO is raising funds? what would be the sentiments of investors in this part?I'm afraid this will help the project to gain investors again with this kind of problem inside.

[wxa7115]

Although on paper he has resigned as CEO of FTX, I believe he is still running things. As far as I know, the resignation is in his favor because if FTX does not raise capital to restore business, FTX will officially go bankrupt at that time as the CEO of FTX, he will not be able to start a new company or participate in any other projects. This is why he resigned shortly after FTX filed for bankruptcy, but if they can really successfully raise capital to get back in business, he will definitely return as CEO.

I really hope he fails to raise the money, we do not need people like him in the market since the only things he knows how to do is to deceive people, defraud them and to give a bad reputation to this market.

And while it is tragic the loss of money that all of those people which were deceived by him have suffered, we do not need even more people to lose their money as well, because even if he succeeded and saved FTX from disappearing, this will only raise the number of victims that will suffer at his hands in the future once this happens again.

[TravelMug]

Chances are slim in my opinion and for me, doesn't make sense for people to bail out SBF, he has caused so much damage for us. The best thing we can do is for him to go in jail and justice should be served for those who lost their money here.

And even in our community here, I will speculate that the consensus will be the majority, let SBF suffer and let this be a lesson for all investors, small or big to really be careful specially altcoin market as the risk is huge.

[hugeblack]

I remember Luna's case, before the last crash there were rumors as well and then the price went up and some thought things were getting better and then the knockout.

If anything could have been salvaged, it would have been on the first and second day and not after all this period, precisely when the non-binding takeover offer from Binance was rejected.

If anyone thinks about investing money, he must be a device to meet customer withdrawals and bear all the mistakes of the previous administration, which includes squandering customer money.

[LogitechMouse]

If there’s a hype probably someone will invest.
If the purpose to raise funds is to compensate all the losses and stay in the competition then why not. This might not be so easy for them because of what happened, most probably there’s already a trust issue with them. The question is what if SBF committed another fraud? This might be double kill for FTX. Well, we will see if they will push it through.

Double kill not only for FTX but also for those who still trusted him and fell to this "raising fund" shit again.
Hype? There is no hype with this one. The only thing that this has is lack of trust because of what happened.

I don't know if it's only me, but we are in a crazy world of crypto where there are still people who are trusting the project regardless of what happened to them in the past. Just look at LUNA. We expected it to crumble and fall down after what happened to them but still, there are investors who are willing to give them a second chance thus, they are still operating though thru a different project already.

I will not be surprised though if there are still some investors who will try and help SBF with his +$6B fund raising and I will not call them stupid or whatever others want to call to them since they still trust him regardless of what happened. I'm just a bit confused why he is the one that is organizing it though he already resigned as the CEO of FTX.

[Maidak]

It is true that FTX still has a chance but the chance is very slim, no one will believe in SBF anymore. Even Binance, the biggest player in the market, refused to buy back FTX after learning that the debt FTX is carrying is too large even though the number is not too large compared to finance.

The best thing we can do is for him to go in jail and justice should be served for those who lost their money here.

Like Dokwon's Luna, there is still no legal corridor in the crypto market so no one has the right to convict SBF. FTX is only registered to do business in the United States and the Bahamas, as long as they fully compensate users in these two countries, they will not bear any other liability.

[MarjorieZimmermanGinger]

It is true that FTX still has a chance but the chance is very slim, no one will believe in SBF anymore. Even Binance, the biggest player in the market, refused to buy back FTX after learning that the debt FTX is carrying is too large even though the number is not too large compared to finance.

For FTX it may be quite difficult to restore trust, considering this case has been widely circulated in the media and I think people will have different levels of trust in Binance. Since it's related to reputation, in the worst case scenario, FTX will no longer run as it used to, even if someone is able to restore its reputation.

Like Dokwon's Luna, there is still no legal corridor in the crypto market so no one has the right to convict SBF. FTX is only registered to do business in the United States and the Bahamas, as long as they fully compensate users in these two countries, they will not bear any other liability.

Talking about the law will be much more complicated, because the exchange is affiliated in America and the Bahamas, so the legal process will be determined there, and if they compensate as you say, then it's true they don't have to bear any other obligations.

[gantez]

Chances are slim in my opinion and for me, doesn't make sense for people to bail out SBF, he has caused so much damage for us. The best thing we can do is for him to go in jail and justice should be served for those who lost their money here.

And even in our community here, I will speculate that the consensus will be the majority, let SBF suffer and let this be a lesson for all investors, small or big to really be careful specially altcoin market as the risk is huge.

Such kind of his act is bringing bad name to the cryptocurrency. This should be properly handle to avoid another gambler trading for profit with the customer money. The trust is not there for him again. In cryptocurrency if you betray the people, the community don't give you another chance. Going for bailout or source for money to pay back is not a possible thing, binance deal didn't succeed because of no trust on the huge debt payment.

[Davian144]

For FTX it may be quite difficult to restore trust, considering this case has been widely circulated in the media and I think people will have different levels of trust in Binance. Since it's related to reputation, in the worst case scenario, FTX will no longer run as it used to, even if someone is able to restore its reputation.

Binance will not be bad because of this case, because in the past Binance has also been hacked but is able to restore its trust in everyone by taking full responsibility for things that are not wanted by its users. But for FTX I still doubt whether the exchange will be able to restore its trust in everyone in the future.

Talking about the law will be much more complicated, because the exchange is affiliated in America and the Bahamas, so the legal process will be determined there, and if they compensate as you say, then it's true they don't have to bear any other obligations.

Actually it's not complicated, but some people may not know how the law works there in cases like this. So that further investigation is still needed so that we can understand how the legal process is there for cases that occur on exchanges such as FTX which have gone viral in almost all media.

[doomloop]

Chances are slim in my opinion and for me, doesn't make sense for people to bail out SBF, he has caused so much damage for us. The best thing we can do is for him to go in jail and justice should be served for those who lost their money here.

And even in our community here, I will speculate that the consensus will be the majority, let SBF suffer and let this be a lesson for all investors, small or big to really be careful specially altcoin market as the risk is huge.

Such kind of his act is bringing bad name to the cryptocurrency. This should be properly handle to avoid another gambler trading for profit with the customer money. The trust is not there for him again. In cryptocurrency if you betray the people, the community don't give you another chance. Going for bailout or source for money to pay back is not a possible thing, binance deal didn't succeed because of no trust on the huge debt payment.

For those who are not new here, one mistake is already enough for them and they will move on already no matter what conditions they are giving to them by the company who failed them but for those who are new in here and has a lack of experience, maybe they will take the risk because they are still hoping that they can recover what they have lost in FTX.

Remember the luna event last time? They also beg the public to gave them another chance and they create another luna coin but that seem to not go well. Binance won't be successful if they are not wise and smart, and that is why they didn't accept the deal. People should learn from them.

[TimeTeller]

Chances are slim in my opinion and for me, doesn't make sense for people to bail out SBF, he has caused so much damage for us. The best thing we can do is for him to go in jail and justice should be served for those who lost their money here.

And even in our community here, I will speculate that the consensus will be the majority, let SBF suffer and let this be a lesson for all investors, small or big to really be careful specially altcoin market as the risk is huge.

Such kind of his act is bringing bad name to the cryptocurrency. This should be properly handle to avoid another gambler trading for profit with the customer money. The trust is not there for him again. In cryptocurrency if you betray the people, the community don't give you another chance. Going for bailout or source for money to pay back is not a possible thing, binance deal didn't succeed because of no trust on the huge debt payment.

For those who are not new here, one mistake is already enough for them and they will move on already no matter what conditions they are giving to them by the company who failed them but for those who are new in here and has a lack of experience, maybe they will take the risk because they are still hoping that they can recover what they have lost in FTX.

Remember the luna event last time? They also beg the public to gave them another chance and they create another luna coin but that seem to not go well. Binance won't be successful if they are not wise and smart, and that is why they didn't accept the deal. People should learn from them.

We can't tell yet the future of FTX but I do agree that most users here won't trust the exchange for the second time around.
But SBF may have different charisma than Luna's Do Kwon. So SBF has the potential to raise this money.
For those who lost a lot owed to FTX failure, I don't think they will bail out SBF this time.
He needs a very convincing offer to the public to raise good amount of money. But of course, he can always try .
I think if he will show sincere offer to the extent of using his own funds and not care about his possible loss, he may raise sufficient amount to recover his platform.

[uneng]

Many crypto companies are in similar situations and they didn't succeed finding investors and buyers to cover the hole. I don't know why it should be different with FTX. I believe these are ideas thrown on the public to buy time while giving the impression they are working hard in a solution and that there is still hope of recovery. Meanwhile they work on the backgrounds with their lawyers to find a safe exit from this mess, guaranting a relatively confortable and free life outside the prison.