Is FTX going for a reopen?

[ChillyMatthew]

GM crypto fam.

As I was doing my usual Friday market check-in, I came across an unbelievable story about a new FTX CEO wanting to reopen FTX, and FTT token surged 30% on the news.

I'm really curious to hear your opinion about this. Is there something I'm missing? Why would anyone be willing to go back to FTX after what it did to the industry?


Sources:

https://www.bloomberg.com/news/articles/2023-01-19/ftx-token-jumps-after-new-ceo-says-exchange-could-restart

https://app.getresponse.com/view.html?x=a62b&m=BVDWtR&mc=9Q&s=BtgXWnG&u=QcLhh&z=ECFYM10&

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[Wiwo]

GM crypto fam.

As I was doing my usual Friday market check-in, I came across an unbelievable story about a new FTX CEO wanting to reopen FTX, and FTT token surged 30% on the news.

I'm really curious to hear your opinion about this. Is there something I'm missing? Why would anyone be willing to go back to FTX after what it did to the industry?


Sources:

https://www.bloomberg.com/news/articles/2023-01-19/ftx-token-jumps-after-new-ceo-says-exchange-could-restart

https://app.getresponse.com/view.html?x=a62b&m=BVDWtR&mc=9Q&s=BtgXWnG&u=QcLhh&z=ECFYM10&

If you have been following up with recent development and events surrounding the FTX crisis, you will know that a huge amount of FTX funds stolen from the exchange to personal wallet have been recovered.  So everything is set to begin again for FTX to launch their operations, but then the big question now will be.   How and when do investors who lost money during this FTX bankruptcy get their balance back in on their account with the exchange?
The new development is big positive news in the cryptocurrency space and quite a good number of coins are already showing a positive attitude which results in a few percentage of increase in their price.

[DeathAngel]

I don’t think they’ll do particularly well even if they do reopen with new staff. The trust has evaporated, even though SBF & co. are gone. The brand name is tainted, trust has gone.

Hopefully if they go reopen the first thing that happens is, any funds that are still there & redistributed (in part) to those who lost money. Obviously the full funds aren’t there thanks to an awful scam but even if part funds are returned to the rightful owners that’s the best scenario out of the whole FTX shit show. 

[Tytanowy Janusz]

]
   How and when do investors who lost money during this FTX bankruptcy get their balance back in on their account with the exchange?

Most likely they will never do. Even after FTX reopen. Its possible that FTX CEO will "find" as much as it is possible to pay US users to not be chased by US authorities not carrying about others. That wat chapter 11 is - bancrupcy.
There is also Chapter 13 - a reorganization. After this, as long as I know, you can have a fresh start without paying all your liabilities. You only have to have reorganization plan and  the bankruptcy court's need to accept it even without the acceptance of creditors. SBF have frieds to help with that.

[avikz]

I won't be surprised if FTX again opens up under new management. If I take examples of various banks around the world, usually they get government support to ensure that the bank can restart its operation. However, we haven't yet seen any such things happening in crypto world. rather we have seen a long litigation process and extreme delay in refunding the money of the investors in various cases. So I am not sure if FTX will really start their operation again. But it seems highly unlikely.

It can be only possible if some billionaire steps in and propose to take up their losses and liabilities in exchange of 100% ownership and no legal action, FTX might re-open someday.

[eaLiTy]

As I was doing my usual Friday market check-in, I came across an unbelievable story about a new FTX CEO wanting to reopen FTX, and FTT token surged 30% on the news.

I'm really curious to hear your opinion about this. Is there something I'm missing? Why would anyone be willing to go back to FTX after what it did to the industry?

Do you really think that a company who siphoned customer funds will be able to regain the trust of investors. That ship has sailed and even if they want to re open the exchange, hardly you will see any investors trusting their funds with the exchange. First they need to refund the money stolen from the users and if they are able to settle everything which is highly unlikely they can open.

[klidex]

Maybe it is true that there will be news saying that FTX will be revived and operationalized again, but it will be even more difficult for FTX to grow and have many users in it.
In fact, I am sure that there will be no more investors who will come in and believe in investing again in FTX. In terms of lost investor funds, there is also no certainty when they will be returned in full.
It's actually easier to be able to develop and advance a new platform that doesn't have many users than it is to revive and regain glory for a platform that has collapsed due to having a serious case and a bad reputation about the platform.
So it's possible that FTX will be revived again, but it's impossible to be like before when it was still victorious.

[dothebeats]

FTX already changed leadership, and AFAIK most of the funds that were embezzled were already recovered. I think this is a good development in a way that the funds from the users were returned, though not so much for FTX which has their name already tarnished by what SBF did. It will take more than a rebrand and change of leadership in order to get FTX up and running again and compete with the best exchanges out there. And then there's the US and Bahamian authorities that are seeking to take FTX down due to a lot of legal complaints against the said exchange..

[rhomelmabini]

Well, they might be solvent with those recovered funds (thanks to SDNY FTX Task Force for their efforts to recover it) but what about their users, creditors, etc. that want their funds to be back? Needless to say, they might have a chance but on what extent? People might be doubtful even if they do.

[Jackl87]

GM crypto fam.

As I was doing my usual Friday market check-in, I came across an unbelievable story about a new FTX CEO wanting to reopen FTX, and FTT token surged 30% on the news.

For me personally it is pretty hard to imagine that FTX can just restart their business and then go on like before the bankruptcy like nothing has happened. I think that first of all the trial against SBF needs to happen until there is a final verdict. Only then it is clear if the company FTX also is partly guilty or if it was SBFs fault alone. Then there also is still the fact that there was a hack happening at FTX during all that Chaos and the funds of users were stolen. So this also needs to be settled first.

[mindrust]

GM crypto fam.
As I was doing my usual Friday market check-in, I came across an unbelievable story about a new FTX CEO wanting to reopen FTX, and FTT token surged 30% on the news.
I'm really curious to hear your opinion about this. Is there something I'm missing? Why would anyone be willing to go back to FTX after what it did to the industry?
Sources:
https://www.bloomberg.com/news/articles/2023-01-19/ftx-token-jumps-after-new-ceo-says-exchange-could-restart
https://app.getresponse.com/view.html?x=a62b&m=BVDWtR&mc=9Q&s=BtgXWnG&u=QcLhh&z=ECFYM10&

Hopefully not. The brand is tarnished beyond repair. Nobody in the right mind would ever trust that exchange. It doesn't matter if they get a new CEO. That exchange is finished. They should just declare bankruptcy and try to find ways to make their customers whole.

Let's say they found a new CEO for this scam exchange. Is he going to pay for the stolen coins from his own pocket? If not why even bother?

FTX needs to die asap. Bankman should rot in prison. There is no other way out.

[Anonylz]

I don't think I have seen a successful second chance in the crypto space, once a reputation has been badly damaged it is very hard to rebuild it to the previous level. Luna is suffering the same faith, despite the fork, people already lose interest and move on.
Ftx will have a similar experience, even if a new CEO should take over (which I think is a terrible idea by the way) the damage to the rep of the project has already been done, and it will be hard if not impossible to gain it back. to me, it is a lost course.

[bittraffic]

Maybe it will really reopen again and people wanted to be the first again to make money so they buy the FTT again expecting a huge return in the coming bull run. You can never say never when it comes to making a profit. But to me, I'd rather not go buying FTT the only reason why an investor may go back to FTX is likely just to claim back the money he lost.

“The brand is toxic,” Harvey said. “It is a classic situation where you fooled me once, shame on FTX but if you fool me twice, it’s all on me.”

This is according to Campbell Harvey, a finance professor at Duke University. I think many of its investors would really agree to him.

[o48o]

Only way i can see them opening again would be something similar that bitfinex did. Offering company shares to users who lost money or tokens they are obliged to slowly buy back and burn. This could also help ftx as people who would take this offer would need to drop their legal demands.

[Hamza2424]

No, dear, I think this not going to happen but maybe it's possible as this market always surprises us you never know what is going to happen. Speculations in crypto move around the 360 angles. The market is heading up again and it's good a small hope for the old investors. FTX destroyed many connected projects, SOL is worth mentionable as far I know.

[OgNasty]

Even if it did reopen, would anyone use it?  Would it be profitable?  Could you trust that they wouldn't steal your funds again?

I think you'd have to be crazy to use the site after what they did, but people are crazy.  Maybe they'll view it as a way to help make back their own money with their own trading fees.  Who knows?  What I do know is that you don't go back to giving money to the person who just scammed you thinking it will be different this time.  Sure, there are always those who go looking for pain, but in this case, if you'd use FTX knowing the giant hole they have to fill, you probably deserve being involved in their next bankruptcy case as well.

[cabron]

Only way i can see them opening again would be something similar that bitfinex did. Offering company shares to users who lost money or tokens they are obliged to slowly buy back and burn. This could also help ftx as people who would take this offer would need to drop their legal demands.

There is nothing that will guarantee its users that they will not do it again. Even if they have the shares already, these people will be watching the company all the time. Because it's sure not going to get users on board for countless of years. As long as FTT issue will come up every time a crypto scam is on the discussion, the reputation will wreck it over and over.

FTX is done. I wonder though why Binance didn't delist its token.

[o48o]

There is nothing that will guarantee its users that they will not do it again. Even if they have the shares already, these people will be watching the company all the time. Because it's sure not going to get users on board for countless of years. As long as FTT issue will come up every time a crypto scam is on the discussion, the reputation will wreck it over and over.

I understand that there would be some serious issues and it would be hard for them to regain any trust from investors. However they are under microscope so i seriously would doubt them trying anything like that again. Fool me once...

FTX is done. I wonder though why Binance didn't delist its token.

I was thinking about this too. My guess is that whales made ton of money by shorting it and delisting it midway might upset some whale clients. I would have shorted it in binance but for some reason i first didn't find it there and shorted it with a dollar that i got left in FTX for fun and got some pocket cash. I would have made serious money if i would have used any of my brain and focus on that seriously.

[blockman]

The reason why the market pumped (not today) a few days ago is because of the news that they've recovered a portion of their funds. And with such news, the market has been optimistic and pumped again. Having that said, those people that are optimistic about their coming back should be aware of the risk that they're taking. Yeah, it could be a new management but the name of it has been stained already by the debacle that it has formed.

[Jawhead999]

It's possible as long as Sam Bankman Fried or the new management are agree to reopen FTX, but I don't expect anything FTX will able recover their reputation just like before they got hacked. It's not about they can refund all of their customer's losses, but any people doesn't want to take risk for twice since they will think FTX will bankrupt again in the future.

It's better if they're start to create new exchange and offer lower fees just like FTX, sooner or later they will built the reputation same like the old FTX.