Will FTX make a comeback?

[bbc.reporter]

Someone asked a similar question in another board, and no matter how forgetful people are and the possibility of returning some of the funds to clients, returning this CEX in any form would be simply wrong. Allegedly, some funds have been discovered ($5 billion + another possible $5 billion) and all focus should be on how to compensate clients, although I have no doubt that the first in line are "significant clients", and considering that the largest US companies are involved in everything, ordinary clients will wait their turn and hope for some crumbs.

I very much agree. This exchange was not a service that was created in good faith with an honest intention. It was a already a scam and a scheme to launder money for their backers from the very beginning. The name FTX should be forgotten in the cryptospace. It was a horror show that was happening with or without CZ's dump of FTT that triggered a liquidity cascade.

Also agreed on the first in line are the significant clients. They need to do this to avoid prison and also a hope to avoid a trial hehehe. They might not like what Sam Bankrupt-Fried might say if pressured to a corner.

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[mk4]

I very much agree. This exchange was not a service that was created in good faith with an honest intention. It was a already a scam and a scheme to launder money for their backers from the very beginning. The name FTX should be forgotten in the cryptospace. It was a horror show that was happening with or without CZ's dump of FTT that triggered a liquidity cascade.

The chances of the cryptocurrency space forgetting an exchange that caused a cascading bankruptcy event is zero. It's pretty much the 2022 version of the MtGox debacle; and it can even be arguably worse — it was simply just so bad.

[virasog]

FTX was known to be the world's second-largest crypto exchange before collapsing in late 2022. Investors were "rekt" and crypto/Blockchain tech got a lot of bad publicity. The company is now bankrupt, but SBF is trying to bring back customers' trust by "making them whole" again. If FTX pays its customers back, do you think it will rise to glory again? Or is it game over for it? I'd be surprised if FTX makes a comeback after so much disappointment from mainstream investors. If it does come back, it's going to need to change its branding just to help gather new investors into it.

What do you think about this? Your input would be greatly appreciated. Thank you very much.

First of all, we need to understand that FTX scammed all of us and the scammers usually do not return our money. So if anyone thinks that SBF or ftx will return all this money , it is not going to happen.

The game plan by the scammers can be that they will want to re-enter in the market with a promise to again make an exchange and later return people money. I hope people do not believe thier false promises if they ever come up with such a plan to regain customers confidence and also again start collecting money from the people.

[GigaBit]

If FTX pays its customers back, do you think it will rise to glory again? Or is it game over for it?

Well if they can recover the bankruptcy, pay debts in any way, reorg the company, do much effort on strategic ways on how they will make more profit than before, that's possible. But knowing crypto companies rely much more on crypto's trend and knowing crypto is currently in the bad shape. I don't think it will happen.

Recovering from bankruptcy is a very difficult task. If FTX return money to customers and pay their debts then have the possibility to recover again. But I feel negative in this field. Because if they are able to pay the debt, will they be able to restore the confidence of the customers? Because we have already seen before what happen with Luna, they could not recover. Moreover, that confidence was not born among the investors. So I don't think FTX can come back. But it is not easy and simultaneously i want to say it is not impossible. It is only possible if they can regain the confidence of investors by being more stronger than before.

[Lucius]

I very much agree. This exchange was not a service that was created in good faith with an honest intention. It was a already a scam and a scheme to launder money for their backers from the very beginning.

From what I have seen and heard from the mouth of Bankman, it does not seem that the whole idea about FTX was started to carry out a scam with premeditation, because he does not seem like a bad person to me, but just very incapable of keeping such a complex business under control. In the first interview he gave after the collapse, he admits that things would have been different if he had devoted at least one hour a day to that work (I'm paraphrasing from memory).

Therefore, he is guilty because he completely lost control, and in addition to his obvious incompetence, some of his co-workers also realized that they can do whatever they want because the boss does not supervise the work.

The name FTX should be forgotten in the cryptospace.

Such things should not be forgotten because people should learn from their mistakes and not pretend that it never happened. Although I think that for some new investors in a few years it will be just another in a series of bad stories from the crypto world, which will not affect their decisions too much - so it should not be ruled out that history will repeat itself when it comes to CEX.

[Z-tight]

If ftx does make a comeback, sorry but i think people are simply just going to forget what has happened and start using them again, you would think that after all the money people have lost in centralized exchanges, that they wouldn't store their money there, but anytime a new centralized exchange or service collapses, you find out that billions of dollars of people's money were lost to it, if people didn't learn from the collapse of other exchanges and still lost their money when the exchange they use collapses, why wouldn't they use ftx if it makes a comeback?

I cannot explain why people do not learn, but it just happens that way. If Binance collapses today, people would lose millions and billions of dollars, is that supposed to be so when ftx, BlockFi, Celsius, etc just collapsed few months ago, normally people should learn from these events and use exchanges for trading only, and move funds into their self custody once they are done. This is my logic for believing that people would still use ftx if it ever makes a comback, maybe slowly, but after sometime many people would run back in.

[Wapfika]

This is same scenario to Bittrex and other top exchange that collapse and never comeback. It’s very hard to trust again an exchange that once collapsed unless they compensate they refund and compensate all the victims funds. There’s a lot of top exchange out there that doesn’t have a problem. Competition it’s already tough for them even when they are not yet collapse, I believe the influence of SBF helps them rise to the top and I doubt that the new CEO can do this to bring back FTX to the top spot once again.

[Lucius]

This is same scenario to Bittrex and other top exchange that collapse and never comeback.

It is true that the CEX you mention was hacked (several times), but it is also true that they still exist today and that hardly anyone mentions their bad days - especially if we consider that they somehow compensated their clients - although I am not sure if it was about some tokens or something similar, considering that many years have already passed since those hacks.

Although those hacks from the past (with the exception of Mt.Gox) were only transient bad episodes caused mainly by inexperience and weaknesses within the companies after which the companies were still able to recover - unlike this total collapse that is being talked about here.

[salad daging]

First of all, we need to understand that FTX scammed all of us and the scammers usually do not return our money. So if anyone thinks that SBF or ftx will return all this money , it Is not going to happen.

The game plan by the scammers can be that they will want to re-enter in the market with a promise to again make an exchange and later return people money. I hope people do not believe thier false promises if they ever come up with such a plan to regain customers confidence and also again start collecting money from the people.

I don't believe that even though FTX has been taken over by other people, we really fell into their trap after the collapse occurred, so they didn't return such a large amount of investor funds to their customers.

This will only be a driving force of opinion anyway this exchange won't come back even if it's just trying to pump their own coins, but how much money will have to be prepared if they do come back? but return without compensation then it's the same as nonsense all investors will no longer believe.

If it has fallen then we should not expect too much.

[coolcoinz]

I very much agree. This exchange was not a service that was created in good faith with an honest intention. It was a already a scam and a scheme to launder money for their backers from the very beginning.

From what I have seen and heard from the mouth of Bankman, it does not seem that the whole idea about FTX was started to carry out a scam with premeditation, because he does not seem like a bad person to me, but just very incapable of keeping such a complex business under control. In the first interview he gave after the collapse, he admits that things would have been different if he had devoted at least one hour a day to that work (I'm paraphrasing from memory).

Therefore, he is guilty because he completely lost control, and in addition to his obvious incompetence, some of his co-workers also realized that they can do whatever they want because the boss does not supervise the work.

SBF was a tool that I'm almost sure of, although can't fully prove it. There were much more powerful and much older people than him pulling the strings of his scam. He is incompetent, but I wouldn't say he's not a bad person. Have you seen any of the early interviews? The ones where he avoided answering questions, attacked people who did not allow him to elaborate and kept going straight to the point.
If you think it was all about his inability of running the business, how do you explain a few facts:

SBF bought himself a cheap Toyota to appear "normal" but at the same time he owned a yacht. He wanted to keep the scam going, didn't want people to think he's spending more than he should be.
He bought his parents a house with money he stole from customers. This was a deliberate action on his side. You can't expect a grown up man not to know that it wasn't his money to spend.

IMO he's a typical son of rich parents, an entitled teenager who refused to grow up. A little princess that complained there's no vegan dishes in jail.

[bbc.reporter]

@coolcoinz. Sam has backers. I speculate that his trial will only be a comedy show to cover up the truth and Sam will cooperate with the creators the show.

I very much agree. This exchange was not a service that was created in good faith with an honest intention. It was a already a scam and a scheme to launder money for their backers from the very beginning. The name FTX should be forgotten in the cryptospace. It was a horror show that was happening with or without CZ's dump of FTT that triggered a liquidity cascade.

The chances of the cryptocurrency space forgetting an exchange that caused a cascading bankruptcy event is zero. It's pretty much the 2022 version of the MtGox debacle; and it can even be arguably worse — it was simply just so bad.

I was only saying this without expectations for this becoming a reality hehehe and agreed, it has ended very much worse than Mtgox. However, the negative effect on the price was not the same. I reckon Mtgox controlled much of the liquidity of bitcoin on 2013. There were only few who would catch the dump. The market of the cryptospace today is more complicated. We have Binance BUSD, Tether, Circle USDC all competing for liquidity.

[mk4]

I was only saying this without expectations for this becoming a reality hehehe and agreed, it has ended very much worse than Mtgox. However, the negative effect on the price was not the same. I reckon Mtgox controlled much of the liquidity of bitcoin on 2013. There were only few who would catch the dump. The market of the cryptospace today is more complicated. We have Binance BUSD, Tether, Circle USDC all competing for liquidity.

MtGox was definitely worse because of the liquidity being on that single exchange like you said, but in the grand scheme of things FTX was far worse — in terms of industry reputation, potential regulations, etc.

[maydna]

It is very difficult to restore lost customer trust even if SBF wants to make the exchange whole again. Even trying and working hard, earning that trust is still difficult. The disillusioned investors were too afraid to return to FTX even though they guaranteed the problem would not happen again. But suppose SBF still wants to make it whole again. In that case, it needs to get tighter supervision than before, and maybe even SBF needs to appoint a representative from the government to sit on the company's board of directors so that if something goes wrong, the representative can report it and follow it up and fix the problem. And maybe SBF needs to overhaul all the people in the company by replacing them with people who are more skilled or can be trusted to help them manage the company.

[Abiky]

First of all, we need to understand that FTX scammed all of us and the scammers usually do not return our money. So if anyone thinks that SBF or ftx will return all this money , it Is not going to happen.

The game plan by the scammers can be that they will want to re-enter in the market with a promise to again make an exchange and later return people money. I hope people do not believe thier false promises if they ever come up with such a plan to regain customers confidence and also again start collecting money from the people.

If investors join themselves to form a class action lawsuit, then SBF would be forced to "make them whole again" one way or the other. That's if they win the case in a court of law. But I don't think FTX will ever make a comeback since its reputation is already destroyed. No investor would trust anything related with "FTX". A re-branding would be the only path forward for the exchange's revival plan.

I wouldn't care more or less about FTX, since we have many alternatives to choose from. The recent series of unfortunate events only made Binance bigger and stronger than ever. But that doesn't mean it's immune from collapsing sometime in the future. All of the centralized exchanges could disappear overnight for unknown reasons, so it's best to only deposit the amount of coins you're willing to trade just to be safe. Who knows if decentralized exchanges win at the end? Just my thoughts

[Woodie]

The situation of FTX moved from being hacked to the company being declared Bankrupt, to Sam Bankman apparently just misplacing a few billion dollars worth of crypto coins of the exchange which were later found and all this caused fear and panic in the markets to a point of several users moving coins out of different exchanges to avoid the same misfortune from happening to them. With all these events unfolding, this sent markets into a bearish phase, and trusting in exchanges has dwindled.. Now reviving of FTX can never happen, exchanges that have gone this route never return and this is FTXs fate!

The company is now bankrupt, but SBF is trying to bring back customers' trust by "making them whole" again. If FTX pays its customers back, do you think it will rise to glory again?

We all know the answer to this, there is no coming back for FTX, there are certain mistakes that go unforgiven and this is one of them, you don't play with people's money and expect them to give you hugs and kisses on your return, and I hear this lad was also gambling with customers money which shows lack of responsibility and no proper ethics to follow... CEO clearly never set a good example.

Or is it game over for it? I'd be surprised if FTX makes a comeback after so much disappointment from mainstream investors. If it does come back, it's going to need to change its branding just to help gather new investors into it.

What do you think about this? Your input would be greatly appreciated. Thank you very much.

I read some news article a few weeks back that read FTX got a new CEO, who apparently hinted at a comeback of the exchange which is a long shot tbh, they say "once beaten twice shy" customers might get their coins this time but next time all coins will go and never return.

[bbc.reporter]

I was only saying this without expectations for this becoming a reality hehehe and agreed, it has ended very much worse than Mtgox. However, the negative effect on the price was not the same. I reckon Mtgox controlled much of the liquidity of bitcoin on 2013. There were only few who would catch the dump. The market of the cryptospace today is more complicated. We have Binance BUSD, Tether, Circle USDC all competing for liquidity.

MtGox was definitely worse because of the liquidity being on that single exchange like you said, but in the grand scheme of things FTX was far worse — in terms of industry reputation, potential regulations, etc.

I very much agree. The reputation being the most important, I reckon. Sam, Celsius, Su Zhu, Luna and Do Kwon certainly destroyed it and makes it appear that the cryptospace is being run and ruled by hustlers, ponzi operators, criminals and clowns. It can be speculated that Barry Silbert is also running a ponzi scheme. The biggest joke of this is Justin Sun might really be the most serious businessman among all of them ehehehehe.

[Darker45]

It seems SBF is not alone in trying to bring back FTX. After all, he seems to be treated more as a baby than a criminal. It seems like powerful personalities are trying to assemble back FTX for him. Well, without necessarily bringing back the customers whole again. He should be incarcerated right now. Instead, he's probably Netflixing and browsing the net.

Anyway, Binance was also involved in a hacking incident, a KYC leak, kicked out from certain countries, even investigated for possible criminal violations, and others and yet it remains to be the top exchange today. So I would not be surprised if a relaunched FTX would also rise to glory once more. We never learn our lessons.

[Scripture]

It seems SBF is not alone in trying to bring back FTX. After all, he seems to be treated more as a baby than a criminal. It seems like powerful personalities are trying to assemble back FTX for him. Well, without necessarily bringing back the customers whole again. He should be incarcerated right now. Instead, he's probably Netflixing and browsing the net.

Anyway, Binance was also involved in a hacking incident, a KYC leak, kicked out from certain countries, even investigated for possible criminal violations, and others and yet it remains to be the top exchange today. So I would not be surprised if a relaunched FTX would also rise to glory once more. We never learn our lessons.

As long as they bring back the funds of many investors who are holding on their platform, I think its fine and maybe they have a better strategy now but don’t expect much from FTX. They’ve already recovered a lot of money, probably they are just waiting for the right time to release it and see if the site can still be recovered and free from an hacking incidents again.

Their reputation might not that be good anymore, they already filled for a bankruptcy and maybe on the process of liquidation, I don’t know but the government should make them liable and force them to repay all the money on their platform.

[Abiky]

It seems SBF is not alone in trying to bring back FTX. After all, he seems to be treated more as a baby than a criminal. It seems like powerful personalities are trying to assemble back FTX for him. Well, without necessarily bringing back the customers whole again. He should be incarcerated right now. Instead, he's probably Netflixing and browsing the net.

Anyway, Binance was also involved in a hacking incident, a KYC leak, kicked out from certain countries, even investigated for possible criminal violations, and others and yet it remains to be the top exchange today. So I would not be surprised if a relaunched FTX would also rise to glory once more. We never learn our lessons.

Binance may have suffered a series of unfortunate events, but that hasn't stopped it from being the largest crypto exchange in the world because it has a lot of money in its reserves. It can do anything it wants. Not like FTX, where it lost everything it had after the FTT crash. I believe all empires will eventually fall, so we may be witnessing the collapse of Binance in a distant future. Who cares about centralized exchanges if crypto was designed to be free from middleman? It's a "Peer to Peer Electronic Cash System" after all.

The constant failures of centralized exchanges, tells us it's time to look for decentralized alternatives that are much safer and reliable for day-to-day use. DEXs may have their set of issues now, but they're at least a solution for those wanting to trade big amounts of crypto without worrying about having their funds disappear overnight. With or without FTX, crypto will be here to stay for a long, long time. Just my thoughts

[JoyMarsha]

It will be challenging for the FXT exchange to regain the confidence and support of its investors. After what their investors experienced in their hands, getting their funds rug pulled unexpectedly on their exchange.

FXT's attempt to reimburse investors who have lost money on their exchange is a welcome step toward clearing their name from the cryptocurrency blacklist, but it doesn't guarantee that they will once again be a reliable exchange. The actions they took will continue to echo in the minds of crypto investors.

It will take years for FXT exchange to pull through this without trying to rebrand its name and mechanism