Founders of the bankrupt crypto hedge fund, Three Arrows Capital, and crypto exchange CoinFlex, are pitching investors to raise $25 million for a new crypto exchange focused on claims trading.
The founders of the now defunct crypto hedge fund, Three Arrows Capital (3AC), Su Zhu and Kyle Davis, are pitching investors with the hopes to raise $25 million to start a new cryptocurrency exchange called GTX. Zhu and Davis are joined in the venture by CoinFlex co-founder Mark Lamb and Sudhu Arumugam. Two separate pitch decks were obtained by the news agency The Block.
Zhu and Davis are trying to bring GTX to life following the implosion of FTX, which saw millions of creditors lose their funds. GTX aims to take advantage of the FTX situation by offering depositors the ability to transfer their FTX claims to GTX to receive immediate credit in a token called USDG. GTX is a spin on the “FTX” name “because G comes after F,” according to one of the pitch decks.
GTX will employ CoinFlex’s technology to build the exchange while a legal team will oversee the onboarding of claims for the recent bankruptcies that occurred in 2022 such as Voyager, BlockFi, Mt.Gox, and Celsius. According to the pitch decks, GTX is aiming to launch very soon, possibly in February already, and estimates that the claims market is worth somewhere in the whereabouts of $20 billion.
The GTX pitch deck has not been well received within the crypto community. Wintermute CEO Evgeny Gaevoy said on Twitter:
If you are investing into CoinFLEX/3AC[’s] ‘exchange’ you might find it a bit more difficult to work with Wintermute in future (on the relationship building side). Adding, “Similarly, we are not going to be participating in venture rounds where these guys are about to enter the cap table, so founders beware.”
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