Kraken Co-Founder Voices his Doubts about FTX 2.0 Launch
Kraken co-founder doubts FTX revival plans, but FTX users see a chance for a fresh start.
Jesse Powell, co-founder of Kraken, is skeptical about the plans to revive the crypto exchange FTX. He voiced his concerns on Twitter, stating the many challenges that could stop FTX's rebirth.
Powell believes that starting a new crypto exchange would be easier than reviving FTX. He suggests selling off the brand and its domain name, as there is "no team, no tech, no licenses, no banking".
FTX had earlier announced plans to start again under a new brand. Recently, new CEO John J. Ray III submitted a plan for the revival of FTX targeting non-U.S. users. The plan outlines how they will pay back money owed to customers, both in the U.S. and outside.
Yet, the committee of FTX's unpaid creditors wasn't happy. They claimed they weren't asked for their opinion on the plan and there were no formal discussions.
Like Powell, others in the industry are doubtful about the rebirth of FTX. They believe it would be tough to rebuild a strong team and a secure platform. Top professionals in the field might prefer to work elsewhere.
However, the "FTX 2.0 Coalition", a group of FTX users who support the exchange's revival, disagree with Powell. They argue that the 1.8 million people who are owed money by FTX could help restart the exchange.
The group also mentioned that other leading exchanges like Binance and Coinbase are also facing legal issues. This implies there might be a gap in the market that a new FTX could fill.
