Three Arrows Capital, the founders of the bankrupt cryptocurrency hedge fund, have announced the formation of a seeding fund for a new venture. This announcement came six months after the cryptocurrency hedge fund failed and nearly three months after the crypto exchange platform FTX failed.
The founders of Three Arrows Capital, Mr Zhu Su and Mr Kyle Davies, have announced a partnership with the co-founders of the crypto exchange platform CoinFlex, Mark Lamb and Sudhu Arumugam, to raise US$25 million in seed funding to launch GTX, an alleged platform for crypto bankruptcy.
According to Mr. Zhu, GTX will serve as a channel through which clients of the bankrupt exchange FTX and other insolvent estates can access their capital and resume investing. Furthermore, it will serve as a platform for clients to access and invest in stocks.
When asked how the platform would work, Mr Zhu explained that they intend to verify and tokenize the client’s claim, which will then serve as collateral. According to information leaked on the crypto Twitter community, the name GTX is a word play on FTX.
The Community’s Response
This new venture did not sit well with many industry experts, including Evgeny ‘Wishful Cynic’ Gaevoy, CEO of Wintermute, the leading global crypto market maker with a daily trading volume of over $5 billion. The CEO has issued a warning to the crypto community, claiming that the global crypto market maker will not work with anyone who invests in GTX.
Due to the CEO’s firm stance on the new venture of Three Arrows Capital’s founders, investors have begun to turn their backs on it in order to avoid being barred from the former’s ventures. Furthermore, Wintermute’s CEO has stated unequivocally that they will not participate in any venture rounds in which the founders of the disgraced platforms were spotted.
Aside from Wintermute’s CEO, Nic Carter of Castle Island Ventures slammed the implausible idea. Nic Carter tweeted a sarcastic remark, saying, “Disgraced fraudsters teaming up with other disgraced fraudsters to trade claims from a collapsed fraudulent exchange. Sounds backable.”
This statement has prompted many well-known crypto entrepreneurs to question the legitimacy of this new venture. However, the funding round documentation has revealed that GTX is a ‘placeholder name,’ which means it is subject to change at any time.