Scandalous FTX May Be Reissued: What to Expect

The scandalous FTX may be reissued, according to The Wall Street Journal, which notes that the management of the cryptocurrency exchange is negotiating this issue. Investors must show interest in the project before the end of June. The reissue also includes rebranding. In November, the site went bankrupt after journalists reported that its owners were using client funds for personal needs.

Will the bad reputation hinder plans for the re-launch of the cryptocurrency? Cryptocurrency market analyst Viktor Pershikov believes that this is not the only issue facing the platform. “The FTX infrastructure itself—the backbone team and the number of companies in its interest sphere—has been maintained, even though the crypto exchange itself has ceased to exist. Therefore, if we think about starting a new project under a different name, then investors will not be investing from scratch there. In my opinion, all the main tools for this crypto exchange have been preserved. Thus, the possibility of re-launch definitely exists.”

There are perhaps two main arguments against it. FTX is a project focused on the North American market. However, the Securities and Exchange Commission is opposed to sites that do not have stock exchange licenses in the US. Overall, the US can no longer be considered an attractive area for the development of crypto services. Accordingly, if FTX is reissued, it is likely to operate from offshore and compete with players like Binance.

How well they can do this, considering FTX's reputation, is quite difficult to say. Additionally, the crypto industry has quite a good memory. I cannot be sure that the overwhelming majority of those interested in trading on a trusted site will choose one that, to put it mildly, did not behave very well in the past. Even though the management of the exchange is not the same, and significant changes have taken place in the meantime, the sediment remains,” the analyst noted in an interview with Kommersant.