Contents from the latest billing report of the new CEO of FTX, John Ray III, have revived hopes that the bankrupt exchange may be restarted. Ray, who was appointed to steer FTX’s ship during its bankruptcy process had hinted at a possible restart in January. And now, the latest billing report suggests that work may already be underway to make FTX 2.0 a reality.
Per the filing, Ray spent more than 6.5 hours on items linked to “2.0” which is thought to represent FTX 2.0, a daring revival of the dead exchange.
Meanwhile, it might be worth mentioning that there haven’t been any official statements issued in confirmation of plans to restart the exchange. However, Ray did not rule out the possibility. Speaking with the Wall Street Journal in January, Ray said the company will explore all available options including a reboot. “If there is a path forward on that, then we will not only explore that, we’ll do it,” he added.
In April, FTX’s lead attorney Andy Dietderich also echoed Ray’s thoughts. He hinted that the exchange was considering a restart as one of several possible scenarios. He immediately added, however, that the restart would cost a significant amount of capital, and that no decisions have been made yet.
FTX 2.0 Sees Rare Support amid Industry Backlash
For what it’s worth, VC firm Tribe Capital has reportedly indicated its interest to spearhead the fundraising to restart the exchange. This is despite the widespread criticisms that have overshadowed such plans as many industry stakeholders believe that FTX 2.0 might not be the way to go.
Their arguments border on the fact that FTX has always had technical issues, software bugs, and very high latency since its inception. As a fact, it is widely thought that these issues were ultimately responsible for the exchange’s great crash in 2022. So, considering all the efforts that must be in place to fix bugs and get FTX’s trading engine running again, building an entirely new exchange from scratch might be a better option. That is not to mention the baggage that now comes with the ‘FTX’ name since its disgraceful fall from grace.