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What the numbers say: Bankrupt crypto exchange FTX's native token, FTT, briefly jumped over 12% on May 23. The increase came right after a new staffing and compensation report filed with the U.S. Bankruptcy Court for the District of Delaware confirmed the firm's plans to relaunch the exchange. The court filing dated May 22 has shown that new CEO John J. Ray III spent around seven hours on activities regarding a potential relaunch, billing more than $8,000. The details in the filing caused the token to briefly skyrocket in value on May 23 when the news broke out before it retreated to the average figures a day later. The token's volume also saw a significant increase by nearly threefold, jumping from $5.72M on May 22 to $14.33M on May 23 and $20.66M today. Relevance: FTX's relaunch plans were first revealed by the firm's attorney, Andy Dietderich, in April. At the time, the attorney said FTX was assessing the possibility of relaunching the exchange with its stakeholders, adding that the company recovered over $7.3B of crypto assets in cash and liquid. Dietderich also stated that the bankrupt exchange would make a final decision on a possible relaunch within the current quarter and underlined that a possible restart would require a significant amount of capital. Since then, the bankrupt firm has filed many legal motions to recover funds from several entities, including the bankrupt crypto lender Genesis. Brands that should care: Following the disclosure of relaunch plans, a Bloomberg report in April pointed out that the potential restart saw attention from Tribe Capital, a San Francisco-based venture capital (VC) firm with over $1.6B assets under management. At the time, the report claimed that the firm was preparing to lead a $250M fundraising campaign to revive the exchange. |
