GTX, the new crypto exchange, raised funds
According to the two separate presentations sourced by The Block, Su Zhu and Kyle Davies, the founders of the crypto hedge fund Three Arrows Capital (3AC), which has been closed and dissolved, sought to raise $25 million to establish a new crypto exchange GTX.
GTX is even a game on FTX or a variant of FTX. One of the GTX promotion platforms begins with the sentence "because G appears after F.".
The news was released two months after the collapse of the exchange giant FTX, which caused heavy losses to more than 1 million creditors. In the GTX’s fundraising speech, it was said that the new exchange GTX would respond to this situation so that depositors would have the opportunity to transfer their claims from FTX to GTX, and immediately obtain the credit of the token USDG.
On February 4, 2023, Arthur Hayes, the founder of BitMEX, tweeted that it was reported that the CEX project "GTX", established by Su Zhu and Kyle Davies - both of whom are the former founder of 3A Capital, together with Mark Lamb and Sudhu Arumugam, two co-founders of CoinFLEX, had closed the funding round.
Strong team
Most founders will fail at some point in their careers because startups face stark competition. When selling new businesses to investors, many founders are trying to rack their brains on how to positively build these experiences. In the roadshow, the GTX team showed investors the marvelous team members to turn things around: the former 3AC and CoinFLEX founders focused on the fame they could achieve through their previous firms, technical strength, influence in the industry, as well as networking.
GTX Crave
The upcoming GTX will bring huge impacts. As the trend-conscious crypto investors have embarked on the first spree in the market, the price of FLEX tokens has soared nearly 12 times, because Mark Lamb, the founder of CoinFLEX, co-founded GTX. According to recent news, nearly 60 people from the former team joined GTX by offering technology. On the evening of February 2, 2023, Mark Lamb tweeted that 1.3 million FLEX tokens out of 100 million ones had been burned, and if CoinFLEX was renamed in the future, the tokens would be swapped at a one-to-one ratio, as AAVE/LAND did before. Therefore, many people regard FLEX as the future GTX token by default, which leads to a large number of purchases, resulting in a sharp rise in the price of the token.
Can GTX fill the gap left by the exchange?
In 2022, many closely-connected crypto exchanges went bankrupt one after another under the domino effect, such as the giant FTX, Genesis, Celsius and Voyager. The claims held by the claimants are less valuable in the current market. There are many tricky problems: difficulty in selling, high fees and multiple procedures.
In the roadshow speech, GTX mentioned its commitment to filling the gap left by FTX. The repeated words "FTX", "Claim", and "Exchange" in the slide convince audiences that GTX might be the real solution. It allows users to:
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Trade their claims in a simpler and faster way;
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The collateral value will be recognized by the debtor company;
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Creditors can continue to hold their creditor's rights until maturity or choose to sell them to crypto. At this time, the creditor's rights will be used as margin capital;
The most persuasive pitch may be the plan to "appeal to the claimant's desire for crypto trading" - it implies that users who are impacted by the collapse of FTX will long for more crypto spree, which never sees the absence of hype.
GTX is coming soon
At the end of the speech, the speakers said the exchange would be launched "as soon as possible at the end of February". Can the new exchange jointly built by 3A Capital and CoinFLEX become the hit in the debt market? Stay tuned, and let's see how it will perform on that day.
If you have an interest in GTX and want more details, you can directly click here to download GTX pitch deck.
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