The co-founder of Kraken, Jesse Powell, has expressed doubts about the revival of FTX 2.0, a cryptocurrency exchange that previously faced bankruptcy.
The proposed reorganization plan to establish an offshore exchange for non-U.S. users has caused uncertainty among creditors. Powell cited several issues, including the absence of a “No team, no tech, no licenses, no banking, as well” as a damaged reputation.
He believed that building a successful exchange would require skilled individuals who might not be interested in the venture. Additionally, replicating FTX’s competitive advantages could prove challenging, as many traders had already moved to other exchanges.
On the other hand, the FTX 2.0 Coalition, comprising FTX users supporting the revival, disagreed with Powell’s views. They believed that finding a competent operator with experience and resources could make FTX 2.0 successful. The coalition emphasized the potential value of 1.8 million creditor-customers as supporters of the rebooted exchange.
The fate of FTX 2.0 remains uncertain, with Powell expressing reservations and the coalition remaining optimistic about its potential success with the right leadership and creditor support. The discussion surrounding the revival continues in the cryptocurrency market, as traders seek viable alternatives amid the absence of FTX.
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