History will go down to remember FTX and its prodigal CEO Sam Bankman Fried who allegedly made away with investors millions worth of assets, tied to this historical event regulatory policies against the entire crypto space has been more strict for upcoming and founded exchanges looking to setup an international base license for trading digital assets across the globe, it is believed cryptocurrencies are use to fuel illicit activities and a viable tool for conducting fraudulent activities these also lead to tightening regulations against use of privacy coins as they are not traceable for centralized system to track their transactions in inline with all the regulatory clampdown in the crypto space the market has still remain resilient with more ETF filled from reputable companies like BlackRock, bitcoin dominance surpassing 58% since April 2021, all this mark a new dawn for the crypto space.
.jpeg)
Once beaten twice shy
Nothing will seems new for those who have been acquainted with how things are run in the world, politics, has always been the game of those who can play their card well, but will that also be a game applicable in the crypto space? FTX a well recognized exchange has recently made headlines with its plans for a relaunch. The exchange, under its new leadership and a fresh vision, aims to regain market trust and attract old customers. The new CEO John J. Ray III has been actively engaged in discussions with joint venture partners for investment, with it's new intriguing strategy to compensate customers by offering them stake rewards. With FTX native token (FTT) already showing a positive response to the news, experiencing a 15% increase in value following the relaunch news on Wednesday June 2023. This surge suggests that some investors are optimistic about the future of the exchange. The positive market response indicates that the relaunch has generated excitement and confidence among a portion of the cryptocurrency community. the question to ask here is will the FTX relaunch gain more customer trust? With it new come back strategy how many investors/users will be willing to put their assets at stake what chance are that the we wont have another exchange run leaving depositors puzzled with their funds all locked up against bankruptcy?
Are you in for the game?
Investment firms like bitcoin Corp, a US based bitcoin mining company, and Arrington, an investment firm, have already shown interest in supporting FTX's revival. Their involvement signals that potential investors see value in the relaunch and believe in the platform's ability to regain its market position. With more potential investors likely to join the initiative, FTX might gain the necessary financial backing to rebuild and succeed.
If plans get off the ground, any restart will require significant capital, and then there is the question of whether the market would trust FTX. Source
FTX which is planning a relaunch restructure plan in Q3 of 2023 will also be disclosing it plan of relaunch to its important core investors, with the statement above from one of its core law firm partners emphasising on customer trust this is a vital question that need to be careful examine by the exchange team before planning for a comeback strategy although with their eye catching strategy to reward old users with stake reward I guess a lot of users will definitely want to give the exchange a go trial.
It all depends on any user, one thing is paramount in the crypto space we are all here to share our opinion, what matters most is understanding the market and doing proper research on any investment before investing with real asset that been said FTX had it time and did make use of it we can learn from it and decide careful on how to go about out daily investment.
What are your thoughts about the exchange relaunch will it attract more users as it did at it primetime? Or will more customers think twice before investing their funds?