After the collapse of Terra in May, several firms have been gravely affected by the ripples of Terra’s fall. Crypto lending platforms including Celsius Network, Voyager, and Three Arrows Capital (3AC) filed for bankruptcy in 2022, demonstrating the struggles of crypto firms struggling to stay afloat.
3AC was definitely in the headlines as the 3AC founders reportedly went into hiding and rumors of them spending $50 million on a yacht despite billions of debt were floating around. Now, according to the latest revelations that surfaced, 3AC founders Su Zhu and Kyle Davies are looking to raise $25 million for their new crypto exchange, GTX.
Is GTX the next FTX?
The name GTX definitely resembles the name FTX. It also cannot be denied that G comes after F in alphabetical order. The news will undoubtedly raise concerns about how stable the exchange can be and how it will be different to build transparency and trust.
The 3AC founders are also collaborating with the co-founders of CoinFLEX, Mark Lamb and Sudhu Arumugam, to build the exchange. According to the details that surfaced, the co-founders are seeking to raise $25 million for the exchange.
3AC was one of the largest hedge funds in the cryptocurrency realm that was greatly affected by the fall of the Terra ecosystem. The details also reveal that GTX will claim onboarding from FTX creditors and also help to fill the power vacuum left by FTX.