Bankrupt crypto exchange FTX has submitted a proposal that may result in the relaunch of its international arm FTX.com. On August 1, the company’s bankruptcy administrators confirmed rumors of a relaunch by filing a draft plan of reorganization in which it proposes the kick-off of a “rebooted” offshore exchange exclusive to non-US users only.
FTT Gains By 17% Amidst Plans To Terminate Claims
FTT, the native token of the FTX exchange, recorded a significant boost in its price on the emergence of the exchange’s proposal to relaunch in the international market.
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According to data by CoinMarketCap, FTT rose by 17% on Tuesday, moving from $1.34 to $1.59. Thereafter, the token experienced a decline, falling as low as $1.42, but has been climbing back up since then.
Interestingly, FTT’s gain today has occurred despite the exchange’s plans in relation to its native token. According to the draft plan of reorganization, FTX stated intentions to cancel all FTT claims as a result of their “equity-like characteristics.”
The statement read:
….claims by holders of FTT (whether or not held on any FTX exchange), preferred stock, and equity investors in the Debtors and related claims. All these claims and interests will be canceled and extinguished as of the Effective Date, and holders will not receive any distribution.
At the time of writing, FTT is trading at $1.45, having gone up by 7.39% in the last day. Meanwhile, the token’s daily trading volume is up by 378.65% and is now valued at $43.8 million.
FTX.com To Relaunch As Exchange Plans Settlement For Foreign Customers
Based on its proposed blueprints for reorganization, FTX intends to sort claimants into several pools. Firstly, customers of the FTX.com exchange will be termed as Dotcom customers, while customers of the FTX US are drawn into the US Customer Pool.
In regards to the settlement of Dotcom creditors, FTX proposes that debtors may partner with third-party investors to set up a new exchange that will operate as an offshore platform. Alternatively, this exchange can also be formed as a merger or “similar transaction.”
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Thereafter, the debtors may then choose to grant the Dotcom customer pool some share of the company instead of conducting a full cash settlement.
A statement from the draft read:
Rather than all cash, the Debtors may determine that the Offshore Exchange Company remit non-cash consideration to the Dotcom Customer Pool in the form of equity securities, tokens, or other interests in the Offshore Exchange Company or rights to invest in such equity securities tokens or other interests (“Take-Back Interests”).
Talks concerning an FTX.com relaunch began as early as January, with the company CEO, John J. Ray III, stating he had authorized a team to explore that possibility. In June, WSJ reported that the company had begun discussions with potential investors in a bid to actualize the goal.