Crypto community suspicious about new exchange, GTX

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Altcoins
Crypto community suspicious about new exchange, GTX

Crypto enthusiasts have conveyed doubts, and even contempt after the founders of failed 3AC hedge fund announced a project to build a new crypto exchange, GTX. 

GTX may fill the shoes of FTX

The founders of 3AC, Kyle Davies and Su Zhu collaborated with CoinFlex’s Mark Lamb and Sudhu Arumugam to launch their newest project, GTX. The project is expected to launch in a few months in a bid to replace the fallen FTX. 

Zhu and Davies co-founded Three Arrows Capital (3AC) which filed for bankruptcy in July 2022. Following the collapse, the two vanished from the public eye, leading to controversies. This stalled the asset recovery process that the company liquidators had initiated.

The two resurfaced in Saudi Arabia when FTX became insolvent and started trading blame with the FTX CEO, Sam Bankman-Fried.

History of pre and post-FTX madness

The two charlatans started engaging in malpractices in the early days of 3AC. The company got into forex and was reportedly engaging in currency arbitrage. This led to widespread criticism from banks and other traders.

3AC then transitioned to the crypto world, where they put currency arbitrage into practice again. Therefore, it saw quick success through malpractice. 

In addition, the duo went on an irresponsible betting spree using investors’ money. They invested $1.2 billion in GBTC, which evaporated. They also placed a massive bet on Terra, which collapsed. The 3AC wallet went from $500 million to only $604.

Adding those huge losses to mismanagement of funds, such as buying the $150 million superyacht, “Much Wow,” and a 30 million Singaporean mansion, 3AC went bankrupt. This crash shook the crypto community leading to a ripple effect that hit FTX and many other crypto companies. 

Fool me once…

Crypto followers have flooded Twitter and expressed deep distrust in the leadership. Their history of mismanagement, gambling, and hiding from the face of accountability cannot be overlooked.

Is the crypto community too gullible that repeat con is allowed? Fool me once, shame on thee, fool me twice, shame on me. 

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Samuel Mbaki Wanjiku

Samuel is an adventurous person who likes to explore topics in-depth and learn new things each day. His passion lies in gaining knowledge to help transform the world through his writing skills. He also believes in blockchain technology and its potential to usher in a cashless society. Currently, he is pursuing a Computer Science Bachelor’s degree driven by his fascination with emerging technologies. He has writing experience of about three years in different fields and two in blockchain technology.