Former FTX Head of Institutional Sales Zane Tackett suggested the troubled exchange should be revived and offer a token representing creditor claims to give creditors some value.
What Happened: He communicated this idea via Telegram, stating, "If they try and fail, it's not like the creditors are much worse off," The Block reported.
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Tackett believed FTX should be relaunched with all its previous products and include a market for trading creditors' claims on the bankrupt firm.
He cited the example of Bitfinex, which introduced a BFX token after being hacked in 2016.
Tackett proposed that the new exchange could offer a market for FTX claims based on one token per $1 lost, similar to Bitfinex's approach.
He explained, "As is, there isn't a fair way for the creditors to price the assets held by FTX. If they were able to convert their debt to equity and get exposure to the investments FTX had/has, I think that would be a massive benefit."
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Tackett added that this move would provide immediate liquidity to those wanting to sell their claim and allow others the opportunity for a larger payoff.
This idea echoes the recent launch of OPNX, an exchange established for trading spot cryptocurrency and cryptocurrency bankruptcy claims.
Tackett acknowledged several challenges in executing this plan, including using recovered funds for financing the reboot and the potential risks if the relaunched exchange fails again.
According to Tackett, the success of a revived FTX would depend on its approach, saying that if it operates as a highly regulated, U.S.-based entity without innovation, users would not return.
However, if run like a crypto company with agility, FTX 2.0 could succeed, although he questioned whether the current management is suited to handle the relaunch.
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