FTX Reboot Could Falter Because of Long-Broken User Trust, Say Spectators

Crypto Industry observers have Questioned whether Customers or Investors will at any point hope to “come close” FTX once more.

A Few Crypto industry Commentators have laid skepticism on FTX CEO John Ray’s vision to possibly reboot the Crypto exchange, refering to trust issues and “second-class” treatment of Customers as some reasons why users may not “feel protected to return.”

Former FTX CEO Sam Bankman-Fried tweeted on Jan. 20 praising John Ray for looking at a reboot of FTX, recommending it is the best move for its Customers.

John Ray told the Wall Street Journal.He was considering restoring the crypto exchange as part of his efforts to restore the users.

Stakeholders see the exchange as a viable business despite top executives being accused of criminal wrongdoing.

Binance Australia CEO Leigh Travers believes it will be difficult for FTX to get a license once more, particularly as the industry moves into a new year with increased regulation and oversight by regulators.

Hennessy was also skeptical whether FTX will ever get approved for a license in the future, saying that it is “one big question mark” which completely relies upon jurisdictions.

The lawyer believes that in some offshore jurisdictions, it will be easier for the exchange to get license approval, however it will be pointless if its users don’t expect to return.

“To go through the pointless tasks the significant jurisdictions will set, for example, the US, UK and Australia will be a serious challenge.”

“To be expected” that FTX would consider restoring the exchange business, stating that is the reason for the Chapter 11 process — enabling the company to propose a plan to maintain the business and pay the creditors back “after some time with the court’s approval.”

He believes that the “onus will be on FTX,” or a creditor that files a competing plan, to show that creditors will get a “improved outcome” under the restoration plan compared to liquidating FTX’s assets.

Path however also questioned whether customers will ever trust FTX in the future, saying it is possible that another company looking to launch a new exchange “purposes those assets” rather than developing its own interface from scratch.