CoinFLEX attempts to clear up the story of GTX after being met with ridicule

According to CoinFLEX’s leadership, “there has been media speculation” about what the new exchange they are building, provisionally called GTX, is about.

As previously mentioned before encrypted potatoesWill the initial exchange specialize in cryptocurrency bankruptcies?

The management team is staying on board

After raising “speculation” on the subject of the leaked GTX pools — speculation that allegedly occurred because CoinFLEX management did not want to share an update “due to ongoing discussions” — a company spokesperson assured users that both Mark Lamb and Sudhu Arumugam would remain in their leadership roles.

“Please note that due to the nature of ongoing discussions with various parties, we have not been able to share an update on proposed plans but aim to do so when a potential round or partnership materializes.”

However, CoinFLEX may see an “addition in key members” in leadership roles. It’s unclear if the key members involved are Su Zhu and Kyle Davies, the founders of 3AC who Lamb and Arumugam seem to be working together to create what is tentatively called GTX.

After all, few have more experience with crypto bankruptcies than the founders of 3AC and CoinFLEX. Every management team already has major bankruptcies to their name.

In addition, a CoinFLEX spokesperson hinted that CoinFLEX could be completely changed into this new entity — a smart move, given how many potential investors have already heard about the company’s woes and might not be so keen to throw a lot back in with them.

CoinFLEX’s creditors will allegedly benefit from the move

The press release continued on an optimistic note, informing hapless investors with CoinFLEX portfolios that the new platform will raise the equity of creditors, with the ultimate goal of making them whole. It is claimed that Series B investors and CoinFLEX creditors will be the largest class of shareholders regardless of what becomes of GTX. In addition to cryptocurrencies, GTX can also trade assets and bonds if permitted by the regulatory authorities.

But the wording is somewhat vague. According to the press release, the money raised will go toward “operational growth,” which Lamb and Arumugam “strongly believe” will increase creditors’ value.

Unfortunately, business growth can mean anything. Spending outrageous amounts of money on sports arena naming rights, for example, is another “crypto bankruptcy expert”‘s favorite trick.

The reaction of the community, which was somewhat predictable, was unfavorable to the new initiative, given their history.

The CoinFLEX post trying to explain the story of GTX after being met with derision appeared first on CryptoPotato.

Leave a Reply

Your email address will not be published. Required fields are marked *