The list of FTX rescue candidates shrinks every hour
The list of FTX rescue candidates shrinks every hour
Although FTX CEO Sam Bankman-Fried said that the stock exchange was in conversations with "a number of players" to seek capital, it remains unclear who would be willing to jump into bed with the battered stock exchange.
The CEO of Binance, Changpeng Zhao, announced the intention of his company on Tuesday to take over FTX. The stock exchange withdrew from the plan on Wednesday and referred to "the latest news reports on improperly treated customer funds and presumed investigations by the US authorities".
Bankman-Fried Twittered on Thursday that FTX would spend the next week to look for liquidity, and alluded to declarations of intent and term sheets without giving any further details.
An FTX spokesman rejected a statement.
Who could try to save FTX?
Reuters ftx efforts to raise around $ 9.4 billion of investors. Reuters announced a source that Bankman-Fried had talks with Tron founder Justin Sun, the okx crypto exchange and the stable coin platform Tether.
On Wednesday,Sun tweeted that he and his team "put together a solution", which caused some to assume that this could be a signal for attempted takeover. Instead, FTX announced on Thursday that it made an agreement with Tron that enables owners of Trx, BTT, JST, Sun and HT to exchange assets from FTX - one to one - into external wallets.
"Tether has no plans to invest FTX/Alameda or borrow money," tweeted Paolo Ardoinino, Chief Technology Officer from Tether.
Haider Rafique, Chief Marketing Officer from OKX, said the stock exchange took the first opportunity before FTX worked with Binance.
"At this point we only rate the situation before we consider participating from our side," said Rafique Blockworks in an email. "One thing that we want to insure the industry is that we have no similar risks because our business model is to monetize our technology, not our balance sheet. We hope that the industry will come together to find a reasonable solution here."
"People obviously need deep pockets to complete the deal, but also, what is the advantage for the people to complete the deal?" said CK Zheng, co-founder and Chief Investment Officer of the crypto hedge fund ZX Squared Capital. "That is the question."
Sam Dibble, a partner of the law firm Baker Botts, told Blockworks that there are not many actors in the industry who have the size, capital or call to carry out a rescue.
He added that a rescue operation could come from someone outside the industry who believes in Web3 and wants to start the industry. Possibilities, said Dibble, are state funds or actors outside the United States in relief industries such as energy, financial services or technology.
"These business could be mergers or, which is more likely, capital injections in preferred stocks or mezzanine debt," said Dibble.
where Coinbase is
A less likely option for a kind of capital injection in FTX could be Coinbase, said Dibble.
"But as a listed company, you may not want to take the risk of having to publish the FTX liabilities," he added. "In addition, your diligence process would have to take longer than with other actors, since you may be faced with financial pro-forma requirements at a merger as a stock corporation."
said coinbase CEO Brian Armstrong
Binance announced that it had given up his plan to buy FTX the day after these comments. A spokesman for Coinbase refused to comment on discussions with FTX. A source said Blockworks that they believe that FTX has no equity value for a new investor, "because the trust was broken irreparably". "In crypto, crazy things happen so that an industry player could appear ... to try to save the day, but it is not certain whether anyone can save the most fundamental problem, the loss of customer money," said the source. "If an purchaser cannot justify to repay all customer funds completely, the annoyance of customers simply shifts from FTX to the one who purchases the carcass." Dibble said that there is still the possibility that Binance could come to rescue as a source of new capital. "However, this capital would be very expensive, and there is now a new laugh at fresh blood in this relationship that could make it difficult [Bankman-Fried] to swallow a low-ball offer [ZHAO] even if this were the leash that was offered," he said. At Bankman-Fried Twitter-Thread He ended with what he had more about what he had "one" Sparring partner ”called. "But you already know, glass houses," he added. "At the moment I can only say: well played; you won." A binance spokesman did not immediately answer a request for comment. The list of candidates after the FTX rescue campaign shrinks every hour when it first appeared on block works. Is the participation of Binance completed?
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