$FTT Jumps 22% After Tribe Capital Shows Interest In FTX’s Reboot 14

$FTT Jumps 22% After Tribe Capital Shows Interest In FTX’s Reboot

  • FTX’s potential plan to restart the crypto exchange has drawn interest from the popular VC firm Tribe Capital. 
  • The venture capital firm is reportedly considering leading a $250 million fundraising campaign for the bankrupt exchange. 
  • FTX’s FTT token gained as much as 22% following the news of Tribe Capital’s potential investment. 

FTX’s new management led by CEO John Ray III has hinted at the possibility of restarting the bankrupt crypto exchange on several occasions. The potential reboot plan is now drawing fresh interest from Tribe Capital, a venture capital firm that is an existing investor in the exchange. The VC firm is reportedly inclined towards a capital injection to catalyze the restarting efforts. 

Tribe Capital may lead a $250 million fundraising round for FTX

According to a report by Bloomberg, Tribe’s co-founder Arjun Sethi met with the Official Committee of Unsecured Creditors of FTX, earlier this year in January, to discuss an informal proposal related to the reboot plans. This was around the same time when the crypto exchange’s CEO first revealed that the management was exploring restarting the exchange. People familiar with the matter revealed that Tribe is considering leading a $250 million fundraising round for the bankrupt exchange, in addition to pledging $100 million of its own funds. 

Tribe Capital’s January proposal reportedly included nearly 9 million customer accounts, FTX US, FTX Australia, FTX Japan, FTX EU, FTX International, and LedgerX. The proposal excluded some crypto assets and a venture capital portfolio, among other things. The VC firm was a venture investor in both FTX’s international platform and its American arm. News of the VC firm’s interest was followed by a statement from the crypto exchange’s Unsecured Creditors Committee. The committee informed its community on Twitter that all options to reboot or sell FTX and associated entities were being evaluated. As of now, there is no official timeline for restarting the exchange. 

Until a formal process is launched, parties interested in purchasing or sponsoring a reboot of the FTX exchanges should contact the Debtors and the Committee”

Official Committee of Unsecured Creditors of FTX

News of Tribe Capital’s interest in FTX’s reboot sent the platform’s native token soaring. FTT gained as much as 22.5% and reached $2.23. At the time of writing, the token was trading at $2.09, with a 240% increase in its daily trading volume.