• FTX is considering rebooting its crypto exchange after months of concerns over criminal misconduct by top executives.
• Crypto industry observers have questioned whether customers or investors will ever want to “come near” FTX again, citing trust issues and “second-class” treatment of customers as reasons why users may not “feel safe to go back.”
• Binance Australia CEO Leigh Travers believes it will be difficult for FTX to secure a license again, particularly as the industry moves into a new year with increased regulation and oversight by regulators.
FTX is considering rebooting its crypto exchange after months of controversy over alleged criminal misconduct by top executives. The move has been met with both praise and skepticism from the crypto community, as many question whether customers and investors will ever be willing to “come near” the exchange again.
John Ray, the current CEO of FTX, recently told The Wall Street Journal that he was looking into reviving the exchange in order to make the users whole. He noted that despite the accusations of criminal activity, stakeholders have shown interest in the potential of the platform coming back, viewing it as a “viable business.”
The news has been met with a mixed response from industry observers. Sam Bankman-Fried, the former CEO of FTX, praised Ray for looking into a reboot, suggesting it was the best move for the customers. However, he also urged Ray to admit that FTX US is solvent and to return customers’ money.
Leigh Travers, the CEO of Binance Australia, believes it will be difficult for FTX to secure a license again, particularly in light of the increased regulation and oversight of the crypto industry by regulators. He commented that the trust issues and “second-class” treatment of customers could make it hard for users to feel safe in returning to the exchange.
It remains to be seen whether FTX will be able to successfully reboot itself, and the crypto community will be watching with interest. If successful, it could provide a blueprint for other exchanges facing similar issues to follow, and a much-needed boost of confidence for the industry as a whole.