Three Arrows Capital and CoinFlex Co-Founders Pitch $25M To Investors For New Claims-Focused Crypto Exchange.
The founders of cash-beleaguered crypto hedge fund Three Arrows Capital “3AC” and crypto exchange CoinFlex are looking to raise $25M “ASAP” to trade claims for traders through a newly launched crypto exchange called GTX.
In a tweet, crypto-focused news reporter Wu Blockchain wrote that “GTX hopes to unlock the 20 billion crypto claims market; fill the empty in the cryptocurrency market after FTX left; and enter the 2 trillion stock securities lending market.”
Wu further noted that he had confirmed the news with 3AC co-founder Su Zhu who noted that they were “just building it” declining to comment further. According to two pitch decks seen by Crypto Basic, GTX aspires to “lead the global progression towards greater financial transparency, liquidity and certainty” by making stocks, crypto and claims trading available under one platform
“The current process of buying and selling claims on competitor claims is clunky, expensive, and impossible for small claim holders to access” one pitch read.
In providing the solution, the pitch noted that GTX would unlock FTX, Celsius, and the claims of other cash-strapped firms to enable users to continue trading.
Following the collapse of major firms, depositors are often caught in the crosshairs, with their assets falling at the risk of being locked up until bankruptcy proceedings are over. According to one pitch deck, GTX will provide liquidity for such depositors, enabling them to trade when such scenarios occur. For example, FTX depositors can transfer their claims to GTX and immediately credit in the exchange native token “USGD” the pitch deck said.
GTX’s founding team will include Kyle Davis and Su Zhu -the co-founders of 3AC as well as Mark Lamb and Sudru Arumugam, co-founders of Coinflex.
Meanwhile, following the announcement, attention has turned to 3AC co-founders Kyle and Zhu who have been on the run since the firm folded last year, following the Terra ecosystem debacle. Both Kyle and Zhu have retained a low profile on social resurfacing only recently to push general comments on the crypto sector.