Three Arrows Capital Co-Founders Pitch To Raise $25 Million For New 'GTX' Exchange (theblock.co) 47
Su Zhu and Kyle Davies, the founders of collapsed crypto hedge fund Three Arrows Capital (3AC), are hoping to raise $25 million to start a new crypto exchange called GTX, according to two separate pitch decks obtained by The Block. Three Arrows Capital was one of the largest hedge funds in crypto until last year's collapse of the Terra ecosystem left it facing significant losses. The financial advisory firm Teneo has been handling the liquidation of 3AC's assets and the hedge fund has filed for Chapter 15 bankruptcy in New York. From the report: News of the fundraise comes two months after exchange giant FTX imploded, leaving more than a million creditors out of pocket. The new exchange takes advantage of the situation offering depositors the ability to transfer their FTX claims to GTX and receive immediate credit in a token called USDG, the pitch deck said. The exchange's name is even a spin on "FTX," with one of the GTX pitch decks opening with the line "because G comes after F."
The Three Arrows pair are partnering with Mark Lamb and Sudhu Arumugam, who founded CoinFlex, a crypto exchange which is in the process of restructuring. The exchange's executive team is also made up of several CoinFlex executives including the firm's general counsel and chief technology officer, per one of the decks. GTX will leverage Coinflex's technology to build the exchange and a legal team will be responsible for overseeing the onboarding of claims for all the recent crypto bankruptcies such as Celsius and Voyager, according to the decks. The exchange is looking to launch as soon as possible -- potentially as soon as February -- and is estimating that the claims market is worth around $20 billion, according to the decks.
The Three Arrows pair are partnering with Mark Lamb and Sudhu Arumugam, who founded CoinFlex, a crypto exchange which is in the process of restructuring. The exchange's executive team is also made up of several CoinFlex executives including the firm's general counsel and chief technology officer, per one of the decks. GTX will leverage Coinflex's technology to build the exchange and a legal team will be responsible for overseeing the onboarding of claims for all the recent crypto bankruptcies such as Celsius and Voyager, according to the decks. The exchange is looking to launch as soon as possible -- potentially as soon as February -- and is estimating that the claims market is worth around $20 billion, according to the decks.
give us 25 mil (Score:5, Funny)
we wont fuck it up this time, we promise
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Re: give us 25 mil (Score:2)
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How do you intend to find someone to buy from or sell to?
Re: give us 25 mil (Score:2)
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Actually, that's almost exactly what you do. You usually give the person your account number and instructions to the bank that the money should be transferred. Unless it's Craig's list and you're doing the deal in a parking lot that is.
When you travel to a foreign country do you walk up to a local when you arrive and ask to buy some local currency? I mean, you do in some places, but it's not really the preferred option.
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This is a "hoover up the last idiots" project. There are still lots of rich people who think Crypto is awesome (eg. Rishi Sunak, PM, UK). Those people still want to invest in crypto because it's so awesome and they didn't get a chance yet. Why not build something for a couple of years more of the scam? There are so many 'marks' that are actively asking to get involved. $25m seems pretty cheap - they'll probably net ten times that amount if they cash out at the right time.
Laughable (Score:3)
Who the fuck would give these clowns another dime?
They have already demonstrated that they are incompetent.
Next.
Re:Laughable (Score:4, Insightful)
Money launderers.
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Then maybe we're lucky. Incompetent money launderers seem to wind up swimming with the fishes eventually. Gangsters tend to be very "results oriented."
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Just put them in jail now (Score:3)
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Re:Do it before they steal money. (Score:2)
Why?
Chumps deserve to be hurt very, very badly. They chose their fate by making the adult choice to hand money to grifters. They cannot be redeemed but they can serve as hilarious examples to others while entertaining their betters.
Your FTX investment will be worth (Score:2)
(The amount stolen) minus
(The amount lost by SBF in investments) minus
(The amount donated to politicials) minus
(The amount spend on real estate, parties and drugs) plus
(The amount that can be recovered) minus=
(The lawyers fees) multiplied by
(The number of FTX tokens to your name) divided by
(The total number of FTX tokens in total)
If this formula is too complex, here’s a simpler formula that’s equally accurate.
1. Jack
Seems fair (Score:2)
And any incidental additional crypto assets people deposit will of course be completely protected with the same collateral as above. How can you go wrong?
Next, Rinse Repeat and TaDa (Score:2)
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Fast forward 5 years (Score:4, Funny)
"GTX founders arrested in Bahamas nerd polycule."
Buy and HODL!! (Score:2)
It can only go up!!!
It is better than US dollars!
Real world financial metrics will drive this to infinity! Never sell!
That would explain why the price of Bitcoin (Score:5, Insightful)
Seriously I really hope the SEC does something about the market manipulation and wash trading. By all accounts it's 70% of all trades. I've said it before and I'll say it again I don't want this garbage in my financial system and the sooner it goes away the better
Re:That would explain why the price of Bitcoin (Score:4, Insightful)
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Problem is, serious investment firms are putting money into these things, it's not their money after all. If it crashes then there will either be bailouts which you will have to pay for, or people will lose pieces of their retirement funds.
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I haven't verified it but people who seem credible estimate that about 70% of crypto transactions are wash transactions.
Considering the amount of money laundering attempted with crypto which could generate several wash transactions to try and obscure the true nature of a transaction seems believable.
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Concrete proof of an activity that likely illegal will be hard to find. There are real studies on it though:
https://www.nber.org/system/fi... [nber.org]
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Is it 1st April already ? (Score:1)
Is it 1st April already ?
Bad timing (Score:2)
I won't be able to go to the Moon with crypto. The money I would have invested in this exciting crypto scheme is tied up in an exciting Nigerian business proposal that unexpectedly appeared in my email.
Seriously, is anyone stupid enough to fall for this all over again?
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People still fall for the Nigerian scams! So yes, apparently there are plenty who are dumb enough to just keep losing. Did I tell you about the trunk boxes of money I have? You should talk with my barrister!
Re: Bad timing (Score:2)
I may have a spare bridge going if you'd like to trade that money.
New letter (Score:1)
Fool me once. Shame on you. (Score:1)
Fool me twice...
Ooh! Look! NUCLEAR WEAPONS!
Cernie Madoff (Score:3)
In other news a new investment fund called 'Cernie Madoff' is looking for investors and a new medtech company called Uheranos (pronounced 'youranos') is securing funding.
Su Zhu. (Score:2)
You're making the rest of us look bad.
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As opposed to Americans and Brits running scams?
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...because G comes after F (Score:2)
NVidia GTX (Score:2)
Lawsuit over the name "GTX" in 3, 2, 1...