• Su Zhu and Kyle Davis, the founders of Three Arrows Capital (3AC), have teamed up with Coinflex co-founders Mark Lamb and Sudhu Arumugam to launch a new crypto exchange called GTX.
• The founders are looking to raise $25 million for the venture and it is aimed at tapping the $20 billion crypto claims market and turning it into a tradable instrument in a public marketplace.
• The venture was met with considerable criticism from the crypto industry, given the 3AC founders’ past business conduct and the fact that many on crypto twitter are direct victims of 3AC’s risky business conduct.

The crypto industry recently welcomed a new venture, the launch of a new crypto exchange called GTX by Three Arrows Capital (3AC) founders Su Zhu and Kyle Davis and Coinflex co-founders Mark Lamb and Sudhu Arumugam. The venture has raised a few eyebrows, however, as the 3AC founders have a history of risky business conduct and many on crypto twitter are direct victims of their past practices.

The objective of GTX is to tap the $20 billion crypto claims market and turn it into a tradable instrument in a public marketplace. According to a pitch deck, the new exchange would let users use the claims against bankrupt firms in the crypto space as collateral for trading. Su Zhu and his new partners are looking to raise $25 million for GTX. The pitch read: “Our legal team will streamline and automate claims onboarding to GTX and make it the dominant marketplace for FTX and other bankrupt companies‘ claims.”

The GTX exchange was being pitched by people who were essentially at the helm of failed businesses in the past. This has caused an understandable amount of scrutiny and criticism from the crypto community, particularly those who are direct victims of 3AC’s risky business conduct. Even fellow firms in the crypto space moved to distance themselves from this new venture. Crypto Twitter was particularly vocal in their criticism, with many pointing out that FTX users are currently selling their claims at 10% of the face value.

The criticism of the new venture was amplified by the fact that many of its founders were involved in past failed businesses. It was also noted that the venture was attempting to capitalize on the fallout from FTX’s collapse, which raised further doubts about the new venture. Despite these criticisms, the GTX exchange has still managed to attract a considerable amount of interest from investors and the crypto industry.

It remains to be seen if GTX will be able to overcome the scepticism of the crypto community and become a successful venture. What is certain, however, is that the crypto industry is watching GTX closely and will be keeping a close eye on the venture’s progress.