Tribe Capital, a US venture capital firm, is considering injecting capital into the FTX exchange to potentially revive it. Should this idea come to fruition, Tribe Capital would conduct a $250 million fundraising campaign, with $100 million of that coming from its own funds.
Tribe Capital ready to relaunch FTX
Tribe Capital, a US venture capital firm, is reportedly looking closely at the possibility of injecting capital into FTX to revive the exchange.
The information, reported by Bloomberg, was first passed on by people “close to the matter” who wished to remain anonymous given the confidential nature of the matter.
According to Bloomberg, Tribe Capital co-founder Arjun Sethi met with FTX’s unsecured creditors committee in January. Through this meeting, he reportedly made an initial proposal to the committee, which included 9 million customer accounts across FTX’s various international businesses.
The price of FTT, the FTX platform token, reacted once again to this positive announcement, although it quickly fell back down:
Tribe Capital, which has $1.6 billion in assets under management across its business, had previously invested in FTX as well as FTX.US, the US arm of the exchange.
Should the idea come to fruition, Tribe Capital would conduct a $250 million fundraising campaign, of which $100 million would come from its own portfolio and partner funds.
According to The Information, Tribe Capital had previously invested 2.6% of its capital in FTX. In addition, the fund had also invested in leading crypto companies such as Kraken and Polygon Labs.
Is a reboot possible and desirable?
While rumours of a potential FTX restart have been circulating since January, the creditors’ committee said that no timetable had been set for this at present.
Via Twitter, the committee also said that potentially interested parties should contact it:
The decision on whether to restart FTX is expected to be made in the second quarter of the year by John Ray III, the current CEO of the bankrupt exchange. Last week, a lawyer for FTX indicated that the idea was still in its infancy, and would require a very substantial cash infusion.
In particular, John Ray III had indicated that reviving FTX could help in the process of reimbursing the exchange’s injured customers. However, given Sam Bankman-Fried’s legacy in the crypto ecosystem, it remains to be seen whether anyone would be willing to return to the cryptocurrency exchange.