CoinFLEX Co-Founders Launch $25 Million Venture to Dominate $20 Billion Crypto Claims Market

Users have expressed outrage upon learning that the exchange’s co-founders, su zhu and kyle davies, were seeking funding for a new venture called gtx. the venture looks to capitalize on the $20 billion market of cryptocurrency claims owed to creditors affected by the collapse of crypto-related businesses, with a seed funding of $25 million to launch its exchange by the end of february. the exchange will feature a streamlined system for onboarding ftx and other bankruptcy claims, and it could eventually incorporate lending, crypto, stocks, and the foreign exchange market into its platform.

Reports of gtx’s pitch deck were shared on tuesday, and coinflex ceo mark lamb responded that the team was “not going anywhere” and was focused on creating value for creditors of coinflex. numerous users in coinflex’s official telegram channel reacted to the reports, with the moderator urging members to “keep it respectful” following a response from lamb. zhu did not respond to a request for comment.

Seeks to fill the power vacuum left by ftx, which caused significant disruption to the crypto markets in november 2020. several users argued that coinflex should morph into something like gtx, while another warned that they didn’t want to be associated with 3ac. the gtx pitch deck claims that it will appeal to the creditors of other bankrupt companies, such as celsius and blockfi, as well as those affected by the collapse of mt. gox in 2014. lamb also disputed the idea that creditors of coinflex would not benefit from the new venture, calling it a “false narrative.”

By Evey Lovelace

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