SBF pushes FTX restart concept by issuing FTT tokens to collectors

FTX former CEO Sam Bankman-Fried helps restarting the bankrupt change by issuing new FTT tokens to collectors and giving 100% earnings to token holders.

I proceed to assume that this could be a productive path for events to discover! I *hope* that the groups in place will achieve this.

— SBF (@SBF_FTX) December 9, 2022

Crypto Dealer host Ran Neuner first proposed the thought on Dec. 9, including that it might make the brand new change the “largest change on the earth.”

In response, SBF tweeted that he thinks “that this could be a productive path for events to discover.”

Crypto neighborhood criticizes SBF’s restart concept

Nonetheless, the crypto neighborhood has criticized the thought and SBF’s assist. A number of customers commented that SBF can be spending his time behind bars no matter what occurs to FTX.

Others additionally condemned Neuner’s suggestion, describing it as a Ponzi scheme concept during which the cash of recent customers will probably be used to repay the collectors. Some customers asked how a lot he was paid to make such a suggestion.

Given that you’ve got already allotted 100% of the earnings, the place would the cash to construct such a factor come from?

— David “JoelKatz” Schwartz (@JoelKatz) December 9, 2022

FTT performed an integral position within the working of FTX. At its peak, the token had a market cap of over $9 billion.

In the meantime, reviews that the token shaped a good portion of FTX’s belongings triggered a financial institution run that led to the eventual insolvency of the change. Since then, FTT has crashed by over 90%.

In keeping with CryptoSlate knowledge, FTT has risen by 30% within the final 24 hours.

Journalist at CryptoSlate

Oluwapelumi is a believer within the transformative energy Bitcoin and the blockchain trade holds.