Cryptocurrency derivatives exchange FTX is reportedly in talks with venture capital firm Tribe Capital to raise fresh funding for its upcoming relaunch. According to sources, FTX is looking to raise up to $15 million from Tribe Capital to finance its ambitious plans for the exchange’s expansion and enhancement. The relaunch of FTX aims to further solidify its position as a leading player in the cryptocurrency trading and derivatives space by offering its users a range of innovative services and features. If the funding deal goes through, it would be a major boost for FTX and the wider cryptocurrency ecosystem, highlighting the growing interest and investment in crypto-related projects from traditional investors.
Tribe Capital Considers Funding FTX’s Reopening Plans
It has been reported that Tribe Capital, the venture capital firm, is considering providing financial support to FTX to fund their possible reopening plans. As per Bloomberg’s report, Arjun Sethi, co-founder of Tribe Capital, met with FTX’s unsecured creditor committee to discuss their potential reopening plan.
Although the plan remains informal, Tribe Capital is believed to be able to contribute $100 million towards a $250 million fundraising campaign to revive FTX’s international exchanges, and this would affect about 9 million of their customer accounts. Tribe Capital has invested in FTX and FTX.US before they filed for bankruptcy.
FTX discussed their plans for a reopening during a bankruptcy hearing in April 2021, but executives are not yet certain if this plan is viable. However, because of the missing funds, they are exploring the possibilities of reopening.
FTX, and their associated firms, filed for bankruptcy in November 2020, and the proceedings are still ongoing. Customers are still waiting for access to their funds.
If the $250 million fundraising campaign is successful through Tribe Capital’s support, FTX’s relaunch may finally happen after a long wait.
The article, “FTX relaunch could be funded by Tribe Capital,” was originally published on CryptoSlate on April 18, 2021.