As a result of widespread ridicule on social media, defunct cryptocurrency exchange CoinFLEX has announced that it would not be using the moniker GTX for its upcoming cryptocurrency exchange.
Users of CoinFLEX were outraged when it was discovered in a pitch deck that the exchange’s co-founders were seeking investment for a new company in partnership with the controversial founders of Three Arrows, Su Zhu and Kyle Davies.
According to the pitch deck, Zhu, Davies, as well as Mark Lamb, and Sudhu Armugan of CoinFLEX are attempting to fund $25 million for a brand-new cryptocurrency exchange that will be named GTX.
Zhu has verified the report, although he has said that “GTX” is not the final name for the business. The first name of the firm was a joke on the cryptocurrency exchange FTX, which infamously went out of business last year.
CoinFLEX may be able to indirectly reimburse its creditors with equity value that is generated as a consequence of the launch of the newly revealed GTX exchange. The business has made a number of remarks that give the impression that CoinFLEX creditors, that are now barred from taking all of their assets, may gain from GTX.
The equity would be the source of such value. During the month of September, the reorganization actions being conducted by CoinFLEX concluded that users control 65% of the stock in the firm.
As a result of this change of events, the firm said today that it believes the expenditure of cash on GTX should result in a boost in the value of CoinFLEX’s own equity, which should, in turn, result in an increase in the value of stock granted to creditors.