Who would buy FTX’s tokenised bankruptcy claims?
Just when you think you have seen it all, even devastating decimation of crypto exchanges can lead to opportunities. So, Huobi recently listed FTX users’ debt tokens (otherwise known as FUD) on its exchange, which allows creditors of FTX to trade their debt. Initiated by DebtDAO, it resolves to issue a secondary public offering after FTX officially ascertains the actual amount of creditors’ debt - and issue airdrops to all FUD holders. As if this isn’t enough, disgraced co-founders of 3AC, Kyle Davies and Zhu Su, have not only found partners to kickstart a new venture called GTX, but have secured funding. Similarly, GTX aims to enable creditors of FTX tokenise their claims.
Now if I were a FTX user, I would regard these two initiatives as a godsend since they allow me to recover a tiny proportion of my money. But I wonder what is in it for those investors (or gamblers) who are willing to buy these tokenised claims. Isn’t this a sure loss venture? Or do you consider this a high risk high reward endeavour?
originally posted on r/cryptocurrency