3AC founder returns to market in mockery and criticism

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2023-01-17 14:08:41

What is going on?

Hiding for a while after the investment fund Three Arrows Capital collapsed, two infamous founders Su Zhu and Kyle Davis shook hands with the two founders of CoinFLEX, raising $25 million to start building an exchange called the exchange. GTX.

According to the introduction from the project, GTX carries a “beautiful ideal”, born to fill the wounds of creditors who were victims of the crashes of FTX, Celsius, BlockFi and Mt.Gox…

Specifically, the victims (and current creditors) of FTX, Celsisus… instead of just keeping the debt until the date of compensation (unknown when), the GTX floor offers creditors two other options. : sell USDG cryptocurrency – a credit or leveraged asset.

GTX products provided to users. Snapshot from GTX documentation.

The appearance of GTX probably would not have become popular if the founder of the exchange was not the two faces Su Zhu and Kyle Davis, along with a “pitch deck” (file introducing its services to customers, for customers). works) less convincing, being “stoned” mercilessly.

The scandal and past controversies with Three Arrows Capital have not been fully resolved, Su Zhu and Kyle Davis were accused by the US securities regulator (SEC) and the Commodity Futures Trading Commission (CFTC), investigating potential legal violations, according to Bloomberg.

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Three Arrows Capital under investigation

Not only was the founder of Three Arrows Capital scandalous, but CoinFLEX also had financial problems and filed for restructuring in August 2022 after the crypto crisis, forcing the company to delay withdrawals.

In addition to the focus of attention on Su Zhu and Kyle Davis, the name GTX is also something that is discussed by the community because it is similar to the name FTX. Perhaps because the letter G comes after the letter F, and GTX claims to be born to overcome the consequences of FTX.

Despite being friendly, the name GTX still brings obsession because it is similar to FTX. With the response of the community, the floor confirmed that it is not an official name and will change.

The unreleased GTX was heavily criticized

Since the GTX floor information appeared, Su Zhu has continuously received satire from the public opinion of investors, project leaders in the industry and even major media units.

In his presentation of the GTX project, Su Zhu estimates the debt market value he’s targeting at $20 billion.

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The $20 billion market in GTX’s demo file.

Dissecting GTX’s demo file, the Financial Times does not hesitate to liken FTX to a giant corpse and a source of food for GTX-style projects.

Like the giant corpse of a slain god, FTX is offering plenty of opportunities for food.

@foobar, a famous investor with over 100,000 Twitter followers sarcastically about Su Zhu and Kyle Davis’ seniority of scams.

Sorry, we decided to skip this deal. We prefer the founder of an exchange to have a minimum of 5 years of scam experience.

Tyler, a trader with over 60,000 followers commented in a twitter post:

They’re launching a scam model and being friendly about it.

CHADLY – another investor on twitter implies GTX Funds are Intern Funds.

There are even investors such as Garlam, who spend time satirizing each page of GTX’s project presentation with similar content.

Garlam also mocked the GTX floor’s operating model as “I hit you in the face with a stick and then sell the cosmetic package”.

Satvik Sethi, a well-known investor, noticed an unusual problem with the GTX fundraising round. Specifically, Satvik said, “GTX doesn’t even have the technology or is already in the market, but it’s considered seed ground.”

Normally, a startup raising capital will have stages corresponding to the order of rounds:

  • Pre-Seed Round: This is when the project is in the idea.
  • Seed Round: The idea has now taken shape and put into operation.
  • Series A: Proven project operating model.
  • Next are the rings Series B, C, EASY,… if the project needs more money to develop.

Therefore, with what is in hand, GTX should be in the Pre-Seed round.

As of the time of writing, the number of people mocking Su Zhu and GTX has not stopped. In addition to the above derision, there are people who clearly show a loss of faith in the appearance of Su Zhu and Kyle Davis.

“Founder of Investment Fund has gone bankrupt – Three Arrows Capital wants to launch a new crypto exchange. I will never believe in Su Zhu and Kyle,” Whalechart.org’s Twitter page with more than 200K followers, expressed a frank opinion.

Another investor believes GTX stands for Grand Theft Exchange and urges people not to leave Binance, Bitget and Bitmex.

Not only that, the CEO of Wintermute, a well-known market maker in the Crypto world, has declared on Twitter as a warning, warning to the community in the market in general.

If you invest in CoinFLEX and 3AC exchanges, you will have difficulty in doing business and cooperating with Wintermute in the future – CEO of Wintermute.

There is an interesting point in the introduction of the GTX. Su Zhu honestly stated in the last line:

“Three Arrows Capital used to win 40 times in the Forex market and 80 times in the Crypto market before the Fund went bankrupt in 2022”

Faced with this honesty, it is not clear if Su Zhu will regain sympathy with the public. However, the person who posted this photo – ALFIE has just been blocked by Su Zhu.

Through the talk and criticism, it can be seen that the influential figures in the Crypto market are rejecting and turning their backs on Su Zhu and Kyle Davis, as well as laughing at the way GTX appeared.

DThis is also the harsh reality when a founder in the crypto industry hardly gets a second chance if he makes a big mistake and completely loses the trust and respect from the community.



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