What exactly does Sanjian Zhu's new trading platform, GTX, do?

According to a financing document circulating in the market recently, Su Zhu, former founder of Sanarrow Capital, and Kyle Davies are in the process of setting up a new centralized crypto trading platform "GTX", with a financing target of $25 million. In addition to the two core members of Three Arrows, two CoinFLEX co-founders, Sudhu Arumugam and Mark Lamb, were also involved in the creation of GTX.

After the FTX platform exploded, Su Zhu, who had been quiet for a long time, suddenly became active, sharing his feud with FTX and Alameda years ago on Twitter. At the end of last year, he posted chat logs from 2019, showing that he had been suspicious of Alameda years ago. At one point, he even took to Twitter to fight SBF with the founder of Terra Thunder. And recently circulated this named "GTX" encryption trading platform financing information, whether from the name, or from the point of view of the content, this is a strong platform related to FTX, or GTX will start from FTX thunder into encrypted trading.

What does GTX do?

In short, GTX is targeting the claims market, or debt market, of cryptocurrencies, starting with FTX's debt.

  Image credit: GTX Financing Materials

Mr Zhu argues that the ruins left by the FTX mine alone suggest a new continent now with 1m creditors and a $20bn market. FTX users, who are now creditors, cannot claim assets from the platform, and the current debt market, with its locked processes and high fees, makes the experience for small creditors extremely unfriendly.

Instead of waiting years for a court decision (see Mt Gox), debt trading platforms such as GTX give creditors the option to transfer their claims at a discount of about 10 per cent in cash.

Of course, there are already similar products on the market, such as Xclaims, a platform that allows creditors to transfer their claims at a discount of about 13%, but despite its high fees, Xclaims hasn't made a marketplace. What Mr Zhu wants is trading, a deep debt market with an order book like BTC's. Only Mt Gox had been able to do that before, and only a series of bankruptcies in 2022 created such a market.

  Photo source: GTX Financing Materials    

To take a more understandable but perhaps inappropriate example, there may be old leeks remember that after the auction of Algorand in the Netherlands, all investors were granted the right to return coins, and then some trading platforms converted the right to return coins into token trading, which also formed the arbitrage between price fluctuations and ALGO. Su Zhu's debt market is somewhat similar.

Of course, there is a bond market in traditional finance, but there is no global platform. The advantages of cryptocurrencies are tokenization and liquidity, which make the bond market of cryptocurrencies more possible. The FTX will not be the last black swan, nor the $20bn market.

Team member

The GTX profile shows that they are now a team of more than 60 people, consisting of developers and operational professionals with 10 years of CEX experience.

Image credit: GTX Financing Materials

Su Zhu and Kyle Davies, two co-founders of Three Arrows Capital, and Sudhu Arumugam and Mark Lamb, two co-founders of CEX platform CoinFLEX, are featured on the profile. CoinFLEX, as the trading platform is known, also declared bankruptcy last August.

Other senior executives include Chief Technology Officer Kent Deng, who has worked on technology teams at Alibaba, Tencent, Oracle and Huawei.

The Chief Marketing officer is Leslie Lamb, a former Lehman Bank employee who worked at Amber Group as an institutional sales executive and the content creator of Amber Group's popular Crypto Unstacked podcast.

GTX is expected to launch in two to three months. In addition to cryptographic debt, GTX is also expected to enter the equity lending market. There should be many investors interested in this emerging market, and BlockBeats will continue to follow GTX trends.

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