Three Arrows Capital (3AC): The Next Crypto Player To Fall Due To The Current Bear Market?

3AC, victim of his own greed – The bear market what we’re going through can feel violent and unmanageable. Many crypto companies are in trouble. The Blockchain Terra (LUNA) cleared the way for what appears to be a fall of dominoes, with the loosening of his stablecoin UST to the dollar. Then, Celsius had trouble loosening his steTH at ETH. Three arrows capital (3AC), a Dubai-based cryptocurrency investment fund, appears to be next in line.

Three Arrows Capital in the Hell of the Bear Market

In a bear market environment, the various positions of 3AC on the Challenge (decentralized finance) made the suffering $400 million liquidation† However, the company had announced this week that it would be making money out of cryptocurrencies. The goal then was to get these funds out of DeFi to centralized platforms to avoid a liquidation. However, the market did not wait and 3AC faced the dizzying fall of certain cryptocurrencies. Of the hundreds of millions of dollars then evaporated

Here’s How Rumors Were Born, Backed By Big Names In Crypto Economics Like Cathie Wood, the former director of Ark Invest. Indeed, the crypto expert wonders if 3AC will be next on the list after Terra and Celsius. But then what are the indications that 3 AC is at the bottom of the abyss?

Will 3AC suffer the same fate as Terra and Celsius?

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A losing crypto strategy for 3AC

3AC was first skinned by the fall of UST and LUNA, when the Terra blockchain crashed. In addition, the company is a major borrower of Celsius who paused his recordings on Monday

The first clues to the company’s difficulties were discovered when one of the co-founders, Syou Zhuhas removed from his bio references, such as “ETH, AVAX, LUNA” and other cryptocurrencies. The mention of the reference “NFT” is also removed from the description. Kyla Daviesmeanwhile the second co-founder of the company, his inactive twitter account

3AC also opts for a scrypto strategy strong criticized† For example, the SOL, the LUNA or the AVAX undergo rigorous tests on the markets. Indeed, these cryptocurrencies have lost between 70 and 90% of their value since June 13. In this context of fierce speculation, 3AC did not resist and the rumor was born.

Where the problem is that Su Zhu ardently defended a bullish thesis and a super cycle in the cryptocurrency market. This proved wrong from the start, given the blows the company took during the Terra crash. The founder himself tweeted at the end of May:

“The super cycle price theorem was unfortunately wrong, but crypto will always thrive and the world will change every day. †

Faced with the rumors circulating since June 13, Su Zhu is forced to make a mea culpa, half word:

“We are in discussions with the parties involved and are fully committed to solving this issue. †

A call to freeze 3AC’s crypto accounts

Tongues then become loose. One of the first companies to speak is the company 8 Block capital (8BC), via Twitter and the voice of its CEO, Danny Yuan† The 2 companies have been working together since 2018. Everything went well. However, the erratic markets decided otherwise. 8 Blocks Capital then decided to ensuing withdrawal to protect against DeFi risks. However, without a response from society, our man was not concerned as the period was busy.

With the blockchain holding everything in memory, 8 Block Capital eventually found that:1 million missing on funds donated to 3AC. Our interested parties therefore contacted 3AC again, to no avail. The businessman adds that 3 AC still has many possessions. Therefore he requested the freezing of wallets of the company on the various DeFi platforms it uses.

Tweet from Danny Yuan asking for Three Arrows Capital account freeze
Danny Yuan calls for the freezing of 3AC wallets on the DeFi platforms he uses – Source: Twitter

“11) What we have learned is that it [3AC] had been in debt for a long time. He got margin calls. Instead of answering margin calls, he haunted everyone. The platforms had no choice but to liquidate their positions, which caused another dumping of the markets.

12) However, it is [3AC] still has assets on a number of platforms (you know who you are). We ask you to freeze his assets so that this that 3AC should be able to be compensated in the future after legal proceedings. †

As we write these words, new clues are emerging that point to the crisis 3AC is going through. FTX, BitMex or even Deribit have left ship and liquidated the positions of the Dubai giant. Domino’s fall seems only just beginning.

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