Zhu Su spoke to reassure the community after the massive “discharge” of the Three Arrows Capital fund. The actual situation of the fund is much worse.
CEO Zhu Su reassures the community after 3AC’s sale
As mentioned in an article by Coincu News, the leading cause of the collapse of the cryptocurrency market in general and Ethereum (ETH) in particular comes from the fact that stETH has slipped in price compared to ETH since June 10.
The panic spread further on the morning of June 13 when the Celsius lending platform blocked deposits, withdrawals, and transactions when there was insufficient liquidity to meet users’ needs.
Since then, the price of ETH has been heavily dumped and lost 40% of its value, collapsing from the $1,800 mark on June 10 to the 2022 bottom at $1,075 on June 14.
By the afternoon of June 14, the stETH and ETH rates on Curve continued to decline to 0.93, still unable to find the balance.
The reason for the above fluctuations comes from the Three Arrows Capital (3AC) fund discharging stETH and swapping for ETH. According to blockchain data, in the past hours, 3AC wallets sold over 56,000 stETH (worth around $64 million).
3AC’s wallet still has over 19,600 stETH, worth over $21.8 million.
In addition, the crypto community on Twitter is spreading rumors about Three Arrows Capital having difficulty in liquidity after the market continuously dumped strongly in the past, as well as the related influence from the lawsuit against LUNA-UST collapsed in early May. However, this information has not been verified.
Some people also discovered that Mr. Zhu Su deleted the hashtags ETH, AVAX, LUNA, SOL, NEAR, MINA, DeFi, and NFT from his Twitter page, leaving only Bitcoin. These represent the currencies in which the Three Arrows Capital fund trusts.
On the morning of June 15, CEO Zhu Su of Three Arrows Capital posted the following tweet:
Although it is not clear what Mr. Zhu Su’s intentions with the above post are, it reinforces the rumor that the 3AC fund is struggling after a period of market decline.
The 0xTuba account, the CEO of Psyops Capital, revealed that after speaking with Zhu Su, Three Arrows Capital’s actual situation is “many times worse than it is”.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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