Three Arrow Capital announced on Twitter that they are launching a new cryptocurrency exchange to atone for their past mistakes
The founders of 3AC and Coinflex had been looking out for raising $25 million to start their exchange and somehow they managed to pull it off
Giants such as Terraform, Voyager, and 3AC turned into dust within hours.
The impact was so immense that it wiped off over $40 billion in the industry and became the reason for a lasting crypto winter.
Despite creating utter chaos in the industry, the founders of Three Arrow Capital announced on Twitter that they are launching a new cryptocurrency exchange ‘to atone for their past mistakes’. This declaration was not welcomed at all by the crypto community which explicitly expressed its disappointment with the investors who funded the project.
The community again highlighted how 3AC has led to the loss of billions of dollars from the industry while also diminishing the trust built over years. Some of the Twitter users went on to the extent of using harsh words for Kyle Davies and Su Zhu, founders of the bankrupt hedge fund. Community members said that they would do their level best to ensure that people do not fall prey to another financial catastrophe by using this exchange. However, a few members also celebrated this news as now they would be able to clear their due and be liquidated again.
The founders of 3AC and Coinflex had been looking out for raising $25 million to start their exchange and somehow they managed to pull it off. However, Arthur Hayes, co-founder of BitMEX said that if ‘these muppets get money’ even after a massive collapse, it must be a sign of an upcoming bull market.
Why Did Three Arrow Capital Collapse?
Three Arrow Capital was a cryptocurrency hedge fund that grew exponentially to reach $10 billion in funds. It had massive exposure in different blockchain projects around the spectra including Terrra, LUNA, Solana, Avalanche, BlockFi, and many more. The bull run enabled 3AC to gain more and take riskier bets with their money, however, they were not ready at all to take the hit which was about to arrive.
In the aftershocks of the Terra-LUNA crash, the crypto market lost 45 percent of its market capitalization and created a chain reaction in the industry. As the fire reached 3AC, it could not meet its margin calls for the money that it had borrowed from Voyager Digital. Soon enough Voyager filed for bankruptcy and blamed 3AC’s inability to return $665 million to the fund behind its collapse. With this, over 27 companies were affected costing around $3 billion in damage.
When the collapse of the 3AC surfaced the social media, its co-founders vanished from the public eye and all social media platforms. The lack of any answerability from any project enraged its stakeholders and they have good reasons to boycott their upcoming venture.
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