The well-known crypto fund is analyzing several possible solutions to its insolvency problem, its co-founder said Friday.
- Three Arrows Capital considers selling assets and redemption.
- The cryptofund lost millions with the implosion of Terra (LUNA).
- Their biggest problem: insolvency due to millionaire liquidations.
After this week’s drama, cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. hedge fundThree Arrows Capital capital is most commonly defined as the large sum of money you would use to invest. confirmed on Friday that it has suffered heavy losses and is looking at several possible courses of action to address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. its current insolvency problems .
In an exclusive interview with Wall Street Journal the co-founder ofThree Arrows CapitalCarl Davies said the company has hired legal and financial advisers to find a way out. “ We are committed to working things out and finding an equitable solution for all of our constituents. “, said Davies.
According to reports, the hedge fund is exploring both an asset sale and a buyout by another company. It is also trying to reach agreements with creditors, the co-founder said.
Three Arrows Capital analiza sus opciones
Also known as 3AC, the fund was founded by Su Zhu and Davies in 2012, and had since become one of the most reputable in the cryptocurrency industry. According to CoinDesk The fund had more than USD $3 billion in cryptocurrencies under management by April 2022.
Still, the company has not been able to navigate the recent downturn in the market an area or arena, online or offline, in which commercial dealings are conducted. without facing some losses.Three Arrows experienced massive losses following the implosion of the Earth last month after the token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. native, LUNA, to sink to zero. Davies told Wall Street Journal that the fund had invested more than USD$200 million in LUNA in February.
“ Terra-Luna situation caught us off guard ” Davies said in the interview, as reported by CoinDesk .
Other investments of the fund, such as Avalanche , Solana y Polkadot have also seen their native tokens plunge considerably by as much as 80% from their historical price highs. CoinDesk agrega que 3AC también era conocido como uno de los mayores titulares de Grayscale Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. Trust a trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. (GBTC), an institutional investment vehicle of Bitcoin as well as the token stETH, both of which have experienced sharp declines recently.
In this regard, Davies added that 3AC was working to quantify its losses and value its illiquid assets, which include many venture capital investments in cryptocurrency startups.
Insolvency problems spread a price difference between asking and selling prices of the asset.
The report comes afterThe Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. revealed on Wednesday that the firm could face insolvency after incurring settlements of at least USD $400 million.Three Arrows had not made any public announcement until now, although co-founder Su Zhu had addressed the issue in a tweet lazy that day.
The news about possible developments for the crypto hedge fund come on the heels of yet another informs of The Block which revealed a debt of at least USD$ 6 million to the exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. BitMEX . This news portal also reported today that FTX, Deribit y BitMEX habían liquidado las posiciones de Three Arrows Capital over the past week after the cryptocurrency hedge fund failed to meet margin calls.
In the meantime, other projects linked to 3AC, such as Avalanche , DeFiance Capital y dydx have chosen to distance themselves from the background in the midst of the drama, according to adds CoinDesk .
The reports come as liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. difficulties spread among cryptocurrency firms, which appear to be facing pressure amid the steep price slump in the market. Crypto lending services Celsius y Babel Finance han anunciado suspension of withdrawals , y Finblox , another crypto platform, has also taken similar steps.
- Crypto lending platform a place to buy, sell and store cryptocurrency Babel Finance suspends withdrawals due to “unusual liquidity pressures”
- Celsius seeks advice from Citigroup after freezing withdrawals, regulators are watching closely
Article by Hannah Estefania Perez / DiarioBitcoin
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