Gossip: what happened to 3aC?

Gossip ：3AC What happened ？

Last week, ,3AC capital (Three Arrows Capital) collapse , The fund once owned more than 100 The asset management scale of US $billion , Now he is a debtor . How all this happened ? Will this spread to other crypto funds and companies ? What does this mean for the future of cryptocurrencies , Let's have a look today .

3AC What is it? ?

Before delving into what happened , We need to know the background of the fund .3AC from Su Zuhou and Carl Davis On 2012 Founded in 2000 .

They are in 120 Million dollars of capital created 3AC, The first office is in their living room . Their initial focus was on trading traditional emerging market currencies . The company has grown to more than 30 employees in three years . Until the two founders began to dabble in cryptocurrency , Things are starting to turn around .Su Express , stay 2017 year , He began to realize the potential of cryptocurrency . In an interview with Bloomberg , He said ,2017 end of the year , Only from the talent and energy of young people involved in this field , I have clearly seen , Cryptocurrency will follow the creative destruction cycle of the Internet , Eventually become cross financial 、 technology 、 Paradigm shifts in culture and politics .

stay 2018 year ,3AC Almost became a company focusing on cryptocurrencies , When bitcoin approaches 3,800 Dollar time ,Su Call it the bottom of a bear market . We all know what happened in the next two years . With the arrival of the bull market cycle ,3AC Have obtained great returns and wealth . Now? ,3AC Our investment strategy is to focus on trading bitcoin and Ethereum in the derivatives market .

Bloomberg interview shows , Derivatives are still the main business of the company . But over the years ,3AC Our investment strategies have become diversified . The fund began to invest in encryption companies in the early stages of the project .

Now when you look back at its portfolio , You will find that they are actually very reliable . Whereas Su and Carl So well known in this field , We can be sure that they have participated in many seed rounds of such projects , And at the price we ordinary people dream of .

No wonder their asset management scale can expand to 100 More than $ . According to the founder , They have never received external funds , This shows that these are their own money . Speaking of founders , They are very popular in the crypto community , Also active on twitter . They regularly post about market trends , I don't object to the occasional junk post .

Many people on twitter think , Their public statements are a form of psychological manipulation , Designed to mislead retail investors to trade in the opposite way . This was particularly evident last year , at that time Su Claim that he will quit Ethereum , Because Ethereum has given up its own community . However , According to the Nansen Analysis and display , About a month later ,3AC Bought more than 15 Ten thousand ETH. The above is some background knowledge . But why did it fall so fast ? Just like what happens in life , It starts with a very bad bet , The bet is Terra.

Terra The collapse of the

Unless you've lived under the rocks for the past few weeks , Otherwise you must have heard of Terra LUNA and UST The collapse of the .

3AC yes Terra The main supporters of , And with LMG Close cooperation . Now we all know Terra It's something . The death spiral leads to Luna The collapse of value , Make it infinitely cast .3AC Of Luna How much is it worth now ？ about 670 dollar .LFG The post crash actions have had a huge impact on the broader cryptocurrency market . Because in order to keep the hook , You have to sell more than the value 30 Billion dollars of bitcoin , This naturally depresses the price of bitcoin .

according to 《 Wall Street journal 》 A recent article ,Carl Davis say , They initially managed to deal with the disaster . but Terra Then the market situation just made things worse . All this coincides with “ Toxic ” Macro environment and bad cryptocurrency sentiment .

Grayscale-GBTC

Now everyone knows 3AC yes Grayscale Bitcoin trust or GBTC The largest holder of . For those who don't know ,Grayscale Bitcoin trust is an investment vehicle , It is one of the first structured institutional products of bitcoin , Allow institutional investors to gain exposure to bitcoin without buying and storing spot bitcoin .

Since this is one of the main trading methods for these big players , The deal has been at a premium for years . The fact proved that , For things like 3AC This can be arbitraged from the company , This premium is profitable . However , With everything we've seen in the past year ETF Product launch , such Grayscale A premium becomes a discount .

In the past few months , The discount continues to expand .Grayscale know ETF It will be last year “ eat ” Their lunch , So it began to actively apply for the conversion of its bitcoin trust fund into ETF. However , Securities and Exchange Commission (SEC) Has been rejecting this application .

3AC Think , once ETF Get approval , This discount will be reversed immediately . The idea was , If it is ETF, Its net worth should track the price of bitcoin more closely . This is a Su I said it on twitter last year . stay Terra In the weeks after the crash ,3AC Put a lot of attention on GBTC Arbitrage trading .

for example , stay 6 At the beginning of , They promote this idea to many investors who want to obtain external funds . according to Block 3AC Investment Management Department TPS Capital The article , The arbitrage transaction requires a charge of 20% The management fee of . As report goes ,6 month 17 Japan , Just a few days before the rumors of the crash began to surface ,3AC Just selling the deal . Now no one knows how many people have chosen to invest .

in any case , Past few weeks GBTC The continued expansion of discounts will only make 3AC Self GBTC Position deterioration , It will also worsen the positions of customers who may invest in the transaction . We don't know 3AC When did they close their positions GBTC The position of . But up to 6 month 17 Japan , Bloomberg updated its GBTC Holding tracker ,3AC No longer listed as a holder . Maybe , Due to a series of margin calls and clearing , They were forced to liquidate all GBTC.

stETH The collapse of the

This is a 3AC A long-term bet . Even though stETH Not designed to be associated with ETH hook , But it is generally believed that it should not deviate from parity .

This is a token that generates revenue , When the network transitions to proof of interest ( Plan to happen at some point ) when , It will be convertible into ETH.

Unfortunately ,stETH be relative to ETH And the price of this is going down . This has led to large players in the field , Such as Alameda, Put their stETH Instead of ETH. stay Curve In the pool , This leads to stETH The price of has fallen further , And drained Curve In the pool ETH, So as to make it out of balance . But not just Alameda Selling ,3AC Also exiting its position . It's just Su Post bullish stETH Two days after tweeting , They will surpass 22,000 Of stETH Instead of ETH.

stay Celsius Not long after the withdrawal was announced ,3AC The rumors of the crash began to spread . The message pointed out that ,Su and Carl I haven't tweeted for days ,Su Has deleted his Ins, They are giving up their stETH Position . besides , It also points out some BitFinex Leaderboard data , These figures show how much they lost .

collapse

until 3AC Get into trouble , About the company from Luna The story of how much leverage has been undertaken since the collapse began to surface . Those funds were borrowed from many of the largest lenders . With 3AC Our capital position continues to deteriorate , They also seem to be letting the risk go in order to make some money back . This led to an increase in their losses , Dig yourself a bigger hole .

In the next few days , About 3AC Reports of what the team is doing are beginning to appear . essentially , The project will hand over the funds they raise to 3AC,3AC Will help the project team generate revenue with these funds , Who knows what they are doing with these funds and how they generate these benefits . Bad is , to 3AC The project that manages the funds has really not been able to contact 3AC The team .

These about 3AC The statement of managing project funds has led many companies that have received investment from them to make statements . These include Avalanche,dYdX etc. . but 3AC The bigger problem is not whose money they lost , It's who they contact .

“ Infect ” Do you ?

The attention of the market turned 3AC Other investors . obviously , The company has received a large number of loans from many cryptocurrency lenders in the field . And they have trading accounts on multiple exchanges , These accounts are also on the verge of being liquidated . When rumors are all around , Some lenders have had to make statements about their actions .

Considering that just a few days ago ,Celsius The act of suspending withdrawals , It has also impacted the entire loan industry .Block phi and Genesis All mentioned , They have liquidated the collateral of a trading partner .

Of course , They didn't say any names . Just Genesis for , They said they did have a loss , But the damage has been brought under control , They will take legal action . As report goes ,bitmax There is a liability 500 Thousands of dollars in 3AC Trading account , They have shut it down . This does not affect their other accounts , They will also take legal action .

However , One does seem to be affected by 3AC The lending platforms affected are Finblox, 3AC Invested Finblox, It provides people with up to 90% Cryptocurrency returns .

Last week, Finblox Had to limit withdrawals on its platform to every day 1500 dollar . Now? , About who else to contact 3AC Speculation about who lent them cryptocurrency continues . There's another problem ,3AC What will happen to the invested projects ? In the past three years , They are very active in the seed round or strategy round , Participated in some of the most compelling financings .

Considering these are earlier rounds , This means that many tokens are likely to be locked in contracts . This increases 3AC The possibility that the shares of will be sold at the moment of unlocking .

Now? , The founder finally broke his silence , They call , They don't consider selling assets , Nor consider the possibility of being acquired by another company .

Conclusion

That's what we know so far about 3AC Most of it , I believe that in the next few days , More will be revealed in a few weeks and months .

Now anyone who wants to buy 3AC The company , Must bear all the debts it has accumulated . Given the current cryptocurrency price ,3AC It is also difficult to recover through asset sales . What does it mean for the encryption field ?

One of my biggest impressions of the crash was , Institutional recklessness . We always talk about institutional adoption , And how it makes the encryption market more mature . However , Their high leverage and interdependence have paralyzed the market .

Source：https://medium.com/general_knowledge/three-arrows-capital-what-reeally-happened-to-3ac-39b25bfa3ca6

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