Since CEO Zhu Su openly blasted the cryptocurrency on Twitter, crypto hedge fund Three Arrows Capital (3AC) has purchased more than half a billion dollars worth of Ether. Is he changing his mind, or is he simply taking advantage of a market meltdown to buy on the cheap?
Zhu tweeted about why he had “abandoned Ethereum. Despite supporting it in the past” between November 20 and November 22 in an anti-ETH rant. The discussion began in reaction to a tweet by Synthetix founder Kain Warwick. Who chastised anyone who “sold out in the quest of profit maximisation”. During the outpouring of tweets, Zhu noted that Ethereum culture “suffers greatly from the Founders’ Dilemma”. And that “everyone is already far too wealthy to recollect what they set out to do”.
He later changed his mind, explaining that he wished to “soften” his earlier attitude and that “I adore Ethereum and everything it stands for.”
Approximately 156,400 thousand Ether (ETH) or $676.37 million has been moved to a wallet linked to 3AC by blockchain analytics firm Nansen in the 17 days since the threads began.
During this time, almost all of the monies entering the wallet were transferred through Binance, the FTX exchange, or Coinbase.
Unusable for newbies
In response to a tweet from Chinese blogger Wu Blockchain earlier today, Zhu confirmed the transactions. He added, while Ethereum layer one is still “unusable for newbies”, he’d “bid strongly on any panic dump like this weekend.
The majority of 3AC’s purchases took place during the weekend price fall, according to the wallet.
Many Twitter users assumed he was attempting to promote competitor project Avalanche (AVAX). In which 3AC has invested, when the anti-ETH messages surfaced. He maintained he “never sold AVAX” and just “purchased this ETH from whoever was financially illiterate enough to sell this weekend”. In response to a user who asked if the ETH purchases suggested he’d ditched his AVAX holdings for ETH.
Three Arrows Capital joined Blizzard, a fund dedicated to the advancement of AVAX, as an investor in early November. Following Zhu’s initial tweets, AVAX moved Dogecoin (DOGE) down to 10th place in terms of market capitalization. In the hours leading up to his U-turn, Zhu tweeted a graph of AVAX’s growth labelled “top 10”.
Today at 23:34 UTC, 93,791.894 Ether was transferred from 3AC’s wallet to an address that looks to belong to a large trader. Additionally, smaller sums transferred to various addresses, with 500 Ether transferred to an alleged NFT investment wallet subsequently.