With the crash of Terra Luna, many Capitals in the crypto market are affected badly. Among them, the Three Arrows Capital (3AC) is on the top of the list. It is on the verge of bankruptcy due to its unreasonable decisions over the last few months. More than 400 NFTs belonging to Three Arrows Capital (3AC) are now in possession of a liquidation firm called Teneo. Cointelegraph confirmed this on Oct 5.
Additionally, a crypto Analyst firm Nansen shared the details of these NFTs on Twitter last night and confirmed the news. He revealed that more than 300 tokens of 400 NFTs are transferred to a multi-signature Ethereum wallet called Gnosis Safe. But how does the Three Arrow Capital come to this point? What is a Three Arrows Capital?
What is Three Arrows Capital?
The Three Arrows Capital was founded by Kyle Davies and Su Zhu in 2012. It was a Singapore-based cryptocurrency hedge fund. The aim of the firm was to back trading, buy NFTs and invest in larger projects. For this, they collect and borrow billions of dollars from different institutions. They backed many top cryptocurrencies like Solana, Avalanche, Polkadot, Deribit, WOO Network, and many more.
However, on the 27th of June 2022, the British Virgin Islands ordered to liquate the firm because it was facing 3.5 billion dollars in debt. It was claimed that the firm lost more than 3 billion dollars between 2021 and 2022.
Reasons for its failure
In the first quarter of 2022, crypto was all red. Most cryptocurrencies saw a 50% decline in their prices, and those cryptocurrencies that were backed by the 3AC all lost most of their worth. The most significant was Luna, where Three Arrows Capital invested more than 200 million dollars in February 2022.
The Luna went to zero in the span of a few months, and the firm lost all its money. There were Licensing and regulatory issues the firm faced, which collectedly damaged the firm.
Collections of NFTs
According to the Bloomberg statement, all of the Starry Night Capital NFTs are in possession of Teneo, 3AC’s liquidator. The firm would sell all these NFTs to give to creditors. There are 400 different NFTs worth billions of dollars. Nansen, a crypto analyst, shared some figures last night about the Stary Night Capital, which is moving to a Gnosis Safe address.
These NFTs are
Pepe the Frog NFT Genesis
This NFT was sold for 100 Eth worth of 3.5 million dollars on 5th October
It was sold for 240 ETH, which is worth 1.1 million dollars, on November 13, 2021
There are several CryptoArt NFTs that are sold by XCOPY, which include
Some other asshole; This was sold for 550 Eth worth 2.3 million dollars on Dec 5, 2021.
DANKRUPT; This NFT was sold by the firm on 469 Eth ($2.0M) on Oct 24, 2021, alongside DECAY which sold for 345.69 Eth 1.4 million dollars. Additionally, the AI-Generated Nude Portrait #7 Frame #184 NFT was sold for 300 Eth on Oct 5, 2021.
There are some CryptoToads NFTs that were sold on 4 Oct 2021. These include CrypToadz #5634 and CrypToadz #54 on 135 and 25 Eth, respectively.
Two Meridian NFTs were sold on 90 Eth and 80 Eth, respectively. These were Meridian 171 and Meridian 684. The total estimated value of all these NFTs is 685 Eth.
Although Three Arrow Capital saw success at the start of their business and they were moving globally, they found themselves on the verge of collapse due to some reasons. One of the main reasons was its investment in the Terra Luna project.