Three Arrows Capital’s Founders Float New VC Fund

Co-founders of the bankrupt crypto hedge fund Three Arrows Capital, Su Zhu and Kyle Davies, have resurfaced with a brand new enterprise capital (VC) fund known as 3AC Ventures. The brand new fund goals to spend money on initiatives that contribute to the decentralized way forward for finance with out counting on leverage.

The Rise and Fall of a Crypto Star

Based in 2012 by Chu and Davies, Three Arrows Capital started as a overseas trade arbitrage agency. Nevertheless, the agency pivoted to cryptocurrencies in 2017. At its peak, the fund managed about $18 billion in belongings and backed initiatives like Aave, Avalanche, Luna, Solana, and Polkadot.

When the Terra Luna ecosystem imploded in 2022, 3AC was caught flatfooted. With creditor claims exceeding $3 billion, Three Arrows Capital filed for chapter in June 2022 within the British Virgin Islands. Since then, its founders disappeared from public view till now.

The Launch of 3AC Ventures by Three Arrows Capital’s Founders

In a shocking flip of occasions, Zhu and Davies have introduced the launch of 3AC Ventures, which is able to concentrate on “superior risk-adjusted returns with out leverage”. The brand new fund will invest in initiatives throughout the OPNX ecosystem by way of its partnership with Open Trade (OPNX).

Curiously, Zhu and Davies co-founded OPNS in Zhu and Davies in April 2023. Thereafter, it launched its native token, OX, in Might 2023. Since then, the OX token has reached a completely diluted market cap of $300 million on the time of writing. OPNX additionally surpasses $30 million in every day common quantity

In the meantime, 3AC liquidators have filed a movement in opposition to Davies for contempt of court docket. In accordance with the creditor’s authorized crew, Davies and Zhu haven’t been forthright concerning the case. The duo have been accused of hiding their whereabouts and failing to have interaction in asset restoration. Nevertheless, the filed movement doesn’t apply to Zhu who’s a Singaporean citizen.

Consequently, the launch of the VC fund has polarised the crypto market. Whereas some contemplate the transfer to be one, others are cautious of the competence of the founders. Regardless of these antagonistic sentiments, Davies stays undeterred in selling the brand new VC agency’s aim. “We’re eager to collaborate with these courageous sufficient to sort out probably the most vital challenges and create cutting-edge merchandise,” stated he.

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