Here is why 3AC bankruptcy might affect NFTs Market!
Three Arrows Capital or 3AC, as it’s also known, is one of the most prominent crypto hedge funds around. It’s known for its highly leveraged bets on what some have called “the wild west” of cryptocurrency trading just announced a devastating news that they are in the midst of bankruptcy.
Here is why 3AC bankruptcy might affect NFTs Market:
- 3AC made borrowed money from big NFTs and Crypto Players (Rumors)
3AC borrowed a ton of money from other big players in the NFTs and Crypto industry but with billions of dollars being wiped off the digital coin market in recent weeks, they are facing a potential liquidity and solvency issue. This event might affect the cash flow that goes to NFTs industry way smaller.
All of these started when one of the founders of 3AC, Zhu Su who made wrong decisions in investment in May 2022 when the it was the beginning of ‘crypto winter’.
Three Arrows Capital Partners recently suffered a $650 million default by Voyager Digital. The debt was never cleared, making it subject to the notice. According to Bloomberg, Su Zhu, the founder of Three Arrows Capital, is attempting to sell his Singapore mansion worth $35 million. The mansion was purchased in December 2021 by Zhu Su for $48.8 million and is currently under the management of a trust in the name of one of his children.
2. 3AC revealed to ownup to $7.3 Million in NFTs.
Even 3AC holds the majority of big project in NFTs, they still announced bankruptcy which might affect the view from other investors to put their money in NFTs. Here are the list of 7.3 Million NFTs that ownup by 3AC, according to the data published by NFTGators.
- 1 Bored Ape Yacht Club worth $61k
- 2 Mutant Ape Yacht Club worth an estimated $122.6k
- 11 Crypto Punks NFTs worth $3 million
- 330 Art Blocks Curated NFTs worth a total of $2.483 million
- 8 PEGZ NFTs worth $613k
- 4 DeafbeefV2 worth $564k
- 3 Autoglyphs worth $304k
- 7 Art Blocks NFTs worth $125k
- 7 Chromie Squiggle NFTs worth $73.78k
This event will make Crypto and NFT players be more careful which will make the money flow to this industry less, especially since the situation of the world economy is not recovering soon.
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This is not financial advice, so before you make your decisions please do your own research.