As a seasoned researcher with years of experience in the volatile and unpredictable world of cryptocurrencies, I find myself increasingly concerned about the actions of certain entities within this space. The recent launch of Three Arrows Capital’s (3AC) meme coin fund, 3AC, has raised serious red flags that echo the troubled past of this investment fund.
The cryptocurrency associated with a meme coin project, which was initiated by Three Arrows Capital, is facing criticism due to the distribution of approximately 84% of its coins being assigned to digital wallets held by team members and inner circles.
According to a post by BubbleMaps blockchain analysis, it was found that over 80% of Three Arrowz Capital’s meme coin portfolio, known as 3AC, seemed concentrated into a limited number of wallets owned by insiders and team members. This observation has sparked suspicions among investors, who suspect the fund might be involved in strategies like price inflation and manipulation.
An investment partner from L1D elaborated further in an article that he posted on X. According to onchain trails, the team pulled in 750 Ethereum (ETH) tokens from around 25 investors in a private pre-sale.
At the formal unveiling, the leftover 336 ETH were divided among eight wallets owned by the team who secured early $3AC listings. Based on the assessment, these wallets are expected to yield returns ranging from ten to thirty times their initial investment.
80% of the supply of $3AC in one cluster
how about not?
— Bubblemaps (@bubblemaps) September 27, 2024
After a closer look, it’s found that just 8% of these tokens are distributed to the community, with another 8% tied up in liquidity. The remaining 84%, or most of the total tokens, are controlled by internal wallets. The warning was given to traders about the 3AC token, stating that it could lead to a situation where circulation is low but influence is high among a select group.
It’s important to understand that when you purchase this token, you are essentially putting faith in a tight-knit group who hold approximately 84% of the total supply. Some people may refer to it as a ‘cabal’ token. Ultimately, the decision is yours: consider whether or not you’re comfortable participating in a system where this dynamic exists.
@0xLouisT
On September 27th, Three Arrows Capital introduced their token using the symbol 3AC. This meme-based coin is part of the fund’s strategy to invest in high-risk ventures. The website features childlike drawings reminiscent of popular meme coins such as a “dog” and a “cat,” along with the Three Arrows Capital logo.
The investment fund asserts it focuses on ventures with higher risk levels, boasting a quirky online presence filled with lighthearted allusions to popular cryptocurrencies like “dog” and “cat” coins, along with some contentious motifs.
Initially, during the early stages of trading, the market value rapidly increased to almost $100 million, momentarily surpassing $170 million as its peak value.
In July 2022, investment firm Three Arrows Capital sought bankruptcy protection because they were unable to fulfill their creditors’ expectations amidst a significant financial market slump.
In the year 2021, 3AC (Three Arrows Capital) emerged as a significant player in the crypto venture capital industry, overseeing approximately $10 billion worth of assets. However, by April 2022, this figure had shrunk to around $3 billion and kept decreasing until it eventually filed for bankruptcy.
Back on September 14th, I learned that the Monetary Authority of Singapore had slapped a nine-year ban on the two co-founders of 3AC (Zhu Su and Kyle Livingston Davies) due to their repeated breaches of various securities regulations.
Following their previous ventures’ failure and bankruptcy, Zhu and Davies shifted focus to different crypto initiatives, but these too met with the same outcome. In the year 2023, they introduced the OPNX cryptocurrency exchange, however, it ceased operations just a year after its launch.
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2024-10-01 11:25