general

Will the “Three Arrows Capital” hedge fund that manages billions of dollars in crypto collapse? Here’s what’s going on

Will the “Three Arrows Capital” hedge fund that manages billions of dollars in crypto collapse? Here’s what’s going on

The content site is one of the sites that provide the service of answering general questions and solving puzzles and crossword puzzles

Where the content site is primarily interested in answering your questions in all areas, including solving puzzles and crossword puzzles

Answer Will the “Three Arrows Capital” hedge fund that manages billions of dollars in crypto collapse? Here’s what’s going on

One thing that is certain to begin with is that something is going on with the Singapore-based hedge fund Three Arrows Capital.

But it is not yet clear whether that means the company is financially insolvent, as rumors suggest across the crypto world.

The hedge fund “Three Arrows Capital” was founded 10 years ago and currently manages an estimated $10 billion in cryptocurrency, and has positions in many of the largest crypto projects and companies such as:

Bitcoin, Ethereum, Solana, Axie Infinity and BlockFi.

On Wednesday afternoon, it looked as if Three Arrows Capital was selling assets, including $40 million worth of digital assets from Lido Staked Ethereum (stETH).

Read:Concerns after Stellar (XLM) network was down for a full two hours

Researchers and analysts on Twitter say Aave’s $264 million loan and $35 million syndicated loan should be preserved from liquidation.

A cryptocurrency trader shared a screenshot from data platform Nansen showing that wallets linked to Three Arrows Capital were linked to five of the largest transactions in the past week exchanging at least 30,000 stETH.
Another crypto analyst estimated that if the price of Ethereum goes to $1042, the “Three Arrows Capital” loan will be liquidated.

There is no doubt that the loans exist but it is not certain that they are linked to the Ethereum wallet that people think belongs to “Three Arrows Capital.”

Nor has the hedge fund confirmed that it took the loans.

Early Tuesday, Su Zhu, co-founder of Three Arrows Capital, appeared to offer some reassurance that the company was taking steps to preserve itself.

He said in a tweet on Twitter:

We are in the process of reaching out to interested parties and are fully committed to working on that.

Without specifying the parties or what needs to be worked on.

Read:Federal Reserve Director: Cryptocurrency and Central Bank Digital Currency Report Ready to Launch

It is worth noting that Lido Staked Ethereum allows people to contribute to Ethereum and receive an amount of stETH in return, at a discount of 6%.

At the time of writing this article, 1 stETH can be traded for 0.94 ETH through Curve Finance.

Read:10 facts you should know about the Binance platform

If the price of Ethereum drops enough, the collateral used to secure the loans will be liquidated or sold.

Whoever successfully bids the guarantees first will receive a 5% bonus.

In simple terms, this means that they will pay, say, $100 million for $105 million in Ethereum.

If the collateral that secures the loans is liquidated, that will be bad for the lenders as well.

This includes the Celsius platform, which is already dealing with enough liquidity issues.

After all, Three Arrows Capital is one of the largest cryptocurrency borrowers and lenders.

If Three Arrows Capital collapses, it will mean more pain and a downside for the already struggling crypto market.

Read also:

Bitcoin Fear and Greed Index Drops to 2019 Levels…Details Here

Bitcoin volatility intensifies after the Fed raises interest rates by 75 basis points


And you can ask questions on the content site through the word “Ask a question” at the top of the site, where we answer your questions in a short time

Previous post
Bitcoin may be cheaper than it looks, according to Fidelity.
Next post
Bitcoin Fear and Greed Index Drops to 2019 Levels…Details Here