Crypto Hedge Fund Three Arrows Capital Defaults, Who’s Next?

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Last Updated on 30 June 2022 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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As we pointed out in our June 2022 overview of the historic week for crypto and Bitcoin a cryptocurrency focused hedge fund known as Three Arrows Capital (3AC to the cryptoshpere) was probably the next on the chopping block. After Terraform Labs (Terra and Luna) and crypto lender Celsius, it is already the third major player in cryptoland to go bust. The question now rises who could be next?

The Singapore-based hedge fund 3AC, set up in 2012 by Su Zhu and Kyle Davies, had specialized in crypto in the past few years.

Already in the past few weeks rumors of problems for the fund had been swirling, but its owners were confident that a solution could be found. However, this Monday 3AC failed to make the required payments on a loan worth more than $665 million.

Mr Davies told the Wall Street Journal that it was:

Committed to working things out and finding an equitable solution for all our constituents.

Advertentie.

Coinbase lining up for default as well?

With now three firms (Terraform Labs, Celsius and 3AC) having brought problems for the cryptosphere, Wall Street is eager to find out who is next. As Goldman Sachs analysts downgraded Coinbase earlier this week, some fear that Peter Brandt’s prediction might come true.

Goldman analyst William Nance said:

We believe Coinbase will need to make substantial reductions in its cost base in order to stem the resulting cash burn as retail trading activity dries up.

Coinbase stock closed near it’s lowest ever yesterday evening on Wall Street, a mere $49.