Featured image from Binance.com, Charts from TradingView.comThe writer of this content is not associated or affiliated with any of the parties mentioned in this article. This is not financial advice.
Three Arrows Capital, on the verge of bankruptcy, has several Blue Chip NFTs
Most capital markets have done little service this year for speculative investors. The NFT market has not been spared from the chaos of cryptocurrency, which has led to the fall of previous top 10 tokens, CeFi platform drama and hedge fund collapses with the headline Three Arrows Capital – which once had a consumption of about 10 billion dollars earlier in year.
Less than a week since the filing for bankruptcy in the state of New York, it has now been revealed that Three Arrows Capital has a number of blue-chip NFT holdings, which could very well be settled in 3AC’s bankruptcy proceedings.
Let’s dive into what these NFTs are and where the road may lead from here.
Three Arrows Capital: NFT Holdings
A team of analysts at 21 Shares took publicly available data from Dune Analytics and built its own dashboard with known 3AC addresses with Ethereum network inventory. These assets include nearly a dozen CryptoPunks, ArtBlocksCurated worth about $ 2.5 million, a variety of ArtBlocks, Autoglyphs, Chromie Squiggles and Mutant Apes – and even a lone Bored Monkey. The collection of CryptoPunks is the most valuable, and comes in at a current value north of $ 3 million. NFT assets total north of $ 7 million in current value.
Other insights and notes from the dashboard:
- Only liquid, Ethereum-based assets are reflected
- In addition to NFTs, 3AC primarily held stack coins in these wallets
- No transactions posted since June 21st
Bitcoin (BTC) has remained strong during immense headwinds (particularly throughout DeFi networks, which Bitcoin has less exposure to), and is now trading below its 200 weekly moving average and short/long-term cost bases for one of the few times in BTC's price history. | Source: BTC-USD on TradingView.com
Related reading | Crypto Winter causes Celsius to cut workforce by 25%
The 3AC coil
In the same way as Terra Luna’s downward spiral, it is “eggs that crack to make the omelette” that is the downfall of Three Arrows Capital. Utilization throughout the crypto ecosystem began to resolve after Terra’s collapse, eventually leading to liquidity problems with CeFi platforms such as Celsius and Three Arrows that failed to meet the required margin calls.
This spiral largely existed within a broader market downturn, and consisted of more centralized players who used decentralized tools to increase efficiency. However, these increased efficiencies came with higher risk, so although DeFi platforms and more decentralized tokens and projects – such as even Bitcoin itself – have not been spared from the broader market impacts, they were not dramatically impacted to the implosion point of many of their centralized counterparties.
If anything, it is a testament to the impact and status of DeFi tools and should provide long-term optimism in the midst of short-term pain.
Related reading | NFT volume down 93% since January, is this the beginning of the end?
