When we think of what led to the great market crash of 2022, many point to the collapse of Terra Luna and it’s native stablecoin, $UST. Some may look at centralized earning platforms that promised unsustainable yields, and others may even blame the most recent implosion – centralized exchange FTX.
But one of the most notorious blow ups in all of crypto history has to be 3AC, or 3 Arrows Capital, a Singapore-based hedge fund led by Su Zhu and Kyle Davis. Following the collapse of Terra, the pair seeming disappeared from the internet, leaving investors with only a trail of questions as to where their money went.
While it has since become clear that the once prominent fund went underwater due to their lack of risk management and blind faith in select tokens, they have yet to fully address their wrong doings and show accountability for their actions.
Instead, they’re back, and better than ever – with a new exchange that investors can YOLO their money into.
With a Combined Loss of $10.04B, I Present
A pitch deck by the duo has been floating around crypto twitter, which showed that Su and Kyle would be partnering up with the Co-founders of CoinFlex, a yield platform that has seen gone under.
While CoinFlex indeed saw a $300M valuation during the bull market, they paused withdrawals in June 2022, citing “extreme market conditions”. They also stated that they had a $47M hole in their balance sheet, due to an agreement with a user to not liquidate an account that had a negative balance.
The user, Roger Ver, also known as “Bitcoin Jesus”, has since denied these allegations.
With their Executive team and “60+ developers”, the founders of 3AC and Coinflex have decided to raise $25M for GTX, a one-stop shop for cryptocurrency and stock trading.
The pitch deck also includes a “claims market” geared towards FTX investors that are trying to sell their remaining balances at a discount. Noting a potential $20B market, the idea does have grounds, given that some users were trying to offload their FTX accounts for 10% of face value as withdrawals halted.
Crypto Companies Already Distancing Themselves
While Su and Kyle are aiming to launch GTX in the next 2-3 months, they may be facing headwinds from potential investors.
The CEO of Wintermute, a digital asset market maker, has already publicly stated that anyone who wishes to invest in Su and Kyle’s new venture would find it difficult to have a working relationship with them in the future.
While being ostracized by the majority of crypto is not the end of the world, the lackluster environment of Web3.0 right now would mean that setting up shop without their support could be difficult.
Furthermore, an investment in GTX likely means forgiving the risky business conduct that both 3AC and CoinFlex founders have exhibited in the past.
Also Read: How To Get Started In Crypto (UPDATED 2023)
[Editor’s Note: This article does not represent financial advice. Please do your research before investing.]
Featured Image Credit: Chaindebrief