About eight months ago, I stood strong enough to have Su Zhu included in the prestigious Top 100 cryptographers. My reasoning was quite simple: Zhu was not only an influential figure on social media, but he ran arguably the most revered hedge fund in crypto – Three Arrows Capital, also known as 3AC. Then the 2022 bear market exposed 3AC as a house of cards run by founders who believed in their own hype and made reckless business decisions along the way.
With the The 3AC saga continues to unfold, we received inside information this week about the company’s remaining assets. Disclosures are no good if you are a 3AC creditor seeking reinstatement.
Source Claims 3AC’s Deribit Exposure Is Worth Much Less Than Reported
A anonymous source familiar with the 3AC debacle contacted Cointelegraph this week to reveal startling details about the failing hedge fund’s remaining assets. According to the source, 3AC’s holdings of Deribit shares are worth much less than what was reported in court documents filed by liquidator Russell Crumpler. 3AC’s exposure to Deribit, a crypto options platform, was believed to be worth $500 million, or half of the hedge fund’s remaining assets. But, according to our sources, the value of 3AC’s Deribit shares is actually closer to $25 million. Read on to find out how they hit that number – and why 3AC might be in more trouble than initially thought.
Related: 3AC Founders Reveal Ties to Terra Founder, Blame Overconfidence for Collapse
Life after the crypto industry: laid-off employees reflect on the future in the job market
Gemini, Coinbase, Crypto.com, BlockFi and now OpenSea – the crypto winter has led to mass layoffs, costing the industry thousands of jobs. The OpenSea shootout was particularly noteworthy, given that the company had become the largest non-fungible token marketplace in the world with billions of dollars in monthly revenue. Shocked and disgruntled staff recently took to Twitter to vent their frustrations. Crypto has a bright future ahead of it, but if you’re looking to work full-time in the industry, be prepared for volatility and have a backup plan just in case.
Today is a tough day for OpenSea as we are laying off around 20% of our team. Here is the note I shared with our team earlier this morning: pic.twitter.com/E5k6gIegH7
— Devin Finzer (dfinzer.eth) (@dfinzer) July 14, 2022
Amazon.eth ENS domain owner disregards USDC 1 million buyout offer on OpenSea
Speaking of OpenSea, an anonymous wallet address on the platform recently offered $1 million for purchase Ethereum Naming Service (ENS) Domain Amazon.eth. The offer, which was made in USD Coin (USDC), expired on Tuesday after the domain owner failed to respond. It is not known if the owner refused to respond to the offer or was simply not informed that it had been made. Interestingly, the previous Amazon.eth sale took place five months ago for a value of 33 Ether (ETH). Much like house flipping, domain flipping on the decentralized internet could be big business in the future.
Breaking: Zipmex halts withdrawals as CEO denies financial trouble rumors
Thai cryptocurrency exchange Zipmex has decided to suspend withdrawals on Wednesday, just hours after Cointelegraph asked the CEO about rumors the company was facing financial troubles. Odd timing aside, Zipmex said the decision was “due to a combination of circumstances beyond our control, including volatile market conditions and the resulting financial difficulties for our major trading partners.” The suspension of user withdrawals is one of the most troubling trends facing crypto platforms in 2022. It is often a sign of liquidity constraints and poor risk management.
Due to a combination of circumstances beyond our control, including volatile market conditions, and the resulting financial hardship for our major trading partners, in order to maintain the integrity of our platform, we would be suspending withdrawals until new order.
– ZIPMEX (@zipmex) July 20, 2022
Don’t miss it! Is the Bitcoin relief rally finally here?
After months of relentless selling, Bitcoin (BTC) and the broader cryptocurrency market are rallying again. Has BTC formed a true bottom, or is it just a late relief bounce in a continuing downtrend? In this week Market report, I was able to dissect this topic in more depth with my fellow analysts Jordan Finneseth and Benton Yuan. You can watch the full replay below.
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