Former BitMEX CEO Arthur Hayes Criticizes 3AC Fund Relaunch
This report highlights the public criticism by Arthur Hayes, former CEO of BitMEX, directed towards Kyle Davis, regarding the relaunch of the #3AC fund. The fund had previously suffered significant losses due to the overall decline in the #cryptocurrency market.
Background of 3AC
In the first half of 2022, the 3AC fund experienced substantial losses as the broader crypto industry faced a market downturn. Numerous tokens witnessed significant declines, and investments such as #LUNA in which Three Arrows had a significant stake, nearly collapsed to zero.
Challenges Faced by the 3AC Fund
During the same period, a widening gap emerged between #Grayscale GBTC trust unit prices and spot Bitcoin prices, resulting in the trust units trading at a 34% discount to the trust's net asset value (NAV) in June 2022. This further added to the fund's difficulties.
The 3AC fund had previously managed a diverse portfolio consisting of various cryptocurrencies and blockchain projects. Investments included prominent projects like Aave, Avalanche, Luna, Ethereum, Solana, and others. However, the market downturn led to a substantial depreciation of the fund's portfolio.
Additional Concerns
In April 2022, Bloomberg reported that 3AC was planning to relocate its headquarters from Singapore to Dubai. However, it was later confirmed that the fund was not registered with the Dubai Financial Services Authority. This raised concerns about the fund's operations and management.
Relaunch and Partnership Announcement
Despite the challenges faced in the past, Kyle Davis recently announced the relaunch of the 3AC fund and revealed a new partnership with OPNX. The partnership aims to invest in projects within the OPNX ecosystem that contribute to building a decentralized future.
https://www.3acventures.com/
Arthur Hayes' Criticism
The relaunch of the 3AC fund drew public criticism from Arthur Hayes, the former CEO of #BitMEX Hayes, who himself had recently settled a legal case, expressed his disappointment with Davis' decision to relaunch the fund, implying that it was inconsiderate given the fund's previous failures.
