Three Arrows Capital, a cryptocurrency hedge fund created by Su Zhu and Kyle Davies in 2012, got $400 million in ether over the weekend, according to reports. Only a few weeks ago, CEO Zhu Su was slamming ETH on Twitter for its high gas costs and lack of accessibility. His company is now purchasing the dip.
Three Arrows Capital (3AC), a crypto hedge fund, has purchased more than half a billion dollars worth of Ethereum after CEO Zhu Su openly bashed the cryptocurrency on Twitter.
Between November 20 and November 22, Zhu tweeted about why he has abandoned Ethereum after previously supporting it. The conversation started in reaction to Synthetix creator Kain Warwick’s tweet, in which he called out people who have sold out in search of profit maximization. During the Twitter controversy, Zhu argued that Ethereum culture suffers significantly from the Founders’ Dilemma and that everyone is already much too affluent to remember what they started out to do.
After gaining widespread notice, he reversed his position, explaining that he wished to soften his earlier attitude and that he adore Ethereum and everything it stands for.
Approximately 156,400 thousand Ether (ETH) or $676.37 million has been transferred to a wallet linked to 3AC by blockchain analytics firm Nansen in the 17 days following the threads.
During this time, almost all of the monies entering the wallet came through Binance, the FTX exchange, or Coinbase.
In reply to a tweet from Chinese blogger Wu Blockchain, Zhu revealed the transactions, stating that while Ethereum layer one is still unusable for novices, he’d bid hard on any panic drop like this weekend.
3AC made the most of its purchases over the weekend price crash, according to the wallet.
Many Twitter users assumed he was trying to promote competitor project Avalanche (AVAX), in which 3AC has invested when the anti-ETH messages surfaced. He maintained he never sold AVAX and just purchased this ETH from whoever was financially illiterate enough to sell this weekend in response to a user who asked if the ETH purchases suggested he’d ditched his AVAX holdings for ETH.
Three Arrows Capital was introduced as an investor in Blizzard, a fund dedicated to the development of AVAX, in early November. Following Zhu’s initial tweets, AVAX dethroned Dogecoin (DOGE) as the tenth-largest cryptocurrency in terms of market valuation. In the hours leading up to his U-turn, Zhu tweeted a graph of AVAX’s development with the phrase “Top 10.”
93,791.895 Ether was transferred from 3AC’s wallet to an address that looks to belong to a large trader. Smaller sums have been transferred to other addresses, including 500 Ether, which was just transferred to an alleged NFT investment wallet.
In the last year, Ether has outperformed bitcoin, and it may continue to do so as long as the focus stays on macroeconomic reasons.
Ether is up 500 percent year to date and is now trading about $4,300 at the time of writing. Bitcoin, the world’s most valuable cryptocurrency by market value, is currently selling at over $50,200, up 70% year to date.