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RobbBobb
Matt Flynn, BCS MVP
Member since Feb 2007
22451 posts

Crypto hedge fund Three Arrows Capital (3AC) now in liquidation

Teneo Restructuring has been brought on board to deal with the liquidation

LINK

Anyone on here have funds with them?


TigerintheNO
LSU Fan
New Orleans
Member since Jan 2004
38660 posts
 Online 

shooters shoot


quote:

How did 3AC get here?

Three Arrows Capital was established in 2012 by Zhu Su and Kyle Davies.

Zhu is known for his incredibly bullish view of bitcoin. He said last year the world’s largest cryptocurrency could be worth $2.5 million per coin.
But in May this year, as the crypto market began its meltdown, Zhu said on Twitter that his “supercycle price thesis was regrettably wrong.”


OldSouth
LSU Fan
Folsom, LA
Member since Oct 2011
10809 posts
 Online 

quote:

Zhu said on Twitter that his “supercycle price thesis was regrettably wrong
From his famous work "The Art of Bankruptcy".


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LordSaintly
New Orleans Saints Fan
Member since Dec 2005
36244 posts

That absolutely sucks for people who have funds with them.


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42
SlidellCajun
LSU Fan
Slidell la
Member since May 2019
7509 posts

Oops



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TigerDeBaiter
LSU Fan
Member since Dec 2010
9718 posts



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alpinetiger
Auburn Fan
Salt Lake City
Member since Apr 2017
4927 posts

quote:

“supercycle price thesis was regrettably wrong.”
I'd like to read his "thesis", which I have no doubt doesn't exist. Although past performance doesn't guarantee future performance, how could this person ignore the cyclical, historical price formations involving halvening cycles? I'm as bullish as they come w/r/t Bitcoin but I'd never put myself in a situation to get rekd and destroy myself, or in his case an entire company.


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cable
Member since Oct 2018
8321 posts

quote:

He said last year the world’s largest cryptocurrency could be worth $2.5 million per coin.




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111
Jag_Warrior
Virginia Fan
Virginia
Member since May 2015
2712 posts

Does anybody have a feel for what might happen with/to CoinFlex?

quote:

Mark Lamb, the CEO of embattled cryptocurrency exchange CoinFlex, said that withdrawals will probably not restart on Thursday as the company initially hoped.

To fix the $47 million hole in CoinFlex's balance sheet, the company is issuing a token called Recovery Value USD, or rvUSD, and enticing investors with a 20% interest rate. Lamb said the ability to pay that interest rate would come from recouping the funds from Roger Ver plus a "financing charge" that has been imposed on him.

CoinFlex claimed that Ver's account went into "negative equity." Normally, the exchange would liquidate an investor's position in this situation. But Ver had a particular agreement that meant this did not happen, the exchange said.

The agreement between CoinFlex and Roger Ver, aka “Bitcoin Jesus”, meant that if the investor failed to meet a margin call, then his positions would not be automatically liquidated as would normally be the case.

A margin call is a situation in which an investor must commit more funds to avoid losses on a trade made with borrowed cash.

Lamb said that CoinFlex felt comfortable to go into such an agreement because of the "data we'd seen around his capitalization."

But CoinFlex will now be eliminating such agreements, Lamb said.

"In hindsight, having no non-liquidation agreements would have definitely been better," Lamb said.


OTIS2
LSU Fan
NoLA
Member since Jul 2008
47798 posts



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TigerintheNO
LSU Fan
New Orleans
Member since Jan 2004
38660 posts
 Online 

They loaned $47 million of their customers' money to "Bitcoin Jesus" in a non-liquidation agreement. He's just a convicted felony who renounced his US citizenship and been denied entry into the United States and Australia.

That money is gone.
quote:

Roger Ver
@rogerkver

Recently some rumors have been spreading that I have defaulted on a debt to a counter-party. These rumors are false.
Not only do I not have a debt to this counter-party, but this counter-party owes me a substantial sum of money, and I am currently seeking the return of my funds.


TigerTatorTots
LSU Fan
The Safeshore
Member since Jul 2009
79696 posts

Roger Ver is possibly the scammiest name in crypto and thats saying a lot


slackster
Stanford Fan
Houston
Member since Mar 2009
77544 posts
 Online 

I liquidated and pulled all my crypto from Voyager today. Supposedly the USD there is FDIC insured, but I’ve got no desire to even have to deal with them should something happen.

What a clusterfrick this has been in crypto land, but it’s not without similarities in tradfi as well.


boosiebadazz
Boosiebadazz225@gmail.com
Member since Feb 2008
75633 posts

quote:

but it’s not without similarities in tradfi as well.


What’s the closest similarity and why?


slackster
Stanford Fan
Houston
Member since Mar 2009
77544 posts
 Online 

quote:

What’s the closest similarity and why?


Banks, credit unions, and hedge funds have failed throughout their existence. I’m not knighting for crypto, but to act like it’s unique to that space is foolish.

Look into Long-Term Capital Management, for starters.


SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
390138 posts

Crypto just became the latest tulip, it's just that they created 10,000 types of tulips within 18 months.

All the bubble asset classes typically live on (I mean we still have housing post-2009) in some form or fashion, just devalued.

I still think the big dogs have long-term investment value even though, imho, it destroys their intrinsic value. The problem with crypto is that unlike other bubble asset classes, you could literally create one out of thin air to pump and dump. It was never that easy and, as we all know, when making cheap money is easy, humans cannot help themselves.



JayDeerTay84
LSU Fan
Texas
Member since May 2013
9103 posts

quote:

The problem with crypto is that unlike other bubble asset classes, you could literally create one out of thin air to pump and dump.


Oh. Let me know when you can generate over 110 Terawatt hours of hash and create the next BTC2.0. I'll buy some.

Keep us posted.

You would think people on the money board could separate actual use case projects from trash, but after 10 years I think people are still looking for "going to zero bruh!"


glorymanutdtiger
LSU Fan
Baton Rouge
Member since Jun 2012
2790 posts
 Online 

How did you pull all of it from Voyager today when there is a 10K limit? I have to do it over a span of days.



glorymanutdtiger
LSU Fan
Baton Rouge
Member since Jun 2012
2790 posts
 Online 

For anyone who don’t trust voyager to debit your USD, I transferred it as USDC crypto to my Coinbase wallet and withdrew from there to my bank.

Voyager withdrawals have been really slow


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slackster
Stanford Fan
Houston
Member since Mar 2009
77544 posts
 Online 

quote:

How did you pull all of it from Voyager today when there is a 10K limit? I have to do it over a span of days.


By having less than $10k in Voyager.

I started with more, but, ya know…


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