- Three Arrows co-founder Kyle Davies launches a new VC fund, 3AC Ventures.
- Davies claimed that 3AC Ventures operates without leverage, debt, or fear.
- OPNX was roundly mocked after announcing 3AC Ventures as its ecosystem partner.
Three Arrows co-founder Kyle Davies tweeted on June 23 that “3AC is dead,” while celebrating the launch of his new VC fund, Three Arrows Capital (3AC) Ventures. Davies’ tweet follows right after OPNX announced 3AC Ventures as its ecosystem partner.
3AC is dead, long live 3AC Ventures https://t.co/61s8uQquOZ— Kyle Davies (@KyleLDavies) June 21, 2023
In response to Davies’ tweet, Nansen AI CEO Alex Svanevik asked the question on everybody’s mind: “It’s a fork of 3AC without the debt?” To which Davies replied,
No leverage, no debt, no fear.
The original announcement tweeted by OPNX’s was met with skepticism. One experienced crypto trader commented that 3AC Ventures focuses on superior risk-adjusted “losses” with “max” leverage.
Similarly, WOO Network partner Cevo also questioned 3AC Venture’s promise to deliver superior risk-adjusted returns without leverage. Meanwhile, George Harrap, the co-founder of Solana’s Portfolio Dashboard, Step Finance, joked that the Venture would soon announce the collapsed FTX’s Sam Bankman-Fried as its new CEO.
In June 2022, 3AC experienced financial distress and filed for bankruptcy in the British Virgin Islands. A combination of unfavorable leveraged trades caused this event during a crypto bear market and significant losses linked to the collapse of the Terra Luna ecosystem, which amounted to $40 billion in May 2022.
At the height of its operations, 3AC purportedly oversaw $10 billion worth of assets. However, when the firm faced bankruptcy, it encountered creditor claims amounting to $3.4 billion.
Another crypto trader commented under OPNX’s announcement post highlighting the losses and argued that the profits from 3AC Ventures should compensate 3AC creditors.
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