According to blockchain analytics, Three Arrows Capital, a crypto hedge fund, has purchased nearly half a billion dollars worth of eth.
Zhu Su (pictured), the company’s CEO, confirmed this, saying, “100,000 eth is dust for what it’s worth, more coming.”
He stated that Three Arrows Capital will bid eth aggressively “on any panic dump like this weekend,” when the currency briefly fell to $3,600, thereby liquidating low leverage bulls.
Eth is now trading at $4,400, with a significant ratio gain to 0.085 BTC, its highest in four years.
Zhu is being trolled?
This purchase is notable because it comes on the heels of Zhu and others’ harsh criticism of eth at 3AC late last month, just as some bear tunes began to play in concert.
Zhu criticised the criticism of an eth dapp developer who accused others of leaving to other chains for money after a $1.6 billion eth long was closed on November 11th.
Synthetic’s founder, Kain Warwick, had amassed a large number of properties, according to Zhu, leaving his dapp with only 100 active users due to high on-chain fees.
Some ethereans reacted angrily, sparking a ‘debate’ that we tried hard to ignore until now, with some accusing Zhu of attempting to pump his own bags of Solana and Avax.
In substance, we believe the debate is reasonable because competition is far preferable to complacency, with the ultimate decentralisation in this space being the variety of different blockchains. As a result, if banks had attempted to coopt this space, they would have failed because, while they may have been able to coopt bitcoin, we’d hop and hop until they were outplayed.
We’re not saying that’s what happened, but Avax looked promising as a potential solution to the scalability trilemma until its fees hit $7 as well.
Solana, we previously described a pruning blockchain in a very simplified manner. If that is the case, then it has the potential to be promising, but its pruning mechanism would only be used in something like eth, with a pruning mechanism likely to be used once other potential solutions have been exhausted.
That is, zk tech or other L2 scaling methods. For zk, they’re either on mainnet, though in a skeleton form right now, or on testnet.
Three Arrows Capital Buys 100,000 ETH
Three Arrows Capital, a crypto hedge fund, has bought close to half a billion worth of eth according to blockchain analytics.
So at least some people have a good idea of how they will work and how Ethereum will interact with these new solutions.
If you’re trying to price the present, as many may be doing with defi tokens, which are currently in a bear market, you may be pessimistic and should diversify into other chains.
If, on the other hand, you believe that this is a temporary problem that will be solved in five years, then the present is irrelevant in comparison to the potential that can be realised.
In short, this ‘debate’ was more information arbitrage than information asymmetry between speculative value based on present events and speculative value based on reasonable expectations of future developments.
Meaning, neither side in the debate was necessarily wrong, but some were more wrong to a greater extent, which is fine because all of that nuance was presumably refined through the debate.
What is less fine is telegramming a sell of 17,000 eth and now telegramming a buy of 100,000 eth, but the difference between those numbers clearly tells you everything you need to know, as well as how the debate ended exactly.
Because we’d probably rather echo Kain and say don’t leave; according to OpenSea’s founder, many people left during the bear and now regret it.
Diversifying and building on other blockchains, as well as eth, is something else because, for all their faults in the eyes of some, they keep the party going while L2 devs work hard to produce a potentially mainstream solution for the largest smart contract blockchain.
As far as we are concerned, as long as there is innovation, where it occurs in the crypto space is less important than the fact that it occurs, because any fiat into any of the crypto spaces tends to mean green for all, at least eventually.
We would not, therefore, take the approach of ostracising anyone, as some bitcoiners attempted to do when some maxis went a little eth, because no one knows where bitcoin would be now if there was no eth to take in a lot of people who were disappointed with the blocksize conclusion.
Furthermore, some of the approaches that eth follows in development have come from other projects. Regardless of what one thinks of Avax or Solana, or even Pancakes, it is likely that eth and this space in general would be a little poorer without them.
So, as Vitalik Buterin himself once said, “Let a thousand flowers bloom.” And, given that these flowers have farmers, you’d expect some sort of show to go along with the flower breeding.
May that show continue for a long time because we’re about to enter the more interesting part of it where this space scales in the next two years or so, and in that process we’d probably rather have a lot more Kaining and Zhuing as the pipelines will probably be fixed so to speak – making it important to get it right – but perhaps without the telegramming bit, although considering its conclusion