Only a few weeks ago, CEO Zhu Su was blasting ETH on Twitter for prime gas fees and accessibility problems. Now, his company is shopping for the dip.
Crypto hedge fund 3 Arrows Capital (3AC) has bought more than half a billion dollars worth of Ether within the time since CEO Zhu Su in public slammed the cryptocurrency on Twitter. Do the purchases mean he is modified his mind, or was he simply taking advantage of a market crash to shop for the dip?
In an anti-ETH tirade between November. 20 and Nov. 22, Zhu tweeted concerning why he had “abandoned Ethereum despite supporting it within the past.” The thread came in response to a tweet from Synthetix founder Kain the Kingmaker, who’d referred to as out those that have “sold enter pursuit of profit maximization.” throughout the tweet storm Zhu claimed that Ethereum culture “suffers massively from the Founders’ Dilemma” which “everyone is already so much too made to recollect what they originally taken off to try and do.”
However, when attracting wide attention, he created a u-turn saying he needed to "soften" his original stance which “I love Ethereum and what it stands for.”
In the 17 days just about since the threads, about 156,400 thousand Ether (ETH) or $676.37 million has been transferred to a wallet that blockchain analytics firm nansen has related to 3AC.
Almost all the funds getting into the wallet during this period were transferred from Binance, FTX exchange or Coinbase.
Zhu confirmed the transactions earlier these days in response to a tweet from Chinese blogger wu Blockchain, saying that though Ethereum layer-one remains “unusable for newcomers,” he’d still “bid laborious on any panic dump like this weekend.”
The case shows 3AC created the bulk of its purchases throughout the weekend value crash.
When the anti-ETH tweets emerged, several Twitter users believed he was attempting to pump rival project Avalanche (AVAX), that 3AC has invested in. In response to a user asking if the ETH purchases meant he'd drop his AVAX holdings for ETH, he same that he has “never sold AVAX” and easily “bought this ETH from whoever was financially illiterate enough to sell this weekend.”
In early November, 3 Arrows Capital was declared as an investor in Blizzard, a fund to push the event of AVAX. Following Zhu’s initial tweets, AVAX pushed out Dogecoin (DOGE) from its spot because the 10th-largest crypto by market capitalisation. Zhu tweeted a graph of AVAX’s growth captioned “top 10” within the hours before his u-turn.
( Keira Wright, Cointelegraph, 2021)