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Arthur Hayes, the former CEO of BitMEX, has publicly criticized Kyle Davis for his decision to relaunch the 3AC fund, a fund that previously experienced significant losses due to broad declines on the cryptocurrency market.
In the first half of 2022, the 3AC fund was adversely affected by sweeping losses across the crypto industry. Many tokens lost more than half of their market valuation, and certain investments like LUNA, which Three Arrows had heavily invested in, collapsed to near zero.
Why did 3AC die, please enlighten us? https://t.co/mfQzGq4OP8
— Arthur Hayes (@CryptoHayes) June 21, 2023
The woes of the fund did not end there. During the same period, a widening gap emerged between Grayscale GBTC trust unit prices and spot Bitcoin prices. This resulted in the trust units trading at a 34% discount to the trust's NAV in June 2022.
In the past, 3AC managed a wide portfolio encompassing a broad range of cryptocurrencies and blockchain projects. The fund's roster of investments included notable projects like Aave, Avalanche, Luna, Ethereum, Solana and others. However, these investments turned sour as the crypto market took a nosedive, leading to massive portfolio depreciation.
Valeria BlokhinaTo add to the troubles, in April 2022, Bloomberg reported that 3AC was planning to move its headquarters from Singapore to Dubai, but the Dubai regulator confirmed that the fund was not registered with the Dubai Financial Services Authority. This amplified concerns over the fund's operation and management.
Despite the fund's past issues, Kyle Davis recently announced the relaunch of 3AC and even revealed a new partnership with OPNX. The new partnership aims to invest in projects that are building toward a decentralized future within the OPNX ecosystem.
We are excited to announce OPNX's ecosystem partner— 3AC Ventures.
— OPNX 🐂 (@OPNX_Official) June 21, 2023
The partnership will invest in projects building in the OPNX ecosystem and working towards a decentralized future.
🐂🐂🐂
🏹🏹🏹 https://t.co/EUi5bejTlH
The news of the relaunch sparked criticism from Arthur Hayes, who himself had been through legal battles and only recently settled his case. Hayes, unimpressed by Davis' decision, lashed out publicly, implying that the relaunch was inconsiderate given the fund's previous failures.
Alex Dovbnya
Dan Burgin
U.Today Editorial Team
Vladislav Sopov