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Arthur Hayes Attacks Kyle Davis for Relaunching 3AC

Thu, 06/22/2023 - 08:22
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Arman Shirinyan
Notorious fund aiming for massive relaunch, but not everyone is so happy about it
Arthur Hayes Attacks Kyle Davis for Relaunching 3AC
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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.

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.

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To 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.

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.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.