THREE ARROW CAPITAL HAS MOVED MUCH OF ITS MULTIMILLION DOLLAR INTO SINGLE WALLET
In another sign of depression at Three Arrows Capital, a joint fund that had collected dozens of high-value NFTs moved a large portion of its multi-million dollar fund to one fund, creating speculation about future fire sales.
That fund, Starry Night Capital, was launched last summer with the support of Three Arrows. Famous NFT collector Vincent Van Dough has been introduced as a colleague and curator of the collection. As of Wednesday, all of its collections in the NFT SuperRare market have been transferred to a new package and were no longer listed on site.
The move sparked speculation that Starry Night was planning to sell its collection to cover the huge losses caused by the Three Arrows during this bear market.
The collection includes, among other things, pieces of the famous Fidenza and Ringers series from the Art Blocks collection, which cost hundreds of thousands of dollars each. "A small lack of balance can cause a lot of pain," said Dimitri Cherniak, who was bought last October for 800 ETH, worth more than $ 2M at the time.
A small lack of balance can cause great pain - Dimitri Cherniak
"Our thesis is simple, we believe that the best way to gain exposure to the cultural paradigm shift introduced by the NFTs is to own the most sought-after parts of the most sought-after sets," the collector wrote on Twitter when launching the fund.
‘Put in a Bucket’
Coinmetrics researcher Kyle Waters estimated that the company spent $ 21M to raise its own collection. In fact, the fund accounted for one in every ten dollars spent on SuperRare, the researcher said. That’s a drop in the bucket, however, compared to the billions of Three Arrows Capital estimated to carry.
"He's talking about, like, one-digit millions - that really isn't much compared to some of the existing estimates about their assets under management - billions," Waters said.
Neither Vincent Van Dough nor the Three Arrows have responded to a request for comment.
Although the measures were strange, Waters said in an interview that he could not prove that the sale was imminent.
"We can't say how the two organizations are connected, Three Arrows Capital and Starry Night, so they probably have different financial providers or different investors in the fund," he said. Such an arrangement, though unconfirmed, would make it difficult to use the proceeds from the sale of Starry Night assets to get back to Three Arrows investors - something some on Twitter are quick to point out.
"But it is clear to me that there is little chance of this happening if 3ac did this on the market," added Waters.
If the collection were sold, Starry Night could incur huge losses, Waters said. Many of the pieces were discovered last summer and fall, during the crypto bull run. Prices have been falling since then, which means the fund may be selling its art for a fraction of what it took to get it.
"I think if they make the bag the right way, 3AC could fall and Starry Night would remain untouched as a solvent bag," on Twitter Kaprekar_Punk. "But these moving pieces now don't look promising."