One of the crypto investment funds, Three Arrows, fell into liquidation after being affected by the downward trend experienced by decentralized trading. According to the CNBC news agency, the crypto fund could not stand the “winter” season in the virtual market, as experts call it.
Since 2022, crypto trading has experienced a declining streak where Bitcoin, its primary token, falls by more than 50 percent, and the graph continues downhill. An anonymous source said that the firm began with the liquidation but has not yet made his departure official.
3AC crypto fund sinks with all virtual trading
While CNBC details the possible stock liquidation in Three Arrows, the firm has not yet contacted the agency to confirm the information. However, the anonymous source indicates that the firm is at the liquidation beginning and is preparing a website for its investors to access, obtain their funds and submit claims.
On the other hand, it is good to know that its creators, such as Davies Kyle and Su Zhu, have been optimistic about the whole crypto issue. Zhu, for his part, has strong opinions about the Bitcoin rise in the coming months, even though the graphs show the opposite.
Three Arrows and other crypto funds are in crisis
Last Monday, the crypto fund Three Arrows was exposed to the crisis by not being able to cover a credit previously given by Voyager Digital. According to investigations, the company has been unable to pay around 15,250 Bitcoin tokens which would correspond to about $304,500,000 based on the price of the crypto today.
The problem that 3AC is going through could also be linked to the hard blow it experienced with the USDT parity loss, in which it had a part of its shares. On the other hand, the firm also lost money with the LUNA fall, although the token is currently recovering.
After the possible Three Arrows collapse, some businessmen fear that a liquidations wave will be triggered with other alternative companies. However, this phrase has been present throughout the year, showing that some large companies in the industry, such as CoinFlex and Celsius, will take drastic measures. Furthermore, Coinbase has also been forced to make adjustments to withstand the downturn in the crypto market.
So far, there are no more details about the possible Three Arrows liquidation, but everything points to the company taking that course. Cryptocurrency experts believe the winter season will end soon, showing a price rise among the primary tokens. While waiting for this stage of the rise in cryptocurrencies, companies will continue to adjust their way of working to avoid further losing funds.
Source: https://www.cryptopolitan.com/three-arrows-could-be-liquidated/