CEO of Three Arrows Capital or 3AC Su Zhu’s latest cryptic tweet has raised a few eyebrows with many speculating the hedge fund manager to be the next in line of fire in the crypto market carnage.
In the wee hours of 14 June, the platform reportedly sold at least $40M worth of Lido’s staked Ether making it the largest seller of the token in the past week. The firm did not make any comment on the purchase.
Market observers have been closely monitoring stETH, which has historically traded at par with ETH. In May, stETH began to decouple which began to intensify further, leading to its more dramatic “de-peg” last week.
This was widely welcomed by ETH bulls but became a source of headache for its largest HODLers.
Just recently one of the biggest crypto lending platforms Celsius had succumbed to the pressure when it announced the freezing of its withdrawal and transfer, citing extreme market conditions.
But rumors were doing the rounds that Celsius was not the largest seller of stETH over the past several days.
“3AC Is The Biggest Dumper”
“People think Celsius is the biggest stETH dumper but it’s 3AC and it isn’t relatively close,” crypto trader MoonOverlord wrote.
“They are dumping on every account and seed round address they have, almost looks like it’s going to pay back debts and outstanding borrows they have.”
As rumors swirled of a potential liquidation, one Twitter account belonging to the CEO of Pyschops Capital added further fuel to the fire by tweeting that after a telephonic conversation with the Su Zhu, things look grim for 3AC.
Another market analyst tweeted that the main reason for the stETH/ETH unpeg was not because of CelsiusNetwork. “It was, because of ThreeArrowsCapital dumping their position hard for weeks to potentially pay back creditors.”
After launching in 2012, Three Arrows Capital has risen to be one of the world’s most successful crypto hedge funds. In 2021, Su Zhu played a major role in pushing the ‘Supercycle’ narrative that suggested the crypto market would gradually rise during this market cycle, avoiding a sustained bear market.
More than a year later, the founder admitted his “Supercycle” price thesis and projection that bitcoin could hit $2.5 million hasn’t played out as expected.