Three Arrows Capital buys Ethereum worth $56M, despite CEO’s ‘love and abandonment’

Like many cryptocurrencies, Ethereum has been growing in value since last year. But not without a considerable amount of volatility, price corrections, and speculations. At press time, the token was trading around the $3,820 mark, with a 4.5% setback.

Well for some this might induce fear but for long-term/prominent  investors, this indicates a “Buy-the-dip” scenario.

Shopping spree

Crypto hedge fund Three Arrows Capital (3AC) founded in 2012 by Su Zhu and Kyle Davies, reportedly received $56 million worth of Ether earlier today. According to Etherscan, it transferred a total of 14,833 ETH (approximately $56M) from Binance and Coinbase to its wallet.

(Wallet address: 0x4862733b5fddfd35f35ea8ccf08f5045e57388b3)

Consider the table below:

Source: Etherscan

Wu Blockchain, a Chinese crypto reporter further tweeted:

“Since the transfer of 91,477 ETH from the exchange on December 7, Three Arrow Capital has frequently interacted with the exchange, and a total of 22,416 ETH has been transferred from the exchange in the past week.”

However, this wasn’t the first time that the said company acquired ETH despite a drawdown, as mentioned above.  Earlier this week, the firm received $400 million worth of ether over the weekend. 97,477 ETH was transferred from the cryptocurrency exchanges FTX, Binance and Coinbase to a wallet marked by Nansen as belonging to Three Arrows Capital.

Surprisingly, Zhu of Three Arrows responded to the tweet by saying that “100k eth is dust,” and that there’s “more coming.” This shows his bullish mentality concerning the altcoin.

Look I couldn't let you guys jerk off watching the burn without me

Eth L1 still unusable for newcomers, show it to your grandma if you don't believe me

I'll still bid it hard on any panic dump like this weekend obv

100k eth is dust fwiw, more coming

— Zhu Su ? (@zhusu) December 7, 2021

The wallet shows 3AC made a majority of its purchases during the weekend price crash.

Smells ‘fishy’ 

It certainly does as was highlighted by different users on the same thread. Consider this: in an anti-ETH tirade between Nov. 20 and Nov. 22, Zhu Su tweeted about why he had “abandoned Ethereum despite supporting it in the past.”

During the tweet storm, Zhu claimed that Ethereum culture “suffers massively from the Founders’ Dilemma” and that “everyone is already far too rich to remember what they originally set out to do.”

However, after attracting wide attention, he made a U-turn, saying he wanted to “soften” his original stance and “I love Ethereum and what it stands for.”

What does this signify? Well, this move received a lot of hate and trolls on this thread. One Twitter profile stated:

“He fudded ETH with his first tweet, to hopefully drive the price down, and has since rebought eth lower.”

First create FUD (to hopefully drive the price down) and then re-buy it at a lower price? Is this a new strategy here?