The Controversy Surrounding Three Arrows Capital's meme coin Fund Allocation
The cryptocurrency Market is no stranger to controversies and scandals. Recently, Three Arrows Capital, a well-known investment fund in the industry, faced backlash over the allocation of its meme coin fund tokens. According to a post by BubbleMaps blockchain Analytics, around 84% of the tokens in Three Arrowz Capitel's meme coin fund were allocated to Wallets belonging to team members and insiders, raising concerns about potential Price manipulation and inflation.
Insider Wallet Cluster
The analysis revealed that a significant portion of the meme coin fund was concentrated in a few Wallets controlled by insiders and team members. This distribution sparked speculation among investors, questioning the transparency and fairness of the allocation process. Furthermore, an investment partner from L1D shed light on the matter, pointing out that the team secured a substantial amount of Ethereum tokens during a private pre-sale, raising further suspicions.
During the official launch of the meme coin fund, additional ETH tokens were dispersed among team Wallets that had early access to $3AC listings. The analysis suggested that these Wallets stand to gain significantly from the fund's activities, potentially reaping profits several times higher than their initial investment.
Community Allocation Concerns
Notably, only 8% of the tokens were allocated to the community, while another 8% were dedicated to liquidity purposes. The remaining 84% of the total tokens were held by insider Wallets, creating a scenario where a small group had significant control over the Token's supply. This disproportionate distribution raised alarms among traders, prompting warnings about the risks associated with investing in a Token heavily controlled by insiders.
"It should be clear that buying into this Token means placing your trust in a small group of insiders who control over 84% of the supply. Some might even label it a cabal Token. The choice is yours: decide if you want to Play that game." - @0xLouisT
Market Performance and Background
Despite the controversy surrounding its Token allocation, Three Arrows Capital's meme coin fund - 3AC - experienced rapid Market capitalization Growth within hours of trading, reaching nearly $100 million and briefly peaking at over $170 million. However, the fund's success was overshadowed by its turbulent history, including a bankruptcy filing in July 2022 due to creditors' demands during a Market downturn.
In its prime, 3AC managed $10 billion in cryptocurrency assets but faced a steady decline, dwindling to $3 billion by April 2022, leading to its eventual bankruptcy. Moreover, the founders of Three Arrows Capital, Zhu Su and Kyle Livingston Davies, faced Legal repercussions, with the Monetary Authority of Singapore issuing a nine-year prohibition order against them for violating securities laws.
Following the prohibition order and bankruptcy, the founders pivoted to other crypto-related ventures, such as the OPNX cryptocurrency Exchange, which also ceased operations within a year of its launch. The tumultuous journey of Three Arrows Capital serves as a cautionary tale in the volatile world of cryptocurrencies.
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