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Su Zhu and Kyle Davies’ Three Arrows Capital is one of the most respected hedge funds in cryptocurrencies.
Su Zhu speaks
Three Arrows Capital co-founder Su Zhu has broken his silence after rumors spread throughout the crypto community that the company may be facing liquidity problems.
We are in the process of reaching out to the relevant parties and fully committed to resolving this.
— Zhu Su 🔺 (@zhusu) June 15, 2022
The popular merchant published a cryptic tweet early Wednesday morning hinting that Three Arrows Capital was looking for a solution to a problem it was facing. “We are in the process of reaching out to relevant parties and are fully committed to resolving this,” Zhu wrote, prompting a flurry of messages of support from the likes of Cobie, Byzantine General, satsdart, and other members of the crypto community.
Rumors about the company’s possible problems first surfaced on Crypto Twitter early on Tuesday and spread throughout the day. Unconfirmed reports claim that the company may have missed a margin call and experienced a sell-off event due to the recent crisis in the crypto market. The rumors surfaced just hours after Celsius halted customer withdrawals as it faced what is believed to be its own liquidity crisis.
Three Arrows Capital is one of the most successful crypto hedge funds in the world. After its launch in 2012, it became a multi-million dollar establishment that became known for its prophetic trading calls, propelling Zhu and his longtime partner Kyle Davies to crypto celebrity status.
Throughout 2021, Three Arrows Capital became famous for pushing the so-called “supercycle” thesis and backing alternative Layer 1 projects like Solana, Avalanche, and Terra before their parabolic rallies. Since then, Terra is down to zero and Solana and Avalanche are down 86%. Interestingly, Zhu recently removed several references to Solana, Avalanche, Terra, Ethereum, and NEAR from his Twitter bio and also deleted his Instagram account.
Three Arrows Capital has yet to release an official statement in response to the rumours, and neither Zhu nor Davies had responded to Crypto Report’s request for comments before the closing of this edition.
This story is breaking and will be updated as more details emerge.
Disclosure: At the time of writing, the author of this article owned ETH, NEAR, and several other cryptocurrencies.