Three Arrows Capital is holding a large amount of Ethereum, despite CEO Su Zhu’s criticism of the cryptocurrency less than two weeks ago. Here are the details.
Zhu Su made a statement on his personal social media account on November 21 and announced that he had stopped supporting Ethereum and would support competitors such as Avalanche from now on. The criticism, which came on November 21, interestingly coincided with Etherscan data, which showed that an address marked “Three Arrows Capital” transferred 17,895 ETH (approximately $79.23 million worth) to FTX. As it is known, the coins sent to the stock market create a signal that the assets will be sold.
Today, however, Etherscan shows that 91,477 ETH (around $400 million) was transferred between Monday and Tuesday from FTX, Binance and Coinbase to the wallet marked Three Arrow Capital.
91,477 ETH (about 400 million US dollars) in two days, including 77,477 ETH within two hours, were transferred from FTX, Binance and Coinbase to the wallet marked by nansen as Three Arrow Capital. https://t.co/27A1u6o4su
— Wu Blockchain (@WuBlockchain) December 7, 2021
After this fact, Zhu made the following statement:
“Ethereum L1 is still less available to new users. However, we will continue to buy Ethereum as the drops continue to come, such as the panic drops over the weekend. We will not abandon Ethereum. We will get “junk and more” ETH in the future.”
According to sources, besides making an attractive profit, such transfers to the wallet can have only one meaning; Zhu’s firm is holding Ethereum with the intention of selling it.
Despite Zhu presenting himself as someone who will soon be leaving the second-largest crypto-asset, it’s not very interesting that his company is investing. Here’s a more glaring question: why would someone sell an asset that has made such a huge profit and will likely continue to do so?
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.