In the weeks following the CEO’s ‘abandonment of Ethereum (ETH),’ Three Arrows purchased 156K ETH.
Only a few weeks ago, CEO Zhu Su was slamming Ethereum on Twitter for its high gas fees and lack of accessibility. His company is currently purchasing the dip.
Three Arrows Capital (3AC), a crypto hedge fund, has purchased more than 500 million dollars worth of Ether since CEO Zhu Su openly slammed the cryptocurrency on Twitter. Is it possible that he’s changed his mind, or is he simply taking advantage of a market meltdown to buy low and sell for high rates?
Between November 20 and November 22, Zhu tweeted about why he has “abandoned Ethereum after he previously supported it.” The conversation started in reaction to Synthetix creator Kain Warwick’s tweet, in which he called out people who have “sold out in pursuit of profit maximization.”
During the Twitter controversy, Zhu argued that Ethereum culture “suffers significantly from the Founders’ Dilemma” and that “everyone is already much too affluent to remember what they started to do.”
After gaining widespread notice, he reversed his position, explaining that he wished to “soften” his earlier attitude and that “I adore Ethereum and everything it stands for.”
Approximately 156,400 thousand Ether (ETH) or $676.37 million has been transferred to a wallet linked to Three Arrows Capital (3AC) by blockchain analytics firm Nansen in the 17 days following the threads.
During this time, almost all of the money entering the wallet came through Binance, the FTX exchange, or Coinbase.
“Look I couldn’t let you guys jerk off watching the burn without me
Eth L1 is 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″
In response to a tweet from Chinese blogger Wu Blockchain earlier today, Zhu confirmed the transactions, stating that while Ethereum layer one is still “unusable for novices,” he’d “bid hard on any panic dump like this weekend.”
Three Arrows Capital (3AC) made the most of its purchases over the weekend price crash, according to the wallet.
Many Twitter users assumed he was trying to promote competitor project Avalanche (AVAX), in which Three Arrows Capital (3AC) has invested when the anti-ETH messages surfaced. He maintained he “never sold AVAX” and just “purchased this ETH from whoever was financially illiterate enough to sell this weekend” in response to a user who asked if the ETH purchases suggested he’d ditched his AVAX holdings for ETH.
Three Arrows Capital was introduced as an investor in Blizzard, a fund dedicated to the development of AVAX, in early November. Following Zhu’s initial tweets, AVAX dethroned Dogecoin (DOGE) as the tenth-largest cryptocurrency in terms of market valuation. In the hours leading up to his U-turn, Zhu tweeted a graph of AVAX’s growth with the caption “top 10.”
“Yes, I have abandoned Ethereum despite supporting it in the past.
Yes, Ethereum has abandoned its users despite supporting them in the past.
The idea of sitting around jerking off watching them burn and concocting purity tests, while zero newcomers can afford the chain, is gross.
— Zhu Su (@zhusu) November 21, 2021″
93,791.894 Ether was transferred from 3AC’s wallet to an address that looks to belong to a large trader at 23:34 UTC today. Smaller sums have been transferred to other addresses, including 500 Ether, which was just transferred to an alleged NFT investment wallet.