In the midst of the liquidity crisis that has stirred the altcoin market, interesting claims have emerged for dYdX and Avalanche. The Avalanche team says its business relationship with Three Arrows Capital isn’t as big as the data around. On the other hand, dYdX said that there is no need to worry about the hedge fund company again.
Three Arrows Capital is on the verge of bankruptcy, hitting altcoin market hard
Three Arrows Capital co-founder Kyle Davies says they are investigating the possibility of an asset sale and recovery by another firm. 3AC, which managed $10 billion in assets in March, went bankrupt this month after failing to meet margin calls. In addition, it liquidates crypto assets, triggering further downward pressure in the market. Meanwhile, 3AC’s lenders continue to stand out with bankruptcy headlines.
One of the last statements of the founding partner was as follows:
We are committed to working things out and finding a fair solution for all of our components.
Avalanche moves away from Three Arrows Capital
The Avalanche team clarified the allegations with Three Arrows Capital in a statement Friday. That said, the hedge fund is facing potential bankruptcy. The Avalanche team says in a tweet that Three Arrows has no control over Avalanche’s treasury funds.
Avalanche’s comments came at a time when the hedge fund was facing potential liquidation after failing to meet its margin call. Meanwhile, 3AC was one of Avalanche’s biggest investors in 2021. It is now thought to probably hold a large amount of AVAX.
Last year, 3AC spearheaded a $230 million investment in Avalanche with Polychain. Here, a certain amount of AVAX fell into the hands of Three Arrows in a private sale. Now AVAX is under selling pressure for fears that Three Arrows will sell to close their positions. After breaking the $30, $25 and $20 supports, it fell 30% from last week to $15.25.
dYdX clarifies Three Arrows Capital claims in altcoin market
Crypto fund DeFiance Capital, tier 1 project Avalanche, and Ethereum-based trading tool dydx addressed community concerns today as investors assess potential losses over speculation that leading crypto fund Three Arrows Capital (3AC) is facing financial difficulties.
Also, the developers said in a tweet that “dYdX is in no way infected with 3AC.”
While 3AC did not comment on the speculation, Zhu said the team is in contact with interested parties. Zhu, who we quoted as Kriptokoin.com , said, “We are in the process of communicating with the relevant parties and we are fully committed to solving this.”
By the way, the following statements came from the official Twitter account of the altcoin project yesterday:
As a result of requests regarding the Three Arrows Capital situation, we have decided to make it public. Our liquidity and foreign exchange operations were not and will not be affected. For an official announcement, please see our blog post:
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