There are indications that 3AC may have dumped its AVAX holdings before the company liquidated. This was revealed through several large volume AVAX transactions prior to the news that the hedge fund runs the risk of liquidation.
The Avalanche team recently released a statement saying that its association with 3AC was limited. They added that the hedge fund, “has never in any way managed, used, or custodied any Avalanche Foundation treasury funds”
Effects of 3AC Crash
Avalanche emphasized that its foundation’s funds have never been managed by Three Arrow Capital, which became insolvent this week. Avalanche made the clarification through a Twitter post on June 17. This follows speculations that 3AC are the managers for several blockchain foundations.
In the post, the Avalanche team wrote:
“Due to recent speculation, we’d like to clarify that 3AC has never in any way managed, used, or custodied any Avalanche Foundation treasury funds.”
Kevin Sekniqi, Avalanche co-founder, also faulted the claims that the Avalanche foundation was deeply involved with 3AC. According to him,
“These numbers are horribly wrong for the Avalanche side. 3AC did not purchase *anywhere near* that much worth of AVAX. Also, they never managed a single AVAX from the treasury,”
Received With Skepticism
Despite the clarification, reaction from the Avalanche community shows that not a few investors were impressed with the update. In his reaction to the post, a user, @definova wrote:
“I read somewhere that the amount of AVAX held in 3AC reserves is insignificant compared to the daily volume traded in AVAX, so the price will not be affected in any way.”
Another investor, Mehmet Fesli, said that he is aware that 3AC didn’t manage AVAX for the Avalanche team, however, he maintained that 3AC is known to be an Avalanche investor and demanded to know how much the company has invested in the Avalanche network.
High Volume AVAX Dumps
Right. The investment amount is the total amount of the entire round.
And it seems like 3AC already dumped all AVAX before this disaster😂https://t.co/mBhaAW3S9d
— Definalist (@definalist) June 16, 2022
Definalist, a de-fi degen operating from South Korea posted a series of transactions made on the Avalanche network which they claimed are equivalent to the total amount invested by 3AC on the network.
“The investment amount is the total amount of the entire round. And it seems like 3AC already dumped all AVAX before this disaster”
Three Arrows Capital Portfolio by @definalist
Updates on treasuries 👇https://t.co/YfyeIidu40#3AC pic.twitter.com/gaeoX8hAGj
— Ki Young Ju (@ki_young_ju) June 16, 2022
Bruce Laing, another investor, echoes the sentiments of some community members when he said,
“Everything avax touches or is touched by rugpulls or goes insolvent. How is avax tied to almost all the major scams in crypto time wonderland, dfk, luna, 3ac.”