Summary of Key Points:
- Three Arrows Capital’s meme coin fund allocation has faced criticism for distributing 84% of tokens to team members and insiders.
- Investors speculate on price manipulation and inflation tactics due to clustered wallets and insider control.
- The 3AC token launch involved receiving 750 ETH in a private pre-sale and dispersing the remaining amount to team wallets.
- Only 8% of tokens are allocated to the community, with the majority held by insider wallets.
- The 3AC token market capitalization surged to nearly $100 million shortly after its launch.
- Three Arrows Capital filed for bankruptcy in 2022 and faced legal actions for violating securities laws.
- Founders Zhu Su and Kyle Livingston Davies pivoted to other projects like the OPNX cryptocurrency exchange.
Controversy Surrounding Three Arrows Capital’s Meme Coin Fund
Three Arrows Capital’s meme coin fund has come under scrutiny for distributing a significant portion of its tokens, approximately 84%, to team members and insiders. This allocation has raised concerns among investors regarding potential price manipulation and inflation tactics.
Launch and Distribution of 3AC Token
During the launch of the 3AC token, the team received 750 ETH in a private pre-sale and allocated the remaining amount to team wallets. Only 8% of the tokens were made available to the community, with the majority being held by insider wallets. The market capitalization of the 3AC token quickly rose to nearly $100 million post-launch.
Financial Troubles and Legal Issues
Three Arrows Capital faced financial difficulties, leading to a bankruptcy filing in 2022. Additionally, the founders, Zhu Su and Kyle Livingston Davies, were prohibited by the Monetary Authority of Singapore for violating securities laws. Despite these setbacks, the founders ventured into other projects like the OPNX cryptocurrency exchange.
