) — before its eventual collapse. The value of 3AC’s half-billion-dollar investment currently sits at a few hundred dollars.
“Three Arrows Capital is a trading firm that is very opaque with their balance sheet and where they are borrowing and deploying capital. We believe that lack of transparency affected their lenders’ risk assessments and led to this market downfall. These circumstances can create extreme risk, especially in times of market volatility. What happened here is a strong signal that DeFi will continue to grow and bring about more transparency and accountability in this space.
“Celsius and 3AC both suffered because of their irresponsibility. Celsius saved itself from the LUNA crash, but they got badly burnt by the stETH depeg. They seemed to use their users’ ETH funds in stETH pools to generate their yield. This led to insolvency. In 3AC’s case, they lost around nine figures due to the LUNA debacle. To make back their losses, they traded on heavy leverage. Unfortunately, the bear market made their collateral worthless, and they failed to answer multiple margin calls.
“We should be building a financial services sector that is open source, trustless and antifragile. Not one that’s closed source and taking highly levered bets on retail deposits. This isn’t the future of finance and we should be ashamed to have allowed this to happen to retail users at Celsius. Three Arrows Capital is a hedge fund - so they will never be open source — but better risk management, in particular attention to systematic risk, should have been applied by the lending firms.
Yeah but who cares keep pumping shit coins and tell me money is to be made on them in a BEAR market thankmelater
Many of who took money in ICO and have nothing to show for but a meaningless token, but exchanges love them for P&D. They would not dare add a good project since they view us all as competition.
Not just crypto cutting jobs. Tons of big non crypto companies cutting jobs as well.