💸Three Arrows Capital Faces Insolvency - TWJ #168

The multi-billion crypto hedge fund is in trouble.

Jun 17, 2022

In today’s issue:

The crypto market is down with its total market cap sitting at ~$900 billion. Nexo (NEXO) is the worst performer in the top 100 in the past 24-h. The BOJ maintained its ultra-easy monetary stance, causing the JPY to weaken by 1.5%.

In other news, 3 Arrows Capital faces insolvency, Musk floats crypto payments for Twitter, and Solana explains the new gas fees structure. Meme credits: @Cryptofung

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📰Market News

⎆3 Arrows Capital Faces Insolvency

Crypto hedge fund giant Three Arrows Capital has reportedly hired legal and financial help to come up with solutions addressing its insolvency. The rumor first swirled regarding the firm’s downfall, which was then confirmed as exchanges and lenders including BlockFi, FTX, Deribit, and Bitmex reported that they have liquidated 3AC’s position.

wishful cynic @EvgenyGaevoy

Shitposting aside, 3ac collapse was a complete surprise to myself and pretty much everyone I've spoken to. With all the details coming out, I see it net positive in the long term, but in the short term a lot of protocols, companies and ordinary people will get burned or worse

⎆Musk Floats Crypto Payments for Twitter

In a meeting with Twitter, Musk floats the idea of supporting cryptocurrencies for the platform. Musk stated that payments would play an important part to keep users of Twitter within the platform.

"I think it would make sense to integrate payments into Twitter. So that it’s easy to send money back and forth. And if you have currency as well as crypto. Essentially, whenever somebody would find it useful. So the goal, my goal would be to maximize the usefulness of the service — the more useful it is, the better. And if one can use it to make convenient payments, that’s an increase in usefulness."

⎆Solana Explains the New Gas Fees Structure

Solana Founder Anatoly Yakovenko explained that the Solana blockchain is going to implement a new fee prioritization model to mitigate the impact of viral applications and services. He stressed that despite this upcoming change, it won’t increase the gas fees across the entire network as significant as Ethereum’s fee model.