Three Arrows Capital co-founders Su Zhu and Kyle Davies have unveiled a new project in the memecoin space, Three Arrowz Capitel (3AC).
Three Arrows Capital co-founders Su Zhu and Kyle Davies have unveiled a new project in the memecoin space, Three Arrowz Capitel (3AC).
The hedge fund’s implosion last year saw assets frozen and spawned multiple lawsuits, with Zhu arrested in Singapore last year for contempt of court for breaching court orders to cooperate. Despite this, the duo have begun hyping the new ERC-20 token in a Telegram channel focused on trading. Its name, intentionally misspelled to make it rhyme with that of their defunct hedge fund, has been relentlessly promoted via their official social media channels.
Analysis of its token structure has uncovered some disturbing facts for potential retail investors. As of Monday afternoon, insiders were controlling a whopping 84% of the token supply, with 71.8% held in one "Team & Insider" wallet.
The architecture design of the token features a 1% tax on all transactions, a proportion that the founders claim will be employed to help community members swap the token for other assets.
Since it reached its high of $0.192 on September 27, the coin catastrophically tanked some 70% in value to where it changes hands today for some five cents.
Making investors even more uneasy, only 9.3% of the token supply is unlocked on Uniswap for liquidity, while just a single-digit percentage of the total supply is in the hands of non-insider traders. The token is currently valued at $39.7 million in market cap, with prices falling 22% over the past 24 hours.
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