Singapore-based cryptocurrency-focused hedge fund Three Arrows Capital has seemingly invested over $84 million on the second-largest cryptocurrency by market capitalization, Ethereum ($ETH), as its price dipped below the $4,000 mark.
According to blockchain journalist Colin Wu, Etherscan data shows that Three Arrows Capital has withdrawn millions from cryptocurrency trading platforms Binance and Coinbase onto its wallet.
The journalist detailed that earlier the firm transferred 14,833 ETH, worth approximately $56 million, from the exchanges to its wallet. Over the past week, which saw the price of ETH steadily drop from around $4,400 to $3,700 at the time of writing, Three Arrows Capital transferred 22,416 ETH from exchanges to its wallet.
These transactions came after it moved 91,477 Ether from exchanges onto its wallet on December 7, shortly after Three Arrows Capitals’ CEO Su Zhu said that he had “abandoned Ethereum despite supporting it in the past,” as he believes “Ethereum has abandoned its users despite supporting them in the past.”
In a tweetstorm, the CEO noted that Ethereum was suffering “from the Founders Dilemma” as “everyone is already far too rich to remember what they originally set out to do.” In the tweetstorm, he defended that transaction fees on Ethereum were too high for newcomers to be able to adopt the chain.
Later on, Su Zhu revealed he used the wrong then when he said “abandon.” The CEO noted that while Ethereum is “still unusable for newcomers,” he would “still bid it hard on any panic dump.”
Ethereum’s transaction fees, as CryptoGlobe reported, have hit new highs last month while the decentralized finance (DeFi) activity on the Solana blockchain, which has negligible transaction fees, shot up. Despite the fees paid to move funds on Ethereum many are still betting on it, including Canadian healthcare services firm Ask The Doctor.
In November, aggregate open interest across cryptocurrency derivatives products increased to an average of $36.6 billion, up from $31.4 billion in October. Open interest across BTC futures products rose to $18.9 billion, up 14.7% from October, while open interest for ETH futures products rose 16.9% to $8.1 billion, a new all-time high.
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Crypto Hedge Fund Buys $84 Million of Ethereum ($ETH) After Price Dips