3AC Founders Finally Surface

Plus should NFT hack victims be helped and one year of Punk 6529.

July 25, 2022

MUSHROOM ALPHA

GM. Hope your weekend was full of sand and beaches. Ours was full of trying to catch up with crypto. Let's jump right in.

Today's Topics:

  • 3AC Founders Finally Speak

  • Should people of NFT hacks be made whole?

  • A year of Punk 6529

  • Quick Links

3AC Founders Finally Speak

We have been following the implosion of Three Arrows Capital since the beginning and it has been 5 weeks since anyone has heard from the founders Su Zhu and Kyle Davies. They finally broke their silence and interviewed Bloomberg. The pair said they have been hiding in an "undisclosed" location due to threats on their lives. We are in hiding also due to threats from our wives.

So why did they blow up?

  • Luna blew up and they took huge losses

  • Too much leverage and debt

  • Bad staked ETH (stETH) trade that everyone else was also doing

  • Their initially very profitable Grayscale Bitcoin Trust trade begin to reverse

  • Bitcoin going from 30K to 20K was the KO punch

What is next?

Su Zhu: “Given that we had planned to move the business to Dubai, we have to go there soon to assess whether we move there as originally planned or if the future holds something different for us. For now, things are very fluid and the main emphasis is on aiding the recovery process for creditors.”

Kyle Davies: "I have a feeling my next year is planned for me."

Should NFT hack Victims be helped?

NFT hacks are becoming more common as the NFT market has grown substantially the past few years. The usual hack takes place on social media where scam links are shared. Users then get their NFTs and tokens lifted.

So what is going on now?

Prominent creators are asking if it makes sense to reimburse these users. Some feel it is the responsibility of the user to self custody and take ownership.

In some cases the NFT project has paid back hacked users but recently the industry seems to be trending towards not reimbursing people who lose assets via social media scams. Crypto is about self-custody, doing your own research, and holding yourself accountable.

We feel one should do due diligence to safe guard their assets. If you get hacked that is on you. No bail outs. Take it as a learning experience. Don't APE into what seems too good to be true.

One Year of 6529

Who is Punk 6529?

We don't know since his account is anonymous. But what we do know is he is a prolific voice in the NFT and crypto space that started about a year ago with ZERO followers.

In this epic thread he tells us how he did it and what to look forward to in the future.

Quick Headlines

Yes you can stake your Apecoin - Here are the details if you are bullish on all things ape.

Animoca is launching a DAO - It will introduce new metaverse standards

Want to know more about AMM tech - A great thread dives in.

Uniswap is gonna do Fee Switch - UNI holders could see distributions from Uniswap transaction fees.

Hacks:

Audius project was hacked - 6M of their treasury was sold for only 1M

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Disclosure: We are a newsletter for information only. We are not financial advisors nor do we claim to be. Consult your legal, investment or tax advisor. Crypto is risky. Do you own research.