Three Arrows Intrigue Continues

GM. We hope you guys had a banger of a 4th. We certainly did

Is there a scandal afoot at Three Arrows? All signs point to some potential shady behavior as the once-powerful hedge fund continues to thwart those looking for restitution. What’s really going on at Three Arrows? We take a closer look in today's newsletter.

Today's Topics:

• There’s more than meets the eye with Three Arrows

• How to handle crypto naysayers

• RealVision CEO Raoul Pal launches another business

• Quick Links

Has the Three Arrows Quiver Been Empty All Along?

We all watched as hedge fund Three Arrows collapsed and finally filed for bankruptcy, causing turmoil within the crypto market. But it appears that there’s more going on behind the scenes than the company initially let on.

It would appear that Three Arrows has been using a trading desk called Tai Ping Shan (TPS) Capital to manage most of its holdings. Some within the industry have gone so far as to suggest that TPS was the proverbial man behind the curtain (apologies to those who have yet to see Wizard of Oz).

The interesting part is that even though Three Arrows was known for overseeing billions of dollars, the entity only reported $823k in total profits and $2.36 million in assets at the end of its fiscal year in 2020. Umm, what?

What’s even more interesting is that the company’s 2021 report isn’t available.  Unfortunately, as a result of its ownership structure and relationship with TPS, those seeking restitution from Three Arrows are going to have a hard time recouping their funds.

Hit Back Against Crypto Haters

Anytime crypto suffers a downturn or a bear market, the inevitable happens. Naysayers come out of the woodwork to remind us of all the horrible things about cryptocurrency. “Crypto is nothing but a scam.” “I told you it was overhyped.” “The crypto bubble will burst sooner or later.” 

We’ve suffered through these comments time and again, but Decrypt has finally had enough. The crypto site has created its “Crypto Defenders Placemat,” which provides rebuttals to all the negative comments you’ll encounter about cryptocurrencies. 

Print it out, fold it up, and keep it handy so you can provide the perfect response the next time your Uncle Dave tells you that crypto is for suckers because Bitcoin has yet to take off. Sure, we’re currently suffering through a challenging time for crypto, but remember, there are hundreds of millions of people on the planet who believe crypto is here to stay.

So hang in there.

Tokenizing Cultural Communities

Raoul Pal, CEO of Realvision, Kevin Kelly, and David Pemsel are partnering up to “tokenize the world’s largest cultural communities.” The trio announced the launch of Science Magic Studios, a firm that advises some of the most powerful brands on the planet in regard to Web3 implementation. 

Investors in the fledgling company include Coinbase Ventures, Liberty City Ventures, RealVisoin, Digital Currency Group, and many others. Plus, the firm recently raised $10 million in a pre-seed round of funding. The group plans to provide guidance and direction to high-profile companies who want to offer social tokens or NFTs as a way to promote brand interaction.

Of course, the challenge for Science Magic is showing companies the value of using Web3 as a way to engage with their communities. For his part, Pal isn’t limiting his company to just one niche. He plans to tokenize music, movies, books, fashion, sports, and much, much more.

Science Magic differentiates itself from other firms by showing companies how to move into Web3 the right way - “creatively, but cautiously and meticulously.” This shows that Pal and his co-founders a interested in making Web3 a success while they continue to BUIDL.

Quick Headlines

Happy Fork -  Cardano testnet successfully completes Vasil upgrade. Next up - mainnet.

Exchanges:

Pause that please - Singapore-based crypto trading platform Vauld cites financial struggles as it halts operations and pauses withdrawals.

Across the pond - Coinbase has announced that it is making a concerted effort to increase its presence in Europe.

Acquisitions:

Target acquired - WonderFi has acquired Canadian-based cryptocurrency exchange Coinberry.

Eight months later - Coinshares finalizes the acquisition of the French-based Napolean Group.

Wallets

No more Novi - Facebook is shutting down its Meta wallet digital payments pilot program, so users need to withdraw funds before September 1.

Conferences

Haters unite! - Are you a crypto skeptic? If so, this anti-crypto conference might be for you.

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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.