Bullish Ethereum? Old 3AC Wallets Buying ETH

Bullish Ethereum? Old 3AC Wallets Buying Ethereum

On the 6th of February 2023, North Rock Digital tweeted that 3AC’s old wallets seem to have resumed buying ETH.

The old wallet of bankrupt crypto hedge fund, 3AC, has reportedly purchased $10 million worth of ETH this year.

The CEO of 3AC, Zhu Su has had a rocky relationship with ETH since 2021. He even went on Twitter to slam the ETH project. In an anti-ETH tirade, Zhu tweeted that the reason he had abandoned Ethereum despite supporting it in the past, was because ETH abandoned its users first, and it’s unusable and inaccessible to newcomers. This came in response to a thread from Synthetix founder Kain Warwick, who called out people that sold out in pursuit of profit maximization back in 2021.

After this altercation had garnered wide attention, Zhu made a U-turn and was reported to have purchased more than half a billion dollars worth of ETH since the time between Nov.20 and 22nd in 2021.

Within days, approximately 156,400 ETH or $676.37 million were transferred to a wallet that blockchain analytics firm Nansen recorded and associated with 3AC. Almost all the funds entering the wallet during this period seem to have been transferred from Binance, FTX exchange, or Coinbase.

Zhu confirmed the transactions earlier in December 2021, in response to a tweet from Chinese blogger, Wu Blockchain.

The wallet shows 3AC made the majority of its purchases during a weekend price crash. In response to a user asking if the ETH purchases meant he’d dumped his AVAX holdings for ETH, he reiterated that he simply bought this ETH from whoever was financially illiterate enough to sell as at the time.

Fast Forward to 2021, Zhu Su’s 3AC was among the first crypto firms to collapse after a surge of crypto tokens fell in value. Seeing as the cryptocurrency hedge fund filed for bankruptcy last year amid a whooping crypto-market selloff, it’s interesting to note that 3AC founders, Su Zhu and Kyle Davies are set to partner with the founders of CoinFLEX, Mark Lamb and Sudhu Arumugam in raising 25 million dollars in seed money for the creation of a new exchange they are calling GTX.

Many users on Twitter believe that they are using GTX seed funds to purchase the 6k ETH, and if they can successfully raise more funding for GTX, purchasing more ETH is possibly in the works.

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