Over 300 NFTs From Three Arrows Capital’s NFT Fund Moved by Liquidator to New Wallet

October 5, 2022 Bitcoin.com

Three Arrows Capital fund moves over 300 NFTs to a new address

October 5, 2022 Coin Telegraph

3AC

According to blockchain provider Nansen, hundreds of NFTs have been moved from the 3AC-linked fund to a Gnosis Safe address.

Starry Night Capital, a nonfungible-token (NFT)-focused fund launched by the co-founders of the now-bankrupt hedge fund Three Arrows Capital (3AC), has moved over 300 NFTs out of its address, according to reports.

The Starry Night Capital was founded last year by Su Zhu and Kyle Davies, and pseudonymous NFT collector Vincent Van Dough. At the time, the fund planned to exclusively invest in "the most desired" NFTs on the market.

Blockchain data provider Nansen on Oct. 4 on Twitter noted that the NFTs were reportedly shifted from a wallet associated with the fund, including "Pepe the Frog NFT Genesis," which sold for 1,000 Ether (E TH) in October last year, worth $3.5 million at the time.

Nansen said the NFTs previously collected by Starry Night Capital are moving to a Gnosis Safe address.

Gnosis Safe is a platform used to manage digital assets on Ethereum, giving users complete self-custody over funds and digital assets.

A report from Bloomberg estimates the Starry Night Capital collection's total value sits at around $35 million.

NFTs previously collected by Starry Night Capital are moving to a Gnosis Safe address.

These NFTs include:
- Pepe the Frog NFT Genesis, sold for 1,000 ETH (~$3.5M) on Oct 5, 2021
- Fidenza #718, sold for 240 ETH (~$1.1M) on Nov 13, 2021

Some other notable NFTs below pic.twitter.com/8PU13CqMnn
— Nansen (@nansen_ai) October 4, 2022

It comes months after the Singapore-based crypto hedge fund, 3AC was ordered into liquidation by a court in the British Virgin Islands, leading to the appointment of liquidation firm Teneo, which has gained control of at least $40 million of 3AC assets so far as of an August report from Cointelegraph.

That sum however accounts for only a tiny fraction of the 3AC’s debt to its creditors, which amounts to at least $2.8 billion.

The NFT's transfers came almost four months after Starry Night Capital's main crypto wallet moved almost all of its digital tokens to a new address.

The Singapore-based crypto hedge fund, 3AC, became one of the many crypto firms that went bankrupt following the collapse of the Terra ecosystem earlier this year. The company, which once had over $10 billion in assets under management, eventually filed for a Chapter 15 bankruptcy on Jul. 1 in a New York court.

Three Arrows Capital execs launch NFT fund

August 31, 2021 Coin Telegraph

3AC

The new fund, Starry Night Capital, plans to exclusively invest in “the most desired” NFTs on the market.

Executives hailing from Singapore-based fund manager, Three Arrows Capital (3AC), have launched a fund focused on collecting premium digital art in the form of nonfungible tokens (NFTs).

The fund, dubbed Starry Night Capital, was founded by Three Arrows Capital’s CEO, Su Zhu, 3AC co-founder, Kyle Davies, and the pseudonymous NFT collector, Vincent Van Dough.

Van Dough announced the fund via an Aug. 31 tweet, stating: “Our thesis is simple, we believe the best way to gain exposure to the cultural paradigm shift being ushered in by NFTs is owning the top pieces from the most desired sets.”

Zhu shared the tweet, adding: “Excited to make history together.”

3AC is a digital asset-focussed fund manager that was founded in 2012. The firm has made investments in leading layer-one blockchains including Ethereum, Avalanche, and Polkadot, in addition to building an expansive DeFi portfolio including blueships Aave, Synthetix, and Balancer.

While details on the new fund’s roadmap are sparse at this stage, Van Dough revealed that Starry Night Capital hopes to launch a physical gallery “in a major city,” launch an NFT education portal, and explore other “community-building initiatives'' by the end of the year. He added:

“The NFT space is not a zero-sum game, it is driven by strong flywheel effects and functions best when the pie is growing for all.”

Zhu, Davies, and Van Dough appear to have already teamed up to purchase nonfungible art together.

On Aug. 27, NFT enthusiast “pixelpete” tweeted that he had sold his one-of-a-kind Art Blocks NFT of Dmitri Cherniak’s artwork, Goose Ringer, to Zhu and Davies in a transaction that Van Dough brokered. The NFT is from Cherniak’s collection, Ringers — each of which was generated algorithmically on the Ethereum blockchain.

The pair paid 1,800 Ether for the token (roughly $5.8 million). However, it is unclear if Starry Night Capital will take possession of the artwork.

Van Dough’s wallet on the OpenSea marketplace also shows an impressive collection of 1,913 NFTs, including work from renowned NFT artist Pplpleasr.

The community reaction to the fund’s launch on Twitter was mostly positive, with names such as Ryan Wyatt, the head of gaming at Youtube and Bankless founder David Hoffman congratulating the team.

However, user “Edgar Dubroviskiy” questioned the idea of purchasing only the “top pieces” in the NFT space, highlighting the high expense and poor liquidity of premium NFTs.

Wow! Out of interest: wouldn't "owning the top pieces from the most desired sets" mean buying the very top at the very top - so it will cost A LOT to be a part of + low liquidity and/or high premiums if we talking fractionalised (currently these at like 10x to the actual floor).
— Edgar Dubrovskiy (@Edgar_DOP) August 30, 2021

Starry Night Capital