The crypto space continues to crash, and one firm – Three Arrows Capital – has taken to Twitter to try and shed rumors that this is somehow affecting its status and revenue.
Three Arrows Capital Denies There’s Anything Wrong
The company has a net asset value of more than $18 billion. Based in Singapore, Three Arrows is a hedge fund that has large, leveraged stakes in crypto enterprises and digital currencies all around the world. Some of the currencies it holds positions in include bitcoin, Solana, and Ethereum. It also boasts investments in Block Fi and other blockchain firms.
The crypto bloodbath has caused many of these investments to sink into perdition at the time of writing, and Three Arrows Capital is doing all it can to assure traders and customers that it’s not in bad shape. Zhu Su – the Dubai-based investor behind the company – explained in a message on social media:
We are in the process of communicating with relevant parties and fully committed to working this out.
The dipping prices witnessed amongst the world’s top digital coins is like nothing we’ve ever witnessed before. Bitcoin, for example, shot down by more than 25 percent in a single day after it was announced that Celsius was going to be halting trading and withdrawals. At press time, the halt is still in play, and it’s unclear how much longer this is going to last.
Not long after this occurred, companies like Tether began posting online that they were unaffected by the shutdowns and thus traders didn’t have to worry that the company had lost anything or that the value of the stable coin was in danger. Tether explained:
Celsius’ position has been liquidated with no losses to Tether. Tether’s lending activity with Celsius (as with any other borrower) has always been overcollateralized. Tether has currently zero exposure to Celsius apart from a small investment made of Tether equity in the company.
Tether was responsible for issuing loans to Celsius in the past. The company issued a statement that its loans were roughly 30 percent over collateralized, suggesting that for every dollar it lent out, it took roughly $1.30 in BTC.
Celsius also went on social media to claim it was not in any trouble and to dispel specific rumors that had been swirling around the company. Executives stated:
Tether is aware of other rumors being spread, suggesting that it has lending exposure to Three Arrows Capital. Again, this is categorically false.
Celsius and Terra USD Are to Blame?
Teunis Brosens – an economist at Dutch bank ING – said the crypto crash is likely all due to the recent fall of Terra USD. He said:
Crypto investors have grown very critical, especially about the more complex products, and want to get out. There may still be confidence in bitcoin and Ethereum, which are the more straightforward currencies.
