NFT dreams of Three Arrows shattered!
At the peak of the non-fungible token (NFT) craze last summer, Three Arrows Capital, a giant handling ten of billions of dollars, teamed up with fictitious non-fungible token collector Vincent Van Dough to form Starry Night Capital, a fund for NFTs with a $100 million goal.
But, as the market started imploding, the NFT dream of Three Arrows is more or less shattered. The court ordered liquidation, failure to pay margin calls of highly reputed crypto exchanges, resulted in the Starry Night Fund’s worth to be reduced to a fraction of what it aimed for. The only institutional investor went on to declare a total write-off of its investment.
The relationship between Three Arrows and Starry Night has never been much of a mystery, even if Three Arrows made an attempt to hide its relationship with its over-the-counter trading desk TPS Capital through a convoluted paper trail.
The total write-off of the Fund!
As the hype for NFT was high last summer, 3AC and Starry Night got investment from KR1. KR1 is basically a UK based digital assets fund which went on to invest $5 Million in the Starry Night Fund.
In the news, the information which was spread by the UK based company was that, the company had purchased its $5 Million subscription in the fund via a purchase of “Class Starry Night Shares” in British Virgin Islands-registered 3AC Fund LTD.
In a recent financial report, KR1 stated that it has completely written off the value of these Starry Night Shares from its books, impairing its worth by 100%. KR1’s representative declined to make any additional comments. On the year, the price of the company’s stock, which is traded on the Aquis exchange, has decreased by almost 80%.
Pressure mounting on the NFT Market!
The crashing cryptocurrency market has surely brought down the NFT market down. Since cryptocurrencies, stablecoins and NFT broadly under the same category of digital assets, the crash of market of one of the assets certainly influences the market crash of the others.
Amidst the market crash, the average value of NFT is down by almost 68% which is valued at $628. In a case study, the shocking fact which made headlines was the sale of “Mona Lisa of Digital Assets” – Jack Dorsey’s tweet, which was valued at $2.9 Million was sold at $6,800 which is currently worth $280.
This phase is very crucial for the market, as the market has to get back to its normalcy and start functioning with more conviction and more optimism. The companies in the market are also resorting to hiring Vibe Managers to change the vibe of the market in favor of the investors.
