StarryNight – The once-excessive NFT collection of the bankrupt Three Arrows Capital (3AC) investment fund – was suddenly discovered being transferred to a new Ethereum wallet.
Since the default, the community still has many questions surrounding the investment fund Three Arrows Capital (3AC). Among them, most recently, a question that has been noticed most concerns the company’s “expensive” NFT StarryNight collection. And now the answer is becoming clearer when it is discovered that this amount of digital assets is being transferred to a new wallet.
According to a report from crypto analytics firm Nansen, all NFTs belonging to Starry Night Capital — a fund founded by Three Arrows Capital and pseudonymous collector Vincent Van Dough in 2021, are being moved to a new wallet, specifically wallet Gnosis Safe.
Gnosis Safe is a commonly used Ethereum wallet that requires multiple signatures to approve transactions. At the time of writing, Nansen pointed out that 383 NFTs had been transferred to the new wallet, while the previous wallet still contained 80 NFT. Most of the NFTs were moved on the night of 3/10.
Starry Night Capital started to be deployed by Three Arrows Capital and Vincent Van Dough in August last year, costing up to $100 million at that time. This fund then spent heavily to acquire a series of high-value Ethereum NFTs. The official exposure of the Starry Night fund was after the acquisition of NFT Art Blocks Ringers from artist Dmitri Cherniak for approximately $5.66 million in ETH.
Some other outstanding NFTs Starry Night Capital Collect includes: NFT by artist Matt Furie’s Pepe the Frog Genesis with $3.5 million worth of ETH and a trio of NFTs by the nicknamed artist XCOPY prices range from 1.4 million to 2.3 million USD ETH. In addition, Starry Night Capital also holds many CryptoPunks, Rare Pepes and many other notable collections.
With a capital raised at the beginning of 100 million USD, so far, it is not clear whether the fund will spend all of the money for collecting purposes. According to the Dune blockchain data platform dashboard, Starry Night Capital has only spent about $35 million in ETH.
Furthermore, the present value of some NFTs is difficult to determine, because many NFTs are single edition works of art or part of illiquid collections. As a result, Nansen pegs the aggregate value of more liquid assets at 625 ETH (~$846,000), noting that over 89% of NFTs are illiquid. Many properties appear to have been undervalued relative to their respective original purchase prices.
The reason is because the NFT market has dropped significantly in value since the heyday of the sector in 2021. As the crypto industry began to “stagnate” in early 2022, the estimated prices of many “blue chip” NFT assets ” has dropped sharply. Similarly, NFT market-wide trading volume has also decreased significantly in recent months, although several million NFTs are still traded each month but at lower prices.
However, the above discovery was quite surprising because before that, Three Arrows Capital was said to have sold out of NFT StarryNight with a value of more than 21 million USD in June 2022 to “pump” into debt repayment due to falling into debt. liquidity crisis.
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