Company on the Verge of Bankruptcy Could Sell AAVE and These 14 Altcoins!

Altcoin: Something is wrong with Singapore-based crypto hedge fund Three Arrows Capital (3AC). However, it is not yet clear whether this means that the firm has gone bankrupt. In the event that 3AC “bankrupts”, it is said that some cryptos, including AAVE, in which the company invests, may be sold. Meanwhile, according to new news, the crypto company BlockFi; He was one of the groups involved in the liquidation of 3AC.

Will Three Arrows Capital sell AAVE and these coins?

Hedge fund Three Arrows Capital, which was founded last year and manages an estimated $10 billion, has positions in many of crypto’s biggest projects. These coins can be listed as follows: Bitcoin, Ethereum, Solana, Axie Infinity, Avalanche, Polkadot, Near Protocol, Terra, Trader Joe, Aave, Orca, Mina Protocol, Kusama, Ardana. Three Arrows Capital, including the $40 million Lido Staked Ethereum (stETH); It looked like he was selling his assets.

They Will Buy Massively To Prevent Crash In This Altcoin!

Researchers and analysts on Twitter say this is to prevent the $264 million Aave loan and $35 million Compound loan from going into liquidation. Earlier on Tuesday, Su Zhu, co-founder of Three Arrows Capital; It seemed to give some assurance that the firm was taking steps to keep it afloat. He tweeted without describing the parties or specifying what needs to be worked on. AmkNews.com As we reported, in the tweet, “We are in the process of communicating with the relevant parties. We are fully committed to solving this.”

Rumors for BlockFi are out

According to the Financial Times, BlockFi was one of several companies involved in the liquidation of Three Arrows Capital (3AC). On Tuesday, June 15, reports began circulating that Three Arrows Capital was experiencing liquidity problems. Sources suggested that 3AC’s lenders liquidated $400 million from the company. However, it was unclear which companies were involved in the liquidation at the time of these reports. Now, the Financial Times reports that crypto lending firm BlockFi is one firm involved.

BlockFi “was among the groups that liquidated at least some of 3AC’s positions,” the Times said on Thursday. That is, BlockFi has reduced investment in 3AC’s positions by using the collateral it has previously placed to support its own borrowing activities. Yuri Mushkin, BlockFi’s chief risk officer, told the Financial Times that his company has made “his best business decision…with a large client that is not meeting its obligations.” He also said that BlockFi was “one of the first to take action with this counterparty.”

Mushkin added that BlockFi has collateral that exceeds the size of the loan. He then assured the public that BlockFi’s risk management policies would allow it to continue to operate in a challenging market. BlockFi CEO Zac Prince echoed Mushkin’s comments on Twitter. He added that the client “failed to meet its obligations regarding an overcollateralized margin loan.” Prince said that BlockFi “completely accelerated the loan and completely liquidated the collateral.” Thus, he stated that he is protected from risk. BlockFi has not publicly confirmed that the company under discussion is Three Arrows Capital.

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Larry Brown

I graduated from Yale University, Department of Television. I have been a professional news writer for 3 years. I am continuing my career here by establishing amknews.com site 3 months ago.