July 2022 Newsletter
The entire global financial landscape is tumbling from institutional fallouts and geopolitical unrest. With emotions running high among traders the crypto market has seen its share of the domino effect. One of the most prominent crypto hedge funds – Three Arrows Capital (3AC) filed for bankruptcy after the plunge in crypto asset prices combined with risk trading and investment strategies leaving it insolvent to repay lenders which consists of a number of well know crypto companies and thousands of everyday retail traders.
The Falling Dominoes
One of the earliest Crypto exchange and wallet provider Blockchain.com reportedly faces a $270 million loss on loans to 3AC. Digital asset brokerage firm Voyager Digital filed for bankruptcy protection after 3AC couldn’t pay back the $670 million it had borrowed from the company. Other lenders who are in losses with 3AC include U.S.-based crypto lenders Genesis and BlockFi, crypto derivatives platform BitMEX and crypto exchange FTX.
Tracing the Catalyst
The initial crash of 3AC can be traced back to the collapse of Terra Luna and its supposedly stable coin UST. According to Wall Street Journal, 3AC invested $200 million in Luna UST. Other industry reports suggest the fund’s exposure was around $560 million. Whatever the amount, that investment became worthless in span of days. The unsustainable 20% annual yield offered by UST eventually took a nose dive shattering the confidence among traders and accelerating the entire crypto plunge.
Soon after Voyager Digital one of 3AC’s creditors halted all trading and withdrawals in their platform eventually filing for bankruptcy. The ‘real’ condition of rest of the 3AC lenders is to be seen.
What This Means for TBC2
The recent events just show how financial authorities approved institutions can still make bad choices that can lead to their collapse and gain a bad name for the crypto space. After initial launch TBC2 had its own share of critics and finger pointing. Despite all the hurdles our team has kept moving forward gaining a strong community along the way. Now in the 5th year of the project we are proud to be on the other side of the storm. With an entire chain migration on the horizon, the devs are busy around the clock to make the process smooth and seamless.
Thanks to newly introduced members/buyers and repeat purchasing, we have less than 10% (98.8 million) TBC2 available for distribution – so close to the finishing line & to reiterate, we can and should share this opportunity with someone new for the long-term potential good, especially in view of how the crypto space has been these last few weeks and months!
Lot of exciting things are on the way! It is down to you all, the good people in our community that have brought us to this point. Thank you for being part of the journey.
