3AC Hedge Fund’s Bankruptcy Sparks Crypto Community Reaction.

Three Arrows Capital (3AC) is making waves in the cryptocurrency community once again, this time with a surprise comeback, but in the form of a venture capital (VC) firm under the same name.

On Wednesday, OPNX, a bankruptcy claims exchange co-founded by CoinFLEX executives and two people behind the now-defunct hedge fund Three Arrows Capital (3AC), announced that they have a new partner: 3AC Ventures. The partners will “invest in projects building in the OPNX ecosystem and working toward a decentralized future,” OPNX tweeted.

3AC Ventures even has a website that states the new firm “is focused on superior risk-adjusted returns without leverage.” The hedge fund 3AC collapsed last year after suffering heavy losses during the implosion of Terra’s LUNA stablecoin.

The new exchange, OPNX, where users can trade debt claims on bankrupt companies such as FTX and Voyager, went live in April and counts 3AC veterans Kyle Davies and Su Zhu among its founders. Even during the fundraising round, the exchange, then named GTX, faced scrutiny from the crypto community. Large players like Wintermute distanced themselves from GTX immediately.

The exchange also stumbled during its rollout, initially experiencing low volume. Since then, volume on the exchange has risen, though a large portion of the crypto community remains skeptical of the exchange and its backers.

Therefore, when it announced the partnership with freshly minted 3AC Ventures, the crypto community reacted with skepticism. Twitter influencer LilMoonLambo summed up the vibe, tweeting, “holy shit this is a real tweet.”

Even Arthur Hayes, the former CEO of crypto exchange BitMEX, got involved in the Twitter discourse. He retweeted Davies’ 3AC Ventures announcement, asking, “Why did 3AC die, please enlighten us?”

Su Zhu previously obtained a restraining order against Hayes from a Singapore court.

However, the skeptics haven’t deterred Davies from promoting the new VC firm’s goal.

“3AC Ventures aims to provide support for projects that are building for a decentralized future. We are keen to collaborate with those brave enough to tackle the most significant challenges and create cutting-edge products,” Davies told blockchain.

The token for the OPNX exchange, OX, rose over 12% in the last 24 hours, while the overall crypto market also rallied as bitcoin traded above $30,000 on Wednesday.

Oliver Knight contributed to the reporting of this story

Edited by Aoyon Ashraf and James Rubin.

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