• Three Arrows Capital executives launch NFT Fund

  • Executives from Singapore-based fund management firm Three Arrows Capital (3AC) have launched a fund focused on collecting quality digital art in the form of non-forgeable tokens (NFTs).

    Dubbed Starry Night Capital, the fund was founded by Su Zhu, CEO of Three Arrows Capital, Kyle Davies, co-founder of 3AC, and pseudonymous NFT collector Vincent Van Dough.

    Van Dough announced the fund via an August 31 tweet, saying, “Our thesis is simple, we believe the best way to access the cultural paradigm shift that NFT has brought about is to own the top pieces in the most popular sets.”

    3AC is a digital asset-focused fund manager founded in 2012. The firm has made investments in leading layer blockchains, including Ether, Avalanche and Polkadot, in addition to building a broad DeFi portfolio that includes blueships Aave, Synthetix and Balancer.

    While details on the roadmap for the new fund are scarce at this stage, Van Dough revealed that Starry Night Capital hopes to launch a physical gallery “in a major city”, launch an NFT education portal, and explore other “community building initiatives” by the end of the year. He added.

    “The NFT space is not a zero-sum game, it is driven by a strong flywheel effect and functions best when the cake is growing for everyone.”

    Chu, Davis and Van Dough seem to have teamed up to buy non-full-bodied art together.

    On August 27, NFT enthusiast “pixelpete” tweeted that he sold a one-of-a-kind Art Blocks NFT of Dmitri Cherniak’s artwork Goose Ringer to Zhu and Davies, brokered by Van Dough.The NFT is from Cherniak’s collection Ringers – each piece was algorithmically generated on the Ether blockchain.

    The couple paid 1,800 Ether (roughly $5.8 million) for the token. However, it is unclear if Starry Night Capital will take possession of the artwork.

    Van Dough’s wallet on the OpenSea marketplace also shows an impressive collection of 1,913 NFTs, including works by renowned NFT artist Pplpleasr.

    Community reaction to the fund’s launch on Twitter has been mostly positive, with the likes of Youtube’s head of gaming Ryan Wyatt and Bankless founder David Hoffman congratulating the team.

    However, user “Edgar Dubroviskiy” questioned the idea of buying only the “top titles” in the NFT space, and highlighted the high cost and low liquidity of premium NFTs.

    What's your reaction?