In a surprising turn of events, Su Zhu, CEO and CIO of Three Arrows Capital (3AC), announced on November 22 that he is giving up on Ether.
The announcement comes as a huge shock considering Three Arrows Capital is one of the largest cryptocurrency investors in the world. The company owns billions of dollars worth of Ether assets.
Three Arrows Capital is a Singapore-based fund management firm founded by Su Zhu and Kyle Davies.
In a Twitter post on Sunday, Su Zhu told his 350,000 followers that he was leaving Ether. He said that Etherpad has abandoned its users. In addition, he claimed that the high cost of the blockchain is preventing newcomers from entering the space.
Zhu goes on to claim that “they are promised a vision of the future, then told they have to pay $100-$1k per tx to enjoy it, and then told some story about how they should be smart enough to buy ETH at $10.”
Furthermore, he argues, “The ethereum culture is heavily influenced by the founders’ dilemma. Everyone has gotten so rich that they don’t remember what their original goal was.”
In addition to the tweet, an Ether address associated with Three Arrows Capital transferred $77 million in ETH to the FTX exchange on the same day.
Three Arrows Capital has invested in Avalanche
In recent weeks, 3AC announced that it is one of the contributors to Blizzard, a $200 million fund established by the Avalanche Foundation. The fund is dedicated to accelerating the development, growth and innovation of Avalanche (AVAX) and its ecosystem as a whole.
Dubbed the “ethereum killer,” Avalanche is a smart contract blockchain platform with proof-of-stake capabilities. The platform focuses on transaction speed, low cost and eco-friendliness.
Avalanche is relatively new. Founded by the Ava Labs team in 2020, there are now over 320 projects built on the platform, including elite DeFi projects such as Tether, SushiSwap and Chainlink. Many believe that it could become a truly dominant force in the coming years.
Three Arrows Captial has a reputation for making smart moves in the cryptocurrency community. Getting more involved in Avalanche while dropping Ether will certainly raise eyebrows.
Avalanche is on the rise
Avalanche’s popularity continues to rise as people discover the benefits of this low-cost ecosystem. The platform has also been helped immensely this year by the rise of decentralized finance (DeFi) and NFT. Perhaps that’s why Three Arrows Captial is making a move now.
In fact, AVAX, Avalanche’s native token, has also been a huge success. In the past 20 days, it has doubled in price from $65 to $135. Meanwhile, the token now has a market cap of $31 billion, making it the tenth largest cryptocurrency in the world.
Finally, many Twitter users jumped to the defense of Ether, claiming that Ether’s technology has recently been upgraded. In fact, Ether 2.0 launches sometime next year. Many hope it will help solve many common problems. Either way, it’s exciting to see what Three Arrows Captial does next, and whether Ether will remain the blockchain platform of the future.