Asia Express: Edgelord’s Take on 3AC’s Memecoin Supercycle Bet
Three Arrows Capital Takes a Bold New Turn with Memecoin Investments
Once a major player in the world of crypto investments, Singapore-based Three Arrows Capital (3AC) is shaking things up with a surprising move into memecoin territory.
Su Zhu, the co-founder of 3AC, recently made a splash by publicly announcing his foray into memecoin trading with investments in tokens like “Fat Girlfriend” and “Astrofolio,” a collection of tokens based on astrological signs.
Zhu’s investment strategy aligns with the rising trend of the “memecoin supercycle.” At a recent conference in Singapore, meme trader Murad Mahmudov argued that memecoins offer a fresh perspective in a market saturated with overhyped VC-backed altcoins. He believes memecoins will surpass altcoins by appealing to retail traders tired of being used as “exit liquidity” by altcoin founders and venture capitalists.
Zhu is confident that institutional investors will soon turn their attention to memecoins, stating, “Institutional allocation to memecoins is likely to be the story of q4 2024.”
Interestingly, Zhu was previously known for promoting the failed “supercycle” theory, which predicted the last bull run would never end due to increasing institutional investments. However, the market proved otherwise, and 3AC faced challenges, including a $3 billion debt that contributed to the collapse of several crypto lenders.
Despite setbacks, 3AC is staging a comeback. After the failure of their crypto exchange OPNX, they are now backing OX.Fun, a new memecoin exchange that raised $4 million this year.
The founder of 3AC states that the original company filed for bankruptcy in 2022 and has since reemerged as “Three Arrowz Capitel” in 2024. The new portfolio includes tokens like Retardio, Hanbao, and FatGF. The company’s website lists job openings for roles like “Solana Dumper,” “Chinese Sniper,” and “Racist Cult Leader.”
The shift into memecoin madness by 3AC reflects a departure from their traditional hedge fund approach in favor of a more trendy and edgy memecoin strategy.
As Zhu’s memecoin vision unfolds, observers are left wondering if it is a stroke of genius or a cash grab in a volatile market. One thing is certain: Three Arrowz Capitel has fully embraced the memecoin spirit, for better or for worse.
South Korea’s Fluctuating Crypto Market
The famous “kimchi premium” in South Korea’s crypto market has been on a rollercoaster ride recently. Gridlock regulations in South Korea make it challenging for foreigners or institutions to trade on local exchanges, creating a unique market dynamic.
Lately, South Korea’s Bitcoin prices have been lower than global averages, a shift known as the “reverse kimchi premium.” This trend is driven by lower trading volumes in South Korea compared to overseas exchanges that experience higher demand.
Despite these challenges, the global landscape has seen a surge in institutional interest in Bitcoin, with spot Bitcoin exchange-traded funds gaining traction across Asia.
A recent report from Aspen Digital reveals that a significant portion of private wealth in Asia has diversified into digital assets, with more investors planning future engagements. While South Korea faces obstacles in competing with international exchanges, there are efforts on the horizon to align with global trends.
The Financial Services Commission in South Korea is exploring initiatives such as establishing a Virtual Assets Committee to address issues like allowing corporations to open crypto trading accounts and potentially issuing cryptocurrency spot ETFs.
From memecoin mania to regulatory shifts, the crypto landscape in Asia is evolving rapidly, presenting both challenges and opportunities for investors. With new trends on the horizon, the future of digital assets in the region remains dynamic and full of potential.
