Just as things seemed to be settling down in the digital currency space, Vauld, a lender backed by Coinbase, has suspended withdrawals and hired advisors to explore restructuring.
The conditions are ripe for a long ‘crypto winter’ from which many coins will never recover, and as we can all see, it’s a multi-faceted problem with no easy solutions in sight.
Digital asset hedge fund Three Arrows Capital, which had been around since 2012, now appears to be dragging other industry names into its whirlpool.
News broke early this week that a British Virgin Islands court had ordered Singapore-based digital currency hedge fund Three Arrows Capital (3AC) into liquidation.
CoinGeek's Patrick Thompson looks at how the speculative era is inching to an end following the recent events in Bitcoin that have had a domino effect on the broader digital assets market.
Several “crypto hedge funds” have been rumored to be insolvent as they were exposed to digital currency prices via leverage, and somewhat linked to other companies that all have issues simply because the prices fell.
Three Arrows Capital fails to meet margin calls, and as a result, some of its lenders have began liquidated the positions that 3AC had on its platform.
