Would 3AC be the latest domino to fall after UST and Celsius

Online chatter has recently increased multi-fold around Three Arrows Capital post speculations related to insolvency. There are swirling rumors that the company will be the latest to crash in a domino effect- after LUNA.

Well, not to forget, Celsius Network’s latest announcement too had an impact on the broader market condition. Three Arrows Capital sold at least $40 million worth of Lidos staked Ether in the early hours of 14 June, making it the largest seller of the token in the past week.

The latest domino?

Three Arrows Capital is edging towards insolvency as per speculations of the latest on-chain data. These rumors have been intensified with co-founder Su Zhus latest tweet.

We are in the process of communicating with relevant parties and fully committed to working this out

— Zhu Su (@zhusu) June 15, 2024

Additionally, hawkish analysts have been active in observing 3AC liquidations recently. A crypto trader who goes by the name of Moon Overload on Twitter confirmed that Three Arrows Capital has dumped 30k stETH and reduced all AAVE positions.