The crypto market has been abuzz with activity as Three Arrows Capital (3AC) co-founder Su Zhu announced his long position in the meme coin Three Arrowz Capitel (3AC). The price of this newly launched token surged over 30% in response, showcasing the volatile nature of meme coins and their susceptibility to high-profile endorsements.
Su Zhu’s Bold Move
On October 14, Su Zhu revealed via the X platform that he had gone long on the 3AC meme coin, purchasing it at $0.0321. This announcement sent shockwaves through the crypto community, triggering a rapid increase in the token’s price as traders speculated on the potential for further gains. Following his endorsement, the price of 3AC quickly shot up, peaking at approximately $0.0444 before experiencing a significant pullback.
Market Reaction and Price Dynamics
The sudden rise in 3AC’s price was accompanied by a staggering 700% increase in trading volume within 24 hours, reflecting heightened interest and activity surrounding the coin. However, the surge was short-lived, as the price retraced to around $0.0364 at the time of reporting, with a 24-hour low of $0.02947. Despite the initial excitement, the token remains down approximately 1% over the past week, highlighting the volatility inherent in meme coins.
Controversies Surrounding 3AC
The 3AC coin was launched by Su Zhu and fellow co-founder Kylie Davies, bearing a playful misspelling of their infamous hedge fund, Three Arrows Capital. This launch has not been without controversy, as insiders reportedly control a substantial portion of the token’s holdings, raising concerns over market manipulation and the potential for pump-and-dump schemes. Indeed, the token faced a more than 60% decline shortly after its initial launch, which has led many in the crypto community to approach it with caution.
Broader Implications and Market Sentiment
The recent activities surrounding the 3AC coin come in the context of Three Arrows Capital’s ongoing legal battles, particularly its claims against Terraform Labs (TFL) for over $1.3 billion. This backdrop of financial instability has fueled speculation and skepticism among traders regarding the sustainability of such meme coins.
Conclusion
The dramatic price movements of the Three Arrowz Capitel (3AC) meme coin following Su Zhu’s long position serve as a reminder of the volatile nature of the cryptocurrency market. While high-profile endorsements can drive significant price surges, the underlying risks and controversies associated with these tokens continue to challenge investor confidence. As the crypto landscape evolves, traders must remain vigilant and informed about the inherent risks in trading meme coins.
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