Shaurya Malwa · 12 hours ago · 2 min read
Chainlink › Analysis
This crypto fund just bought $10m in Chainlink (LINK) during last night’s flash dip
What’s beautiful and kind of scary about DeFi is that everything is on-chain: if you know someone’s address, you can track their investments and their other interactions with the Ethereum ecosystem.
Due to the fact that you can time announcements of investments with transactions, it becomes somewhat trivial sometimes to connect addresses and funds and investors in the space.
I was watching Three Arrows Capital’s primary address last night and noticed that on the dip, the crypto fund accumulated a large amount of LINK.
Three Arrows Capital accumulates a mass amount of LINK
Three Arrows Capital is by far one of the biggest funds in the space: they hold hundreds of millions worth of Grayscale Bitcoin Trust shares, hold a large chunk of the likely multi-billion-dollar-exchange Deribit, and have countless other investments in the space.
They’re big Chainlink (LINK) holders too, apparently.
Last night, when Bitcoin flash crashed by approximately $1,000 in the span of a minute, big bids were put up across all cryptocurrencies.
LINK, for instance, fell from $14.00 to $12.50 in that frame of time, but bounced quickly back toward pre-crash levels.
Bidding the dip, seemingly, was Three Arrows Capital.
Minutes after the dip took place, the firm received 351,147 LINK from an address that received a Binance withdrawal. Around fifty minutes later, another 400,000 LINK was received for a total of 751,147 LINK, valued around $10,100,000. You can see the transactions below.
Su Zhu, CIO and CEO of Three Arrows Capital, liked the tweet I shared to my feed about the transactions.
Was that a confirmation?
As of this article’s writing, Three Arrows Capital holds approximately $14 million LINK on that one address, which is currently being lent to Aave. The collateral is subsequently being used to borrow stablecoins.
Not the only VC accumulator
Three Arrows Capital is far from the only fund that is accumulating a large amount of Ethereum-based coins.
Jump Trading, a massive proprietary trading firm based in Chicago has over $18.5 million worth of Ethereum, along with millions in Serum, Compound, Keep Network, and HXRO. The firm also has assorted investments in Numeraire, Orchid, Maker, and Huobi Token.
As they are market makers, it is unclear what exactly this means for the investments they are making. Though, it appears that the investments in SRM, Keep Network, and some of the other coins are longer-term plays as opposed to hedges.
What's beautiful (and kind of scary) about DeFi is that we can see everything that happens on-chain and connect addresses to identities and firms.
Here's a breakdown of the known Ethereum addresses of Three Arrows Capital, Polychain Capital, and Jump Trading.
— Nick C. (@n2ckchong) November 18, 2020
Polychain Capital has also been going big on Yearn.finance (YFI) as we’ve covered previously. The firm owns approximately two percent of all of the coin in circulation.
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