In a In a surprising turn of events, Su Zhu, CEO and chief information officer of Three Arrows Capital (3AC), announced on November 22nd that he is abandoning Ethereum.
The announcement is a massive shock considering that Three Arrows Capital is one of the world’s largest crypto investors. The company has Ethereum assets worth billions of dollars.
Three Arrows Capital is a Singapore-based fund management firm created by Su Zhu and Kyle Davies.
In the Twitter post on Sunday, Zhu told his 350 thousand followers that he was leaving Ethereum. He said that Ethereum has abandoned users. Additionally, he claims that high fees on the blockchain are preventing newcomers from entering the space.
Zhu went on to claim “they’re promised a vision of the future, then told that they have to pay $100-1k per tx to enjoy it, and then get told some tales about how they should’ve been smart enough to buy ETH at $10.”
Furthermore, he believes that “Ethereum culture suffers massively from the Founders Dilemma. Everyone is already far too rich to remember what they originally set out to do”.
In addition to the tweets, An Ethereum address associated with Three Arrows Capital transferred $77 million in ETH to the FTX exchange on the same day.
Three Arrows Capital invests in Avalanche.
In recent weeks, 3AC announced it is one of the contributions of Blizzard, a $200 million fund established by The Avalanche foundation. The fund is dedicated to accelerating development, growth, and innovation across Avalanche (AVAX) and its ecosystem.
Dubbed, ‘The Ethereum killer”, Avalanche is a proof-of-stake smart contract-capable blockchain platform. The platform focuses on transaction speed, low costs, and eco-friendliness.
Avalanche is relatively new. Established in 2020 by the Ava Labs team, it now has over 320 projects building on the platform, including elite DeFi projects such as Tether, SushiSwap and Chainlink. Many people believe that it could be a truly dominant force in the years to come.
Three Arrows Captial is known for making intelligent moves by the crypto community. The dropping of Ethereum whilst simultaneously becoming more involved in Avalanche will undoubtedly raise eyebrows.
Avalanche on the rise
Avalanche continues to rise in popularity as people discover the benefits of this low cost ecosystem. The rise of Decentralized finance (DeFi) and NFTs has also helped the platform massively this year. Perhaps this is the reason Three Arrows Capital are making moves now.
In fact, AVAX, which is Avalanche’s native token, is also seeing great success. In the last 20 days, it has risen from $65 to $135, doubling in price. Meanwhile, the token now has a market cap of $31 billion, making it the tenth-largest cryptocurrency worldwide.
Finally, many Twitter users jumped to the defence of Ethereum, citing recent upgrades to Ethereum’s technology. Actually, Ethereum 2.0 launchs sometime next year. Many are hopeful it will help to solve a lot of common problems. Either way, it is exciting to see what Three Arrows Capital do next, and whether Ethereum will still be the go to blockchain platform in the future.
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This article is educational material.
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