Edgelord 3AC’s Gamble on Memecoin Supercycle: Pursuing a ‘Racist Cult Leader’ — Asia Express

Three Arrowz Capitel’s Memecoin Endeavor

Once seen as a major force in the cryptocurrency investment sector, the founders of Singapore’s Three Arrows Capital (3AC) have shifted focus towards the memecoin market.

Su Zhu, a co-founder of 3AC, has been actively engaging in memecoin trading, recently sharing a post that, “Run it back,” alongside announcements of investments in tokens such as “Fat Girlfriend” and astrological-themed coins called “Astrofolio.”

Zhu’s investment approach aligns with what is referred to as the “memecoin supercycle.”

At the recent Token2049 event in Singapore, meme trader Murad Mahmudov suggested that memecoins present a unique alternative in a marketplace filled with exaggerated, venture capital-backed altcoins. He asserted that memecoins could surpass altcoins by leveraging retail investors’ exhaustion from being used as “exit liquidity” by altcoin creators.

Taking it further, Zhu has made a bold claim that institutional investors will soon show interest in memecoins, stating:

“I am hearing that liquid funds which once dismissed memecoins are now being pressed by LPs to understand why they missed out. Institutional involvement in memecoins might be a significant narrative for Q4 2024.”

Interestingly, Zhu previously supported an unsuccessful “supercycle” theory that speculated a continuous bull market driven by growing investments from institutional players. The anticipated continuous growth did not materialize, and 3AC’s over-leveraging ultimately contributed to the downfall of various crypto lending platforms. The firm has subsequently reemerged, albeit under different pretenses.

Following the closure of their crypto exchange OPNX earlier this year, 3AC has supported a new venture, OX.Fun, specializing in meme-based derivatives trading, which has reportedly garnered $4 million in funding.

The exchange appears to feature a native token called OX, as well as a token representing 3AC. Co-founder Kyle Davies recently echoed a call from the exchange’s CEO, urging “high-energy zoomers who want to grind and be part of a billion-dollar meme exchange.”

The original 3AC filed for bankruptcy in 2022 and was subsequently taken over by liquidators. The new iteration, branded as “Three Arrowz Capitel,” claims to be both “legal and solvent,” established by Su in 2024.

According to its basic website, the revamped portfolio includes tokens like Retardio, Hanbao, and FatGF. The site even lists job opportunities for unconventional roles such as “Solana Dumper” and “Racist Cult Leader.”

It seems that the former hedge fund entrepreneurs have traded in their serious demeanor for a playful approach to the memecoin craze.

The efficacy of Zhu’s new strategy remains uncertain as it may either be a visionary move or a floundering attempt to capitalize on a perceived trend. Nevertheless, Three Arrowz Capitel has definitely embraced the playful, irreverent spirit prevalent in memecoin culture.

Korean Market See-Saw: Kimchi Premium

The notorious “kimchi premium” in South Korea’s cryptocurrency market has undergone a notable shift recently, as highlighted by data from CryptoQuant.

The structure governing cryptocurrency trading in South Korea is tightly controlled by regulations, impacting how investors participate.

To exchange fiat for cryptocurrencies through regulated platforms, users must maintain a local bank account associated with the exchange, which ties their trading activities to their identity.

This regulation creates barriers for foreign investors, but as a result, local retail interest has historically kept Bitcoin prices elevated compared to the global market.

Currently, however, Bitcoin prices in South Korea are lower, indicating a “reverse kimchi premium.”

This phenomenon is attributed to diminished trading volumes domestically versus those on international platforms, which have seen increased demand.

As interest from the global institutional sector rises, spurred by prospects for spot Bitcoin exchange-traded funds, South Korea’s market dynamics may also need to adapt.

Links to Crime: A Former Mayor’s Story

Alice Guo, a former mayor in the Philippines embroiled in human trafficking charges, is reportedly connected to a vast international scam network and the now-defunct Hong Kong crypto exchange AAX, according to local news outlet Rappler.

In addition to trafficking counts, she is facing espionage allegations that could lead to a sentence of over 1,200 years.

Rappler’s investigation links Guo and her business partner, Huang Zhiyang, to associate Dingkai Wang.

Together, Guo and Huang established Baofu Land Development Inc. in 2019, which was raided to rescue numerous trafficking victims compelled into crypto scams. Both Huang and Wang held nominal stakes in Sun Valley Clark, another complex that was raided, leading to the rescue of over 1,000 individuals forced to operate crypto scams.

Wang allegedly utilized a Cambodian passport to obtain a retiree visa in the Philippines before fleeing in May 2023, just after the raid.

Ownership investigations traced Sun Valley back to two firms in the British Virgin Islands, with connections to AAX’s former management.

Su Weiyi, AAX’s founder, is associated with two Hong Kong companies alongside Wang.

AAX ceased operations in late 2022, leading to the arrest of two executives. The exchange is accused of misappropriating customer funds.

Across Southeast Asia, there have been alarming discoveries of human trafficking and crypto scams, with Cambodia emerging as a focal point.

Recently, Indian authorities reported rescuing 250 citizens who were misled into Cambodia under false job promises, only to find themselves caught in illegal online activities.

Award-winning Cambodian journalist Mech Dara was recently arrested, with advocacy groups alleging that his detention relates to his investigative work uncovering crime syndicates linked to high-profile officials.

Senator Ly Yong Phat, recently sanctioned by the U.S. Treasury, faces serious accusations of being involved in human trafficking and forced labor schemes tied to cryptocurrency fraud—a claim that has drawn criticism from Cambodia’s government.

Tokenization Moves Forward

Euroclear, a leading international clearing and settlement company, has announced a strategic investment in Singapore-based digital infrastructure company Marketnode, with financial details undisclosed.

This investment aims to enhance the digital landscape in Asia-Pacific, facilitating smoother fund flow management and accelerating settlement processes, as stated in a recent press release from Marketnode.

As of September 30, 2023, Euroclear managed assets worth 37 trillion euros (approximately $40 trillion) and possesses significant expertise in blockchain.

In October 2023, the World Bank issued its inaugural digital securities on Euroclear’s blockchain platform, raising 100 million euros ($108.6 million).

Founded by the Singapore Exchange and Temasek in 2021, Marketnode specializes in tokenization and blockchain-based investment solutions.

This initiative has attracted investments from prominent organizations, including HSBC, a major British bank with a market valuation of $160 billion, as well as collaborative participation in the Monetary Authority of Singapore’s Project Guardian, which explores the potential of tokenization and network interoperability.