In short
- NFTs belonging to Starry Night Capital, the NFT fundraising fund from Three Arrows Capital, have been moved into a new wallet.
- The fund collected hundreds of valuable NFTs last year, aiming to raise $100 million to invest in NFT artwork and collectibles.
Among the many questions still surrounding insolvent crypto hedge fund Three Arrows Capital, one concerns its fate the firm’s lavish NFT collection. However, answers may be on the horizon, because now the assets are being moved into a new wallet.
That’s according to a tweet from the cryptanalysis firm Nansenwho wrote that NFTs belonging to Starry Night Capital – a fund established by Three Arrows Capital and pseudonymous collector Vincent Van Dough in 2021 – is being moved into a new wallet—specifically a Gnosis safe accounting.
A Gnosis Safe is extra security Ethereum wallet that requires multiple signatures to approve transactions. In all, 383 Ethereum NFTs have been moved into the new wallet as of this writing, while previous wallet still contains 80 NFTs. Most of the NFTs were moved last night.
Three Arrows and Vincent Van Dough announced the $100 million Starry Night fund in August 2021 and went on to go on a spending spree, acquiring a number of high-value Ethereum assets. The fund was announced to the world after it bought a Art blocks Ringer’s NFT from artist Dmitri Cherniak for $5.66M in ETH.
Other notable NFTs collected by Starry Night Capital include artists Matt Furie’s Pepe the Frog Genesis NFT for $3.5 million in ETHand a trio of NFTs from pseudonym artist XCOPY which ranged in price from $1.4 million to $2.3 million in ETH. Starry Night also accommodates several CryptoPunksRare Pepes and other notable collectibles.
It is unclear whether Starry Night ultimately raised and spent the full $100 million intended for the fund. ONE dashboard on the Dune data platform suggests that Starry Night spent around $35 million in ETH, but the list of tracked assets is incomplete – it’s missing the Pepe the Frog NFT, for example.
Furthermore, it is difficult to attach a current value to any of the NFTs, as many are single editions of works of art or parts of collections that have little liquidity. Nansen pegs the combined value of the more liquid assets at 625 ETH, or roughly $846,000 worth, but noted that over 89% of NFTs have low liquidity. Many of the assets appear to have been valued very low compared to their original respective purchase price.
Overall, the NFT market has lost significant value since its heyday last autumn. Like the crypto market started crashing in Maythe estimated price of many “blue chip” NFT assets fell sharply. Similarly, the total market trading volume has dropped significantly in recent monthsalthough several million NFTs still sell each month – albeit at often lower price points.
Three Arrows Capital was one of the most famous crypto hedge funds until it suddenly collapsed in May, following the rapid decline of Terra’s LUNA and UST tokens and the pervasive effects on the wider crypto ecosystem. Founders Su Zhu and Kyle Davies blamed exposure to Terra, bet Ethereumand Grayscale Bitcoin Trust for their problems.
The firm filed for Chapter 15 bankruptcy in June, and in July, said creditors that Three Arrows’ Singapore office had been abandoned and the founders were missing. The company said that it owed $3.5 billion to creditors after the collapse, with Zhu allegedly has a stake of 1.4 billion dollars in the offshore fund that held the company’s assets.
Singapore’s High Court authorized a further investigation into Three Arrows Capital in August.
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