3AC meme coin fund criticized for allocating 84% of tokens to team and insiders

A meme coin fund launched by Three Arrows Capital has come under criticism for allocating approximately 84% of its tokens to wallets belonging to team members and insiders.

A post by BubbleMaps blockchain analytics showed that more than 80% of 3AC’s meme coin fund Three Arrowz Capitel was pooled in several wallets belonging to insiders and team members. This led investors to speculate that the fund might be rife with price inflation and manipulation tactics.

An investment partner from L1D discussed the topic in more detail in an article published on X. According to on-chain tracking, the team attracted 750 Ethereum (ETH) tokens from approximately 25 investors in a private presale.

During the official launch, the remaining 336 ETH were distributed to eight wallets belonging to the team that caught the $3AC listings early. According to the analysis, these wallets are poised to provide benefits of ten to thirty times their cost basis.

Upon further review, only 8% of the tokens are allocated to the community, while the other 8% falls under liquidity. Meanwhile, the rest is held in insider wallets, accounting for 84% of total tokens. The account warned traders that the 3AC token could lead to a “low circulation, high conspiracy” case.

“It should be clear that buying this token means trusting a small group of insiders who control 84% of the supply. Some might even label it as a conspiracy token. The choice is yours: decide whether you want to play this game or not.”

@0xLouisT

On September 27, Three Arrows Capital launched a token codenamed 3AC. The meme coin is one of the investment fund’s initiatives targeting high-risk projects, and it has a website featuring the 3AC logo as well as crudely drawn children’s drawings that resemble various popular meme coins such as “dog” and “cat”.

The investment fund claims to target high-risk projects, which include a quirky website with playful references to a variety of meme coins, from “dog” and “cat” tokens to more controversial themes.

The market cap rose to nearly $100 million in the first few hours of trading and briefly rose above $170 million.

Three Arrows Capital filed for bankruptcy in July 2022 after failing to meet creditors’ demands during a major market downturn.

In 2021, 3AC had become a leading cryptocurrency venture capital, managing $10 billion in assets before its collapse. By April 2022, this amount dropped to $3 billion and continued to decline until he declared bankruptcy.

On September 14, the Monetary Authority of Singapore issued a nine-year restraining order against 3AC founders Zhu Su and Kyle Livingston Davies for violating different securities laws.

Following the ban and subsequent bankruptcy, Zhu and Davies moved on to other crypto-related projects that ended in a similar manner. In 2023, they launched the OPNX cryptocurrency exchange, which shut down its services after just one year.