Three Arrows Capital (3AC) is making a surprise comeback, this time as a venture capital (VC) firm. On Wednesday, OPNX, the bankruptcy claims exchange co-founded by CoinFLEX executives and two people behind the defunct hedge fund Three Arrows Capital (3AC), announced that they have a new partner: 3AC Ventures. The partners will “invest in projects building in the OPNX ecosystem and working toward a decentralized future,” OPNX tweeted. 3AC Ventures has a website that states the firm “is focused on superior risk-adjusted returns without leverage.”
The hedge fund 3AC collapsed last year after suffering heavy losses during the implosion of Terra’s LUNA stablecoin. OPNX, the new exchange where users can trade debt claims on bankrupt companies like FTX and Voyager, went live in April and counts 3AC veterans Kyle Davies and Su Zhu among its founders. Despite the exchange’s initial low volume, it has since risen.
The announcement of the partnership with 3AC Ventures was met with skepticism from the crypto community. Twitter influencer LilMoonLambo summed up the vibe, tweeting, “Holy shit, this is a real tweet.” Even Arthur Hayes, the former CEO of crypto exchange BitMEX, got involved in the Twitter discourse. He retweeted Davies’ 3AC Ventures announcement, asking, “Why did 3AC die, please enlighten us?” Su Zhu previously obtained a restraining order against Hayes from a Singapore court.
Despite the skeptics, Davies is promoting the new VC firm’s goal. “3AC Ventures aims to provide support for projects that are building for a decentralized future. We are keen to collaborate with those brave enough to tackle the most significant challenges and create cutting-edge products,” Davies said. The token for the OPNX exchange, OX, rose over 12% in the last 24 hours, while the overall crypto market also rallied as Bitcoin traded above $30,000 on Wednesday.