Three Arrows Capital (3AC) bought ETH for $676 million after the fund's CEO Su Zhu said he was disappointed in Ethereum and stopped supporting the project.
Accounts allegedly belonging to the Three Arrows Capital crypto hedge fund have been transferring Ethereum from popular crypto exchanges such as Binance, Coinbase, and FTX since the weekend.
Three Arrows Capital buys Ethereum after anti-ETH message
According to Etherscan data, 61,000 ETH has been transferred to 0x4862733b5fddfd35f35ea8ccf08f5045e57388b3 wallet, which is claimed to belong to 3AC. While 29,000 ETH was transferred over the FTX exchange, approximately 30,000 ETH was transferred via Binance.
Yes I have abandoned Ethereum despite supporting it in the past.
Yes Ethereum has abandoned its users despite supporting them in the past.
The idea of sitting around jerking off watching the burn and concocting purity tests, while zero newcomers can afford the chain, is gross.— Zhu Su 🔺 (@zhusu) November 21, 2021
Su, who reproached Ethereum developers in his post on his personal social media account last month, complained that the transaction fees were too high and small investors struggled to meet these charges. He said:
“Yes, I abandoned Ethereum even though I supported it in the past. Ethereum abandoned its users. Although none of the newcomers can afford the chain, the idea of sitting around watching the burns and preparing purity tests is disgusting. Ethereum culture suffers greatly from the Founders Dilemma. They got too rich to remember what they had originally decided to do. Maybe a bear market is needed to remind them. Or maybe we should build somewhere else. But that's what it is.”
However, after attracting wide attention, he made a U-turn saying he wanted to "soften" his original stance and that “I love Ethereum and what it stands for.”
In the 17 days or so since the threads, approximately 156,400 Ether or $676.37 million has been transferred to THE 3AC wallet.
Ethereum launches a new update
Although trading fees have decreased slightly after the London update, they are still too high for many investors. Moreover, after this update, the ETH price almost doubled. Therefore, although the transaction fees are slightly reduced in ETH, they reach much higher amounts when evaluated over the dollar rate. A transaction fee of over $100 is required for some small transactions to be carried out on Ethereum platforms.
Following Zhu's anti-ETH message, Ethereum co-founder Vitalik Buterin proposed a new update aimed at reducing transaction fees. This recommendation evolved outside of the series of updates to the ETH 2.0 path.
On the other hand, a new update was launched on the Ethereum network yesterday. In this update, some steps was be taken that will complicate the work of cryptocurrency miners. The tool called difficulty bomb, which slows down the transaction confirmation mechanisms of miners, will propose more difficult transactions after this update, and it will be a little more difficult for miners to solve transactions.
End game message
Yesterday evening, Buterin shared a post on his personal social media account. The post with the message “end game” included a link to Buterin's official site. However, the majority of the followers had a hard time opening this link for a while and there was a short-term panic.
The Ethereum founder evaluated possible future scenarios of blockchain technology in his article. Making statements about the three possibilities he sees as the most likely, Buterin stated that the Ethereum ecosystem is built in a structure that will keep up with all these possibilities:
“First of all, Ethereum is in a very good position to adapt to this future world, despite the inherent uncertainty. The biggest benefit of the Ethereum rollup-centric roadmap is that it means Ethereum is open to all possibilities and doesn't necessarily have to give an idea of which one will win.”
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