NFT Fund Starry Night Goes Dark on SuperRare – The Defiant

Another sign of trouble for Three Arrows Capital is that an authorized fund that has raised dozens of high-value NFTs has transferred most of its multi-million dollar collection to a single wallet, prompting speculation Massive depreciation.

That fund, Starry Night Capital, was launched last summer with support from Three Arrows. Renowned NFT collector Vincent van Duff was brought in as a collection partner and curator. As of Wednesday, the entire collection in NFT Marketplace SuperRare has been transferred to a new wallet and is no longer listed on the site.

The move sparked speculation that Starry Knight plans to sell its collection to compensate for the massive loss of Three Arrows during this bear market.

The collection includes, among other things, pieces of the famous Fidenza and Ringers series from the Art Block collection, valued at several thousand dollars. “The slightest lack of symmetry can cause so much pain,” said Dmitry Cherniak, who bought the 800 ETH last October for more than M 2M at the time.

“Our thesis is simple, we believe the best way to gain exposure to the cultural paradigm shift initiated by NFTs is to own the top part from the most desired sets.” The collector tweeted while launching the fund.

‘Throw in the bucket’

Coinmetrics researcher Kyle Waters estimates that the firm spent $ 21M on its collection. In fact, there is a fund for every ten dollars spent on a superrear, the researchers say. It was estimated to be a drop in the bucket, however, to manage Billion Three Arrows Capital.

“You’re talking about the potential, for example, the single number in the millions – which is really not much more than some estimate in the vicinity of the assets under their management – in billions,” Waters said.

Neither Vincent van Duff nor the Three Arrows responded to a request for comment.

Although the moves were bizarre, Waters said in an interview that he could not prove that a sale was imminent.

“We can’t say how the two entities are connected, Three Arrows Capital and Starry Night, so they probably have different liquidity providers or different investors in the fund,” he said. Such an arrangement, though uncertain, would make it difficult for Three Arrows investors to use the proceeds from the sale of Starry Night assets to pay back – some Others On Twitter Was quick to point out.

“But it seemed to me that it was very unlikely to be a coincidence that it would happen just as the 3ac was going through the market,” added Water.

If the collection is sold, Starry Knight will likely suffer heavy losses, Waters noted. Most of the pieces were acquired during the crypto bull run last summer and autumn. The price has been credited since then, which means the fund will probably sell for a fraction of what it took to acquire its industry.

“I think if they set up the funds properly, 3AC could break down and Starry Night would remain unaffected as a solvent fund.” Tweeted by Kaprekar_Punk. “But their ongoing piece doesn’t look promising now.”

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