Crypto Hedge Fund 3AC Falls into Liquidation

    Image copyright: Reuters [via The Guardian]

    The Spin

    Narrative A

    We are still in the early stages of "Crypto Winter." The total market value of all crypto assets has shrunk to under $1T - from a high of over $3T just a few months ago. Many lower-level exchanges are already insolvent at these prices, they just haven't admitted it yet. As in most cases of financial collapse, the burden will fall most heavily on retail investors.

    Narrative B

    Some players in the crypto space were clearly over-leveraged and under-capitalized, but one person's tragedy is another's profit. Investment banking giant Goldman Sachs has been in talks with investors to raise capital for a fund to snatch up distressed crypto assets at a discount. The smart money sees this crisis as an opportunity.

    Metaculus Prediction


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