The price of Three Arrows Capital's newly launched memecoin 3AC has now dropped 50% since its launch four days ago.
Three Arrows Capital's memecoin 3AC continues to fall after discovering that the team owns 84% of the total supply. Photo: Blockworks
As reported by Coin68, the two infamous founders of the once-famous Three Arrows Capital investment fund, Zhu Su and Kyle Davies, last week launched Three Arrowz Capitel (3AC) , a memecoin branded by the fund.
After attracting the attention of a segment of investors in the cryptocurrency market, helping 3AC's Capital increase from 0 to 170 million USD just a few hours after its launch, the price of memecoin in recent days has continuously decreased and is constantly searching for the Dip.
The reason is because of the constant insider trading allegations that have been brought up and aimed at this memecoin, claiming that the team behind 3AC has intentionally controlled the supply to manipulate the price.
— 0xLouisT (@0xLouisT) September 30, 2024
On October 1, the account 0xLouisT posted an on-chain analysis, claiming that the majority of the total supply of memecoin 3AC was manipulated by the team behind it.
Specifically, before the launch, Three Arrowz Capital sold 3AC Pre-Sale to about 25 investors to collect 750 ETH. This amount was then Chia in half, half locked into 3AC's pool on Uniswap to provide liquidation for memecoin, the rest was Chia among wallets to buy 3AC at a low price. According to 0xLouisT, these wallets are recording profits up to dozens of times because they bought the Token in advance.
Not stopping there, Three Arrowz Capital also allocates up to 50% of the total supply of memecoin to an internal wallet, as well as imposes a 1% tax on every purchase and sale transaction to collect an additional 7% of the total supply as of the time of analysis.
In conclusion, according to 0xLouisT's analysis, only 8% of the total 3AC supply is held by the community, the remaining 8% is swap liquidation , and 84% is under the control of the project wallet and internal wallets associated with Three Arrowz Capitel.
3AC memecoin supply allocation. Source: 0xLouisT on X (Twitter)
0xLouisT warned those who want to trade this memecoin to learn clearly about the supply and allocation rate of 3AC before investing, while also recalling the "scandalous" past of Zhu Su and Kyle Davies.
3AC is currently down 15% from 24 hours ago, with a market Capital of only $43 million, “evaporating” half of what it was 4 days ago. Three Arrows Capital’s Memecoin has been listed and supported for trading on several CEX exchanges such as MEXC and Gate.io
Memecoin 3AC price movement at 09:20 AM on 10/02/2024. Source: DEXTools
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