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- 🥛 3AC: The story of yachts, bungalows, and a 1,100 page report
🥛 3AC: The story of yachts, bungalows, and a 1,100 page report
Ben Levy & Shaan Puri
July 19, 2022
GM. This is the Milk Road, the #1 doctor-recommended source for your daily dose of crypto.
Here's the good stuff for today:
3AC court filings are leaked
XRP founder walks away with over $3b
Meme of the day
3AC COURT FILINGS ARE LEAKED
3AC - the multibillion-dollar hedge fund that went to zero last month is now leaking data like the titanic.
The court filings came out today. It’s a 1,100-page PDF - but you know the rules:
Rule #7: Never force a fellow roadie to read a PDF
Here are 5 ridiculous things we found:
They owe 27 lenders $3.5B (that’s a lotta debt)
One founder’s WIFE says the company owes her $66M
They lost $700M in Luna’s collapse (they make my $1M loss look like a box of tic-tacs)
They spent $80M+ buying two bungalows (aka mansions) and a yacht. Because ya know, one bungalow is for chumps.
They would borrow money from one lender, and use it to pay off another. They had such a big reputation (and paid so much in interest to each lender) that nobody wanted to question them.
The cherry on top? Su Zhu (the founder) claims his own 3AC owes him $5m.
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AMAZON.ETH HAS A $1M BID
We might be in a down market, but ENS domains have been on a tear. They’ve been a top 10 collection on OpenSea and have seen ~$20m in sales volume over the last month.
And now amazon.eth has a $1m bid.
Bids aren't always legit. But if it did go through, it would be a 21x flip in just 5 months. Sheesh!
RIPPLE'S FOUNDER WALKS AWAY WITH $3B+
XRP is the 7th largest cryptocurrency with a market cap of $17b. It’s also widely mocked as a ‘sh*tcoin’ by most serious crypto folks.
Why?
They created 100B tokens on day 1 (no mining) and gave themselves 60%+ of it
They became paper billionaires, and some of the wealthiest people in the world when crypto took off, despite Ripple having ~no traction
One of the founders left the project, took 9 Billion XRP (18% of total supply) with him, and has been trying to sell as much as he can for the past 8 years.
His selling was putting too much pressure on the price. So they negotiated a gentleman’s agreement:
Jed could only sell a certain amount each week. The amount would be based on the daily volume for that week.
For the last 8 years, “tacostand” (the name of Jed's wallet) has slowly been selling off 9 billion tokens. And he just sold his last batch.
The saga is officially over. Jed makes $3B+, and XRP no longer has to deal with his massive sell pressure.
MEME OF THE DAY
That's all for today folks. See ya tomorrow!
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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.
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