Three Arrows Dreams Of $100M NFT But It’s Actually Worth Less Than $5M

Three Arrows dreams of a $100 million NFT collection but the company declared bankruptcy now and the collection is worth less than $5 million so let’s have a closer look at today’s latest altcoin news.

Three Arrows dreams of an NFT collection launch but now, it seems that it is impossible after filing for bankruptcy. One investor wrote off the entire investment in the “Starry Night fund. During the height of last summer’s NFT mania, Three Arrows Capital which was a giant company that managed tens of billions of dollars, partnered with NFT collector vincent Van Dough to launch the “Starry Night Capital” as an NFT fund that aimed to raise $100 million.

With the crypto crash in 2022 that has Three Arrows Capital looking down the barrel of the court-ordered liquidation, the NFT fund is now worth a fraction of what it aimed for and was only the institutional investors that declared the write-off of the investment. While Three Arrows made an effort to obscure the relationship with the OTC trading desk, TPS capital in a complex paper trail, the relationship between Starry Night and Three Arrows was never much of a secret.

According to the estimates by DappRadar, using on-chain, Starry Night’s wallet had an estimated net worth of $4.3 million and the researcher from CoinMetrics Kyle Waters said that the fund spent $21 million which amassed the portfolio with plenty of blockbuster purchases in the millions of dollars and even at one time, Waters tweeted that it amounted for 10% of the NFT marketplace SuperRare volume. Now, the fund has been moved from its SuperRare platform to a new wallet which leads to speculation that the first stale could be in the works.

Amid the bull market hype, Three Arrows Capital and Starry Night got KR1 which is a UK-based digital asset fund to invest $5 million in the fund and as per the earnings release, the $5 million subscriptions into the NFT collection as done by purchasing one Class Starry Night shares in the British Virgin Islands-based company. In the recent earnings statement, KR1 said that it impaired the value of the NFT shares by 100% by writing off the value from its books. As bankruptcy proceedings started in BVI and Starry Night’s value is assessed, the question is how much these NFTs can be sold. T

The DAppRadar valuation of the portfolio is $4.2 million even that diminished level could not be reliable with the volatile markets still recovering. The data from NonFungible shows that in the past three months, the sales market for NFTs was obliterated compared to when Starry Night was amassing the collection last year.