The brand of Sanjian Capital is well-known in the market because of the high-profile and radical speech style of the founder Zhu Su. The first time many people heard of its name was the "Ethereum Controversy" in November last year.
At that time, Zhu Su raged against Ethereum, saying that the high gas fee of Ethereum was no longer suitable for new players; developers in the Ethereum community had become rich and forgot their original intentions, and needed a bear market to cool down, or establish new real support users elsewhere Blockchain, and made it clear that he was a supporter of Ethereum, but now decided to abandon the idea of Ethereum.
As one of the biggest beneficiaries of the ecological explosion of Ethereum, Three Arrows Capital’s open boycott of Ethereum was counterattacked by members of the Ethereum community including V God. Finally, Zhu Su Furuan issued an apology, announcing the end of the matter.
In fact, Zhu Su’s difficulty in making Ethereum difficult is not aimless. There are two core reasons: one is that Three Arrows Capital bet on Ethereum and exchanged SOL for ETH before the outbreak of the Solana ecology, and the income gap between the two was huge; Three Arrows Capital invested heavily in public chain ecological projects such as Avalanche and Solana, and Zhu Su’s related tweets also supported Avalanche in a fancy way, attracting Ethereum community builders and users to migrate to the new ecology, which is more in line with its own interests.
However, just half a month after the end of the debate, Sanjian once again "rebelled". In early December, the wallet address marked as Three Arrows Capital transferred more than 100,000 ETH (about 400 million U.S. dollars) from multiple trading platform addresses for several days. In response to this, Zhu Su responded on Twitter that the 100,000 ETH he bought was "insignificant" and that he would buy more ETH in the future; buy. Zhu Su's behavior of disliking Ethereum on the front foot and increasing his position on the back foot was ridiculed by the crowd on social media.
The three blows suffered by Sanjian Capital are: 1. Investment failure 2. Creditors forced debts 3. Insolvency The following are the various projects Sanjian invested in:
In the following months, Sanjian Capital did fulfill its promise and continued to increase its position in ETH, as if it had "infinite bullets", and gradually became one of the largest currency holding institutions on Ethereum. At that time, the market was still curious about where the money for Sanjian to increase its position came from. Thinking about it now, it was probably a revolving mortgage loan that put leverage on itself, which also paved the way for today's rout.
The core reason for the collapse of Sanjian Capital is that Zhu Su misjudged the market and was overly optimistic about the trend of encrypted finance and Bitcoin, so that he made mistakes in his decision-making and continued to increase leverage. , was liquidated.
In an interview with the UpOnly podcast last year, Zhu Su said that if the market value of bitcoin reached the level of gold, the price of bitcoin could reach as high as $2.5 million per coin. At the beginning of this year, Zhu Su tweeted, "I will only make one prediction for 2022, that is, at least 10 nation-states will make BTC a legal tender." In addition, Zhu Su also proposed the concept of "super cycle", He believes that the crypto market will gradually rise in this market cycle, avoiding a prolonged bear market.
However, this year, as the central banks of various countries raise interest rates and curb inflation, the global financial market has continued to decline in the past few months, and encrypted finance has been difficult to survive alone. Bitcoin continued to fall and hit a 19-month low. Zhu Su's "super cycle" has also become made a joke. In a tweet at the end of May, Zhu Su wrote: "Sadly, the super cycle price theory is wrong, but cryptocurrencies will still thrive and change the world every day."
Since June this year, Zhu Su, who has always been high-profile, has become "silent" and has begun to reduce his comments on currencies other than Bitcoin; even when Bitcoin is involved, he lists favorable data to recharge the market's faith. In a tweet, he wrote "My team told me that the next 20,000 tweets should only be Bitcoin." Moreover, he also deleted ETH, AVAX, LUNA, SOL, NEAR, MINA and other words from his Twitter profile.
Of course, in addition to decision-making mistakes, Sanjian also seems to lack some "luck", catching up with the biggest crash and defeat in the history of encryption-Terra & UST Thunderstorm. In February of this year, Terraform Labs established LFG to support the UST peg and successfully raised one billion US dollars, led by Jump Capital and Three Arrows Capital; with the thunderstorm of UST and the plunge of Terra, LFG’s loss rate exceeded 90%, and Sanjian also lost heavy.
This thunderstorm undoubtedly greatly weakened Sanjian Capital's ability to resist risks, and it was completely exposed to the risk of the overall downward trend of the market.