A $100M NFT Collection Was Desired By Three Arrows. Instead, It's Only Worth $5 Million

A $100M NFT Collection Was Desired by Three Arrows. Instead, It’s Only Worth $5 Million

  • The business envisioned non-fungible tokens attracting institutional interest. However, the NFT collection is now worth a pittance as the company files for bankruptcy.
  • DappRadar’s calculations based on on-chain data put Starry Night’s wallet’s estimated net worth at $4.2 million.
  • Three Arrows and Starry Night convinced KR1, a U.K.-based listed digital assets fund, to invest $5 million in the fund during the bull market frenzy of the NFT rush last summer.

The Starry Night fund was launched at the height of last summer’s NFT mania. Three Arrows Capital, a behemoth managing tens of billions of dollars, partnered with pseudonymous non-fungible token collector Vincent Van Dough to launch the fund.

The fund aimed to raise $100 million, but it is now worth a fraction of that amount. The crypto-markets crash of 2022 has left Three Arrows looking down the barrel of a court-ordered liquidation. The only institutional investor in the Starry Night fund has declared a total write-off of its investment.

While Three Arrows made an effort to hide its ties with its OTC trading desk TPS Capital through a convoluted paper trail, its relationship with Starry Night has never been particularly hidden. Starry Night’s wallet has an estimated net worth of $4.2 million, according to calculations made by DappRadar using on-chain data.

Kyle Waters, a researcher at CoinMetrics, claimed that the fund invested $21 million in building this portfolio, with many major acquisitions costing millions of dollars or more. According to a tweet from Waters, it formerly accounted for 10% of SuperRare’s volume.

During last summer’s NFT boom, Three Arrows and Starry Night convinced KR1, a U.K.-based listed digital assets fund, to invest $5 million in the fund.

According to KR1’s June 30 earnings report, its $5 million subscription into Starry Night Capital was accomplished through the acquisition of “Class Starry Night Shares” in the British Virgin Islands-registered Three Arrows Fund Ltd. A search of company records in Singapore, the British Virgin Islands, and the Cayman Islands yielded no listings for an entity called Starry Night.

In a recent financial report, KR1 stated that it had impaired the value of these Starry Night Shares by 100 percent, thereby removing its value from its books. KR1’s representative declined to say further. The company’s stock, which is traded on the Aquis exchange, has dropped roughly 80% this year.

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Barry Pene is a stern blockchain research/copywriter. Barry has been trading cryptos since 2017 and has been invested in issues that would put the blockchain industry on the right pedestal. Barry's research expertise cuts across blockchain as a disruptive technology, DeFis, NFTs, Web3, and reduction of energy consumption levels of cryptocurrency mining.

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