Introduction
The cryptocurrency world is abuzz with the recent launch of Three Arrows Capital’s (3AC) meme fund and its associated token, $3AC. This analysis delves into the token’s distribution, presale dynamics, and the implications for investors. Based on multiple sources and on-chain data, we’ll explore the controversial aspects of this launch and what it means for the broader crypto ecosystem.
Table of Contents
- Launch Overview
- Presale Analysis
- Tokenomics Breakdown
- Insider Activity and Sniping
- Community Response and Risks
- Key Takeaways
- Conclusion
Launch Overview
Three days ago, 3AC launched a meme fund accompanied by the $3AC token. The launch immediately caught the attention of blockchain analysts and crypto enthusiasts. Notably, @bubblemaps identified a concerning concentration of token supply:
This revelation prompted further investigation into the token’s distribution and the motivations behind 3AC’s latest venture.
Presale Analysis
On-chain analysis revealed that the 3AC team conducted a private presale, raising approximately 750 ETH (~$2M) from around 25 investors. The participants in this presale were closely associated with several prominent crypto projects and personalities, including:
- bobocoineth team
- Milady team
- izebel_eth
- maybectrlfreak & Pandora_ERC404
- OXFUNHQ teams
This selective group of investors raises questions about the inclusivity and fairness of the token distribution from the outset.
Tokenomics Breakdown
The tokenomics of $3AC reveal a highly concentrated distribution that favors insiders and the team:
- 8% community ownership
- 8% allocated to liquidity
- 84% controlled by team & insiders
Additionally, the token implements a 1% tax on buys and sells, with proceeds directed to a tax wallet (0x9B427aC936B8B25266Cd9DA54C667A8ba2353C5B). This wallet has already accumulated over 7% of the total supply.
The stark imbalance in token distribution raises significant concerns about centralization and potential market manipulation.
Insider Activity and Sniping
The launch of $3AC was marked by suspicious activity that suggests insider knowledge and potential market manipulation:
- The 3AC team split the presale proceeds, allocating 317 ETH ($850K) for Uniswap V2 liquidity (locked for a year) and dispersing 336 ETH ($880K) across eight team-controlled wallets.
- These team wallets sniped the $3AC listing early, resulting in gains between 10x and 30x their initial investment.
- An external sniper, possibly tipped off, used @BananaGunBot to acquire $320K worth of $3AC, which peaked at $1.23M before a partial selloff and rebuy.
This behavior raises ethical concerns and questions about fair market practices in the cryptocurrency space.
Community Response and Risks
The crypto community’s response to the $3AC launch has been mixed, with many expressing skepticism about the token’s distribution and the motivations behind the project. Key concerns include:
- The extreme concentration of tokens in insider wallets
- The potential for market manipulation due to the low circulating supply
- The reputational risks associated with 3AC’s previous collapse
Investors are cautioned to consider these factors carefully before engaging with the $3AC token.
Key Takeaways
- The $3AC token launch demonstrates a highly concentrated distribution favoring insiders and team members.
- On-chain analysis reveals suspicious sniping activity and potential insider trading during the launch.
- The tokenomics, with 84% controlled by insiders, present significant risks for retail investors.
- The launch raises questions about the ethics and motivations behind 3AC’s return to the crypto scene.
Conclusion
The launch of 3AC’s meme fund and $3AC token serves as a stark reminder of the risks and potential manipulation in the cryptocurrency market. While the project has generated significant buzz, the highly concentrated token distribution and suspicious launch activities should give investors pause. As the crypto community continues to debate the merits and risks of such ventures, it’s crucial for participants to conduct thorough due diligence and approach high-risk investments with caution.
What are your thoughts on 3AC’s latest venture? Do you see it as a legitimate opportunity or a cautionary tale for the crypto industry? Share your perspectives in the comments below.
