When you buy through affiliate links in our content, we may earn a commission at no extra cost to you. Learn 
3AC, an Ethereum-based memecoin inspired by the infamous crypto hedge fund Three Arrows Capital, has caught the investor eye since debuting on September 27, 2024.
While co-founders of the bankrupt firm Three Arrows Capital have actively promoted the 3AC token on X, there is still a lot to be known about the team behind the memecoin.
If you are interested in “getting in early” on this six-day-old memecoin, you may want to read this article first, as there are a lot of red flags that crypto investors need to know about.
What is 3AC memecoin, and what are the risks involved? Let’s find out.
What is 3AC Memecoin?
Three Arrowz Capitel (3AC) is a memecoin on the Ethereum blockchain. The memecoin is inspired by Three Arrows Capital, a crypto hedge fund that filed for bankruptcy following the collapse of the Terra blockchain’s LUNA and UST tokens in 2022.
The token debuted at the price of $0.054 on Ethereum-based decentralized exchange Uniswap (UNI) on September 27, 2024.
The memecoin project purchased crypto wallet usernames – threearrowzcapitel.eth and threearrowzcapitel.sol – within two days of its launch with the intention of creating an on-chain memecoin investment fund.
On September 30, 2024, Three Arrowz Capitel made its first two on-chain memecoin investments in Solana-based RETARDIO and Ethereum-based Mog Coin (MOG).
Where we're going you won't need risk management ⬆️ pic.twitter.com/cKeD6a3i84
— Three Arrowz Capitel (@threearrowzcap) September 29, 2024
Who Created Three Arrowz Capitel 3AC?
There is no public information about the memecoin’s promoters and team on Three Arrowz Capitel’s official website.
However, Three Arrows Capital co-founders Su Zhu and Kyle Davis have actively promoted the memecoin on X.
In an interview with crypto influencer rasmr, Zhu said about 3AC memecoin project:
“It’s going to be big. We’re gonna run it back. Select investments into select projects.”
When rasmr joked if they would buy LUNA – Terra blockchain’s native token that Three Arrows Capital had invested in before it plunged from a peak market cap of over $41 billion to its current market cap of about $550 million – Davis said:
“Luna was actually a great trade until it wasn’t right? It’s gotta be memes right? That’s the meta this time.”
stalking Su Zhu for the TRUTH about 3AC pic.twitter.com/1u1vmi8lS4
— rasmr (@rasmr_eth) September 30, 2024
Risks of Investing in 3AC Memecoin
The biggest risk of investing in the 3AC memecoin is the high concentration of token supply among its promoters and insiders.
On September 28, 2024, on-chain data analytics firm Bubblemaps reported that 80% of 3AC’s total supply was held in a single cluster of connected wallets.
A cluster of connected wallets can indicate a single owner or entity who has distributed their token holdings across multiple wallets. It can also indicate a presale.
According to pseudonymous X user 0xLouisT, investment partner at L1D, onchain investigation revealed that 3AC held a private presale among 25 investors.
0xLouisT reported several other red flags related to the 3AC token, which included:
- A “significant chunk” of 3AC supply on Uniswap was sniped early by eight wallets.
- 3AC imposes a 1% tax on each buy and sell, which is funneled to a “tax wallet.” As of October 1, 2024, the tax wallet held over 7% of 3AC’s total supply.
0xLouisT added that 84% of 3AC’s total supply was held by “team and insiders”, 8% was held by the community, and 8% was in Uniswap v2 for liquidity.
“At this point, it should be clear that buying into this token means placing your trust in a small group of insiders who control over 84% of the supply. Some might even label it a cabal token. The choice is yours: decide if you want to play that game,” said 0xLouisT.
“To conclude: the real meme here? The token distribution. The strongest fundamental? Maybe those children’s drawings. Are these ex-billionaires really running it back?” added 0xLouisT.
80% of the supply of $3AC in one cluster
how about not? https://t.co/6cu26JZCBl pic.twitter.com/qVeZ9HURG6
— Bubblemaps (@bubblemaps) September 27, 2024
Tokenomics of 3AC Memecoin
Here are the tokenomics and other important market details of the 3AC token:
- 3AC has a total supply of 888,888,888 tokens.
- 3AC had 1,272 unique wallet addresses holding the token onchain, as of October 2, 2024.
- The token was trading around $0.051 at the time of writing.
- 3AC was the 2814th largest crypto in the world, with a market cap of about $48 million.
- 3AC memecoin ranked 797 in terms of 24-hour trade volume, as of October 2, 2024.
What Happened with 3AC (The Hedge Fund)?
Now is a good time to look back at the summer of 2022 and discuss the Terra blockchain collapse, which brought on a crypto winter and sent Bitcoin to a low of about $16,000 by December 2022.
Three Arrows Capital was a crypto hedge fund headquartered in Singapore. At its peak, the firm managed over $10 billion in crypto assets.
The company invested in popular crypto projects such as Aave (AAVE), Avalanche (AVAX), Ethereum (ETH) and Solana (SOL), among others. In February 2022, Three Arrows Capital invested $200 million in Terra’s LUNA token.
Things went south for Three Arrows Capital, when Terra’s algorithmic stablecoin UST saw capital flight as investors started getting concerned about UST’s ability to maintain its dollar peg. In turn, the LUNA token price began to plunge due to its close relationship with UST.
In the space of over two months, LUNA’s price dropped from a record high of $119 hit in April 2022 to about $0.0001 by May 2022. Soon, a crypto winter followed as Bitcoin, Ether and altcoins saw their prices plunge.
In July 2022, Three Arrows Capital filed for bankruptcy after seeing its crypto investments drop in value. It was revealed that the firm had borrowed large amounts of funds from lenders, including BlockFi, Voyager, and Celsius.
Where to Buy 3AC Memecoin?
You can buy 3AC memecoin on Uniswap v2. 3AC has one Uniswap liquidity pool made up of 3AC and WETH tokens.
As of October 2, 2024, 3AC memecoin can be bought in a handful of centralized exchanges including Gate.io, MEXC, Hibt, KCEX and SuperEx.
Always check the token address to avoid investing in the wrong token. You can verify the 3AC memecoin on Etherscan.
Supercycle (real) https://t.co/9Rb51cJpFi
— Three Arrowz Capitel (@threearrowzcap) September 28, 2024
The Bottom Line
Investing in newly-created memecoins is very risky. There is a high chance of rugpulls and scams in unverified and unknown crypto projects. Additionally, most memecoins enjoy a short period of fame and may become irrelevant after the market loses interest in them.
Always do your own research before investing, and note that past performance is no guarantee of future results. This article should not be considered investment advice and is for information purposes only.
