Three Arrows Capital’s Supposed Spin-Off Goes All in On Pump and Dumps

The supposed Three Arrows Capital (3AC) spinoff, touted “Three Arrowz Capitel” has poured an undisclosed amount into liquid memecoins via OTC transactions.

Three Arrowz has $565,000 in assets under management, with $120,000 in Ethereum-based tokens and $445,000 in Solana-based tokens. Its top holdings are RAWR and RETARDIO, according to the wallets they have disclosed, threearrowzcapitel.sol and threearrowzcapitel.eth.

Three Arrowz Capitell is a rip-off of the disgraced Three Arrows Capital, the $10 billion fund run by Su Zhu and Kyle Davies, which rose to fame in the 2021 crypto bull run by predicting the industry was in an ever-expanding “supercycle.” The fund then collapsed, while Su and Davies were charged with failing to cooperate with liquidators.

Three Arrowz’s X profile says, “Three Arrowz Capitel is legal and solvent and was founded by Su in 2024. We also let Kyle trade sometimes if that's ok.” Su and Davies have Three Arrowz’s X handle on their bios and often re-post the fund’s content. But beyond that, the connection to the investors is tenuous. Three Arrowz’s website says it is “NOT founded by Su Zhu and Kyle Davies!!!”

Three Arrowz Capitel did not respond to the Defiant’s request for comment.

90% Down

Three Arrowz Capitel is a meme within itself, with its own official $3AC meme coin that trades at a $5 million market capitalization. The duo mostly focuses on niche micro-cap tokens, which are often illiquid.

The group's most recent acquisitions include 1% of the EGIRL token, which has been mostly dead and is down 90% from its all-time high set in March. Other recent purchases include 1% of the BALL token, which is down 50% from its purchase announcement, and MSPC, which is down 70% from its announcement.

Considering the low liquidity and tiny market capitalization of Three Arrowz Capitel purchases, nearly every acquisition announcement results in an immediate pump, and eventual dump into irrelevancy. However, some of the more established tokens, such as $RETARDIO, have held strong. Memecoin teams can offer and apply for OTC acquisitions through Three Arrowz website.

Considering Three Arrowz’s questionable strategy and infamous past, many on Crypto Twitter have called out the “fund” for its alleged pump and dumps.

3AC was a hedge fund based out of Singapore and run by Zhu and Davies, which managed nearly $10 billion in assets under management (AUM) in 2021. The fund was forced to liquidate and declare bankruptcy upon the collapse of Terra LUNA and its stablecoin UST.

After the fund announced its acquisition of the $CHAUVAI token, which is now down 90% to a $30,000 market capitalization, crypto influencer Trading Axe was quick to point out, “[It’s] not like you're using the large following behind the names of the ‘fund’ to influence prices or anything. We're all 10 years old and can't tell this is a sophisticated pump and dump.”