Three Arrows Capital invested in Ethereum after its CEO criticised the cryptocurrency

Singapore-based venture fund Three Arrows Capital (3AC) bought during a market dip 91,477 ETH for about $400 million. Two weeks earlier the firm’s chief executive Su Zhu had criticised the cryptocurrency for its high fees.

On November 21, Su Zhu stated that he would abandon Ethereum, ‘despite having supported it in the past’. Newcomers cannot afford to use the blockchain because of the high transaction costs, he added.

From roughly that moment, to the wallet marked by Nansen as belonging to 3AC, about 156,400 ETH flowed in, most of which came after a sharp market correction on December 4.

Practically all of the coins were transferred from wallets on the exchanges Binance, FTX and Coinbase.

Zhu confirmed the transactions to journalist Colin Wu.

«Ethereum on Layer 1 remains unusable for beginners; show it to your grandmother if you don’t believe me. But I will try to participate in any panic dump, as I did this weekend. 100,000 ETH is dust, one way or another. There will be more», — wrote him.

After the critique, Zhu softened his stance, saying that ‘refusal is the wrong word’. The head of 3AC acknowledged that he had been rash and there are ‘excellent teams’ working on second-layer scaling solutions. He said he would like to see a roadmap for the first iteration of the network.

As reported in early December, Ethereum co-founder Vitalik Buterin published a ‘likely roadmap’ for the development of the mainnet.

Earlier he proposed a method to lower transaction costs for second-layer solutions.