The cryptocurrency crash has triggered a string of retail and institutional sell-outs. ThreeArrowsCapital, a singapore-based cryptocurrency hedge fund with $10 billion in assets, faced a liquidity crisis and went into liquidation.
A few days ago, a 200, 000 Ethereum address is also on the verge of bursting positions. This news caused great concern in the market, and the address of the holder directly pointed to CAI Wensheng's long collar capital.
CAI denied holding the address, saying it was a friend's address. As an early bitcoin holder and industry investor, CAI wensheng's Meitu was the first listed company in Hong Kong to announce its cryptocurrency holdings, but the us $100 million investment in Bitcoin and Ethereum has been halved by the sell-off.
More than 200,000 Ethereum narrowly escaped death
According to Hexun.com, CAI posted a message on his wechat moments on June 20: "If things don't turn out the way you want them to, I believe god has made other arrangements!"
A few words, CAI Wensheng 200,000 Ethereum will burst the rumors in the currency circle continued to ferment. However, blockchain daily reporter in CAI Wensheng's circle of friends has not seen this dynamic.
Back on June 15, LarryCermak, vice president of research at TheBlock, posted on social media that Nansen had removed the address
0 x4093fbe60ab50ab79a5bd32fa2adec255372f80e ThreeArrowsCapital (three arrows capital).
It is worth noting that at that time 212,000 ETH were pledged at the address under the de-centring agreement Aave with a clearing price of around $1,020.
On the same day, crypto KOL blogger Chris_Defi posted on social media that by tracing the transaction record of the address on February 26, 2021, the above address may be the coin holding address of Longling Capital founded by CAI Wensheng.
According to PeckShield alert, the above address converted 45,000 ethereum coins into USDCS in the early hours of June 18 to repay debts on Aave, reducing the Ethereum clearing line to $895.
On June 18, ethereum fell below $900, but the address did not explode. As of now, the address still has 152,105 Ethereum coins on Aave.
"The price quoted by AAVE on the chain did not reach the burst price, a little less." A person in the coin circle explained to blockchain Daily reporter that although the price of Ethereum on Binance and other major exchanges is below $895, Aave only uses Chainlink price to be fed, ChainlinkUSDT/ETH price needs to reach 0.0011168ETH before liquidation. In the early hours of The 18th, the price of prognosticators was about 1.1% below that level.
At $1,000 a unit, 200,000 Ethereum is about $200 million. The address did not explode in the end, which could be described as a "narrow escape".
According to Hexun, CAI denied ownership of the wallet's address. "This is my friend's address, super Ethereum believer," he said in a comment. When the highest price of Eth is 4800, there are 280,000 Eth, at that time there is basically no leverage, choose to fall continuously fill positions... As my friend said, if you really liquidate your position, you can also contribute to cryptocurrency."
CAI Wensheng body title is numerous, "the king of domain name", "the king of webmaster", "the most understand the angel investors of the start-up". Now, as the chairman of Meitu, I am one of the early VC's who entered blockchain.
In 2014, CAI wensheng's Longling Capital invested in cryptocurrency exchange OKcoin, according to public information. Little was known about him in blockchain until 2018, when blockchain ICOs (initial coin offerings) became popular again, and he served as a rotating group leader in the "Sleepless Blockchain at three o 'clock" group.
On May 22, 2018, in the "three o 'clock Mars Finance Founding Learning Group Wang Feng ten Questions", CAI Wensheng revealed that he invested in nearly a dozen blockchain projects. For example, The Ontology of Theta, Ontology (ONT), Cortex (CTXC), ArcBlock (ABT), Zipper (ZIP), YeeCall (YEE), Dxchain (DXC), Charter (CAF), etc. There are a lot of returns, but also a loss of money.
At the same time, CAI wensheng announced that he had 10,000 bitcoins.
Four years have passed, and the cryptocurrency market has gone through several bulls and bears, with more and more traditional investment institutions and companies entering the blockchain industry. Even if the address at the beginning of 0x4093 does not belong to CAI wensheng and Longling Capital, it is not known how many bitcoins and Ethereum CAI still holds.
Meitu is losing nearly $50 million a year
CAI Wensheng not only his own end to play currency, his meitu company has become a rare "crab" listed companies in Hong Kong.
In January 2018, Meitu officially released a white paper on blockchain solutions. According to the white paper, meitu will build an ecosystem based on blockchain and AI technology to create a decentralized, secure and encrypted identity passport for users: MeituIntelligentPassport, or MIP for short. Users are able to perform decentralized KYC user authentication on the blockchain using face features as token keys.
In early 2018, Meitu, which said it would not do ICOs (initial coin offerings), was named as the issuer of BEC tokens.
Two months after the launch of BEC tokens, there were abnormal transactions. Some hackers generated tokens indefinitely through the batch transfer method of contract, which triggered a wave of selling, and the currency price nearly dropped to zero.
In response, Meitu issued a notice that Meitu is not issued by meitu, but an independent third-party organization, but Meitu has overseas cooperation with it.
Since then, meitu has heard little about blockchain. Until March 2021, Meitu company released and announced that 15,000 Ether coins and 379.1214267 bitcoins were purchased in the open market on March 5, 2021, with a total consideration of about 22.1 million DOLLARS and 17.9 million dollars respectively, a total of 40 million dollars.
Later, CAI Wensheng, chairman of Meitu, posted in moments that "Meitu continues to lay out blockchain, and this purchase of ETH and BTC digital currency serves as a reserve of value for the long-term development of blockchain strategy."
"Someone has to be the first to eat crab," he added. This is the first hong Kong-listed company to purchase BTC digital currency, and the first listed company in the world to use ETH Ethereum as a currency value reserve."
Since then, Meitu has continued to increase its cryptocurrency holdings. According to public information, Meitu purchased cryptocurrencies in three times successively through its subsidiary MiracleVision and its subsidiary Meitu Hong Kong. The total consideration of bitcoin and Ethereum was 49.5 million US dollars and 50.5 million US dollars respectively, totaling 100 million US dollars. The average price was 52,000 US dollars and 1,629 US dollars respectively.
Meitu's investment would have been a big loss had it not been for the sell-off as the cryptocurrency decline accelerated.
Based on bitcoin's current price of about $21,000, Meitu's 940.89 bitcoins, with a market value of about $19 million, represent a 61% loss. Based on ethereum at about $1,150, Meitu's 31,000 Ethereum holdings have a market value of about $32 million, a 35% loss.
All told, the bitcoin and Ethereum that Meitu bought for $100 million in the first half of last year have now halved in value to just $52 million.
Block chain Daily reporter to Meitu company asked for an interview, the company responded that everything is based on company announcements.