Crypto Exchange WOO Network Set to Sever Ties with Three Arrows Capital
Crypto exchange WOO Network has reached a settlement to buy back shares and tokens previously acquired by bankrupt hedge fund Three Arrows Capital. The agreement, announced in an October 11 blog post, involves WOO purchasing over 20 million WOO tokens and additional shares acquired by the hedge fund during WOO’s series A funding round in November 2021. This move will sever all remaining ties between WOO and the collapsed hedge fund, providing clarity for the WOO ecosystem. The repurchase of shares and tokens is being done at an attractive discount.
Settlement Details
As part of the settlement, WOO will cancel Three Arrows Capital’s shares and increase the ownership of other shareholders proportionally. Additionally, the 20 million repurchased tokens will be sent to a burn address, effectively removing them from circulation forever. This strategic move aims to rebuild and move forward after a challenging period in the industry.
Background on Three Arrows Capital
In 2021, Three Arrows Capital was the largest investor in WOO’s fundraising round, acquiring 25 million WOO tokens and equity in the crypto exchange. However, the hedge fund faced financial difficulties and collapsed in July 2022 due to high-risk bets on Do Kwon’s Terra Money ecosystem. The recent repurchasing agreement follows co-founder Su Zhu’s arrest in Singapore for non-compliance with a court order.
Hot Take: A Fresh Start for WOO Network
The settlement between WOO Network and Three Arrows Capital marks a significant step towards a fresh start for WOO. By severing ties with the bankrupt hedge fund, WOO can now focus on rebuilding its ecosystem and collaborating with its partners and team. The repurchase of shares and tokens at an attractive discount not only provides financial benefits but also removes any lingering uncertainty. With the removal of the repurchased tokens from circulation, WOO Network aims to streamline its tokenomics and strengthen its position in the crypto industry.
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