Taiwan-based liquidity provider, WOO Network, has reached a significant agreement with the liquidators of Three Arrows Capital (3AC) to buy back 20 million WOO Tokens and cancel shares purchased by the bankrupt hedge fund. As part of the agreement, the repurchased tokens have been sent to a burn address, ensuring they are permanently removed from circulation. The move marks a major step for WOO Network in regaining control of its financial future and moving forward from the fallout of 3AC’s bankruptcy.
Background: 3AC’s Bankruptcy and WOO Network’s Recovery
The bankruptcy of Three Arrows Capital in July 2021 was caused by a financial crisis resulting from excessive leverage and the collapse of the $60 billion Terra Luna ecosystem, in which 3AC had significant investments. In an effort to eliminate uncertainty, WOO Network has repurchased shares and tokens that were initially sold to 3AC during its Series A fundraising. This allows WOO Network to reclaim stability and work towards rebuilding amid the volatile cryptocurrency landscape.
Tokens Sent to Burn Address
Along with repurchasing 20 million WOO Tokens, WOO Network has sent the tokens to a burn address. This ensures that the repurchased tokens are permanently removed from circulation and inaccessible. The total value of the tokens repurchased amounts to approximately $3.4 million based on current market prices.
Price Resilience and Future Outlook
Despite market turbulence and a 50% decrease in the WOO token’s price over the past six months, the token remains 10% higher than its value at the same time last year. Currently trading at around $0.1673, WOO Network is focused on moving forward and leaving the disruptive impact of 3AC’s bankruptcy behind. The repurchase of tokens and shares solidifies WOO Network’s commitment to securing its financial future and rebuilding its position in the cryptocurrency market.
Frequently Asked Questions
1. What is WOO Network?
WOO Network is a Taiwan-based liquidity provider in the cryptocurrency industry. It offers services related to liquidity provision and has recently made headlines for its recovery efforts after 3AC’s bankruptcy.
2. What caused Three Arrows Capital’s bankruptcy?
Three Arrows Capital filed for bankruptcy in July 2021 due to a financial crisis caused by excessive leverage and the collapse of the Terra Luna ecosystem. These factors led to significant losses for the hedge fund.
3. How much did WOO Network raise during its Series A fundraise?
WOO Network raised $30 million during its Series A fundraise, although the specific investment amount from Three Arrows Capital remains undisclosed.
4. What is a burn address?
A burn address is an address in the cryptocurrency ecosystem where tokens sent to it are permanently removed from circulation and rendered inaccessible. This is often done to reduce the total supply of a token and increase its scarcity.
5. How has the WOO token performed in the market?
Despite recent market turbulence, the WOO token has remained relatively resilient. While its price has halved over the past six months, it is still 10% higher compared to the same time last year. The token is currently trading at around $0.1673.