Three Arrows Wanted a $100M NFT Collection. Instead, It’s Worth Less Than $5M

But in the crypto-markets wreckage of 2022 that has Three Arrows looking down the barrel of a court-ordered liquidation, the Starry Night fund is worth a fraction of what it aimed for and its only institutional investor has declared a total write-off of its investment.

According to a June 30 earnings release from KR1, its $5 million subscription into Starry Night Capital was done via a purchase of “Class Starry Night Shares” in British Virgin Islands-registered Three Arrows Fund Ltd. A search of corporate registries in Singapore, BVI and the Cayman Islands showed no results for an entity named Starry Night.

In a recent earnings statement, KR1 said it had impaired the value of these Starry Night Shares by 100%, writing off its value entirely from its books. A spokesperson for KR1 declined to comment further. The company’s stock, listed on the Aquis exchange, has declined by nearly 80% on the year.

As bankruptcy proceedings begin in BVI and Starry Night’s value is assessed, the question is for how much these NFTs can be sold.

The DappRadar valuation of the Starry Night portfolio at $4.2 million notwithstanding, even that diminished level might not be reliable – with volatile cryptocurrency markets still recovering from their recent crash.

But those were bull market times. Fast forward to now, and the primary and secondary markets have flipped in prominence. The secondary market is down to around 134,000 weekly sales while the primary market has 60,000. That suggests a grand unloading.

A date has not been set by the court for a bankruptcy hearing for Three Arrows, according to court documents retrieved by CoinDesk.