WOO Network, a Taiwan-based liquidity provider for the global crypto industry, has announced that it has reached an agreement with Teneo, the liquidator of the bankrupt hedge fund Three Arrows Capital (3AC), to buy back its shares and tokens.
According to a press release, WOO Network has canceled the shares that 3AC acquired in its Series A funding round in 2021, and has repurchased 20 million WOO tokens from 3AC’s estate. The tokens, worth about $3.4 million at the current market price, have been sent to a burn address, effectively reducing the total supply of WOO tokens.
WOO Network Regains Control of its Tokens
WOO Network raised $30 million in its Series A, led by prominent crypto investors such as Alameda Research, CMS Holdings, and Hashed. The amount of investment from 3AC was not disclosed.
3AC was one of the largest and most influential cryptocurrency investment funds, with over $1 billion in assets under management at its peak. However, the fund collapsed in July 2021 after suffering massive losses from its leveraged bets on the Terra Luna ecosystem, which also crashed due to a technical glitch.
WOO Network’s co-founder Jack Tan said that the deal with Teneo was aimed at clearing the uncertainty related to 3AC from the WOO ecosystem. He added that WOO Network was looking forward to executing its mission without further distractions from the 3AC fallout.
WOO Network provides liquidity solutions for centralized and decentralized exchanges, as well as institutional and retail traders. It also operates a decentralized exchange (DEX) aggregator and a cross-chain bridge. The WOO token is used for governance, staking, and fee discounts on the platform.
The WOO token is currently trading at around $0.17, down by 50% from its all-time high of $0.34 in May 2021. However, it is still up by 10% from its price a year ago.
The crypto industry has faced several challenges in the past year, including regulatory crackdowns, market volatility, and security breaches. Tan said that a thorough cleansing of the system had taken place and that he was optimistic about the future of crypto.