NFT Artwork Seized From Three Arrows Capital Fetches $10.9 Million in Sotheby's Auction

In a recent auction held by Sotheby's, digital collectibles owned by Three Arrows Capital (3AC) were sold for a total of $10.9 million. This event sheds light on the bankruptcy case involving 3AC and showcases the value of non-fungible tokens (NFTs) in the art market.

Three Arrows Capital and NFT Acquisition

Three Arrows Capital, a prominent crypto firm, filed for Chapter 11 bankruptcy in 2022 following the collapse of Luna and TerraUSD cryptocurrencies. Prior to their bankruptcy filing, 3AC had acquired a collection of NFTs. NFTs are unique digital assets that represent ownership of virtual or physical content such as artwork, videos, or text fragments.

Auction Plans and Highlights

To recover funds for creditors, it was announced in February that certain NFTs previously owned by Three Arrows Capital would be put up for sale. Sotheby's, a renowned auction house, disclosed plans for the auction in April.

The collection of NFTs seized from the defunct crypto hedge fund included 37 artworks by Canadian artist Dimitri Cherniak. Notably, one of the most valuable NFTs in the collection was "The Goose," which sold for $6.2 million. This particular NFT, featured as Ringer #879, was part of a series of 1,000 computer-generated abstract images.

In addition to "The Goose," seven other NFTs owned by 3AC were sold in May, fetching a remarkable $2.5 million at the Sotheby's auction. These sales reflect a growing interest in NFTs among collectors.

Physical Copies and NFT Market Trends

Although NFTs exist in digital form and are publicly viewable online, most of the items in the auction were accompanied by physical print copies. Buyers had the option to display these physical copies alongside their digital counterparts.

The surge in crypto prices and the NFT boom in 2021 contributed to the initial excitement surrounding NFTs. However, the market has since experienced a decline in sales, dropping from approximately $5.7 billion in January 2022 to around $675 million in May 2023. This decrease can be attributed to a combination of diminished hype and a prevailing sense of Fear, Uncertainty, and Doubt (FUD) in the market. These factors have made market participants more cautious and risk-averse.

Despite the fluctuations in the NFT market, the successful auction of Three Arrows Capital's NFT collection highlights the enduring value and growing interest in these unique digital assets.

‍

Disclaimer: The views and opinions expressed in this blog post are those of the author and do not constitute financial or legal advice. It is important to conduct thorough research and consult with professionals before making any financial or investment decisions.

‍