NFT
Sotheby’s on Friday completed the sale of several rare non-fungible tokens (NFTs) seized from the vast collection of bankrupt crypto hedge fund Three Arrows Capital (3AC), raising $2,482,850 to recover a portion of recover the lost money.
The auction house launched its multi-part sale with NFTs from the Grails collection formed primarily as part of 3AC’s asset portfolio in 2021. The Singapore-based hedge fund filed for bankruptcy in July.
Teneo, 3AC’s liquidator, issued a notice in February outlining its intention to sell an extensive list of NFTs estimated to be worth millions.
Sotheby’s refers to the contents of the Grails collection as “some of the most important digital artwork ever assembled”. NFTs on the auction block this round include generative artwork, such as Tyler Hobbs’ Fidenza #725 and Dmitri Cherniak’s Ringers #375. Larva Labs-made Autoglyph #187 and CryptoPunk #1326 are also included in the sale.
“This carefully selected collection showcases the work of four leading artists who are pushing the boundaries of contemporary algorithmic art,” writes Sotheby’s in the catalog description.
A total of seven generative works of art were offered. More NFTs from 3AC’s collection will be released in chapters through auctions or private sales in the future.
The highest priced NFTs from Volume 1 of the Grails Collection are Fidenza #725, estimated to sell for $120,000 – $180,000, and Autoglyph #187, which was estimated to sell for $120,000 to $180,000. The NFTs sold for $1,016,000 and $571,500 respectively.
Appreciating NFTs
Deep NFT Value, a machine learning tool that analyzes high-quality NFTs by examining past sales of the digital asset, current market conditions, and each collection’s unique rarity characteristics, estimated that Fidenza #725 was worth 184.4 ETH, or approximately $335,000 . Autoglyph #187, the other highest value ticket item, was valued at 205.7 ETH or approximately $373,800.
“My understanding is that the estimates have to be low for them to be beaten,” Nikolai Yakovenko, CEO of Deep Value NFT, told CoinDesk. “In the case of the Ringers and Fidenzas, [Sotheby’s] make an estimate perhaps above the operating floor price, but well below the premium they expect.”
Sotheby’s upcoming sales are unrelated to Starry Night Capital’s impressive NFT portfolio, which was set up in August 2021 by 3AC in partnership with renowned NFT collector Vincent Van Dough.