Sotheby’s, the world’s largest auction house for art and luxury items, announced on Friday that it has sold seven non-fungible tokens (NFTs) from bankrupt cryptocurrency hedge fund Three Arrows Capital for about $2.5 million.
Among the tokens sold, “Fidenza #725” received the highest bid, surpassing $1 million. This NFT features a visually captivating image composed of graphic dashes and curves in a muted palette of cream, yellow, pink, and black. Three Arrows Capital had originally acquired it for 135 ether in 2021, equivalent to around $341,786 at the time.
In a post on Twitter on Friday afternoon, Sotheby’s said that Tyler Hobbs’ Fidenza #725 NFT sold for $1,016,000, almost five times the highest estimate. Sotheby’s first told people about the 3AC NFT sale in April, also known as the “Grails” NFT collection.
“Impressive in its striking rhythm and movement, Tyler Hobb’s ‘Fidenza #725’ has just sold for $1,016,000, almost 5 times the high estimate,” Sotheby’s tweeted.
#AuctionUpdate: Impressive in its striking rhythm and movement, Tyler Hobb’s ‘Fidenza #725’ has just sold for $1,016,000, almost 5 times the high estimate. #SothebysGRAILShttps://t.co/6cWWdxm6H8 pic.twitter.com/XfFWge2fbd
— Sotheby’s Metaverse (@Sothebysverse) May 19, 2023
The auction was part of liquidating Three Arrows, according to a February memo from Teneo, one of the court-appointed liquidators.
The auction was part of the liquidation process for Three Arrows Capital, as stated in a memo from Teneo, one of the court-appointed liquidators, back in February.
Singapore-based Three Arrows Capital faced bankruptcy in 2022 due to the collapse of cryptocurrencies Luna and TerraUSD, becoming one of the first major crypto firms to experience such financial distress. It filed for bankruptcy in the British Virgin Islands towards the end of June 2022.
At the time of its bankruptcy filing, the company estimated its assets at approximately $1 billion, including an extensive collection of non-fungible tokens (NFTs) valued at around $22 million, as reported by cryptocurrency news site The Block.
NFTs are one-of-a-kind digital assets that serve as proof of ownership and authenticity for specific items or content, like art, music, videos, or collectibles. These assets leverage blockchain technology for verification and security.
Once valued at $10 billion, the Singapore-based cryptocurrency hedge fund filed for bankruptcy in July. Three Arrows’ margin call rippled through the entire crypto market last year. One of the affected crypto companies is crypto lender BlockFi, which recently announced that it has liquidated its position in Three Arrows.
Founded in 2012 by Su Zhu and Kyle Davies, Three Arrows Capital is a hedge fund manager that provides risk-adjusted returns. The firm is headquartered in Singapore. Three Arrows is now planning to sell its asset including holdings in crypto startups.
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- Source: https://techstartups.com/2023/05/22/sothebys-sells-bankrupt-crypto-firm-three-arrows-capitals-nft-collection-for-nearly-2-5-million-at-auction/
