FTX contagion victim Deepak.eth puts NFT collection up for sale

by · November 11, 2022

The founder of the Chain blockchain infrastructure company, who goes by the internet pseudonym Deepak.eth, took to Twitter to announce the sale of his nonfungible token (NFT) collection.

Deepak.eth tweeted that the collection will either be sold to the highest bidder, or else placed in a “fractional DAO” where they will sell 80% of the ownership. According to the Chain founder, the collection costs 8,000 (ETH), which is approximately $10,258,720 million at the time of writing.

The collection includes high-ticket NFTs like Tiffany Punks that will include NFTiff and physical pendants, some Bored Ape Yacht Club (BAYC) characters and mutants, among others.

On November 10, Deepak.eth began a thread on Twitter, who pointed to the recent FTX turmoil as the reason for dipping into liquidity via their NFTs.

They said that even though the company cut ties with Alameda in the summer, it continued to retain a stake in FTX and recently made a large IPO. According to Deekpak.eth, these funds are stuck waiting for withdrawal, which led them to dig into their other digital assets.

Despite recent trading volumes of popular pools such as BAYC hitting record lows, NFTs in these series have previously seen market values ​​in the millions.

The community on Twitter responded to the entry, calling it the “holy grail” of NFT collections:

Others commented on the collection, calling it “fantastic” and “creepy”. Many also sent their support to Deepak.eth with words of encouragement such as “stay strong” and “hope you are ok”.

Related: Bored Ape Worth Nearly $55M, CryptoPunk’s NFTs Risk Liquidation Amid Debt Crisis

This is one of many aftershocks from the FTX scandal. That has left the industry reeling, regulators poised to pounce and other exchanges scrambling to prove transparency.

Genesis Trading, a market maker and lending subsidiary, came out and stated that it has $175 million worth of funds locked up in an FTX trading account. Along with Galaxy Digital who claimed to have $48 million locked up in FTX withdrawals.

Lawmakers in the US have used the recent events as an example of the need for tighter regulation of the crypto industry, despite the fact that FTX US is reportedly unaffected by the incident so far.

Meanwhile, other crypto platforms in the industry such as Binance and Crypto.com have publicized their commitment to transparency through future publications of proof of reserves.