Sotheby’s auctions 3AC’s NFT collection for $2.5 million
Several NFTs belonging to failed crypto hedge fund firm Three Arrows Capital have sold for millions of dollars at auction as part of the liquidation process.
Around seven NFTs were sold for a total of around $2.5 million via an auction at Sotheby’s, Reuters reported on Saturday.
The star of the show? “Fidenza #725” — a digital artwork featuring a series of graphic lines and curves in muted hues — fetched over $1 million.
The asset, which remains under Sotheby’s control, had previously received bids on NFT marketplace OpenSea for around 50 ether (ETH) – worth around $90,000, data show. On OpenSea, users can bid on unlisted items they wish to own, although it is up to the entity in possession to accept the bid.
3AC bought Fidenza for 135 ETH on July 31, 2021, worth more than $340,000 at the time.
Data shows that the NFT collection CryptoPunks was heavily favored by the firm. 3AC made several purchases of CryptoPunks on the same date, totaling $3 million, according to a Dune dashboard.
CryptoPunks is a collection of 10,000 unique pixel art characters on the Ethereum blockchain, created by Larva Labs. It is considered one of the pioneering and influential projects in the NFT space.
Other NFTs sold include the Ethereum-based TheBirdHouse collection, Slacker Duck Pond, and the digital art NFT originally listed on the Marketplace Foundation at a time when it was invite-only for creators.
Starry Night Capital, the investment fund focused on NFTs owned by 3AC founders, is believed to have spent over $35 million on digital collectibles in 2021. This amount was eventually reduced to just over $4 million after significant headwinds faced by the crypto market.
The Singaporean crypto powerhouse hit a brick wall last year following the collapse of the Terra ecosystem, to which it had significant exposure.
Founded in 2012 by crypto investors Su Zhu and Kyle Davies, the firm operated as a hedge fund and venture capitalist in early to late stage startups.
After staring down more than $400 million in liquidations in 2022 due to poor risk management, 3AC was eventually ordered into liquidation by a court in the British Virgin Islands in late June 2022.
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