Three Arrows NFTs reach nearly $2.5 million at auction
NFTs belonging to bankrupt crypto hedge fund Three Arrows Capital (3AC) have been sold by Sotheby’s in New York.
In an auction on Friday, the first batch of 3AC NFTs were sold for a total of over USD 2,482,850. The funds will be used to repay the company’s creditors.
Cryptopunks and BAYC NFTs Among Three Arrows Collection
Prior to filing for bankruptcy in July 2022, 3AC had amassed an impressive collection of NFTs.
In February, the insolvent fund’s liquidator, Teneo, published a full list of non-fungible tokens that it intends to sell. Items held by the fund include rare digital artworks by Joshua Bagley, Dmitri Cherniak and Tyler Hobbs. It also owned several Cryptopunks, a Cryptokitty and a Bored Ape Yacht Club (BAYC) NFT.
In Friday’s auction, Sotheby’s curated a collection of artwork from Hobbs’ Fidenza project, Cherniak’s Ringers collection, and Larva Labs’ groundbreaking NFTs, including Autoglyph #187 and Cryptopunk #1326. In total, seven generative artworks were included in the batch.
In a catalog for the “GRAILS” collection, Sotheby’s stated that it represents “a fascinating exploration of the intersection of art and technology, offering a unique perspective on the potential of algorithmic art to push the boundaries of creativity in the digital age.”
The highest priced NFT from the first installation of the Grails collection was Fidenza #725. The piece sold for $1,016,000 USD, well above its estimate of $120,000-$180,000.
Going forward, Sotheby’s will continue to help Teneo download 3AC’s NFT resources.
As the auction house states on its website, the collection will be published in chapters across various sales formats ranging from private sales to auctions. These will take place in several locations globally.
Sotheby’s doubles down on NFT sales
While rival art auction house Christie’s may have knocked it off the mark with its groundbreaking NFT auction of Beeple’s The First 5000 Days, Sotheby’s isn’t exactly resting on its laurels.
Following the first NFT sale in April 2021, Sotheby’s has become increasingly involved in the world’s advanced NFT market. And the auctioneer was a natural choice for the 3AC liquidators.
Earlier this month, Sotheby’s announced its intention to expand its own dedicated NFT marketplace.
In a move that sees the nearly 280-year-old institution enter direct competition with native digital platforms such as OpenSea, the new marketplace will enable peer-to-peer NFT sales, conducted on Ethereum and Polygon.
Also, Sotheby’s will use smart contracts to ensure artists generate resale royalties for each secondary sale.
The Starry Night portfolio remains off the market for now
In addition to the digital artworks in the GRAIL collection, Three Arrows also held NFTs via Starry Night Capital.
Launched in mid-2021 during the height of the early NFT boom, Starry Night was a dedicated NFT fund. It worked with collector and influencer Vincent Van Dough to pick up precious pieces. Of one estimatethe fund had spent over USD 21 million in the short time it was active.
However, as 3AC’s insolvency proceedings unfold, winding down the Starry Night portfolio has proven complex. So far, only NFTs held directly by the Singapore hedge fund are cleared for sale.
According to the blockchain analytics firm Nansen.aiNFTs collected by Starry Night were moved to a Gnosis Safe address in November 2022. This suggests that they are being kept safe pending a court order that would allow Teneo to sell them.
Furthermore, the liquidator has stated that the future of the Starry Night collection is the subject of a High Court application in the British Virgin Islands.
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