- Three Arrows Capital liquidated assets have fetched nearly $17M in the past few weeks.
- The latest auction saw the company’s collection of NFTs bring in nearly $11 million from a Sothby’s House action in New York according to FT.
- The report also indicates some of the NFTs owned by the collapsed crypto hedge fund were sold privately bringing the figure closer to $17 million.
Dmitri Cherniak’s digital collectible artwork Ringers #879, ‘The Goose,’ on Thursday sold for $5.4 million ($6.2 million including seller premium) at Sotheby’s auction house. The digital collectible artwork was part of the assets owned by collapsed crypto fund Three Arrows Capital (3AC) that are being liquidated.
The latest sale came weeks after a smaller batch of NFTs owned by 3AC sold for about $2.5 million at Sotheby’s. In addition to these sales, the Financial Times reported that several NFTs sold privately bringing the total amount raised to about $17 million.
Three Arrows Capital filed for bankruptcy last year after defaulting on a $670 million loan from Voyager Digital. Crypto exchange platform Deribit also claimed that the defunct hedge fund, then based in Singapore, had failed to repay a loan of $80 million.
According to a statement by the auction house, the auction attracted more than 1,000 bids from 17 countries, with more than half of the bidders aged no more than 40 years.
The participation rate surprised a few given the bearish state of the NFT market. Since the market peaked with a monthly volume of more than $10 billion in early 2022, it has since plummeted to about $867 million according to Chainalysis.
The industry is currently in a transition phase as it moves on from the hype factor of a shiny new toy to a more utility-driven market.
Players are building technologies that will help bring the market to the mainstream, with scaling protocols powered by zero-knowledge rollups gaining traction.
Polygon and BNB chain have already launched their products in view of onboarding mainstream brands that seek scalability and security before deploying their products. So far, Starbucks and Reddit have been perfect examples of how mainstream brands can adopt NFT technology to engage more with their communities.
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