Sotheby’s, the renowned auction house, is set to sell a collection of non-fungible tokens (NFTs) that were once owned by bankrupt investment firm Three Arrows Capital. Among the NFTs to be auctioned off is a CryptoPunk, one of the most sought-after digital collectibles, which is expected to fetch a high price. The sale is a first-of-its-kind for Sotheby’s and points to the growing popularity of NFTs as a valuable asset class. CryptoPunks have been known to sell for millions of dollars, and with more investors getting into NFTs, the market is expected to continue its upward trend.
Sotheby’s to Auction Digital Art Collection “Grails” from Defunct Hedge Fund
Sotheby’s, the storied auction house, has announced that it will facilitate the sale of an art collection called “Grails.” The collection of digital artwork belongs to the now-defunct hedge fund Three Arrows Capital (3AC) and its Starry Night Capital NFT-collecting fund. Sotheby’s signaled that NFT artwork included in “Grails” would be offered via auctions, private sales, and other methods.
“Grails” is an unparalleled collection of NFTs from some of the most notable artists and valuable projects in Web3. The pieces highlighted by Sotheby’s include Art Blocks Fidenza #216 by Tyler Hobbs, Ringers #879 by Dmitri Cherniak, Chromie Squiggle #1780 by Erick “Snowfro” Calderon, and CryptoPunks NFT #6649 and Autoglyph #187 by Larva Labs.
Three Arrows Capital was a standout among digital asset firms that collapsed last year, licked amid a string of high-profile bankruptcies after the implosion of Terra’s LUNA and UST. Co-founded by Kyle Davies and Su Zhu, the Singapore-based firm’s bankruptcy is ongoing, and it owes $3.5 billion to creditors.
A spokesperson from Teneo, the company managing 3AC’s liquidation, told Decrypt that Sotheby’s has “a best-in-class approach that will ultimately maximize the value of these assets on behalf of all creditors.” Sotheby’s Head of Digital Art and NFTs Michael Bouhanna acknowledged the defunct hedge fund’s eye for fine art in a press release.
Featuring iconic NFTs, Sotheby’s said it’s staying true to ideals within the Web3 space. The auction house reprised its message of commitment to artists, saying it would continue to “honor creators’ royalties for secondary sales,” per its “Grails” webpage.
Artwork from “Grails” will be made available soon, and the first auction from the collection is set to take place in May during its “marquee sale week.” Sotheby’s stated that its marquee sale week is “one of the most anticipated moments of the annual auction calendar with the most high-profile sales of contemporary and modern art.”
In conclusion, Sotheby’s prestigious reputation in the world of auctioning marks an important moment in the rise of generative art on the blockchain. Sotheby’s exceptional “best-in-class approach” will maximize the value of these assets, honor creator’s royalties for secondary sales, and offer unique opportunities for buyers to acquire some of the highest-quality and rarest modern digital artwork.