NFT Collection from Collapsed 3AC to be Auctioned by Sotheby's
On April 19, Sotheby's revealed plans to auction a distinctive digital art collection originating from the now-dissolved crypto hedge fund, Three Arrows Capital (3AC). The assortment comprises nonfungible tokens (NFTs) curated as a segment of 3AC's digital portfolio in 2021.
Launching the auction in May, Sotheby's will begin with the sale of seven exclusive NFTs belonging to the "grails" collection. Michael Bouhanna, Sotheby's head of digital art, characterizes these as "some of the most exquisite and scarce works." The compilation features Zombie CryptoPunk #6649 and Autoglyph #187 from Larva Labs, in addition to Dmitri Cherniak's artwork "The Golden Goose." 3AC co-founders Su Zhu and Kyle Davies acquired the latter piece for 1,800 ETH (approximately $5.8 million) in August 2021.
Following the 2022 market crash, Three Arrows Capital folded. In February, advisory company Teneo expressed intentions to sell 3AC's digital collection—excluding the "Starry Night Portfolio"—to "realize the value of the NFTs for the purposes of the liquidation."
Teneo opted to collaborate with Sotheby's digital art division for the sale, confident that this partnership would optimize the value of the assets for all creditors involved.
Since 3AC's downfall, Zhu and Davies have remained largely out of sight, although both have sustained activity on various social media channels. Davies risks contempt charges in U.S. bankruptcy court for neglecting to address a subpoena. In April, the duo endorsed the debut of a novel crypto endeavor called Open Exchange.
Sotheby's emerged as one of the pioneering major auction houses to inaugurate a specialized marketplace for digital artwork and NFTs in 2021. The platform has showcased NFTs such as the inaugural tweet from former Twitter CEO Jack Dorsey, a selection of CryptoPunks, and the initial manuscript of the book that introduced the term "metaverse."
Following the 2022 market crash, Three Arrows Capital folded. In February, advisory company Teneo expressed intentions to sell 3AC's digital collection—excluding the "Starry Night Portfolio"—to "realize the value of the NFTs for the purposes of the liquidation."
Teneo opted to collaborate with Sotheby's digital art division for the sale, confident that this partnership would optimize the value of the assets for all creditors involved.
Since 3AC's downfall, Zhu and Davies have remained largely out of sight, although both have sustained activity on various social media channels. Davies risks contempt charges in U.S. bankruptcy court for neglecting to address a subpoena. In April, the duo endorsed the debut of a novel crypto endeavor called Open Exchange.
Sotheby's emerged as one of the pioneering major auction houses to inaugurate a specialized marketplace for digital artwork and NFTs in 2021. The platform has showcased NFTs such as the inaugural tweet from former Twitter CEO Jack Dorsey, a selection of CryptoPunks, and the initial manuscript of the book that introduced the term "metaverse."
