Sotheby’s to auction NFT Artwork confiscated from bankrupt Three Arrows Capital
Sotheby’s, the reputable auction house for fine art, has made public its plans to auction off NFT artwork from Three Arrows Capital, the hedge fund that filed for bankruptcy around the same time Luna/UST crash. The digital art collection, aptly named “Grails,” boasts some of the most coveted projects in the Web3 space, and Sotheby’s will offer them for sale through auctions, private sales, and various other methods.
Confiscated NFTs on sale
Included in the “Grails” collection are NFTs from prominent artists such as Tyler Hobbs, Dmitri Cherniak, Erick “Snowfro” Calderon, and Larva Labs. Among the remarkable pieces are Art Blocks Fidenza #216, Ringers #879 (referred to as “The Golden Goose”), Chromie Squiggle #1780, CryptoPunks NFT #6649, and Autoglyph #187.
Last year, Three Arrows Capital was one of the noteworthy digital asset firms that went bankrupt, and it still owes creditors $3.5 billion. The auction, which is set to occur during Sotheby’s “marquee sale week” in May, is one of the most anticipated events on the yearly auction calendar for contemporary and modern art.
Michael Bouhanna, Sotheby’s Head of Digital Art and NFTs, lauded the bankrupt hedge fund’s discernment for fine art and described the “Grails” collection as a significant event in the ascent of generative art on the blockchain this year. Bouhanna remarked that the “Grails” collection exemplifies the 3AC principle of procuring top-notch and rarest artworks obtainable in the market.
Seized NFTs are worth roughly $2.4 million
As per Dune’s data, NFTs that are still in possession of 3AC are valued at approximately $2.4 million, whereas the ones that have been transferred to Teneo are valued at $20.8 million. However, determining the worth of particular “rare” items from NFT collections can be challenging due to the limited liquidity of such assets and frequently unstable market conditions.
Sotheby’s has reiterated its commitment to supporting artists by promising to pay royalties for secondary sales, as stated on its “Grails” webpage. The auction house has also announced its intent to maximize the value of the assets on behalf of all creditors through its “best-in-class approach,” according to a representative from Teneo, the company overseeing 3AC’s liquidation.
The Starry Night Capital fund, which had been excluded from a previous auction, is considered the most valuable NFT collection held by 3AC. The fund’s collection was curated by a pseudonymous NFT collector known as Vincent Van Dough, who highlighted Ringers #879 as an example of the creative potential of generative art when the fund was launched in August 2021.
Sotheby’s decision to sell the “Grails” collection, consisting of iconic NFTs, from the defunct hedge fund Three Arrows Capital aligns with the values of the Web3 space. The fund, along with other digital asset firms, suffered due to the implosion of Terra’s LUNA and UST. Sotheby’s auction of the collection is set to showcase some of the most prized generative art pieces, staying true to its commitment to honoring creator royalties for secondary sales.
Earlier this year, liquidators announced that certain NFTs from the bankrupt hedge fund would be sold, and the process commenced in March. The highly-anticipated auction of the “Grails” collection is scheduled for May.
