Sotheby’s to Auction NFTs from 3AC’s Seized Collection

Credit: Tyler Hobbs’ #216 Fidenza

On Wednesday, the world-renowned auction house Sotheby’s announced it was getting ready to sell a non-fungible token collection that was seized from the bankrupt crypto hedge fund Three Arrows Capital (3AC).

According to the auction house, the 3AC NFT collection contains “some of the most significant digital artworks ever assembled.”

3AC was a crypto hedge-fund based in Singapore that filed bankruptcy in July 2022. In February, 3AC’s liquidators Teneo outlined its desire to sell a large set of NFTs estimated in the millions to recoup some of its losses.

In its press release, Sotheby’s announced it is hosting a multi-part sale featuring NFTs from the “Grails” collection, which was created in 2021 as part of 3AC’s asset portfolio. Sotheby’s wrote that the auction would be a significant event since it brings together blue chip quality NFTs from a rare collection, works by individual creators, and digital assets that have been “virtually unseen on the public market.”

Some of the rare sought-after works include: Snowfro’s full spectrum Chromie Squiggle #1780, Dmitri Cherniak’s Ringers #879 (AKA “The Golden Goose”), Tyler Hobbs’ small-scale Fidenza #725, Autoglyphs, Larva Labs’ Zombie CryptoPunk #6649, and a one-of-one by Alpha Centauri Kid, among others.

Micheal Bouhannna, head of digital art and NFTs at Sotheby’s, said the collection has historical significance because it was created during the rise of blockchain art in 2021 when 3AC was able to purchase some of the rarest works on the market.

Sotheby’s will make use of various sales formats, from auctions to private sales. And in true Web3 fashion, the sale will occur globally across multiple locations that highlight some of the most coveted “Grails.” The first sales are expected to occur in May 2023 in New York.

What is Sotheby’s and what is it doing in Web3?

Sotheby’s was founded in London in 1744 and is one of the world’s oldest and must trusted marketplaces for art and luxury goods. Its network spans 40 countries and 44 departments, including Contemporary Art, Old Masters, Modern and Impressionist Art — and most recently, NFTs.

Between April 12th and 14th in 2021, Sotheby’s launched its first sale of non-fungible tokens from the digital artist Pak. The NFT collection known as ‘Sotheby’s x Pak The Fungible’ generated $16.8 million in three days via open edition sales and two auctioned pieces. Since then, Sotheby’s has been off to the races in Web3.

Here are some of the headlines about the auction house in Web3:

Three or four years ago, the idea of a legendary art auction house like Sotheby’s selling digital assets seemed ludicrous. But things change quickly, especially when it comes to Web3. Now the British-founded NYC-based auction how seems to be all in on digital assets, and this latest sale is more evidence of that fact.

While the digital assets for sale from 3AC’s seized collection might be out of the price range for most “regular” NFT collectors (given their rarity and the prestige of Sotheby’s), the news is still another win for the NFT space as a whole. At Rarity Sniper, we’ll be following the story and keeping you updated on any developing news or big sale announcements.

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