On May 19, 2023, Sotheby’s successfully concluded its auction of rare non-fungible tokens (NFTs) confiscated from the bankrupt crypto hedge fund Three Arrows Capital (3AC). The sale brought in around $2.4 million, helping to recoup some of the lost funds.
The auction house launched a multi-part sale featuring NFTs from the Grails collection, which formed part of 3AC’s asset portfolio primarily in 2021. In July, the Singapore-based hedge fund filed for bankruptcy. Teneo, 3AC’s liquidator, had previously announced their intention to sell a vast list of NFTs estimated to be worth millions. Following the announcement, Sotheby’s also announced it would host an auction for the same, in April.
Sotheby’s, renowned for its discerning eye in the art world, has presented the Grails collection as a gathering of “some of the most significant digital artworks ever assembled.”The NFTs up for auction in this round included unique generative artworks such as Tyler Hobbs’ Fidenza #725 and Dmitri Cherniak’s Ringers #375. Additionally, the sale featured Larva Labs’ Autoglyph #187 and CryptoPunk #1326.
In describing the collection in their catalog, Sotheby’s expressed admiration for the four leading artists whose works push the boundaries of contemporary algorithmic art. With meticulous curation, this selection aimed to showcase cutting-edge achievements within this genre.
Seven remarkable generative artworks were made available for bidding, captivating both seasoned collectors and enthusiasts alike. As the first chapter of the Grails collection auction, this event sets the stage for future releases, as more NFTs from 3AC’s collection are slated to be offered through upcoming auctions or private sales.
Part 1 of the Grails collection saw significant prices fetched for the highest-valued NFTs. Fidenza #725, originally estimated to sell for $120,000 to $180,000, achieved a remarkable price of $1,016,000. Similarly, Autoglyph #187, with an estimated value within the same range, secured an impressive price of $571,500.
Nikolai Yakovenko, CEO of Deep Value NFT, explained that these estimates are intentionally conservative to encourage competitive bidding. He stated, “My understanding is that the estimates are meant to be low so that they get beaten. In the case of the Ringers and Fidenzas, [Sotheby’s] are making an estimate perhaps above the operating floor price, but well below the premium they expect.”
