The recent auction for part of bankrupt Singaporean cryptocurrency hedge fund Three Arrow Capital’s (3AC) nonfungible tokens (NFT) collection garnered a significant amount of attention and money, with a total fetched sum of $2.5 million at its conclusion on May 19. With facilitation by fine arts broker Sotheby’s, the highlighted collectibles on sale – including Tyler Hobbs Fidenza #725, Larva Labs Autoglyph #187, and Tyler Hobbs Fidenza #861 – attracted a flurry of interest from collectors and investors alike. The most notable result from the auction was the sale of Tyler Hobbs Fidenza #725, which commanded a staggering $1.0 million.
In response to these events, Kyle Davies, co-founder of 3AC, expressed his excitement over Twitter, with his remarks suggesting that the popularity of NFTs, such as those auctioned at Sotheby’s, is only just beginning. On the other hand, Su Zhu, fellow co-founder of 3AC, acknowledged the more solemn aspects of the auction, as it represents the disposal of valuable assets due to the fund’s bankruptcy.
Last year, 3AC filed for bankruptcy after its estimated assets under management had reached $10 billion. Since then, the hedge fund has suffered greatly due to the ongoing cryptocurrency bear market, currently owing creditors a total of $3.5 billion. The NFTs auctioned off at Sotheby’s were recovered by the liquidators of 3AC to help settle some of the debts.
The aftermath of 3AC’s bankruptcy has resulted in various endeavors by the founders. Recently, Su Zhu secured a restraining order against BitMEX co-founder Arthur Hayes, one of 3AC’s many creditors who demand repayment of his $6 million claim. Meanwhile, Kyle Davies is exploring new avenues in the culinary arts, opening a restaurant in Dubai.
Furthermore, both Davies and Zhu are founders of the OPNX exchange, a platform dedicated to trading claims of insolvent crypto firms, such as 3AC. Interestingly, Dubai regulators recently reprimanded the exchange for allegedly failing to register in the emirate.
Overall, the successful auction of 3AC’s NFTs at Sotheby’s put a spotlight on the growing popularity and market value of these digital assets. While the high auction prices bode well for collectors and investors, they also mark a bitter end for 3AC due to the ongoing bankruptcy proceedings and debt repayments that must be fulfilled. The future of the cryptocurrency market and the persistent interest in NFTs pave the way for further debate and speculation on their long-term potential and the inevitable risks associated with their acquisition.
Source: Cointelegraph
