Sotheby’s auction house recently sold a piece of digital artwork from the collapsed crypto hedge fund Three Arrows Capital (3AC) collection for a staggering $6.2 million. The artwork, titled ‘The Goose,’ was created by Dmitri Cherniak and was part of 3AC’s digital portfolio that was assembled in 2021. 3AC co-founders Su Zhu and Kyle Davies initially purchased ‘The Goose’ in August 2021 for 1,800 Ether, which was roughly valued at $5.8 million at the time.
This sale and similar ones suggest that prominent auction houses, like Sotheby’s, are embracing the digital art and nonfungible token (NFT) markets. Sotheby’s has already sold several pieces pertinent to the crypto community, some of which were worth millions of dollars. Notably, an NFT of the first tweet by former Twitter CEO Jack Dorsey and the original manuscript of the book that coined the term “metaverse” went through the auction house.
On the other hand, skeptics question the long-term value of digital art in the ever-changing world of blockchain and cryptocurrencies. Some might argue that basing the worth of a piece of art on its associated NFT might not be sustainable in the long run, as new platforms and technologies continue to emerge.
Furthermore, the story behind the 3AC collection adds a layer of intrigue to this particular sale. 3AC went bust amid the 2022 market crash, and the whereabouts of Zhu and Davies have been largely unknown ever since. Former 3AC investors have continued to target the pair through various court procedures in the U.S. and abroad.
While the increasing interest in and value of digital artwork and NFTs might indicate that we are moving into a future where digital art is considered on par with traditional physical art, the possibility of another market crash cannot be ruled out. As the market evolves and new technologies surface, it remains to be seen whether digital art and NFTs will stand the test of time, or if the excitement around them is merely a passing fad.
In conclusion, the sale of ‘The Goose’ NFT artwork at Sotheby’s auction house showcases the growing interest in and value of digital art, while also casting light on the concerns and drawbacks associated with the rapidly evolving crypto and NFT markets. With lots of potential and yet a great deal of uncertainty, only time will tell how these markets will ultimately shape the future of art and investment.
Source: Cointelegraph
