Auction house Sotheby’s announced Friday that seven non-fungible tokens from bankrupt cryptocurrency hedge fund Three Arrows Capital sold for about $2.5 million. Of the tokens, “Fidenza #725”, an image with graphic dashes and curves in a muted palette of cream, yellow, pink and black, fetched the highest price at over $1 million. Three Arrows Capital had purchased it for 135 ether, which was equivalent to about $341,786 at the time, according to DappRadar. The auction was part of liquidating Three Arrows, as per a February memo from Teneo, one of the court-appointed liquidators.
Singapore-based Three Arrows was the first major crypto firm to go bankrupt in 2022, brought down by the collapse of cryptocurrencies Luna and TerraUSD. It had filed for bankruptcy in the British Virgin Islands in late June 2022. The company had estimated its assets at around $1 billion, with its extensive non-fungible token (NFT) collection valued at about $22 million, as per a filing seen by cryptocurrency news site The Block.
Non-fungible tokens (NFTs) are blockchain-based assets that represent ownership of a digital item, such as an image, video or piece of text. The market for NFTs had exploded in 2021, resulting in auction houses such as Sotheby’s and Christie’s joining the trend. However, sales volumes and prices have since dropped, as the demand for speculative assets has cooled.