May 23, 2023
By Anjali Kochhar
NFTs from a bankrupt crypto company Three Arrows Capital have been sold at an auction, fetching an impressive sum of nearly $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 purchased it for 135 ether in 2021, equal to about $341,786 at the time, according to DappRadar.
The auction was part of liquidating Three Arrows, according to a February memo from Teneo, one of the court-appointed liquidators. The company at the time estimated its assets at around $1 billion, with its extensive non-fungible token (NFT) collection valued at about $22 million, according to a filing seen by cryptocurrency news site The Block.
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 filed for bankruptcy in the British Virgin Islands in late June 2022.
These non-fungible tokens, digital assets that represent ownership or proof of authenticity of a unique item, were part of the assets belonging to the defunct firm. The successful auction indicates the enduring value and market demand for NFTs despite the financial challenges faced by the company.
The bankruptcy of the crypto firm did not diminish the appeal of its NFT collection, as bidders eagerly competed to acquire these digital assets. The auction provided an opportunity for investors and collectors to own a piece of the bankrupt company’s history and benefit from the potential value appreciation of the NFTs in the future.
NFTs have gained significant attention in recent years, attracting both mainstream and niche audiences. These digital tokens have revolutionized the art and collectibles market by enabling ownership and trading of unique digital assets on blockchain platforms. The inherent scarcity and verifiable ownership of NFTs have contributed to their growing popularity and the premium prices they command.
Despite concerns surrounding the volatility and speculative nature of cryptocurrencies, the success of this auction demonstrates the resilience of the NFT market. The buyers of these bankrupt crypto firm NFTs clearly believe in the long-term potential of these digital assets, willing to invest a substantial sum to acquire them.
The auction also highlights the potential value that can be derived from bankrupt companies’ assets, even in the digital realm. While the underlying company may have faced financial difficulties and ultimately filed for bankruptcy, the unique and rare nature of the NFTs they held attracted significant interest and generated substantial returns for their sale.
This successful auction serves as a reminder that despite the challenges faced by companies in the volatile crypto industry, valuable assets such as NFTs can still hold significant worth. The evolving landscape of blockchain technology and digital assets continues to present new opportunities for investors and collectors alike.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.