Smriti Malhotra
During Sotheby’s “Grails” sale, the second part of an auction featuring works owned by Three Arrows Capital (3AC), a crypto firm, collectors flocked to bid on digital artworks. The sale raised nearly $11 million, exceeding the high estimate of $4.8 million. The highlight of the auction was Dmitri Cherniak’s artwork titled “Ringers #879 (The Goose),” which sold for $6.2 million after intense bidding. The auction attracted a young audience, with many first-time bidders in their 20s and 30s, demonstrating the growing interest in NFTs among the younger generation.
The auction marked a significant moment for the NFT market, as it was Sotheby’s first major auction for NFTs since the ill-fated $30 million CryptoPunks sale over a year ago. Collectors, fueled by nostalgia and seeking mementoes from the crypto boom, were drawn to the auction. Despite the market downturn and controversies surrounding the crypto industry, the sale saw strong demand for the artworks.
The provenance of the NFTs, including their connection to the bankruptcy of Three Arrows Capital, added an intriguing aspect for buyers. While the scandal surrounding the corporate benefactor played a role, Sotheby’s emphasised that the auction focused on the quality of the artworks. The auction showcased works by notable artists such as Tyler Hobbs, Erick Calderon, and Jeff Davis, generating advanced bids and surpassing estimates.
The success of the auction suggests that the NFT market continues to thrive, attracting a new generation of collectors. It also indicates a growing recognition of digital art as a valuable and collectable asset. Despite the challenging market conditions, the energy and enthusiasm displayed during the auction reflect the evolving nature of the art market and its adaptation to emerging digital trends.
