Three Arrows Capital’s Seized NFT Collection Is Being Sold

$35 Million in NFTs acquired by Three Arrows Capital is now being liquidated as per bankruptcy proceedings.

Three Arrows Capital’s Seized NFT Collection Is Being Sold

The Three Arrows Capital crypto fund is under liquidation after the seizure of its assets by Teneo, the court-appointed liquidation firm. Three Arrows Capital famously collapsed earlier this year after facing several margin calls in the aftermath of the collapse of Terra. This was a very public fall from grace for the fund’s two founders Su Zhu and Kyle Davies. Starry Night Capital was the specific NFT investment fund raised by Three Arrows Capital that also included investment from pseudonymous NFT collector Vincent Van Dough.

Their goal with Starry Night Capital, whose name was inspired by the famous Vincent Van Gogh painting ‘Starry Night,’ was to accumulate a $100 Million NFT collection. It is reported that they spent over $35 Million on NFTs, obtaining one of the world’s most expensive NFT collections before Three Arrows Capital found itself $3.5 Billion in debt. The value of Three Arrows Capital’s more than 300 NFT assets is currently estimated to be 625 ETH (around $840,000), as per data from Nansen.

Due to the bankruptcy proceedings, Teneo’s responsibility is to now sell off the seized NFT assets. This will be an interesting reflection on NFT market sentiment. For people bullish on NFTs, you could view this as a flash sale of valuable assets at a massive discount. If you believe in the long term viability of the NFT market and these specific assets, this might be a great investment opportunity for you. On the other hand, if you are less bullish on NFTs, then you might view this as another example of overinflated NFT assets crashing down to more accurate valuations.

We are bullish on NFTs and recognize that interest is growing, especially among younger people. While it’s unfortunate that Three Arrows Capital and Starry Night Capital has collapsed, there is definitely value in this NFT collection.