If you do not know about the Three Arrows Capital NFT fiasco, it is about time to crawl out of your cave. We take a look into their portfolio and what will happen to 3AC NFTs.
More commonly known as 3AC, they were one of the largest hedge funds in the crypto scene. At its peak, 3AC had an estimated US$18 billion in assets under management (AUM), with investments across multiple sectors.
As one of the biggest backers of LUNA, they took a big hit when it crashed and burned. The bear market added more oil to the fire and 3AC got liquidated by multiple financial institutions and DeFi protocols.
Earlier this month, 3AC filed for bankruptcy. This begs the question – what will happen to its NFTs?
Multi-Million dollar portfolio
According to Dune Analytics, 3AC’s wallets hold over US$7.5 million worth of NFTs. However, the total current market value estimate should be closer to $4 million.
A list of NFTs held include :
- Crypto Punks
- Mutant Ape Yacht Club
- Chromie Squiggle
- Bored Ape Yacht Club
- Pudgy Penguins
Crypto Punks, a blue-chip project, makes up the bulk of the holding. One of the wallets is holding 11 Cryptopunks worth about 65 Eth (US$76,000) each.
Out of the 11 Cryptopunks 3AC is holding, one is a rare punk with the zombie trait. It was last sold at a whopping 810 $ETH, about US$1.9 million at the time.
Besides Cryptopunks, another NFT worth noting is Ringers. 3AC bought Ringers #879 for a record-breaking of 1,800 Eth or US$5.9 million at the time of purchase.
Fire sale soon?
As 3AC is currently undergoing a liquidation event, its multi-million NFT collection will be up for sale sooner or later. We might see these illiquid NFTs at a good discount from the current floor price.
Notable NFTs to watch out for are CryptoPunks, ChromieSquiggle and PudgyPenguins. 3AC is holding a total of 11 punks, 7 squiggles and 44 penguins.
At the time of writing, there are no CryptoPunks listed for sale. This likely correlates to strong buying activity, especially at these prices.
If we look at past activity, a few punks are sold every other day. However, dumping 11 punks into the market may still lead to steep discounts thanks to a rather illiquid market.
We could see the punks being listed at the range of 65 to 70 Eth. If time is of the essence, we could potentially see the punks listed below 60 Eth.
If CryptoPunks are out of your budget range, you can keep an eye out for Pudgy Penguins. The floor price for these cute little penguins is currently at 1.89 Eth.
These retail-friendly penguins are highly liquid, but 3AC is currently holding 44 of them. Listing 44 penguins would definitely push the floor price down and we could see penguins being listed closer to 1 Eth.
End of an Era
The end of 3AC spells the start of a new beginning. This much-needed reset could be a good opportunity for those of you who want to ape into popular blue-chip NFTs at a discount.
But then again liquidators would definitely try to bulk sell it to other collectors rather than listing it for sale. We have already seen liquidators reaching out to collectors like Alex Svanevik to purchase some of the NFTs.
A word of advice. Before you ape in, always keep in mind that NFTs are generally illiquid and it is important to DYOR (do your own research) before purchasing.
At the end of the day, the crypto market changes very fast and the blue chips NFT of today might not be around tomorrow, just like 3AC.
[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]
Featured Image Credit: Chain Debrief