Andrew Kang Acquires Pepe NFT from the 3AC Estate in a Sotheby’s Sale

The founder of Mechanism Capital, Andrew Kang, acquired an original Pepe the Frog non-fungible token (NFT) during the liquidation process for bankruptcy crypto hedge fund, Three Arrows Capital (3AC).

Kang acquired this NFT in a private sale conducted by Sotheby’s, which is in charge of liquidating the 3AC estate. The financial details of this NFT sale still remain unknown.

Andrew Kang Buys Pepe NFT from 3AC

The Sotheby auction house has confirmed successfully transferring the Pepe NFT to a digital wallet owned by Kang. The transfer marks a new chapter in the purchase history of the popular NFT.

The Pepe NFT was originally created by an artist known as Matt Furie. The NFT is inspired by the Boys Club comic series. It features a “feel good man” meme that is displayed as its logo.

This NFT marked the first authorized digital collectible depiction of the Pepe character. This character has been used in the PEPE meme coin, which has been one of the best-performing cryptos this year. Its popularity in the cryptocurrency industry has made it a highly-sought after item by NFT collectors and enthusiasts.

One of the most notable transactions involving the Pepe NFT was in April 2021, when it sold for 420 ETH. In October 2021, another sale involving the NFT was a transfer to Starry Night Capital, a subsidiary of 3AC. This transaction was worth 1,000 ETH, which was worth around $3.5 million at the time.

3AC filed for bankruptcy in mid-2022. The bankruptcy filing was triggered by a downturn across the broader cryptocurrency market. Following the bankruptcy filing, the company has been liquidating its assets to repay creditors.

Andrew Kang as an NFT Enthusiast

Andrew Kang is a collector of NFTs, with his recent purchase of the Pepe NFT adding to the digital assets that he has in his collection. Kang’s collection comprises a wide range of NFTs valued at around $6.69 million.

The NFT sector tends to perform in a similar manner with the broader cryptocurrency market. Kang’s NFT collection demonstrates the strength of the NFT sector. While this market usually faces volatility, some high-value transactions such as the recent one involving Pepe demonstrate that it continues to appeal to collectors.

On the other hand, the Sotheby auction house, which auctioned this NFT, is not new to the industry. The auction house has interacted severally with the NFT market including Bitcoin Ordinals. It has also hosted several sales demonstrating the creative diversity of the industry and innovation in the sector.

This auction puts to show the growing relationship between the traditional and cryptocurrency industries. NFTs have also paved the way for new possibilities and challenges in the digital asset industry.