Andrew Kang, co-founder of Mechanism Capital, has successfully acquired the original Pepe the Frog NFT. The major acquisition happened in a private sale conducted by Sotheby’s as part of the asset liquidation process of a now-defunct crypto hedge fund, Three Arrows Capital (3AC). However, intriguingly, the exact financial details of the sale remain undisclosed.
Sotheby Facilitates Pepe NFT Transaction
Sotheby, the auction house, confirmed the successful transfer of the Pepe NFT to Kang’s digital wallet, marking a new chapter in the asset’s storied history. Generated by the artist Matt Furie, this NFT features a scan from the Boys Club comic series where the notable “feels good man” meme is displayed. This item is noticeable as the very first authorized NFT depiction of the Pepe character, which makes it a highly sought-after item by collectors and enthusiasts.
Notable transactions characterized the journey of the Pepe NFT to this auction, including the original sale for 420 ETH in April 2021, with a follow-up transfer to Starry Night Capital, a subsidiary of 3AC, for 1,000 ETH (around $3.5 million at that time) in October 2021.
The collapse of 3AC in mid-2022, which was triggered by the general turmoil in the crypto market and was accompanied by the demise of the FTX exchange as well as the UST stablecoin, resulted in the liquidation of its assets, including this highly valued NFT.
Andrew Kang’s Collection
The acquisition also widens Andrew Kang’s remarkable collection of digital assets, which consists of a broad range of NFTs with an estimated worth of around $6.69 million, and, more importantly, highlights the strength and vitality of the NFT market. Although the sector generally experiences volatility and challenges, high-profile transactions such as this one indicate that unique digital collectibles continue to have significant appeal and value.
In parallel, Sotheby’s engagement with the digital asset sector extends beyond this single transaction. This auction house is actively involved in the growing market for Bitcoin Ordinals, and thus, it hosts sales that shed light on the creative diversity and innovation of this new space.
Initiatives like this are indicative of the changing realm of digital collectibles that form the interface between traditional institutions and the new digital assets, thus providing new possibilities and challenges.