Following the bankruptcy of the FTX cryptocurrency exchange, the appointed estate has assumed control over an array of high-value Non-Fungible Tokens (NFTs), collectively valued at over $4 million. This information was disclosed by Conor Grogan, Director at Coinbase, via a tweet on April 26th. The NFTs represent a variety of esteemed collections, including BAYC, Azuki, MAYC, BEANZ, and Otherdeed, and have now been transferred to the estate’s multi-signature wallet.
The tweet suggests that the transfer process commenced three months ago, with a closer examination revealing the exact portfolio: 32 BAYC, 29 Otherdeed, 7 Azuki, 2 MAYC, 12 BEANZ, 81 Sandbox LANDs, and 6 Hape Prime NFTs. The latter were reportedly purchased by Alameda Research for $100,000, as per Grogan’s comments.
Most of these NFTs were initially acquired by FTX during the 2021 market rally, as part of their strategy to establish a non-fungible token marketplace. In total, FTX invested over $24 million to secure 101 Bored Apes NFTs. These were subsequently transferred to its US subsidiary and offered at a reduced price to attract buyers from well-established marketplaces. The strategy proved successful, with a majority of the NFTs being purchased by collectors seeking good deals.
It's confirmed that these Apes now belong to FTX creditors; they were all transferred to the Estate Multisig, along with 7 Azukis, a bunch of Beanz, and a host of other NFTs pic.twitter.com/Vy7XLtgCwE
— Conor (@jconorgrogan) April 26, 2023
Speculations Surrounding FTX’s Consolidation of NFTs The decision to consolidate all of FTX’s NFTs into a single wallet has ignited speculation within the cryptocurrency community. Many interpret this move as a precursor to a potential sale, with the proceeds to be used to reimburse those who incurred losses on the exchange.
However, concerns have been raised that a mass liquidation event could adversely impact the prices of the respective collections. Considering this, some experts suggest that FTX may opt for an auction-style sale of the digital artworks, mirroring the approach adopted by the bankrupt Three Arrows Capital.
This development follows closely on the heels of FTX’s recent agreement to sell LedgerX for $50 million, a move aimed at recovering funds to settle debts.