The Original Pepe the Frog NFT Purchased by Mechanism Capital Co-founder Andrew Kang
Mechanism Capital co-founder Andrew Kang has acquired the original Pepe the Frog NFT from the bankrupt crypto hedge fund Three Arrows Capital (3AC) for an undisclosed amount. The private sale was facilitated by auction house Sotheby’s as part of 3AC’s NFT liquidation process. Kang’s purchase of the NFT has been confirmed by Sotheby’s and verified through onchain data.
Background: The First Authorized Pepe NFT
The Pepe the Frog NFT in question is the first one authorized by its creator, Matt Furie. It features a full-page scan from Furie’s Boys Club comic series, showcasing the popular “feels good man” meme.
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Sale History and Acquisition
- The original sale of the Pepe NFT took place on April 17, 2021, where it was purchased for 420 ETH (approximately $1 million at that time).
- On October 5, 2021, Starry Night Capital acquired the NFT for 1,000 ETH, equivalent to $3.5 million at that time. Starry Night Capital was an investment arm of 3AC focused on the NFT market.
Bankruptcy of Three Arrows Capital
In June 2022, Three Arrows Capital collapsed and subsequently filed for bankruptcy in July. The collapse of crypto exchange FTX and the failure of stablecoin UST and its sister token luna significantly impacted 3AC. This collapse had a cascading effect on other crypto firms, including Genesis (crypto prime brokerage) and Gemini (crypto exchange), which are currently under investigation by the NYAG for an alleged cover-up of missing funds.
Andrew Kang’s NFT Collection
Alongside his acquisition of the Pepe NFT, Andrew Kang owns a diverse collection of other notable NFTs:
- 50 Azukis
- Fidenza
- Three Bored Apes
- 11 Mutant Apes
- Six CryptoDickbutts
The estimated value of these NFTs in Kang’s wallet is $6.69 million, according to Dappradar.
Hot Take: The Significance of the Original Pepe the Frog NFT Purchase
The purchase of the original Pepe the Frog NFT by Andrew Kang holds several implications for the crypto community:
An Iconic Meme in Crypto Culture
The “feels good man” meme featuring Pepe the Frog has become an iconic symbol within crypto culture. Its popularity and recognition have contributed to the significance and value of the associated NFT.
A Valuable Addition to Andrew Kang’s Collection
Kang’s acquisition of the original Pepe NFT adds further value and diversity to his existing collection, which already includes various high-profile NFTs.
Recognition of Matt Furie’s Creation
The fact that this particular Pepe NFT was authorized by its creator, Matt Furie, adds a layer of authenticity and recognition to its ownership. It further solidifies its place in NFT history.
NFT Liquidation Process and Sotheby’s Role
The private sale of the Pepe NFT through Sotheby’s highlights the growing role of auction houses in facilitating NFT transactions, especially in cases of liquidation or bankruptcy.
Impact of Three Arrows Capital’s Bankruptcy
The bankruptcy of Three Arrows Capital and its subsequent impact on other crypto firms shed light on the interconnectedness and potential vulnerabilities within the crypto industry. The ongoing investigation by the NYAG into Genesis and Gemini further emphasizes the need for transparency and accountability.
Overall, Andrew Kang’s purchase of the original Pepe the Frog NFT represents a significant moment in the world of NFTs, showcasing the value and cultural significance attached to these digital assets.
