HISTORIC SALE OF 104 CRYPTOPUNKS FALLS THROUGH AT SOTHEBY'S!
The American multinational art auction house Sotheby's was about to sell 104 NFTs from the CryptoPunks collection for a record $20-30 million. The sale was cancelled at short notice by the anonymous collector. Here's the lowdown.
On 23 February, the event took place at Sotheby's headquarters in New York and was broadcast live around the world. A few minutes after the sale was launched, the work was withdrawn.
The reasons for this sudden withdrawal are not known at the moment. However, on Twitter the seller had a slight urge to provoke and posted "nvm, decided to hodl". The author had acquired all 104 Punks in a single blockchain transaction. Representing over 1% of all existing CyperPunks, this is one of the largest such groups held by a single portfolio.
This was a great disappointment for the multinational, which saw the event as "an unprecedented showcase for NFT and digital art, with a presentation comparable to that of the largest and most publicized contemporary and modern art sales".
An event that confirms the various risks that NFT buyers face, notably the volatility of the market.
Is the volatility of the NFT to be taken seriously?
Because creation is becoming commonplace, the artistic revolution brought about by the NFT does not only offer opportunities. It is important to be aware of the risks it may entail in order to better protect oneself.
There is no guarantee on the value and durability of NFT, like that of the underlying crypto-currency (Ethereum) and the scams of fraudsters specialized in fake miscellaneous or wash trading (fake accounts).
The volatile, speculative and uncertain nature of NFTs represents a major social phenomenon that will require legislative oversight.