FTX might be preparing to fire sale its blue-chip NFT collection. As of today, these assets are worth over $4m and have recently been transferred to a multi-signature wallet. What will happen with FTX’s NFT collection?
What is going to happen with the FTX NFT collection?
The estate charged with disposing of assets owned by FTX recently took control of the exchange’s NFT collection. This collection currently includes 32 Bored Apes, 29 Otherdeeds, 7 Azuki, 2 Mutant Apes, 12 BEANZ, 81 Sandbox LANDS, and 6 Hape Prime NFTs. Experts estimate the portfolio’s worth at around $4m.
Conor Grogan, the director at Coinbase, first broke the news in a tweet. He wrote, “TLDR; If you are a creditor to FTX, you are most likely a member of the Yuga community and own a share in 3 Golden Apes and dozens of others. 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”
By transferring the NFTs, it seems likely that the holders of the collection will now look to sell the assets.
How will the estate holding the NFTs sell them?
Many people expect the estate holding these assets sell them at auction. The exchange famously went bankrupt last year, losing billions of customer funds in the process. The theory is that proceeds from the sale of these assets will then go towards paying back some amount of money lost by victims of FTX’s fraud.
Liquidating the NFTs on the open market could negatively impact the overall market. Most importantly, this move would then presumably hurt the value of the collection. To that point, decision-markers will mostly resolve to market the portfolio for sale at auction.
To date, we haven’t received any official announcements on what will happen with the FTX NFTs. However, it seems likely they will be changing hands soon.