Andrew Kang, co-founder of Mechanism Capital, purchased the original Pepe the Frog NFT for an undisclosed sum from the estate of bankrupt cryptocurrency hedge fund Three Arrows Capital, known as 3AC.
Auction house Sotheby’s facilitated the private sale as part of the liquidation of 3AC’s remaining NFTs. Sotheby’s confirmed the sale to The Block, and on-chain data showed it was transferred to Kang’s wallet.
The NFT was the first Pepe product endorsed by character creator Matt Furie. Shows a full page scan from Matt Furie’s Boys Club comic series showing the “feels good man” meme.
The NFT was first sold on April 17, 2021 for 420 ETH (about $1 million at the time). It was later acquired by Starry Night Capital on October 5, 2021 for 1,000 ETH, valued at $3.5 million at the time. It was the investment arm of 3AC focused on the NFT market.
3AC collapsed in June 2022 and filed for bankruptcy the following month. It was affected by the collapse of cryptocurrency exchange FTX and the failure of stablecoin UST and sister token Luna. The collapse had a knock-on effect on other cryptocurrency companies around it and caused serious problems for cryptocurrency prime brokerage Genesis and cryptocurrency exchange Gemini. Both companies are currently being investigated by NYAG for allegedly concealing missing funds.
Kang’s NFT collection includes 50 Azuki, 1 Fidenza, 3 Bored Apes, 11 Mutant Apes, and 6 CryptoDickbutts. Dappradar estimates the value of the NFTs in his wallet at $6.69 million.
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Tim is the editor-in-chief of The Block. Before joining The Block, Tim worked as a news editor at Decrypt. He holds a BA in Philosophy from York University and studied News Journalism at Press Association Training. X Follow him at @Timccopeland