- Starry Night Capital NFT collection now officially belongs to Teneo
- The Collection will be transferred to a Gnosis safe address
Teneo, the firm responsible for liquidating Three Arrows (3AC) has appropriated the Starry Night NFT collection. How this development affects the price of these expensive NFTs is yet to be determined. Over 300 NFTs will be transferred in the process. These collections are built on the Ethereum blockchain.
In 2021, Starry Night Capital is an NFT fund created by 3AC co-founders Su Zhu, Kylie Davis and an NFT collector going by the name ‘Vincent Van Dough’ (VVD). It was created with the aim of collecting so-called “most desired NFTs.” At its peak, the crypto hedge fund managed $10 billion.
In July this year, 3AC filed for bankruptcy via Chapter 15 bankruptcy process during the prolonged crypto winter spell and volatile markets. Bloomberg reported that the Starry Night collection’s value was estimated at $35 million. This is a small fraction of 3AC’s total debt which is $3.5 billion.
WSJ reported in June that 3AC had lost nearly $200 million after the collapse of the LUNA token and the TerraUSD token. The Terra-Luna collapse is the biggest crypto-related market dampener this year.
VVD will assist with the subsequent sale of these NFTs. CryptoPunk and Art Blocks are some of the popular NFTs that will be transferred; and sold. CryptoPunk NFTs are often used by Twitter users as profile pictures.
A court in the British Virgin Islands appointed Teneo, a global advisory firm to recognize the liquidation of the insolvent NFT investment fund in June this year.
A risky business model
3AC’s strategy was to borrow money from institutions – it owed money to 27 entities when it filed for bankruptcy – and invest that money in upcoming crypto ventures; apart from making directional trades in multiple cryptocurrencies.
WSJ reported in June that 3AC had lost nearly $200 million after the collapse of the LUNA token and the TerraUSD token. The Terra-Luna collapse is the biggest crypto-related market dampener this year.
Asset brokerage firm Voyager filed for chapter 11 bankruptcy protection when 3AC defaulted on a $670 million loan. Genesis, 3AC’s largest creditor was also hit with big losses.
Source: https://www.thecoinrepublic.com/2022/10/08/three-arrows-capital-liquidation-teneo-appropriates-starry-night-nft-collections/