Andrew Kang, co-founder of Mechanism Capital, has acquired the original Pepe the Frog NFT from the estate of bankrupt crypto hedge fund Three Arrows Capital, known as 3AC. The sale was facilitated by auction house Sotheby’s as part of the liquidation of 3AC’s remaining NFTs. While the exact sum of the transaction remains undisclosed, onchain data confirms the transfer of the NFT to Kang’s wallet.
The NFT in question is the first authorized Pepe NFT by the character’s creator, Matt Furie. It features a full-page scan from Furie’s Boys Club comic series depicting the iconic “feels good man” meme.
Initially sold for 420 ETH (approximately $1 million at the time) on April 17, 2021, the NFT was later acquired by Starry Night Capital for 1,000 ETH, valued at $3.5 million, on October 5, 2021. Starry Night Capital, an investment arm of 3AC focusing on the NFT market, was the previous owner.
The collapse of 3AC in June 2022 and its subsequent bankruptcy filing had significant repercussions in the crypto industry. The hedge fund’s demise was attributed to the collapse of crypto exchange FTX and the failure of stablecoin UST and its sister token luna. This event had a cascading effect on neighboring crypto firms, leading to serious issues for entities like crypto prime brokerage Genesis and crypto exchange Gemini. These firms are currently under investigation by the NYAG over allegations of concealing missing funds.
Kang’s NFT collection boasts 50 Azukis, a Fidenza, three Bored Apes, 11 Mutant Apes, and 6 CryptoDickbutts. The total estimated value of the NFTs in Kang’s wallet, according to Dappradar, stands at $6.69 million.