Neon Village NFT Sells for 20 ETH Following Dormant Bid from 2021

NFT from the once-popular Neon Village collection has been sold for 20 ETH. The bid, originating from a wallet potentially linked to the now-bankrupt investment firm Three Arrows Capital (3AC), was placed nearly three years ago during the 2021 NFT boom. 

This purchase reflects a lingering interest in certain NFT collections despite the market’s volatility.

The 2021 bid and Its late fulfillment

Blockchain data revealed that the offer for Neon Village NFT, token ID #26497, was initially made on August 21, 2021. The bid was only recently accepted, underscoring the long durations some NFT bids can remain active before completion through automated smart contracts. 

The wallet that made the 20 ETH offer had transferred significant funds, amounting to 2,615.65 ETH, to Three Arrows Capital shortly before making the bid, suggesting possible connections to the firm.

Three arrows capital’s involvement and impact

The involvement of Three Arrows Capital with the NFT is notable due to its historical significance in the crypto investment landscape. Before its downfall alongside the FTX exchange, 3AC actively participated in various high-profile NFT transactions, including notable investments in collections like Pudgy Penguins.

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Unfortunately, the firm’s financial troubles led to a forced liquidation of its assets, including its NFT holdings, to repay creditors. This sale at a significantly reduced price compared to its peak illustrates the risks associated with such speculative investments.

Current state and market reaction

Despite 3AC’s bankruptcy, the market for iconic NFTs like those from the Neon Village and Pudgy Penguins collections continues to see activity. The buyer’s wallet, now managed under the Teneo conservatorship, holds assets exceeding $229 million, including other NFTs and crypto tokens. The enduring appeal of these digital assets highlights the unique position of NFTs in the crypto market, where art and collectibility meet investment and speculation.

This transaction marks the closure of one of 3AC’s many high-stake bets and illustrates the complex dynamics of the NFT market, which continues to evolve and react to the broader financial landscape of the crypto world.

The post Neon Village NFT Sells for 20 ETH Following Dormant Bid from 2021 first appeared on Coinfea.