A non-fungible token (NFT) sold at Sotheby’s Thursday after a bidding war drove its price up to $6.2 million — more than double its estimated value, CoinDesk reported.
Dmitri Cherniak’s Ringers #879, commonly referred to as “The Goose,” features abstract yellow shapes speckled with black and white circles. It yielded the second-highest price of all time for a generative work of art, according to Sotheby’s.
In total, the New York-based auction house sold $10.9 million worth of NFT art that had been seized from Three Arrows Capital, a crypto hedge fund that filed for bankruptcy in July 2022 and fell into liquidation.
The sale added something of a counterpoint to speculation that the market for NFTs has collapsed in the face of a wobbly economy and higher interest rates.
In late May, CoinDesk reported that some of the most popular NFT projects had lost a combined 95% of their value in Ether, the world’s second-largest cryptocurrency behind Bitcoin.
NFTs are assets similar to digital trading cards: Although internet users can easily create reproductions, the original token theoretically can’t be altered or destroyed as it lives on the blockchain. Many NFTs are sold on online marketplaces in which users can trade and invest in particular tokens they believe will go up in value over time.
Generative artists, including those whose work was auctioned at Sotheby’s this week, employ algorithms and artificial intelligence to create their works. NFTs that do not use generative technology have yielded even higher prices: A collage by the graphic artist Beeple sold at Christie’s for over $69 million in 2021, kicking off the NFT boom.