Digital artist Pak has recently fetched $16.8 million in total from an online sale of NFTs (non-fungible tokens) at Sotheby’s. This includes an image of a single pixel sold at $1.36 million, the auction house has stated.
The NFT is a form of digital asset based on blockchain that has been gaining widespread popularity in 2021. The price of this asset has been rapidly surging due to the growing demand for items that exist in the digital form among crypto enthusiasts and collectors.
In March 2021, an NFT artwork was sold for $69.3 million at Christie’s, which marked the 1st sale of art that does not exist in the physical form by a major auction house. The Sotheby's sale, known as ‘The Fungible Collection’, had a complex structure including digital cubes available for purchase at $500-$1,500 each, with collectors receiving multiple NFTs based on the number of cubes they own.
In addition, the recent sale included 4 limited edition NFTs that were awarded to the winners of specific tasks, such as those who posted #PakWasHere to a wide social media audience and those who paid the highest sum of money for a Pak artwork in the secondary market. For the record, ‘the Pixel’, an NFT, was up for auction and fetched $1.36 million in a 90-minute bidding battle. These NFTs exclusively exist in the digital form, with blockchain serving as the public ledger to verify the ownership status.
According to the Specialist of Contemporary Art at Sotheby's, Max Moore, the NFTs sale was targeted towards the crypto-native collectors. These investors have a distinct aesthetic and taste profile as compared to the traditional collectors, he added. Therefore, it becomes highly crucial to deliver a mix of collectibles at Sotheby's to cater to a large number of audiences.
The NFTs sale happened online recently on Nifty Gateway, a company owned by Gemini. Buyers paid for the asset in the cryptocurrency Ether or through their credit or debit cards.