Andrew Kang, co-founder of Mechanism Capital, has made a significant addition to his digital asset collection by acquiring the original Pepe the Frog NFT in a private sale conducted by Sotheby’s. The purchase was part of the asset liquidation process of the now-defunct crypto hedge fund, Three Arrows Capital (3AC).
Despite the undisclosed financial details of the sale, Sotheby’s confirmed the successful transfer of the Pepe NFT to Kang’s digital wallet, marking a new chapter in the asset’s storied history. The NFT, created by artist Matt Furie, features a scan from the Boys Club comic series, where the iconic “feels good man” meme is displayed. As the first authorized NFT depiction of the Pepe character, it holds significant value for collectors and enthusiasts.
The journey of the Pepe NFT to the recent auction involved notable transactions, including its original sale for 420 ETH in April 2021, and a subsequent transfer to Starry Night Capital, a subsidiary of 3AC, for 1,000 ETH (approximately $3.5 million at the time) in October 2021. The collapse of 3AC in mid-2022, amidst the general turmoil in the crypto market, led to the liquidation of its assets, including the highly valued Pepe NFT.
Andrew Kang’s acquisition of the Pepe NFT further enriches his remarkable collection of digital assets, which already includes a diverse range of NFTs. The successful purchase underscores the resilience of the market and demonstrates the continued interest and demand for unique and sought-after NFTs.
