Cryptocurrency

Sotheby rakes $100 million profit from NFT auctions

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The NFT market has grown exponentially, with over $1 Billion in sales last year. Although it’s still a small share of the overall gaming industry, these collectible games have caught on and are becoming mainstream as seen by Sotheby’s recent auction from CryptoKitties that raked in $100 million

The “selling nft” is a company that has made $100 million on the NFT auctions. Sotheby’s has been selling art using blockchain technology for over 10 years, and they are one of the few auction houses to be able to sell these assets as easily as if they were paintings.

Sotheby rakes $100 million profit from NFT auctions

While blockchain technology has been around for the better part of a decade, 2021 will undoubtedly be remembered as the year that saw broad acceptance of some of the technology’s applications, such as crypto, non-fungible tokens (NFT), and even decentralized banking (DeFi).

In a recently disclosed report, one of the early conventional auction houses, Sotheby’s, which rushed into the auctioning of NFTs, claimed that it generated roughly $100 million in profit from the sector.

First-time buyers swarm to the auction. Metaverse of Sotheby’s 

Sotheby’s disclosed in its report that its entry into the NFT-sphere with the establishment of a Metaverse helped to bring attention to its auctions from the larger crypto community. According to the company, 78% of buyers at its NFT auctions were new to the platform and, more interestingly, they were under the age of 40.

It went on to say that its virtual gallery was mostly being examined for artifacts from the Bored Ape Yacht Club and CryptoPunk, two of the most popular initiatives in the area.

The New York City-based auction company said that its auctions brought in $6 billion this year alone, bringing its total sales to $7.3 billion.

Sotheby’s NFT auctions of note

The auction house’s inaugural NFT sale took place in April and lasted three days. The NFTs created by Pak, a prominent digital artist, drew 3,000 customers and grossed $16.8 million in the first auction. 

Following that, Sotheby’s sold NFTs of the original World Wide Web (WWWW) source code for $5.3 million. A rare CryptoPunk sold for $11.8 million, while a Bored Ape Yacht Club NFT sold for $24.4 million. 

It should be noted that the auction house allowed crypto assets such as Bitcoin and Ethereum for some of its previous physical item sales, such as a rare diamond and Banksy artworks.

In addition, its widely publicized auction of the first United States of America constitution sparked a lot of interest in the crypto space, leading to the formation of the ConstitutionDAO community, a decentralized autonomous organization dedicated to putting the constitution “in the hands of the people.”

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