Critter NFT Dramaš§
The collapse of Pudgy Penguins, estate sale madness
Cultured is a newsletter by Otis that gets readers up to speed on the most interesting things going on at the intersection of finance, art, collectibles, NFTs, and more.
š STORIES OF THE DAY
Behind the collapse of Pudgy Penguins
Pudgy Penguins, one of the most successful early NFT projects, is on the brink of collapse. Owners are dissatisfied with the projectās founders, saying they havenāt kept up the project.
Community members say that the founders havenāt lived up to their promises, which included new drops and a video game. At the same time, rival Bored Apes Yacht Club has signed brand deals and is in the process of creating a game.
The average price of a Penguin has plummeted, dropping from a peak of more than $25,000 over the summer to just $5,000 today. At the same time, Apes have shot up in value and currently go for around $80,000.
Our Take: NFTs live through their communities. When those communities die, the financial repercussions can be huge.
NFTs are inherently communal projects. But the viral nature of these projects mean that founders donāt always know what theyāre getting themselves into. The creators of Pudgy Penguins are college students who got lucky, but are now struggling to maintain a project thatās grown way larger than they expected. For collectors, the financial results can be devastating.
Inside the wacky world of estate sales
Estate sales are an enduring part of the collecting world, full of intrigue and strange characters (like āFast Eddie,ā who literally runs through the estates). Theyāre more frequent than high-end auctions at Christieās and Sothebyās, and prices are fairly low.
Millennials are relatively new participants and theyāre (surprise!) passionate about nostalgic items, like āMagic: The Gatheringā cards and video games. Asian art (due to new affluent Chinese buyers) and items from the Black Diaspora are also on the rise.
During the pandemic, many estate sales became online auctions, which proved highly lucrative ā one company pulled in $17 million in sales in 2020. Online auctions tend to give buyers a more competitive rush.
Our Take: Estate sales are a great example of why collecting isnāt just about buying things ā itās about the thrill of the chase.
Whether itās putting in a bid for an item in the final seconds of an auction, or finding an item in the drawer of a house that the estate sale company didnāt mark, the process of buying something is a big part of its value. While estate sales usually sell items belonging to older people, you never know what youāll find until you step inside the house. With prices significantly lower than a Bushwick boutique, itās a low-risk way to start collecting.
āØ AROUND THE INTERNET
Luxury fashion brand Balmain has teamed up withā¦Barbieā¦for its latest collab. Honestly? The fits are tight.
NFT marketplace 3SpaceArt is working to bring the blockchain into the real world. In addition to selling NFTs online, the company is working with museums and galleries to do IRL exhibitions.
Banksyās latest spray is a small-scale wonder: the artist graffitied a miniature model of a stable at a British seaside museum and the work is bringing in record numbers for the Peterborough Museum in England.
Rick Nielsen of American rock band, Cheap Trick, isnāt just an amazing guitarist ā heās also a prolific guitar collector. Check out some of his best finds.
GameStop is leaning into its rep as a meme stock. The company announced plans to release an NFT last week, sending its stock up 20%. š
Gen Z is bringing back tech from the early 2000s, including the iconic iPod Shuffle. Also in: wired headphones, something I didnāt even realize was out.
Have fun dealing with this, kids.
