Pak Digital Exhibition Generates $17 million

The Digital Artist known as PAK generated over $17 million in sales over 3 days for a Sothebys auction held at the Winklevoss Twins’ digital art site Nifty Gateway.

The Nifty Gateway is fascinating site with daily “drops” of art, each backed by NFTs with a barely veiled crass commercialism crossed with a quasi get-rich quick ponzi scheme like backdrop. Digital art “collectors” purchase NFTs of digital art works and the site immediately lists the purchased holdings on the Nifty Gateway “Marketplace”, where identical images of the NFT series’ are displayed with captions underneath “Not Accepting Offers” or a dollar amount you can pay to get your own copy. Pak “Cubes” that were sold individually for $500 on April 12th, $1,000 on April 13th and $1,500 on April 14th are showing available NFT editions today (April 19th, 2021) from $1,396 to $9,999,999,999 (that’s a dollar less than 10 billion dollars) and with a median sale price of $5,555 (half Pak cubes sell for more, half of them sell for less). So assuming an efficient and relatively liquid Nifty “Marketplace”, and going with the median price, one could have bought an open edition Pak cube for $500.00 on April 12th with no limit to the amount of editions listed for sale, and on April 19th the NFT purchaser can resell with a median price that is 11x that purchase price a week earlier. I don’t know how much movement the Nifty “Marketplace” has, but an 11x return on any investment a week later is the kind of returns that sound too good to be true and such that seasoned investors warn about.

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