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ConstitutionDAO outbids Sotheby’s for first printing of America’s Founding Document

In an auction at Sotheby’s on Thursday night, a pair of artworks by modern artist Banksy sold for a total of 3,093 ETH. The auction is the first time the auction house has denominated a sale in Bitcoin, according to CoinDesk. Paintings by Banksy sell for 3093 ETH on Auction House First

Paintings by Banksy sell for 3093 ETH on Auction House First

Image Source: CoinDesk

“Trolley Hunters” (2006) and “Love Is In The Air” (2006) were expected to sell for $5 million to $7 million and $4 million to $6 million, respectively, and both sold for $6,698,400 and $8,077,200 — a total of 3,093 ETH.

Spectacularly, a haphazard combination of crypto enthusiasts was outbid for the United States Constitution. On Thursday evening, at Sotheby’s auction house, the group known as ConstitutionDAO was outbid by an unknown buyer who put a $43.17 million bid. A first edition copy of the Constitution, one of just 13 in existence, was in new hands when the gavel fell.

Constitution The DAO had captured the public’s attention as the best example of a crypto community using its real-world purchasing power. In less than a week, the DAO, or decentralized autonomous organization, or, to be more precise, an 18,800-member Discord channel, had raised over $40 million from over 17,000 Ethereum wallets. In the end, it wasn’t enough to close the transaction.

DAOs, which are online communities that use various technologies to make governance choices in a range of sectors, have already teamed up to win auction blocks. However, its awards are usually in the form of cryptocurrency, such as non-fungible tokens (NFTs), which can be controlled by smart contracts.

A Beeple collection fetched a staggering $69 million at a Christie’s auction in March, catapulting NFTs into the mainstream in the United States and beyond.

Despite the setback, ConstitutionDAO’s $47 million crowdsourcing campaign could serve as a warning to other online investing collectives. The group said it couldn’t beat the winning bid of $43.17 million because it didn’t have enough money to keep the document up to date.

“I think this is a clear harbinger of the beginning for DAOs,” FTX.US President Brett Harrison told. There have been a number of DAOs that have popped up around NFT communities around different kinds of DeFi projects, but they have never been for real-world assets.

ConstitutionDAO used Harrison’s crypto exchange to convert the cryptocurrency to cash, which was held in an account managed by Endaoment, a non-profit that represented the organization at auction.

Sotheby’s will not accept bitcoin as payment for the winning offer, unlike the auction house’s Bored Ape Yacht Club sale in September. The DAO’s ETH was turned into cash for the auction by crypto exchange FTX, a deal that was finished hours before the winning bid was placed.

ConstitutionDAO, if anything, has sparked widespread interest in DAOs in the media. The New York Times, Wall Street Journal, BBC, and other well-known businesses have to explain the subtleties of DAOism by Thursday. As the sale approached, Google Analytics searches for DAO reached an all-time high.

“I think seeing how powerful a DAO can become in a real-world transaction such as this, I think will show people that there’s a lot of potentials that people have only dreamed of for these kinds of organizations to be a model for future governance,” said FTX’s Harrison.

Sotheby’s had a historic night for crypto with the Constitution bidding. Previously, in the auction house’s inaugural crypto sales, two works by graffiti artist Banksy fetched millions of dollars in ETH.

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Also read: Ted Cruz proposes reversing Infrastructure Bill’s cryptocurrency crackdown

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