Sotheby's announces it will accept Bitcoin and Ethereum at auction for 101-carat diamond that's expected to fetch up to $15million
- Sotheby's on Monday said it will accept Bitcoin and Ethereum when the impressive diamond is auctioned off in Hong Kong next month
- The auction house said it marks the first time a diamond of such size has been offered for purchase with cryptocurrency
- The 101.38-carat pear-shaped diamond is expected to fetch up to $15million
- Sotheby's previously tested accepting cryptocurrency in an NFT online auction earlier this month
Sotheby's has announced it will accept cryptocurrencies as payment for a rare 101.38-carat diamond that is expected to fetch up to $15million at auction next month.
The auction house on Monday said its sale will mark the first time a diamond of such size has been offered for public purchase with cryptocurrency. No other physical object of such high value has previously been available for sale with cryptocurrency, it said.
The pear-shaped diamond, dubbed The Key 10138, is one of just ten diamonds of more than 100 carats ever to come to auction, only two of which were pear-shaped.
It carries a pre-sale estimate of $10million - $15million and will be sold on July 9 in Hong Kong. Bitcoin or Ethereum, along with traditional money, will be accepted as payment.
Sotheby's Auction House will be marking another Bitcoin milestone next month, as it is the first time a diamond of such size has been offered for public purchase with cryptocurrency
Sotheby's said that the past year has seen strong demand for white diamonds, jewels and other luxury items, particularly from younger people, including those in Asia
'This is a truly symbolic moment. The most ancient and emblematic denominator of value can now, for the first time, be purchased using humanity´s newest universal currency,' Patti Wong, chairman of Sotheby's Asia, said in a statement.
The famed art and luxury items broker had previously tested using cryptocurrency during a recent NFT online auction earlier this month.
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The move marks another milestone for Bitcoin and similar cryptocurrencies despite a volatile year, with the marketplace continuing to experience explosive growth and major tumbles.
In the United States, the National Republican Congressional Committee last week said it will accept donations in cryptocurrency. El Salvador this month became the first country to adopt Bitcoin as legal tender.
Earlier this month, Bitcoin prices soared over $40k after an endorsement from billionaire hedge fund manager Paul Tudor Jones.
Sotheby's said its sale will mark the first time a diamond of such size has been offered for public purchase with cryptocurrency (file photo)
'I like bitcoin as a portfolio diversifier. Everybody asks me what should I do with my bitcoin? The only thing I know for certain, I want five percent in gold, five percent in bitcoin, five percent in cash, five percent in commodities,' Jones told CNBC’s 'Squawk Box' earlier this month.
Tesla CEO Elon Musk, who had previously experimented with Bitcoin payments for the brand's electric cars, has had quite the influence over the cryptocurrency market recently as well.
Musk had halted the use of Bitcoin as a payment method in May after revealing his concerns over the climate impact of cryptocurrency mining, causing hundreds of billions of dollars to be erased from the crypto marketplace, according to a CNBC report.
As of Monday, Bitcoin prices had dropped below $35,000 as China intensifies its crackdown on crypto mining.
The world's biggest cryptocurrency has lost over 20 percent in the last six days alone and is down by half from its April peak of almost $65,000. However, it has still gained over 10 percent this year.
The diamond carries a pre-sale estimate of $10 million - $15 million and will be sold on July 9 in Hong Kong, according to Sotheby's
But new developments such as Sotheby's use of cryptocurrency for its luxury item auctions could help to stabilize an otherwise volatile marketplace.
In May, Sotheby's sold a Banksy for $12.9million in the first instance of a work of physical art sold by a major auction house that was bought with cryptocurrency.
Sotheby's said that the past year has seen strong demand for white diamonds, jewels and other luxury items, particularly from younger people, including those in Asia.
The name of the colorless diamond - Key 10138 - is intended to reflect the integral role that keys occupy in the world of cryptocurrencies.
Pear-shaped diamonds are among the most sought after. The 530 carat Cullinan 1 diamond, which forms part of Britain's Crown Jewels, is the most famous example.
The top price paid for a colorless diamond at auction was a 118.28 carat oval that went for $30.8million at Sotheby's in Hong Kong in 2013, with a record price per carat of $260,252.
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