By: Serach Nissim
On Monday, Sotheby’s announced that it will accept payment in the form of cryptocurrency for a large diamond purchase.
As reported by Reuters, the esteemed auction house has a 101.38-carat pear shaped diamond for sale in its auction next month. The rare colorless and flawless diamond, which is expected to sell for roughly $15 million, can be purchased using cryptocurrencies. Sotheby’s said this is the first time such a large diamond has been offered for public purchase with cryptocurrency. In fact no item of such high value has ever been available for sale with cryptocurrency, as per the auction house.
The diamond, named The Key 10138, is one of just 10 diamonds weighing over 100 carats to ever come to auction. Of those, only two were pear shapes, which is a very sought after shape. The D color FL clarity diamond is also a rare and precious subgroup known as Type IIa, which only 2 percent of all gem diamonds qualify as, as per the Auction House broker. It will be offered for sale on July 9 in Hong Kong at Sotheby’s inaugural Luxury Edit auction, along with other luxury items like watches, handbags and rare sneakers. Online bidding begins June 25. The listed pre-sale estimate is between $10 million to $15 million, and acceptable payment methods include Bitcoin or Ether, along with traditional money.
“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. “Never was there a better moment to bring a world-class diamond such as this to the market.”
In accepting cryptocurrencies for such a high value diamond, the auction house, founded in 1744, is making a big splash. The cryptocurrencies had a volatile year, reaching new highs and crashing back down. Many retailers refuse to accept payments made in the currency fearing that the value will decline by the time they exchange it. Last week, in the US, the National Republican Congressional Committee announced last week that it will accept donations in the form of cryptocurrency. As per the Post, in June, El Salvador became the first country to use Bitcoin as a form of legal tender. Sotheby’s already dipped into the cryptocurrency market in May, when it sold a Banksy for $12.9 million, marking the first piece of art ever sold by a major auction house and paid for with cryptocurrency.
