A musician made $3 million selling NFTs, but lost it all due to taxes and market crash
06-09 01:38

Odaily News After earning $3 million from NFT sales, musician Jonathan Mann lost almost all of his money due to the collapse of the cryptocurrency market and tax issues. He wrote a song about this experience to warn crypto investors of tax risks.
In January 2022, Mann sold 3,700 songs as NFTs at a price of $800 per song, earning about $3 million in ETH. Due to the failure to realize the profits in time and the decline in ETH prices, he faced the IRS's requirement to tax his income in full, with taxes as high as $1.095 million. To offset taxes, he mortgaged ETH to borrow through Aave, but lost 300 ETH in the chain liquidation caused by the collapse of the Terra ecosystem. In the end, he was forced to sell the Autoglyph NFT he bought in his early years for $1.1 million to pay taxes. Mann said that despite the heavy blow, he still insisted on creating and releasing NFT songs every day, looking forward to success again. (Cointelegraph)

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