Singer Jonathan Mann Loses $3 Million from NFT Sales Due to Tax and Market Crash
American musician Jonathan Mann lost $3 million from NFT sales due to a market crash and tax obligations. He sold 3,700 songs as digital collectibles for approximately $3 million in Ethereum. After holding onto the ETH, its value decreased while taxes remained based on the initial sale price.
Key Points
- Mann's earnings were taxed as income by the IRS, despite the drop in ETH value.
- After losing funds during the Terra ecosystem collapse, his debt reached $1,095,171.79.
- To cover taxes, he sold a rare Autoglyph NFT for $1.1 million.
- Mann continues to create and sell NFTs, aiming to replicate previous success despite a declining NFT market.