How a $3 Million NFT Dream Became a Taxing Nightmare! 😱💸

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In the grand tapestry of life, where fortunes are woven and unraveled with the fickle threads of fate, there lived a man named Jonathan Mann. An American bard, he serenaded the world with his “Song A Day” project, a noble endeavor that once filled his coffers with a staggering $3 million, all thanks to the mystical realm of Non-Fungible Tokens (NFTs). Alas, the cruel hand of destiny, accompanied by the relentless march of the crypto market crash, snatched away his fortune, leaving him to grapple with the specter of taxes that loomed larger than his dreams.

From $3 Million Win to $1.1 Million Tax

In a twist befitting a tragicomedy, Mann transformed his misfortune into a melodious cautionary tale, strumming the strings of wisdom for fellow investors. He took to the digital stage of X, unveiling a new track that chronicled his meteoric rise and catastrophic fall. “This is the story of how I made three million dollars and lost it,” he crooned, “and how I owed the IRS more money than I made in ten previous years.” Oh, the irony! 🎤

Three years prior, with the exuberance of a child in a candy store, Mann had sold 3,700 songs at a princely sum of $800 each, amassing a fortune in Ethereum (ETH). With dreams of soaring profits, he and his wife decided to HODL their precious ETH, convinced that the altcoin would ascend to celestial heights. But, as fate would have it, the price of ETH took a nosedive, much like a poorly thrown boomerang.

6000 days. 6000 songs.

A story that almost broke me:

The $3 million I made and lost. My $1.1 million tax bill. The Autoglyph that saved me.

This is SONG A DAY #6000

🌩️CRYPTO TAX NIGHTMARE🌩️

The journey continues below👇

— 17 years of song a day (@songadaymann) June 5, 2025

As the couple pondered their next move—whether to sell or hold—the IRS, like an uninvited guest at a wedding, came knocking. They deemed Mann’s NFT earnings as taxable income, valuing the ETH at its original price, a cruel twist considering the market had plummeted. While the $3 million in ETH dwindled, the tax bill remained as steadfast as a loyal dog.

Rare Autoglyph Saves Mann From IRS Tax

In a desperate bid to stave off financial ruin, Mann and his wife sought refuge in the arms of Aave, a lending protocol, using their ETH as collateral instead of selling it. But when the Terra ecosystem collapsed in 2022, calamity struck again, and in a heartbeat, Mann’s fortune evaporated like morning mist. They found themselves shackled with a debt of $1,095,171.79. 😱

In a stroke of serendipity, Mann sold a rare Autoglyph NFT, a relic from the early days of crypto, to salvage his situation. After navigating a labyrinth of setbacks, he discovered a broker willing to part with $1.1 million for the NFT. “It was enough to cover the taxes,” he mused, a bittersweet smile gracing his lips.

Despite the tempestuous seas of the NFT market, Mann has not ceased his creative endeavors. He continues to compose and sell his songs as NFTs, ever hopeful of reclaiming his lost fortune. Yet, the NFT ecosystem, once a bustling bazaar, now languishes in the shadows, a mere echo of its former glory.

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2025-06-08 00:20