Got ‘worthless’ NFTs? This startup buys JPEGs for a penny to collect tax credits

For most NFTs, the last two years have not been the only phase of a brutal bear market: 90-95% of NFT stocks will not return to pre-bear market prices, Pedro Herrera, head of research at Dapradar, recently told Decrypt. .

For many NFT owners, then, the question of what to do with the millions of now “worthless” JPEGs looms large. One solution: take those losses up front and use them to save on taxes.

Not for Sale, a startup founded last year that buys illegal NFTs for pennies from hard-earned people to allow owners to take a tax write-off, says it has helped clients declare losses totaling $4.2 million.

Skyler Hallgren, founder of Unsold, thinks the aggregate is only the tip of the iceberg in a fragmented sector. More than 90% Trading volume and activity since two years ago.

“This huge amount—perhaps a billion dollars—in the year There are unanticipated losses below the NFT bubble in 2021,” Hallgren said. Decrypt. “Of course we can do about it.”

The average consumer has been able to write off $4,200 worth of losses on NFTs with unsold claims and lost value. Last year, one user of the platform—platform engineer Thomas Mancini of the NFT portfolio app Floor—claimed to have written off nearly $58,000 in NFT losses with the help of a no-trade.

A few of the “blue chip” NFT collections Boring Monkey Boat Club, CryptopunksAnd Pudgy Penguin They have maintained value during the ongoing crypto winter; It doesn't affect those that don't sell.

Instead, it creates a sort of graveyard for broken NFT toys: carpet-scraped projects, abandoned collections, and coattail-riding copycats (think: Jacked Monkey Club, Rich monkey social club, IRL Punks, BoobBirds– Also as wild cards My banana fuko.)

In general, the company collected about 26,000 NFTs so far.

“Some are strange, some are outrageous, some are funny; A very small percentage are aesthetically attractive,” said Hallgren. “Most of them are startup projects.”

Since the company does not have any personal relationship with the NFT holders that it buys. Since those holders have no hope of buying back their NFTs at any point in the future, Unslable says the plan is perfectly legal, akin to junk stock. Return programs.

Unsold costs ETH a modest fee of $2 for each NFT transfer. The company managed to flip about 300 of the NFTs it acquired, mostly in the $30 to $200 range for modest payout dates. But flipping an occasional NFT isn't a selling point, so the founders say.

“Our goal is to create the world's largest collection of NFTs over time,” Hallgren said.

The entrepreneur is interested in one day selling the platform to a crypto tax organization or a crypto tax software company; Some of them, he says, have already arrived at what they can buy.

He said that because he already owns thousands of NFTs that are not for sale, few parties have shown interest in buying the set. Some still hold out hope that one of the thousands of dead or dying JPEGs may one day come back to life, and the price may rise.

Others, according to Hallgren, want to keep the collection as part of a museum—one that holds the incredible excesses created at the height of the NFT market.

Edited by Andrew Hayward.