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Musician Jonathan Mann made $3 million selling NFTs and lost it all because of taxes and the collapse of cryptocurrencies
NFT artist Jonathan Mann, the musician behind the "Song A Day" project, has turned his struggles with cryptocurrency taxes into a cautionary song. Mann earned $3 million from selling 3,700 songs as NFTs in early 2022. However, when the price of ETH fell sharply due to the Terra ecosystem crisis, he faced a tax debt of up to $1.1 million from the IRS.
To avoid selling at a loss, Mann borrowed money through the Aave protocol, but 300 ETH was liquidated when the market crashed. In the end, he sold a rare Autoglyph NFT for 1.1 million dollars to pay taxes. Despite going through many difficulties, Mann continues to create and hopes to earn an additional 3 million dollars in the future.