A certain musician made a profit of 3 million dollars through NFT sales, but later lost nearly everything due to tax issues and market collapse

ChainCatcher news, according to Cointelegraph, musician Jonathan Mann recently disclosed that he made approximately $3 million by selling 3,700 song NFTs in January 2022 (received in ETH). However, after the market crash, this profit was almost entirely lost due to the devaluation of cryptocurrency and tax issues.

Mann stated that the IRS required him to pay income tax based on the value of ETH at the time of sale, with a tax bill as high as $1,095,171.79. To cope with the liquidity crisis, he collateralized ETH to borrow through Aave, but was liquidated during the market turmoil triggered by the collapse of the Terra ecosystem, losing 300 ETH. Ultimately, he raised $1.1 million by selling early-held Autoglyph NFTs to pay the taxes.

Currently, Mann continues to create and sell song NFTs daily, but has not yet returned to his previous profit levels.