Musician Jonathan Mann Profits $3 Million from NFT Sales, Later Loses It All Due to Taxes and Market Crash

Musician Jonathan Mann recently revealed that he made approximately $3 million in January 2022 by selling 3,700 song NFTs (received in ETH). However, after the market crash, these earnings were almost entirely lost due to cryptocurrency devaluation 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 amounting to $1,095,171.79. To address the liquidity crisis, he collateralized ETH to borrow through Aave, but was liquidated during the market turmoil triggered by the Terra ecosystem collapse, losing 300 ETH. Ultimately, he sold an early-held Autoglyph NFT for $1.1 million to pay the taxes. Mann continues to create and sell song NFTs daily, but has not yet returned to previous income levels.