Key notes
- The musician Jonathan Mann won $ 3 million by selling his songs as NFTS in January 2022.
- While the Ethereum price crashed the same year, the value of its profits did it too.
- However, the Internal Office Revenue Service imposed on him on the basis of the price he paid for participation during his first receipt.
Jonathan Mann, American singer and composer, recently experienced a significant loss of crypto due to the market accident. The musician behind the “Song A Day” project lost the $ 3 million he won because of the sales of non -buttons (NFTS) partly due to the cryptographic tax.
$ 3 million, victory at $ 1.1 million
Consequently, Mann transformed his test into a musical history, advising other investors to be careful. He shared his new track on X, telling how he made $ 3 million.
According to the thread of the social media platform, the singer-songwriter confirmed that he had sold all his back catalog as digital collects. Then, it disappeared when the cryptography landscape crashed during the collapse of the terra ecosystem.
“This is the story of the way I won three million dollars and I lost it,” sang Mann. “And how I owed the IRS more money than I won in the previous 10 years.”
Three years ago, Mann sold 3,700 songs to $ 800 each, generating approximately $ 3 million from Ethereum (ETH) from these sales. With so much excitement and a lack of preparation, the singer and his wife chose Hodl Ethereum. They expected the largest altcoin by market capitalization to increase prices.
6000 days.
6000 songs.A story that almost broke me:
The 3 million dollars that I won and lost.
My tax bill of $ 1.1 million.
The autoglyphhe that saved meIt’s the song per day # 6000
🌩️Crypto Tax Nightmare🌩️
The trip continues below pic.twitter.com/ufuknpimih
– 17 years of song per day (@songadaymann) June 5, 2025
Instead of increasing as the couple expected it, the price of the ETH followed a downward trend model in January 2022. While the couple was still trying to determine their next action plan – how to sell or when to sell – the entry revenue service (IRS) came after them.
The IRS imposed its profits from the NFTS sales as a income, valuing the ETH at the price that Mann received it for the first time. It was an unfortunate situation, since the price of the ETH had dropped considerably since then.
Although the $ 3 million Eth Eth have dropped worth, the due tax remained the same.
Rare autoglyphs save Mann from the IRS tax
Mann and his wife were trying to avoid losses. Consequently, they took a loan to Aave, a leading loan protocol, and used the ETH as a guarantee, rather than selling it. When Terraform Labs crashed in 2022, more disasters struck the American musician, while liquidations of massive cryptography occurred. In the blink of an eye, the $ 3 million in Mann disappeared.
He and his wife ended up with a debt of $ 1,095, 171.79. Mann sold a rare autoglyph nft that he bought in the first days of crypto to save the day. After a few setbacks, he found a broker who was ready to pay $ 1.1 million for the NFT. Mann said he had accepted the agreement because it was enough to cover taxes.
After this unpleasant test, the American singer did not stop writing songs and selling them in NFT. He hopes to win up to $ 3 million in another sale soon. In particular, the NFT ecosystem does not receive as much traction as before.
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Benjamin Godfrey is a blockchain enthusiast and a journalist who savor the writing of actual applications for blockchain technology and innovations to stimulate general acceptance and global integration of emerging technology. His desire to educate people on cryptocurrencies inspires his contributions to renowned media and blockchain sites.
