NFT Market Blues Lead To Tax-Loss Harvesting Trend

The NFT arena’s been more of a bear than a bull lately. 🐻

Dune Analytics says that prices and trading volumes are snoozing – weekly trades are lounging between 100,000 and 150,000, a snooze compared to the early 2022 frenzy of 500,000.Β 

Platforms offering tax-loss harvesting for NFTs are cropping up. Think of them as digital thrift shops for your not-so-shiny NFTs. They buy digital downers, helping you shrink your capital gains tax bill. Blockworks reports a surge in these services.

Unsellable, started by Skyler Hallgren, David Sawyer, and Zach Miller, is leading this pack. They’re like the island of misfit NFTs, buying your digital blunders for a nominal fee. According to Hallgren, Unsellable’s been busy, with around 1,000 NFTs recently snapped up and nearly 10,000 purchases in December.

And they’re not alone. Platforms like Harvest.art, NFT Loss Harvestooor, The Junkyard, and Sol Incinerator are joining the tax-loss harvesting party. Sol Incinerator’s transactions spiked by 70% last week, per DappRadar.

Blockworks spoke to an NFT trader, MoneyPrinterGoBrrr, who’s been cutting losses via these services. Despite a profitable portfolio, some NFTs didn’t pan out.

One man’s trash, it turns out, is quite literally another man’s treasure. πŸ’°

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