CryptoPunks NFT Owner Sells For $7M Loss, But There May Be Some Upside

A CryptoPunk NFT sold for a whopping 2,691 ETH, worth $3.3 million on Friday. But the owner sold it for a loss of $7 million. 

This Punk is one of the 24 apes in the collection, making it one of the rarest characters. 

"$3.2m is a joke for that ape, but it might be tempting for the holder to accept," Tank, owner of CryptoPunk #4227, wrote in a Twitter post before the bid was accepted. 

Punk 4156 bought for 2,691 ETH ($3,312,002.12 USD) by 0x67954a from 0x561786. https://t.co/GF3TCByB3Y #cryptopunks #ethereum pic.twitter.com/FXI30ORl2m

— CryptoPunks Bot (@cryptopunksbot) July 15, 2022

Last year, in December, CryptoPunk #4156 was purchased for 2,500 ETH. That's 191 ETH less than today, but worth $10.26 million at the time of sale. 

Also Read: CryptoPunks Creators Larva Labs Apologize For Selling Old V1 NFTs

According to estimates, Friday's seller earned significantly less profit in Ethereum and suffered heavy losses in terms of the dollar value. 

The report suggests the owner may have campaigned for $7 million in damages due to tax losses.

For tax purposes, the IRS may consider these losses realized at the time of the sale of the NFT; the seller should not convert that ETH into dollars to write off the upset.

With this planned incurred loss, traders use it to reduce their capital gains liability. It could be possible that a $7 million reduction in capital facilities income would also reduce the seller's tax charges, resulting in additional tax benefits.

According to a Twitter post, it's perfect for Tax Loss Harvesting.

It's actually really smart for tax loss harvesting if he's sure he wont make a positive return on that investment anytime soon.

— (@MISHKAcreates) July 15, 2022

Photo: Courtesy of opensea.io