CryptoPunk #4156 sold for 2691 ETH, or about $3.3 million. Given that ETH is currently trading around $1,200, the sellers are effectively losing $7 million.
The NFT was bought for 2,500 ETH in December 2021, when it was worth $10.26 million. This means that sellers make a small profit in ETH value, but suffer heavy losses in dollar value.
But the move may be for tax-cutting purposes. This deliberate loss on the books is a common practice used by traders to reduce capital gains. Reducing capital gains income by $7 million could even lower the seller’s tax rate, leading to further tax benefits.
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