NFT Investment Gone Bad: User Loses Over $1 Million
6/13/2022, 05:05 PM
It's safe to say that non-fungible tokens have seen better days as liquidity dries up amid a broader market downturn and collapsing prices. Amid all this, an investor has let go of an NFT they bought for more than $1 million for less than $10K.
The investor, who bought the NFT eight months ago for 300 ETH, sold it just a few hours ago for 6.9 ETH. At the time of the transaction, ETH was trading at around $8.4K, making the sale worth roughly $74,000.
The NFT was part of a collection called CrypToadz by GREMPLIN. The collection currently has a floor price of around 1.5 ETH - a shadow of its former self. Last year, at around the time the above purchase was made, the average NFT from this collection sold at above 21 ETH.
The investor's decision to sell the NFT may have been influenced by the recent market downturn. However, it's also possible that the investor sold the NFT to himself for such a high price back then in a process that's known as wash-trading. It could also have been done in a bid to reduce taxes payable, although this would constitute a punishable offense
The investor, who bought the NFT eight months ago for 300 ETH, sold it just a few hours ago for 6.9 ETH. At the time of the transaction, ETH was trading at around $8.4K, making the sale worth roughly $74,000.
The NFT was part of a collection called CrypToadz by GREMPLIN. The collection currently has a floor price of around 1.5 ETH - a shadow of its former self. Last year, at around the time the above purchase was made, the average NFT from this collection sold at above 21 ETH.
The investor's decision to sell the NFT may have been influenced by the recent market downturn. However, it's also possible that the investor sold the NFT to himself for such a high price back then in a process that's known as wash-trading. It could also have been done in a bid to reduce taxes payable, although this would constitute a punishable offense