Investors convert ‘totally worthless’ NFTs into tax write-offs

Investors convert ‘totally worthless’ NFTs into tax write-offs

A new service offers a way to offset losses from NFTs during a grim crypto winter that saw demand for digital collectibles vanish

Just a year ago, Washington DC’s Hirshhorn art museum – the capital’s preeminent contemporary art museum – was asking whether non-fungible tokens (NFTs) were “fad or the future of art”. Twelve months on, it looks like “tax write-off” might have been the right answer.

This year was not just the year that cryptocurrency values were burned by investor fears, rising interest rates, inflation and scandals, it was the year that crypto’s cartoonish art cousin the NFT – an electronic identifier confirming a digital collectible is real – collided with reality.

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