Are you grappling with the reality of your so-called “worthless NFTs”? If so, an innovative startup may offer a lifeline. The recent bear market has left a significant number of NFTs severely devalued, with 90-95% of NFT collections unlikely to regain their pre-bear market valuations, according to Pedro Herrera, DappRadar’s Head of Research. This has left many NFT owners with a pressing question: what to do with their now valueless digital assets? One potential answer lies in a unique approach to tax savings.
Unsellable: A Startup Offering a Solution to Worthless NFTs
Unsellable, a startup launched last year, provides a unique solution to the problem of worthless NFTs. The company buys illiquid NFTs from disheartened holders for a mere penny, enabling the original owners to claim tax write-offs. Unsellable asserts that it has already aided customers in declaring a combined $4.2 million in realized losses.
Unsellable’s co-founder, Skyler Hallgren, believes this is just the beginning. He suggests that the total unrealized losses from the 2021 NFT bubble could amount to a staggering billion dollars. Unsellable, he asserts, can help unlock these losses.
How Unsellable Works
Unsellable’s average user has reportedly been able to write off $4,200 in losses on NFTs that have depreciated significantly. In one case, a user claimed to have written off nearly $58,000 in NFT losses with the help of Unsellable.
The company does not deal with “blue chip” NFT collections that have maintained their value, such as Bored Ape Yacht Club, CryptoPunks, and Pudgy Penguins. Instead, Unsellable has become a repository for failed NFT projects, abandoned collections, and imitation projects. To date, the company has amassed about 26,000 NFTs.
The Future of Unsellable and Worthless NFTs
Despite the name, Unsellable has managed to sell around 300 of the NFTs it has acquired, generally for modest amounts ranging from $30 to $200. However, the company’s primary goal is not to flip NFTs, but to create the world’s largest collection of them.
Looking ahead, Hallgren envisions selling the platform to a crypto tax firm or crypto tax software company. He also notes that several parties have expressed interest in buying Unsellable’s vast collection of NFTs. Some hope that one of the seemingly worthless JPEGs might eventually increase in value, while others view the collection as a historical artifact reflecting the speculative excess of the NFT market at its peak.
As you navigate the complex world of NFTs, consider using tools like cryptoview.io to track your portfolio and stay informed about market trends. It’s also crucial to understand the tax implications of your investments, and innovative solutions like Unsellable can help.
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