Tax-Loss Harvesting Services Gain Popularity Among NFT Holders

According to Blockworks, tax-loss harvesting services for non-fungible token (NFT) holders have seen a swift uptick in usage recently. Amid a downturn in the NFT market, platforms such as Unsellable, Harvest.art, NFT Loss Harvestooor, The Junkyard, and Sol Incinerator have emerged to help collectors reduce their overall capital gains tax liability by purchasing NFTs that have lost value and are difficult to sell. Unsellable, for example, charges around $2 in ether plus the price of gas to acquire a collector's NFTs. As of Wednesday, the platform was purchasing 1,000 NFTs on average over the prior few days and was approaching 10,000 purchases in December, according to co-founder Skyler Hallgren. These tax-loss harvesting platforms cater to a new generation of web3 investors who are just starting to learn how to be tax-savvy with their crypto and NFT investments. While some platforms charge a small fee for their services, others like NFT Loss Harvestooor offer them for free. The Junkyard rewards users for offloading their NFTs with soon-to-be-deployed Junkcoin tokens, and Sol Incinerator allows collectors to burn their Solana-based NFTs in exchange for small amounts of solana. It is essential for individuals to perform their own due diligence before connecting to any blockchain service or platform.