Unsellable helps investors turn worthless NFTs into tax deductions
Unsellable provides a way for individuals to sell their non-fungible tokens (NFTs) that have become worthless and claim the loss on their taxes to offset capital gain.
The solution for worthless NFTs
A company named Unsellable has recently gained attention in the cryptocurrency space for its unique service offering. The platform allows individuals to sell their non-fungible tokens (NFTs) that have become worthless, providing a way for them to recover some of their losses.
Unsellable buys these NFTs, which are essentially digital collectibles, and the previous owners can then use them for tax loss harvesting. The platform bills itself as an “Instant Liquidity” service and a “Web3 junk removal.”
Unsellable offers a way to dispose of unwanted NFTs by selling them for a small fee of $0.01. This results in a loss equal to the original purchase price minus $0.01. The service charges an additional fee for this transaction and the user is responsible for paying the gas fee for the blockchain transaction. This loss can be claimed on taxes to offset capital gains and potentially save the seller a significant amount of money.
Concept explained
The concept behind Unsellable has divided opinions within the crypto community, with some expressing skepticism about the company’s activities. Despite this, the platform has seen a significant amount of activity since its launch. According to Etherscan data, Unsellable currently holds over 15,000 NFTs in its collection.
Unsellable specializes in purchasing derivative NFTs, which are collections based on other popular projects but are often of lower quality. Examples of these types of NFTs in the Unsellable Collection include Lost Nouns, a derivative of Nouns, and Anatomy Science Ape Club, a derivative of BAYC.
In addition to buying individual NFTs, the platform also allows users to sell their unwanted NFTs in bulk. One collector was able to sell dozens of NFTs from the GoopGirls collection, among others, in a single transaction for a total of 0.05 ETH (about $65) plus gas fees.
One of the most valuable non-fungible tokens (NFTs) in the Unsellable Collection on OpenSea is a skeleton-themed PFP called Army of the Dead #78. This NFT was sold for over 3.6 wrapped ether (wETH) in January 2022, which was equivalent to around $12,000 at the time.
Another use case in a fast-growing industry
The use of NFTs has exploded in popularity in recent years, with many people investing in these digital assets. However, some NFTs have ended up becoming worthless, leading to investors seeking out ways to recoup their losses.
Unsellable provides a solution for these individuals, allowing them to sell their NFTs and potentially offset some of their financial losses. It remains to be seen whether the platform will continue to see success in the future, but for now, it appears to be a valuable resource for those looking to sell their unwanted NFTs.
