Musician Jonathan Mann experienced substantial financial challenges after his $3 million in NFT sales were impacted by the cryptocurrency market downturn and complex tax laws. In January 2022, Mann sold over 3,700 songs as NFTs at $800 each, generating approximately $3 million in Ethereum (ETH). However, he delayed converting these earnings, resulting in a significant tax liability when ETH’s value plummeted. The U.S. Internal Revenue Service imposed a tax obligation of $1.095 million on Mann’s entire income. To alleviate the financial burden, Mann used his Ethereum as collateral for loans through Aave but faced losses following the Terra ecosystem collapse, resulting in a total loss of 300 ETH. He ultimately had to sell an Autoglyph NFT, which he acquired earlier for $1.1 million, to cover this tax bill. Despite these setbacks, Mann continues to create and release new NFT songs daily, aiming to regain his financial footing. #ETH #NFT