Musician describes his Ethereum crash, IRS troubles in song
Musician left $1M in owed after selling songs for ETH
American musician Jonathan Mann, the creator of the “Song A Day” project, shared a cautionary tale about how he sold the entire catalog of his songs—written over 10 years—for $3 million in ETH, only to end up owing the IRS $1 million due to the token’s price collapse. Despite these setbacks, Mann continues writing and selling his music as NFTs.
According to Cointelegraph, Mann documented the ordeal in a song, posted on X, describing how he sold 3,700 tracks at $800 each on January 1, 2022, netting approximately $3 million in ETH. Expecting the asset to rise further, Mann and his wife didn’t convert it into fiat.
The market crash and a knock from the IRS
The situation changed drastically when ETH fell to $1,000 in June 2022 during the Terra ecosystem crash. Then came the IRS, demanding $1.1 million in taxes based on the ETH value at the time of the NFT sales—not its later depreciated price. This left Mann unable to cover the tax bill, let alone secure any profit.
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In his song, Mann details the financial nightmare, including the tax debt, a loan to avoid default, and fears of losing his home and his wife’s retirement fund.
He was ultimately saved by selling a rare Autoglyph NFT he had bought early in his crypto journey—for exactly $1.1 million, which covered the debt.
Interestingly, Mann continues his “Song A Day” project and remains optimistic about earning another $3 million through NFT music.
As we wrote, Ethereum price gains momentum as institutions shift focus from Bitcoin
